REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with FIS AvantGard LLC (“FIS”), formerly known as SunGard AvantGard LLC, for an Investment Management and Portfolio Accounting Solution
Report
BACKGROUND
In September 2004, the City entered into an agreement with SunGard Treasury Systems Inc. to provide AvantGard/APS2 software for investment management and portfolio accounting purposes.
Staff is seeking approval to transition to FIS’s web/cloud-based software and amend the current agreement by extending the term for two years ending on September 30, 2021, with an option to extend the agreement for an additional two-year term upon mutual agreement by both parties.
DISCUSSION
The Finance Department has the authority and responsibility to deposit and invest all City funds. In order to assist with carrying out its investment and accounting responsibilities, the City has purchased an investment management and portfolio accounting software from FIS. The current software resides on a City server and is maintained by the City’s Information Technology (IT) Department. IT is in the process of transitioning server-based applications to web/cloud-based applications when available and reasonable to do so, as they are usually a more cost-effective solution.
FIS now offers a web-based version of their AvantGard APS2 software (SaaS/WEB), which the City desires to purchase. The SaaS/WEB solution offers the following advantages:
• No software or database to maintain
• Software upgrades are seamless with no City involvement required
• No City server required
• Increased reliability
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Furthermore, the action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The total cost of Amendment No. 1 for the SaaS/WEB solution will not exceed $37,000 over the initial two-year term. This includes a maximum one-time set up fee of $18,000 and ongoing monthly service fees of $780/month during the first year, increasing by CPI in the second year and any subsequent years. To date, the City has paid FIS AvantGard LLC a total amount of $77,761. As such, this extension will increase the total value of the agreement, exceeding the $100,000 delegated City Manager authority for contracts. Sufficient funds are available in the Finance Department to cover the cost of this agreement.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute Amendment No. 1 to the Agreement with FIS AvantGard LLC for APS2 SaaS/WEB investment and portfolio accounting software for a term of two years ending September 30, 2021, with the option of an additional two-year term.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Amendment No. 1 to the Agreement with FIS AvantGard LLC
2. SunGard Treasury Systems Inc. Agreement