10-09-2013 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 w w w. c i.l i tt l e -ca n a d a. nm. us MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Sharon Provos, Finance Director DATE: October 2, 2013 RE: Springbrook software upgrade /Payroll processing MAYOR Bill Blesener COUNCIL. Rick Montour John Reis Michael McGraw Shelly Boss ADMINISPRATOR Joel R. Hanson As you are aware, we currently use ADP to process our payroll. We would like to bring this process back in- house. We would also like to upgrade our Financial /Utility billing software, Springbrook, at the same time. There have been 17 releases and several technology updates subsequent to the version of Springbrook we are currently using. The cost associated with the upgrade for consulting, training and data conversion is $15,200, which includes a $2,000 charge for payroll. Springbrook will allow us to spread this cost over a three year period, interest free. (see attached payment schedule) Over the past 3 years, we have paid ADP an average of $6,650 per year to process our payroll. We believe that we can process payroll internally with a minimal increase in staff time because we are already compiling and entering most of the necessary payroll information. Currently, we also manually enter payroll journal entries into our financial software because there isn't an interface between Springbrook and ADP. These entries will be done automatically by the software if we use Springbrook for both payroll and finance. Since payroll is bundled in our current Springbrook software, we are presently paying for annual payroll maintenance. Therefore, our software maintenance fees won't increase if we bring payroll back in- house. Staff is recommending upgrading our current Springbrook software and processing payroll internally.