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Home My WebLink About11 PURCH SOFTWARE FROM SPRINGBROOK 09-01-09_, • T T ~ Agenda Item 11 \~~ AGENDA RE O Reviewed: ,~~ , City Manager Finance Director MEETING DATE: SEPTEMBER 1, 2009 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PAMELA ARENDS-KING, FINANCE DIRECTOR SUBJECT: ADDENDUM TO SPRINGBROOK AGREEMENT FOR PURCHASE OF ADDITIONAL SOFTWARE MODULES SUMMARY: Replace the existing financial software with Springbrook's financial software and purchase Springbrook's Work Order software module. RECOMMENDATION: It is recommended that the City Council: 1. Approve the addendum to the Springbrook software license agreement for acquisition of additional software modules and approve the addendum to the Springbrook software maintenance agreement. 2. Authorize a supplemental appropriation of $71,100 from unappropriated reserves of the General Fund to the Information Technology Division's computer software account. FISCAL IMPACT: Springbrook is not charging licensing fees for all the modules the City currently has with existing software. The only cost to the City for the additional modules is the annual maintenance fee. Additional licensing for the Progress operating system, the purchase of the Work Order module including training, project management, business practice system analysis and travel costs $145,700. Of this amount $71,100 will be funded from the supplemental appropriation. Currently, the City's existing financial software requires two full time information technology employees for support; annual maintenance fees; and additional costs for any changes to the software. The total annual cost to maintain the current system averages $324,000. Springbrook's annual maintenance cost for financial software that will be implemented is up to $108,000. The actual maintenance costs will be charged as modules are installed. Springbrook software does not require two full time information technology employees for support. Total annual cost for the employees is $206,805. Without the need to support the current software, the employees will be able to work on outstanding information technology issues/projects that have not been completed due to the shortage of resources and/or are handled by consultants at an average annual cost of $100,000 to $125,000. Addendum to Springbrook Agreement for Purchase of Additional Software Modules September 1, 2009 Page 2 The implementation of Springbrook will result in the elimination of the annual consultant cost of $100,000 to $125,000. BACKGROUND: The City has been using the existing financial software for over ten years. At the time of its acquisition the product was noted as being one of the best products on the market. Unfortunately, it is not user friendly and requires either the user and/or the support of information technology (IT) staff to program and/or write reports in order to get any information out of the system. This requires extensive training for the IT employees because the information derived from the current software is only as good as the employee understands the mechanics of the program. The upgrades to the current system have not been intuitive and require more programming from the IT employees and causing employees to complete work on Excel spreadsheets or manually that would normally be handled by the software. The City has been using the Springbrook utility billing and cashiering modules since 1999 with little or no support from IT staff, and the system has proven to be reliable and intuitive. The Springbrook modules the City will be implementing do not require IT employee support to get information and/or complete the same functions as in the current software. It is intuitive and user friendly; therefore, it will eliminate the need for employees to create Excel spreadsheets or do extra work manually. Respectfully submitted, Pamela Aren s-King Finance Director Attachments: Addendum A to the Springbrook Software License Agreement Addendum A to the Springbrook Software Maintenance Agreement ~"~-+ ~ `~ Addendum A to SOFTWARE LICENSE AGREEMENT Schedule of Fees For Financial Management Solutions Addendum A is a checklist showing additional applications Licensee (C:I I ~ ~)F I"i_tiT~~) has purchased and the amount charged for each, including the cost for implementation (training, implementation management and data conversion) services. By signing the Addendum, Licensee and Licensor (Springbrook Software) are agreeing to add these additional applications under the umbrella of the original license agreement executed between Licensee and Licensor, and to the prices contained herein. Software• Price Finance Suite NC Purchase Orders NC Payroll NC Human Resources NC Project Management NC Fixed Assets NC Accounts Receivable NC Park & Recreation Interface NC Positive Pay Interface NC Licenses & Misc. Permits NC Building Permits NC Work Order Management $ 25,000 (40) Progress Enterprise Users $ 39,I00 (4) Progress Access Agents (400 casual users 2/hrs per $ 7,000 week/each) Sub-Total: $ 7I,I00 Services Data Conversion (client must provide data in readable $ No charge (see page 3) format) Training & Project Management $ 30,000 WO BPS ($ I50/hr)-not to exceed $ 9>600 Estimated Travel Expenses $ 35,000 Sub-Total: $ 74,600 TOTAL PROJECT COST: I I1 SW Pilch Avenue tiuite 2yl)0 l'urcland, Oregon ~>7,3114 $ I45,700 (does not include maintenance) 5113.R'_ll??