TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:July 2, 2024
SUBJECT: Budget Management Software Services Agreement
RECOMMENDATION:
1. Approve agreement with Questica, Ltd. (Carson, CA) in substantial conformance with the attached draft for budget management software implementation, subscription, and maintenance services, for a five-year period beginning July 2, 2024, through June 30, 2029, with two (2) one-year options to extend the agreement through June 30, 2031, with a not-to-exceed amount of $211,850, plus extra services of $25,000.
2. Authorize expenditure in FY 2024-25, in the amount of $58,450 as follows:
$35,000 from A/C #001-3410-612-4300 (General Fund – Information Technology, Computer Software Maintenance) and $23,450 from A/C #001-3010-612-5640 (General Fund – Finance Administration, Contracted Services).
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. $22,000 is included in the Adopted FY 2024- 25 General Fund budget and carryover of $36,450 is available from FY 2023-24 Adopted General Fund budget. The additional funds for the remaining contract term will be requested during the upcoming biennial budget process.
BACKGROUND:
The City’s biennial budget process includes the preparation of an Operating Budget and Capital Improvement Program (CIP) Budget, which are both submitted to the California Society of Municipal Finance Officers (CSMFO) and Government Finance Officers Association (GFOA) for their respective budget awards.
Receiving the awards from these associations helps to ensure the City is providing
Budget Management Software Services Agreement
July 2, 2024
comprehensive and transparent budget documents to the public and are looked at favorably by bond rating agencies. Staff uses budget management software to assist with the preparation of the Operating and CIP budgets and associated documents.
The Operating Budget uses a combined program and line-item budget format. This is designed to provide a comprehensive management control and fiscal planning system. This format aims to achieve goals and objectives at the operational levels that are consistent with City Council’s Goals and Top Priorities.
The budgeting process is an incremental one, which starts with the requests from the departments, based on historical information, inflationary increases, and/or department knowledge based on upcoming projects. Requests for appropriations are made at the department level and are compiled and initially reviewed by the Core Budget Team. Once the department review is complete, the Finance Director reviews the budget with the City Manager. The proposed budget is presented to City Council and the public at a study session and the final budget is adopted at a separate public hearing.
The CIP Budget is a separate biennial budget document. Also included in the biennial CIP budget is an additional three years of planned capital projects and associated expenditures/expenses for future planning purposes. The CIP Budget is organized into four main sections: 1) Summaries, 2) Deferred Requirements, 3) CIP Projects by Category, and 4) CIP Projects by Fund. All projects include a City Council Goal, to ensure projects align with the goals of both the City Council and the community.
City Council adopted the FY 2023-24 and FY 2024-25 Operating and CIP Budgets on June 6, 2023. The next biennial budget process will begin in October 2024, with budget adoption tentatively scheduled for June 2025. The City has contracted with Questica for Budget Management Software services since 2014. The current agreement with Questica will expire in October 2025.
DISCUSSION/ANALYSIS:
A standard budget software implementation schedule is typically 10-12 weeks.
Staff determined that a Request for Proposals/Qualifications (RFP/Q) was necessary to implement a software system prior to the FY 2025-26 and FY 2026- 27 biennial budget process. In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, staff solicited a formal RFP/Q for Citywide Budget Management Software. Unlike the low bid requirements of the Public Contract Code, contracts for professional, management, general, or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary for more than a satisfactory performance of the services solicited.
Budget Management Software Services Agreement
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On February 9, 2024, a formal RFP/Q was published in the Thousand Oaks Acorn newspaper and on the City’s e-procurement website. The RFP/Q was emailed to 2,140 users, received 409 views, and had 34 downloads. The RFP/Q closed on March 8, 2024. From this effort, the City received six proposals.
Company City, State
1. ClearGov, Inc. Maynard, MA
2. IGM Technology Corp. Toronto, Ontario, Canada
3. Jedox Boston, MA (US Offices)
4. OpenGov, Ltd. San Francisco, CA
5. Questica, Ltd. Carson, CA, (US Offices)
6. RibbitZ, LLC Fawn Trail Joplin, MO
Finance Department staff evaluated the proposal based on the following criteria:
1. Project understanding and approach in completing the work.
2. Quality, clarity, responsiveness, conformance with the terms of the RFP/Q, and overall impression of proposal.
3. Budget Management System’s ability to serve the City’s needs.
4. Integration with the City’s other software systems.
5. Qualifications and availability of key persons.
6. Number of years of experience the Proposer has in this type of business and with accounts of this size.
7. Demonstrated competence.
8. Relevant Experience (past similar scope and size projects).
9. Reasonableness of completion schedule and hours dedicated to completion of each task.
10. Reasonableness of time schedule responding to as-needed services.
11. Reasonableness of Cost and Compensation submittal.
12. Maximum guaranteed response time for standard and emergency/urgent service calls.
Three proposers were invited for interviews and product demonstrations. Members of the City’s Public Works Department and Finance Department (including Administration, Accounting, and Information Technology staff) participated in the product demonstrations. After two rounds of product demos, reference checks, and careful review, staff determined Questica best met the evaluation criteria for this solicitation and were selected by the City’s review team. Questica possesses a deep understanding of the specifications required by the City and is well- equipped to provide the requested services as noted above. The City has been using Questica’s budget software since 2014. The new version of the budget software is cloud-based and updated with various new features such as the ability to produce a digital version of the budget books, automation to develop print/PDF versions of the budget books, accessibility support and viewing across various Budget Management Software Services Agreement
July 2, 2024
devices, additional dashboard and reporting features, and enhanced integration with the City’s current financial system. These new features will save staff multiple hours by eliminating manual processes, help to ensure compliance with ever- changing budget award criteria, and enable the City finance staff to take a more modern approach to the budget process.
The initial, one-time software implementation cost is $18,450, which includes project management and consulting, cloud migration and accounting integration, and user training. The annual software subscription cost is $35,000, with an annual increase of five percent beginning in year two. Subscription services include hosting services, software maintenance and support, and unlimited user licenses.
Along with the operating and capital budget modules, staff will also have access to Questica’s Budget Book Studio design component. Budget Book Studio is a new enhancement that allows for a digital version of both budget books and automated features when creating the print/PDF documents. A detailed scope of work and fees are included in the draft agreement that will be finalized in substantial conformance with Attachment #1.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $250 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $250 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $250 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $250 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially interested participant is prohibited from contributing more than $250 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
Budget Management Software Services Agreement
July 2, 2024
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Miguel Chavez, Sr. Financial Analyst
Attachments:
Attachment #1 – Draft Agreement with Questica
FIN-330-20\H:\COMMON\Council\2024\Administration\070224 Budget Software Agreement Staff Report.docx