Loading...
20 - Financial Software UpgradeItem No. 20 Memorandum TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: FINANCIAL SOFTWARE UPGRADE DATE: June 26, 2023 BACKGROUND: The City's current financial software is located on a server in the West Annex Building. The software vendor is STW, Inc. which the City has used for many years. STW provides periodic software updates but the server is maintained by the City's IT department. A few years ago, STW, Inc. was purchased by Open Gov, Inc. which utilizes cloud based software and has begun to phase out server -based. STATUS OF ISSUE: The City has two major problems with the current software and hardware arrangement. First, the server currently in use is aged, failing, and cannot continue to function in the long term. Second, Open Gov, Inc. is phasing out all of STW, Inc.'s server based software and replacing it with cloud based software. This amounts to a technological upgrade for the software as cloud based software is much more flexible than server based software allowing users to develop their own custom reports in addition to the standard reports already developed. An additional advantage to cloud based software is that updates and maintenance is provided by the software vendor on a continuous basis. The City's IT staff will be freed from all responsibilities related to the software and hardware. In many ways the Open Gov software will look similar on screen to the STW software thus reducing the learning curve for City employees. However, the Open Gov software offers some new features such as workforce planning, collaborative online budget book, performance reporting, and capital planning. Critical financial modules such as general ledger, accounts payable, cash receipts, fixed assets, and utility billing will be available in the cloud based format. Open Gov does not currently have a payroll module, but will maintain our current payroll software for the near future. The City may decide at a later time to contract with a different vendor for payroll if Open Gov does not develop its own cloud based payroll module. Another advantage of cloud based software over server based software is that security in the cloud will be much stronger than what we currently have on the server. The primary purpose for pursing this change now is should our local server fail, the City's general ledger, accounts payable, cash receipts, and utility billing would cease operations, effectively stopping all municipal operations, until restored. This is in many respects the backbone of our operations and must be maintained and protected from failure. BUDGET: This software upgrade is not in the current budget. However, we are trying to take advantage of an opening in Open Gov's implementation schedule to make this upgrade. Given our current server's degrading condition, and the fact that the transition to the new software will take six to nine months, we feel that the implementation should be done as soon as possible. We believe that we will have surplus general fund revenue this year to cover the cost of this project by amending the City's current budget. The City plans to go through Buy Board, one of the state wide purchasing cooperatives, to obtain the software. Buy Board has met all of the State's legal requirements for competitive bidding. We believe the price represents the best possible deal for the City. The software package has annual lease cost of $80,125, which will be added annually to the budget, and the implementation cost is $174,150 will be a one-time upfront expense. RECOMMENDATION: There are two possible options: 1. Authorize the City Manager and Finance Director to pursue the buy board competitive bidding price with OpenGov in the above stated amounts and proceed with the project as described in this memo. 2. Request additional information regarding this issue and/or reject the buy board price, directing city staff to alternative solutions. City Staff recommends option 1 to address its current situation. David Ball City of Paris, TX Vertosoft LLC T 1602 Village Market Blvd, Suite 