TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:October 22, 2024
SUBJECT: Budget Management Software Services Agreement Termination RECOMMENDATION:
1. Terminate Agreement (Contract No. 10619-2014) with Questica, Ltd. (Carson, CA) for budget and financial management software, with an effective agreement termination of October 26, 2024.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time required to prepare the report is included in the Adopted FY 2024-25 General Fund Budget.
BACKGROUND:
The City’s biennial budget process includes the preparation of an Operating Budget and Capital Improvement Program (CIP) Budget. Staff uses budget management software to assist with the preparation of the Operating and CIP budgets and associated documents. City Council approved Contract No. 10619- 2014 with Questica, Ltd. (Questica) for Budget Management Software services at the October 28, 2014, City Council meeting.
The agreement has been amended four times as allowed per the terms of the agreement. The first amendment (May 2018) expanded the scope to add a new “OpenBook” module and related integrations. The second amendment (June 2018) extended the agreement to October 2019. The third amendment (October 2019) increased the not-to-exceed amount (which required City Council approval) and extended the agreement to October 2023. The fourth amendment (October 2023) extended the agreement to October 2025.
Budget Management Software Services Agreement Termination October 22, 2024
The 2014 software version is on a City-hosted server (“on-premises”) and will not be supported on an ongoing basis. Due to the age of the on-premises system, coupled with the contract expiration date, staff determined that a Request for Proposals/Qualifications (RFP/Q) was necessary to implement a budget software system prior to the FY 2025-26 and FY 2026-27 biennial budget process. On February 9, 2024, a formal RFP/Q was published in the Thousand Oaks Acorn newspaper and on the City’s e-procurement website. On July 2, 2024, City Council approved a new agreement through June 30, 2029 (with two, one-year extension options) with Questica (Contract No. 13703-2024). 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 devices, additional dashboard and reporting features, and enhanced integration with the City’s current financial system.
DISCUSSION/ANALYSIS:
Questica Contract No. 10619-2014 is currently set to expire on October 27, 2025.
However, per Section 13 of the agreement (“Termination By City”), the term may end early if the City provides a 30-calendar-day written notification. The 30-day termination notice was issued to Questica on September 26, 2024, with an effective termination date of October 26, 2024, subject to City Council approval.
The two concurrent contracts were initially necessary to ensure access to the on- premises data/platform during the implementation of the new cloud-based platform. Staff has started the software implementation process under Contract #13703-2024 and it has progressed enough that staff has determined Contract #10619-2014 is no longer necessary. Staff recommends approval to terminate Contract #10619-2014 in order to ensure the City no longer has two concurrent agreements and eliminate potential billing complications.
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: Ryan Roman, Budget Officer
FIN-330-20\H:\COMMON\Council\2024\Administration\102224 Budget Software Agreement Termination Staff Report.docx