SR 07-26-2011 3E~®
ccYoe City Council Report
Santa Monica
City Council Meeting: July 26, 2011
Agenda Item: 3E
To: Mayor and City Council
From: Carol Swindell, Finance Director
Subject: Additional Funds for Business License Software Agreement 6943 with
HdL Software, LLC
Recommended Action
Staff recommends that the City Council authorize an annual expenditure amount not to
exceed $20,000 for fiscal years 2011/12 and 2012/13 to HdL Software, LLC to continue
annual maintenance for Business License Software Agreement 6943.
Executive Summary
The Finance Department requires the use of specialized software to manage the City's
20,000 licensed businesses which generate over $26 million in annual business license
tax revenue. Since 1998, the City has utilized HdL's business license software. Staff
proposes to continue to utilize this software for the next two years and to complete a
competitive process in fiscal year 2012/13 to determine the best provider of business
license software. The current agreement, with its annual maintenance, has exceeded
$100,000 over the 14 year period, and therefore, Council approval is necessary to
continue with the existing contract and terms. The amount of the Agreement and
supplemental training and programming will not exceed $20,000 for each fiscal year and
is included in the adopted 2011-2013 budget.
Background
On March 11, 1998, the City executed a contract with HdL Software, LLC, for purchase
and annual maintenance of a software system to record payments of business license
tax. The Agreement includes annual maintenance fees of $1,500 for web application
support, $1,000 for Class Payment Manager related to business license software
integration with the City's cashiering system, and an annual maintenance fee that began
as $10,000 in 1998 and has been increased by CPI each year thereafter ($12,641 for
fiscal year 2011/12).
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Discussion
HdL is an industry leader in providing business license software solutions for local
government and the City has successfully used their product since 1998. Annual
maintenance is necessary in order to continue to receive support and updates to the
software. Since the amount spent on the original agreement exceeds $100,000 over the
multi-year period, Council authorization is necessary in order to continue to pay for the
required annual maintenance. No contract modification is required at this time. Staff
also receives specialized training and programming from HdL at a hourly rate that is
necessary for training new staff, to take advantage of additional software capabilities,
and for customized programming. During fiscal year 2012/13, staff plans to complete a
competitive process for business license software. The annual cost of services will not
exceed $20,000 in FY11-12 and FY12-13.
Financial Impacts & Budget Actions
The annual expenditure will not exceed $20,000 in FY11-12 and FY12-13. Funds are
included in the FY11-13 budget in account 01224.533580.
Prepared by: Donald Patterson, Business & Revenue Operations Manager
Approved:
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Carol Swindell
Finance Director
Forwarded to Council:
Rod Gould
City Manager
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