Title
Consider a memorandum/resolution for renewal of software maintenance and high-availability services of Naviline software, provided by Central Square, for three years, in an amount of $620,123.
Body
DATE: May 21, 2024
TO: Kent Cagle, City Manager
FROM: Willie Resto, Executive Director of Information Technology
SUBJECT: Approval of Central Square Software Maintenance Agreement
BACKGROUND AND FINDINGS:
The City utilizes Central Square’s Naviline software for its current Financial, Human Resources, Payroll, and Utility Billing modules and has reached its end of life. While the city transitions to its new ERP, maintenance and support on the existing software needs to be maintained. The annual software maintenance covers extended software support, upgrades, and software releases until the new modules are configured in OpenGov and UKG. As new modules are completed, the annual maintenance cost is expected to decrease, and we can choose not to renew when the ERP is implemented. The Information Technology department expects the OpenGov and UKG modules to be completed as follows:
• Financial phase I - September 2024
• Financial phase II - January 2025
• HR/Payroll - February 2025
Utility Collections is currently going through the RFP process and we anticipate it to be complete by October 2025.
Central Square also provides high-availability services to our environment, allowing us to operate with little to no downtime in case of a disaster.
The initial term of this agreement is for three years which will renew for successive one year terms unless earlier terminated or non-renewed.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
The software support and maintenance agreement is only available from CentralSquare Technologies, LLC.; therefore, the purchase is exempt from the competitive bidding statutes in accordance with the Texas Local Government Code, Section 252.022(a) 7 as sole-source procurement.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The amount of the expenditure for the current fiscal year is $196,314. Renewal in FY 2025 and 2026 will be $206,792 and $217,017 respectively.
Is this a one-time or recurring revenue/expenditure?
This is a recurring expenditure.
Is this revenue/expenditure budgeted?
Yes, funds are available in the Information Technology Fund in account 627-2705-419.61-40.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City staff recommends that the City Council approve the renewal of a maintenance agreement with Central Square, for three years, in an amount of $620,123, and that the City Manager or designee be expressly authorized to execute any and all change orders within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Purchasing
Accounting
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement and Quote
Contract Verification
Certificate of Interested Parties
Presentation