DATE: January 17, 2023
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with OpenGov, Inc. for Financial Reporting, Budgeting and Planning, and Procurement Solution Services for a Period of Three-Years, with Two (2) One-Year Contract Extensions
RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to execute a contract amendment with OpenGov, Inc. to provide reporting and analysis, budget and planning, procurement solutions, and premium support for a period of three years, with two (2) one-year contract extension options.
SUMMARY AND BACKGROUND
OpenGov, Inc. (OpenGov) is a web application that allows governments to easily create and share internal operational reports, combining financial and nonfinancial data from numerous sources to develop and monitor the annual budget, keep residents, staff and Council informed, and streamline workflows from the budgeting process to long-term financial planning. The City acquired the OpenGov Reporting & Analysis product in 2017 and launched a transparency portal to provide easily accessible information about the City’s budget. In 2018, the City acquired Budget Builder, Budget Book, Personnel Cost Forecasting, and MUNIS Integration products (Budget and Planning Solution). The contract amendment will extend the City’s agreement with OpenGov for a period of three years, with two one-year extensions, and reflects the addition of the procurement module.
DISCUSSION
Staff has worked diligently over the past several years to develop an efficient budgeting process. The time and effort spent in developing the budget is extensive. The expanded implementation of the following OpenGov products has allowed for an increase in financial transparency and streamlining processes. The amendment will include all services that the City currently utilizes, and will expand the scope of the product to include the implement the procurement solution. The procurement solution will further streamline operational processes for both internal and external facing customers. The following provides an overview of each service and the positive benefits it provides to financial processes and operations.
OpenGov Reporting and Analysis: City staff can create an unlimited number of reports, and choose which reports are made public, and build private or shared reports with internal staff. The Reporting and Analysis platform includes monthly budget and actual reporting. OpenGov supports the presentation of the non-financial, performance data collected by the data. The City purchased this product in 2017.
OpenGov Budgeting & Planning: The Budgeting and Planning product includes a suite of solutions, including budget builder, budget book, personnel forecasting, and MUNIS integration. Budgeting and Planning assists with building collaborative budgets and engages all departments within the City. OpenGov worked with staff to build department budgets and customize and organize the City’s chart of accounts as needed. Working and final versions of the budget can easily be exported for further analysis and collaboration in the OpenGov intelligence reporting module. Both the Operating Budget and the Capital Improvement Program Budget are developed and modified within this software.
The Munis integration suite allows for OpenGov to synchronize directly with the City’s existing enterprise planning MUNIS software, which contains all financial reporting information, project data, and other data used for monthly reporting. The ability to directly synchronize multiple data sources to a single platform saves a considerable amount of staff time. The City purchased this product in 2018.
OpenGov Procurement Solution (New): This solution is a beginning-to-end workflow automation, which encourages collaboration and creates efficient processes for developing and managing solicitations and contracts. The use of OpenGov procurement solution will centralize solicitations and the procurement process from beginning to end, including the development of standard templates for contract bids, request for proposals/quotes, a secured submission portal, evaluation and collaboration capabilities, award notification, and contract management. The complete workflow will streamline the City’s procurement process for both internal and external customers. This solution will improve efficiency, collaboration, and enhance supplier/contract engagement.
FISCAL IMPACT
There are sufficient funds available in the FY 2023 operating budget to cover the cost of the amended contract with OpenGov, including the enhancement in scope of product to include the implementation of the Procurement solution.
The table below provides a summary of costs per fiscal year as outline in the contract amendment with OpenGov.
FY 2023**
FY 2024
FY 2025
FY 2026
FY 2027
One-Time Implementation of Procurement Solution
$20,910.00
Annual Fee (Year 1)
$121,200.00
Annual Fee (Year 2)
$122,450.00
Annual Fee (Year 3)
$123,762.50
Annual Fee (Year 4)*
$125,140.63
Annual Fee (Year 5)*
$126,587.66
$142,110.00
$122,450.00
$123,762.50
$125,140.63
$126,587.66
*Optional two (2) one-year contract extensions
**No additional appropriation necessary in FY 2023, costs associated will be covered by previously budgeted amounts The annual contract budget appropriation for the OpenGov contract will be included in the operating budget for each subsequent fiscal year as outlined in the contract.
STRATEGIC ROADMAP
This agenda item is a routine operational item and does not relate to any of the six priorities outlined in the Council’s Strategic Roadmap.
NEXT STEPS
If the Council adopts the attached resolution, the City Manager will execute the contract amendment in a form to be approved by the City Attorney.
Prepared by: Nicole Gonzales, Director Finance
Recommended by: Nicole Gonzales, Director Finance
Approved by:
________________________________________________
Kelly McAdoo, City Manager