REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with Wonderware, Inc., doing business as CORE Business Technologies (CORE), for a Central Cashiering System
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
CORE’s One-Step is currently the City’s central cashiering system to record approximately $100 million in customer payments each year. The One-Step application is used to record over-the-counter transactions, enabling customers and residents to pay for a variety of non-utility services, including business license fees, departmental deposits, accounts receivable receipts and citywide fee schedule charges.
The system was implemented in 2004 and is now being sunset by the vendor.
DISCUSSION
Staff has relied on City Code Section 2.105.290(b)(3) to acquire goods or services directly from vendors on terms obtained through a formal bidding process conducted by another public agency, also referred to as “piggybacking.” Based on past best practices related to appropriate use of piggyback contracts and its interpretation of this section, staff is recommending entering into a new agreement with CORE pursuant to the Request for Proposals (RFP) process conducted by Ramsey County, MN in which CORE was selected for award.
The proposed agreement will implement CORE’s iPayment Enterprise which offers more functionalities than OneStep. iPayment Enterprise is an updated software solution that allows for improved cash controls and end-of-day processing. As a cloud-based solution, the City is ensured that it is always operating on the latest software release with the most up-to-date disaster recovery and payment data security features.
The initial term of the proposed agreement is five years with a maximum compensation of $516,816, which includes a one-time fee of $164,500 for professional services required to implement the system; a one-time amount of $14,855 for teller devices and credit card terminals; an amount of $251,325 ($50,265 per year) for software subscription, hosting, and transaction fees over five years; and $86,136 as contingency for additional products and services. These costs represent staff’s best estimate based on an annual transaction volume of 25,000 payments and current assessment of required services.
Pricing was benchmarked against the contract with Ramsey County. Therefore, staff deemed pricing to be fair and reasonable. After the initial five-year term, price adjustments are capped at 5%.
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 15060(c)(2) 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.
FISCAL IMPACT
The Finance and Human Resources Management Systems (FHRMS) Update Project budgeted in the General Government Capital Fund in the FY 2022/23 Adopted Capital Budget has sufficient funding for the one-time costs, including $164,500 for professional services required to implement the system and $14,855 for teller devices and credit card terminals as well as project contingency costs of up to $86,136.
The Finance Department operating budget has sufficient General Fund funding in the FY 2022/23 Adopted Operating Budget to cover the estimated annual cost of $50,265. Funding for future years will be factored into the annual budget.
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
1. Authorize the City Manager to execute an agreement with Wonderware, Inc., doing business as CORE Business Technologies, to provide software, hardware, and related professional services for a central cashiering system, with an initial term of five years starting on or around September 1, 2022 and ending on or around August 31, 2027, with maximum compensation not-to-exceed $516,816, subject to the appropriation of funds; and
2. Authorize the City Manager to amend the agreement to extend the term after the initial five-year term for as long as the system is being used by the City, subject to the appropriation of funds.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Agreement with Wonderware, Inc., doing business as CORE Business Technologies