~10 ~, SU3.820.4500 www.Spnnghrool:Sokware.ann ~.~`~~ rlxl broo .~ ~ ~.._. Conversion Estimate for Tustin CA An estimated cost of your data conversion has been provided in this quote. This estimate is for up to two separate data pulls provided by your staff. We will need to review an actual sample of your data to confirm this estimate. Certain factors may cause the cost to exceed the amount quoted. See section below titled "Not Included in Estimate". There are a variety of factors that can influence the cost of a conversion and a variety of items that are not included in the standard cost estimate for your conversion. For example, your estimate will not include the following: • Removal of data from your existing system • Consulting on removal of data from your existing system • Changes or modifications requested after the first conversion and different from the specifications we originally received. • Changes in the format we receive the data in after the first conversion • More than two conversions per application In addition, the following items can increase the cost of your conversion: • Mixed formats of data (a file containing tab delimited or comma delimited format. • Problems with data integrity • Data manipulation not for the purpose of the conversion, but for the purpose of supplying you with information you did not previously have access to. • Changes in the file format after the first conversion • Changes requested to the data after the second conversion • No file or incorrect file layouts No cost of fees in excess of those set forth in the Schedule of Fees will be incurred by the Licensee without prior acceptance of Licensee as indicated on a signed work order ~F:~,~ a ;:~,1.~ r~~ i.i~ ~r~~~;f~..u_~i:._i.r,-Tr~~ r SCHEDULE OF PAYMENT TERMS: Springbrook License Fees: I00% ($25,000 due at Addendum signing Progress Fees: I00% ($46,I00) due at Addendum signing Training: 50% ($ I2,000) due at Addendum signing 50% ($ I2,000) upon completion of training Implementation: 50% ($3,000 due at Addendum signing; 50% ($3,000 due at project completion (when client is live BPS for WO: Due upon completion ($ I50/hr~ Due with Addendum: $ 86,I00 Travel fees will apply for all onsite training, will be due as incurred, and are defined as follows: • Travel time one-way and travel expenses (mileage, airfare, lodging, per diem for meals, etc) are not included in the fees quoted. These expenses will be bid when the training date is scheduled and will be billed as actual. LICENSOR Name: Char Baumgardner LICENSEE Name: Signature: Title: Contract Administrator Signature: Title: Date: , 2009 Date: .2009 i ~; ~1:~;1 ~~ ;;~1 :', f~~ LIB {~`,E::~.~ ~b:CI_:^:1C\T ~ ire ~,(I utinn, t .1 ,~~Springbrook Addendum A to SOFTWARE MAINTENANCE AGREEMENT Schedule of Fees For Financial Management Solutions Addendum A is a checklist showing additional applications Licensee (c:I 1 Z' CAF ~1-L'STI~) has purchased and the associated fees for annual maintenance. By signing the Addendum, Licensee and Licensor (Springbrook Software are agreeing to add these additional applications under the umbrella of the original maintenance agreement executed between Licensee and Licensor and to the prices contained herein. Software• Finance Suite Purchase Orders Payroll Human Resources Project Management Fixed Assets Accounts Receivable Park & Recreation Interface Positive Pay Interface Licenses & Misc. Permits Building Permits Work Order Management (40) Progress Enterprise Users (4) Progress Access Agents (400 casual users 2/hrs per week/each Total: First-Year Maintenance# $ 27,500 5,500 8,800 8,800 5,500 6,600 5,500 5,500 2,250 6,600 6,600 8,360 I I,750 2, I 00 $I08,360 #Note: First-year maintenance will be pro-rated from start of implementation through the end of the first fiscal year (June 30, 20I0). Full payment for subsequent years will be due starting July, 20I0 and each July thereafter. Annual fee will not increase before July I, 20I I. Annual increase thereafter will not exceed 5%. ~~ 3'.` ll l SW Pihh Avenue Suite 29011 Portland. Oregon 97?.04 ~ ~ ~ St13.ti2t1.~20t1 n ,5U3.8~).~451)0 www tipringbrook_tio&ware.cum T, r1n ~roo . ,~~~ t Annual Maintenance Costs First-Year Maintenance Fees: I00% pro-rated from start of training to end of licensee's first fiscal year end (based on $ I00,000 for first full year. Note: 25% annual maintenance will apply on client enhancements to Software LICENSOR LICENSEE Name: Char Baumgardner Name: \i a .E\I 11 ~ ~,1 ; I ~~ LIB EASE :AtiR GLi~1Li~ 1 ~ iic ~~f l ir:un. ~ :a Signature: Signature: Title: Contract Administrator Title: Date: , 2009 Date: , 2009 t `l ~F~~.I ~~ ~~s9 .~ I ~~ I I~ I'V ~F:.1C1<f l ?:IGi\ C a v ~,f~ I loon. ~ :A