SR-091608-1NCity Council Meeting: September 9, 2008
Agenda Item: ~ -
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Business License System Software and Cash Receipting System
Recommended Action
Staff recommends that the City Council authorize the City Manager to execute an
amendment to Agreement #6943 with HdL Software Companies in an amount not to
exceed $11,000 to implement integration of the business license software system with
the Active Networks cash receipting system.
Executive Summary
To strengthen internal controls, create efficiencies, and implement best practices in the
handling of cash, check and credit card payments, a citywide cash management
software system is being implemented. A core feature of the system is integration with
multiple other payment recording systems, including the 1-1dL Software Companies'
business license system used to record payment of business tax and miscellaneous
permit payments. Integration of the two systems requires additional functionality and
work by HdL beyond the scope of the current contract. The funds for this amendment
.are available in the General Fund.
Background
On March 11, 1998, the City executed a contract with the HdL Software Companies for
purchase and annual maintenance of a software system to record payments of business
license tax. On August 14, 2007, Council authorized the purchase from the Active
Networks of a citywide cash management system to standardize the recording of
payments to the City. A key feature of this system is integration with other City software
systems, which will both receive and feed payment data to the cash management
system.
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Discussion
The City issues more than 21,000 business licenses and associated permits, annually,
and receives more than $25 million in business tax and associated fees. These
payments are recorded in the primary system, which utilizes HdL business license
software, and then summarized and recorded manually in the City's financial system.
Implementation of the Active Network cash management system will provide an
electronic link, allowing payments recorded in Active Network to automatically flow to
both the business license system and to the main financial system. This integration
eliminates the need for manually keying payment data into two separate systems,
thereby decreasing error and creating operational efficiencies. Integration requires
additional work by the HdL Software Companies, which is out of the scope of the
current contract.
Financial Impacts & Budget Actions
Funds. for amendment of the current software contract are available in Account
0010362.589000. Staff requests a transfer of $6,000 to Account 01224.533580 to
cover the cost of the initial module in the current year. Future, year maintenance costs
of $1,000 per year for five years will be included in the City's annual operating budget
for each of the fiscal years FY2009/10 through FY2012/13.
Prepared by: Pamela McGarvey, Acting Revenue Manager
Approved: Forwarded to Council:
Carol Swindell P.~rhont Eve
Director of Finance City Manager
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Reference Amended
Contract No. 6943 (CCS)