SR-081407-1D~®
~;tYof City Council Report
Santa Monica
City Council Meeting: August 14, 2007
Agenda Item: 1-D
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Purchase of Cash Management Software System and Related Hardware
and Maintenance
Recommended Action
Staff recommends that the City Council authorize the City Manager to execute a
contract with The Active Network in an amount not to exceed $235,000 for the purchase
of a cash management software system and related hardware and an amount not to
exceed $22,300 a year for each of five years for related annual maintenance costs.
Executive Summary
As part of the City Manager's initiative to review business processes citywide, an
interdepartmental team of City staff reviewed the City of Santa Monica's business
practices associated with the handling of cash, check and credit card payments and the
best practices associated with payment processing. To strengthen internal controls
and create efficiencies, this interdepartmental team supported the immediate
implementation of a city-wide cash management software system, a system approved
through the budget process for FY 2006/07. The monies for this project are available in
the General Fund.
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Discussion
Background
In the first quarter of the fiscal year ended June 30, 2007, an interdepartmental team of
City staff reviewed the business practices of the City related to the handling of
payments made to the City and recommended several improvements to the City's
practices, one being the purchase of a point-of-sale cash management software
system. A cash management software system will improve the controls over the City's
current decentralized collection system where payments-estimated to be $480 million
in fiscal year 2007/08-are collected by more than twenty-six locations throughout the
City, and will provide efficiencies. The system will improve controls by providing a
reconciling function for daily payment collections and processing activity reports. This
will enable cash handling areas to prepare daily deposits more quickly and accurately.
The cash management system will also provide enhanced efficiencies through
interfaces with the general ledger system, the City's recreation class system, the credit
card processing system and other systems as deemed appropriate. The interface with
the general ledger system will provide the ability to electronically transfer, daily financial
activity data from the cash management system directly into the general ledger system.
The data had previously been entered manually into the general ledger system by each
of the twenty-six cash handling locations.
Vendor Selection
The City issued a request for proposals in November 2006. Four vendors submitted
detailed proposals and three vendors were invited to make presentations before a
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selection committee comprised of staff from Finance, Information Systems, Housing and
Economic Development, and Community and Cultural Services. Vendors were rated on
system design, company stability, technical expertise, available interfaces and prior
implementations. The selection committee also conducted site visits and reference
checks. The committee unanimously selected the system proposed by The Active
Network.
Budget/Financial Impact
Funds for the purchase of this software and related hardware are available in CIP
account 0010362.589000. Maintenance costs of $22,300 are included in the
FY2007/08 Adopted Budget at line item 01224.533580. Future year maintenance costs
will be included in the City's annual operating budget for each of the fiscal year
FY2008/09 through FY2011/12.
Prepared by: Eva U'Ren, Revenue Manager
Approved:
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Carol Swindell
Director of Finance
Forwarded to Council:
~mont Ewell
Manager
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Reference Contract
No. 8812 (CCS)