Camarillo City Council
AGENDA REPORT
Date: June 26, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Mitchell Cameron, Director of Administrative Services/Chief innovation Officer
Subject: Software License Renewal with Superion, LLC a CentralSquare Technologies, LLC Company
BACKGROUND
On May 26, 2021, the City and Superion, LLC a CentralSquare Technologies, LLC Company (Superion) entered into a one-year agreement (CC Agreement 2021-117) effective July 1, 2021. This Agreement automatically renews for additional successive one (1) year terms unless terminated earlier pursuant to any of the Agreement’s provisions. Subsequent annual renewal fees are subject to change and shall not increase by more than 5% annually. Fiscal Year (FY) 2022/23 amendment 2021-117A was approved by City Council June 22, 2022; FY 2023/24 amendment 2021-117B was approved by City Council on June 28, 2023, for $177,428.15.
Superion provides a suite of proprietary software applications, along with comprehensive maintenance, support, migration, installation, and other professional services. Our city currently relies on 30 of these applications, which are integral to our operations. In FY 2023/24, we further enhanced our capabilities by adding the Time & Attendance Interface Module.
DISCUSSION
Enterprise Resource Planning (ERP) systems are complex and once implemented are used by agencies to support core city administrative functions. Transitioning away from ERP systems is challenging due to the complexity of integrations with other systems. The City’s ERP purchased through Superion, is used to support critical functions such as financial management, human resources, and other administrative processes. Replacing or significantly altering this system would involve substantial time, cost, and resource investment, along with potential disruptions to City services. The City has successfully used this system for multiple year and transitions are best considered under a Technology Modernization Strategic plan that will be developed next fiscal year.
Annual Software License Renewal CentralSquare
June 26, 2024
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The agreement with Superion automatically renews each year with a projected annual 5% increase. The software renewal cost for FY 2024/25 is $187,578.67 inclusive of taxes.
In order to expeditiously effectuate annual license renewals and costs within the terms of the original agreement of not to exceed 5% annually, it is recommended that in its approval of the upcoming renewal, City Council also authorize the City Manager to execute future amendments or agreements with Superion with a not to exceed annual contingency of 15% for additional modules, licenses and implementation fees. The projection of the next five years shows the annual not to exceed amount for City Mangers authority.
Year Estimated Amount with
5% increase
15% annual
contingency
Not to Exceed
Annual Total
FY 24/25 $187,578.67 $28,136.80 $215,715.47
FY 25/26 $196,957.60 $29,543.64 $226,501.24
FY 26/27 $206,805.48 $31,020.82 $237,826.30
FY 27/28 $217,145.76 $32,571.86 $249,717.62
FY 28/29 $228,003.05 $34,200.46 $262,203.51
FISCAL IMPACT
Funds for the annual software renewals are included in the proposed FY 2024/25 Budget in Information Systems, Administration, Account No. 530-5330-453.32-01.
RECOMMENDATION
1. Find the renewal for proprietary software applications, comprehensive maintenance, support, migration, installation, and other professional services is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3); and
2. Authorize City Manager to execute the 3rd Amendment with Superion, LLC. in the amount of $187,578.67 for FY 2024/25; and
3. Authorize the City Manager to negotiate and execute future agreements and amendments, with Superion, LLC for an annual 5% increase renewal and a not to exceed 15% contingency.
ATTACHMENTS
1. Attachment 1 – 2021-117C (3rd Amendment)
2. Attachment 2 – 2021-117B (2nd Amendment)
3. Attachment 3 – 2021-117A (1st Amendment)
4. Attachment 4 – 2021-117 (original agreement)
Annual Software License Renewal CentralSquare
June 26, 2024
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REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None