08-25-14 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR Al Rolek MEETING DATE August 25, 2014 TOPIC Consider a motion authorizing Staff to Execute a Contract for Financial Software Cloud Subscription with Springbrook Software Background At the November 12, 2013 Council meeting staff presented a proposal to upgrade the financial software system that has been in use since 1999. The current software is no longer being updated and is in the process of being phased out. Staff outlined the process followed in the software selection process, with Tyler Technologies and Springbrook as finalists, and presented the proposal for Tyler Technologies Incode Version X to the City Council as the best solution for upgrading our financial software systems in a Cloud hosted environment. The City Council approved a motion for staff to negotiate and execute a contract with Tyler. Terms for a contract with Tyler were negotiated over the next several months. A number of major issues arose during those discussions which could potentially prove to be detrimental to the City over the term of the contract. Some of the issues causing concern were heavy penalties for early cancellation, issues with the Statement of Work and determining responsible parties throughout the implementation process, limiting travel and professional services costs on a not -to -exceed basis, creating payment milestones and other important issues. We were able to make progress on a number of large issues, but as talks progressed we found that issues we had discussed and agreed to remove from the contract documents had been re-inserted by Tyler. Additionally, staff could make no progress to remove detrimental language from the contract. Tyler gave us their 'best and final offer' and was unwilling to discuss further revisions. There were still a number of issues remaining which were not acceptable. After months of negotiation and attempts to find solutions, City Administrator Karlson and I decided to suspend negotiations with Tyler at the end of May and begin talks with Springbrook, a very close second choice, to determine whether terms could be reached on a software agreement. After negotiating with representatives from Springbrook, staff was able to come to an acceptable agreement for a cloud -based software solution. The proposal is for a five year term at a cost of $25,471 per year, plus $2,880 per year for a web portal providing resident access to utility billing information and web payment options. The Springbrook proposal results in annual subscription costs that are $4,600 per year less than the Tyler proposal, and caps implementation, conversion and training costs at a not -to - exceed amount of $61,090. Funding for the implementation has been set aside in a capital replacement fund. The subscription fees will be included in the annual operating budget. If the Council approves the software upgrade, implementation will begin in September. We expect full implementation of the system is expected by April/May, 2015. Recommendation