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HomeMy WebLinkAboutItem 05 - Financial SoftwareMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JUNE 4, 2024 SUBJECT: APPROVAL OF CONTRACT TO IMPLEMENT CLOUD FINANCIAL SYSTEM RECOMMENDATION: City Council to consider the purchase of services to implement a cloud financial system from OpenGov/Vertosoft. FUNDING SOURCE: Funds are available in the Capital Projects Fund in an amount estimated to be $602,410.67. BACKGROUND: The City's on -premise financial system (STW) will no longer be supported by OpenGov and will soon not meet IT security standards. This item will replace the existing on -premise (IT managed) STW server with OpenGov's cloud financial suite which will improve usability and provide enhanced features. The proposed services to be procured include: Cloud Financials, Budget & Planning, Requisitions/Purchase Orders, and Utility Billing. Upon approval, implementation is planned to begin in early June followed by a series of vendor -led processes to validate, configure, train, and launch each module. It's expected that the core financials will be live in January 2025 followed by budget and planning in April 2025. Utility Billing is planned to be live in June 2025. Custom Professional Services to implement the new cloud system total $602,410.67. Year one annual subscription fee totals $188,932.30. This purchase will be made in accordance with an existing interlocal agreement with The Texas Department of Information Resources (DIR) as allowed by Texas Local Government Code, Chapter 271 and Texas Government Code, Chapter 791. Bids were taken by the Cooperative and a contract was awarded to Vertosoft. The Fiscal Services Department, IT staff, and Purchasing staff have reviewed the contract for departmental specification compliance and pricing, and determined that the contract would provide the best product and pricing for meeting the needs of the City.