DATE: June 6, 2023
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
By: Henry Chen, Financial Services Manager/City Treasurer
SUBJECT: PURCHASE ORDER WITH SUPERION LLC FOR FINANCIAL SYSTEM
SOFTWARE MAINTENANCE IN AN AMOUNT NOT TO EXCEED
$54,500
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The City currently utilizes proprietary financial system software developed and solely supported by Superion LLC. Annually, the City renews the maintenance agreement for the support of its software. It is recommended that the City Council approve a one-year purchase order with Superion LLC for maintenance and support of the financial system in the amount not to exceed $54,500.
DISCUSSION
The City has used the Pentamation Plus System since 1999, which supports most of the City’s Finance, Purchasing, and Human Resources operations, including financial reporting, payroll, accounts payable, general ledger, cashier, accounts receivable, and budget preparation. Software support and maintenance fees pay for ongoing product development of regulatory updates such as annual payroll tax tables and other program updates. It also includes phone and web-based support when staff needs help with troubleshooting or guidance on implementing new regulatory updates within the system.
Since purchasing Pentamation in 1999, the annual maintenance costs have typically been increased by an inflationary factor. The annual cost for the period from July 2023 to June 2024 is approximately $54,500, an increase of $5,000 over last year’s price of $49,500. While the increase at 10% is more than in previous years, it is in line with many inflationary adjustments being made by purveyors at this time. In addition, the FY 2023-24 budget includes a proposal to purchase a new software system. Extending the life of the current system is necessary until that new system is ready to be implemented.
Purchase Order with Superion for
Financial System Software Maintenance
June 6, 2023
It is recommended that the City issue a purchase order to Superion LLC for ongoing support and maintenance of the City’s financial system.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
Sufficient funds for the proposed annual maintenance costs are budgeted in the FY 2023-24 Operating Budget.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a project and is, therefore, exempt under the California Environmental Quality Act (“CEQA”); and approve a Purchase Order with Superion LLC for financial system software maintenance for Fiscal Year 2023-24 in an amount not to exceed $54,500.