215 Greyson Path Leesburg, VA 20175 gpath@paristexas.gov DUNS# 080431574 Cage Code: 7QV38 Federal Tax ID: 81-3911287 Business Size: Small Business sales@vertosoft.com Fax: 571-291-4119 www.vertosoft.com 703-568-4703 8795 May 31, 2023 June 30, 2023 at 4:00 PM OpenGov Sales Quote for City of Paris, TX - Buy Board BuyBoard Contract Number: 692-23 Payment Terms - Net 30 Billing Frequency: Annually in Advance Delivery Type: Electronic OG -SW DC-B4060M-AR-3Y 75,625.00 Financials & Budgeting - Year 1 - Accounts Payable, Accounts Receivable, x 1 Workforce Planning, Transparency, Bank Reconciliation, Cash Receipts, Community 75,625.00 Feedback, Dashboards, Fixed Assets, General Ledger, Online Budget Book, Open Town Hall, Operating & Capital Budgeting, Purchase Card, Purchasing, Reporting & Analytics, Story Builder, Utility Billing Period of Performance: 05/09/2023 - 05/08/2024 OG -SW DO-B4060M-AR-3Y 4,500.00 Payroll - Year 1 x 1 Period of Performance: 05/09/2023 - 05/08/2024 4,500.00 OG-PSBG-ALTR-OT-DY 215.00 Professional Services Deployment - Prepaid - Year 1 x810 Start Date: 05/09/2023 174,150.00 Subtotal 254,275.00 OG -SW DC-B406OM-AR-3Y 79,406.25 Financials & Budgeting - Year 2 - Accounts Payable, Accounts Receivable, X 1 Workforce Planning, Transparency, Bank Reconciliation, Cash Receipts, Community 79,406.25 Feedback, Dashboards, Fixed Assets, General Ledger, Online Budget Book, Open Town Hall, Operating & Capital Budgeting, Purchase Card, Purchasing, Reporting & Analytics, Story Builder, Utility Billing Period of Performance: 05/09/2024 - 05/08/2025 OG-SWDO-B406OM-AR-3Y 4,725.00 Payroll - Year 2 X 1 Period of Performance: 05/09/2024 - 05/08/2025 4,725.00 OG-PSBG-ALTR-OT-OY 215.00 Professional Services Deployment - Prepaid - Year 2 x 24 Start Date: 05/09/2024 5,160.00 Subtotal 89,291.25 OG-SWDC-B406OM-AR-3Y 83,376.56 Financials & Budgeting - Year 3 - Accounts Payable, Accounts Receivable, x 1 Workforce Planning, Transparency, Bank Reconciliation, Cash Receipts, Community 83,376.56 Feedback, Dashboards, Fixed Assets, General Ledger, Online Budget Book, Open Town Hall, Operating & Capital Budgeting, Purchase Card, Purchasing, Reporting & Analytics, Story Builder, Utility Billing Period of Performance: 05/09/2025 - 05/08/2026 OG-SWDO-B406OM-AR-3Y 4,961.25 Payroll - Year 3 X 1 Period of Performance: 05/09/2025 - 05/08/2026 4,961.25 OG-PSBG-ALTR-OT-OY 215.00 Professional Services Deployment - Prepaid - Year 3 x 24 Start Date: 05/09/2025 5,160.00 Subtotal 93,497.81 OG-SWDC-B406OM-AR-3Y 87,183.13 Financials & Budgeting - Year 4 - Accounts Payable, Accounts Receivable, x 1 Workforce Planning, Transparency, Bank Reconciliation, Cash Receipts, Community 87,183.13 Feedback, Dashboards, Fixed Assets, General Ledger, Online Budget Book, Open Town Hall, Operating & Capital Budgeting, Purchase Card, Purchasing, Reporting & Analytics, Story Builder, Utility Billing Period of Performance: 05/09/2026 - 05/08/2027 OG -SW DO-B406OM-AR-3Y 5,209.31 Payroll - Year 4 X 1 5,209.31 Period of Performance: 05/09/2026 - 05/08/2027 Subtotal 92,392.44 OG -SW DC-B4060M-AR-3Y 91,922.66 Financials & Budgeting - Year 5 - Accounts Payable, Accounts Receivable, X 1 Workforce Planning, Transparency, Bank Reconciliation, Cash Receipts, Community 91,922.66 Feedback, Dashboards, Fixed Assets, General Ledger, Online Budget Book, Open Town Hall, Operating & Capital Budgeting, Purchase Card, Purchasing, Reporting & Analytics, Story Builder, Utility Billing Period of Performance: 05/09/2027 - 05/08/2028 OG-SWDO-B4060M-AR-3Y 5,469.78 Payroll - Year 5 X 1 Period of Performance: 05/09/2027 - 05/08/2028 5,469.78 Total $626,848.94 Terms and Conditions Annual invoices will be delivered by the start of each consecutive annual period. Payment of invoices shall be annually in advance. Customer's use of the OpenGov Services is pursuant to the the Terms and Conditions - Software Service Agreement (Purchase through an OpenGov Authorized Reseller) set forth at https://opengov.com/ter ms -of -service. Any Professional Services shall be performed pursuant to the attached Statement of Work.