SR-06-25-2013-3MCity Council Meeting: June 25, 2013
Agenda Item: 3M
To: Mayor and City Council
From: Gigi Decavalles, Director of Finance
Subject: Business License Software
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract for business license software with HdL Software, LLC (HdL), a
California -based company, in an amount not to exceed $209,275 (includes a 10%
contingency) over a five year term starting in FY 2013 -14, with future year funding
contingent on Council budget approval.
Executive Summary
The Finance Department requires the use of specialized software to manage the City's
21,601 licensed businesses and tax collections of approximately $27 million annually.
The City has utilized HdL's business license software since 1998. Implementation of
HdL Prime, the new product from HdL, would provide the City with the functionality of
the current system while providing a modernized platform that would assist with the
implementation of an online business license application and renewal system,
streamline the business license process and streamline the collection of Parking
Facilities Tax, Transient Occupancy Tax, User Utility Tax and miscellaneous
assessments collected by the City. In order to implement the new system, including
data migration, training, software updates and prompt technical support, staff
recommends authorizing a five -year agreement with HdL Software Companies, LLC not
to exceed $209,275.
Background
On March 3. 1998, with approval from Council, the City executed a contract with HdL
Software LLC, for the purchase and annual maintenance of a business license software
system that would be used to support the administration of business licensing, including
billing and payment processing requirements. After a number of contract modifications,
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on July 26 2011, Council approved an annual expenditure not to exceed $20,000 per
fiscal year for the annual maintenance of HdL business license software through the
end of FY 2012 -13. At the time, staff indicated that a competitive process for business
license software would be completed during the 2012 -13 fiscal year.
Discussion
In 2011, HdL released the Prime Business License Software. This product is used by
130 local government agencies. The new software includes enhancements such as an
automated business license application and renewal system, an online business
registry, and revenue recovery tools. HdL Prime would allow the City to cross index the
business license database to sales tax, property tax, and Franchise Tax Board data to
assist with discovery efforts and revenue recovery. The new software would allow all
business taxpayers the ability to both apply for a business license and pay annual
renewal taxes and fees online. With the expansion of web capabilities, the new
software would increase the usability, through an improved user interface, of the
business license system for the Business License staff, business owners, the general
public, and other public and private entities. In addition to the business license process
and maintenance improvements, the system would also provide the functionality to
process and track Transient Occupancy Tax, Parking Facility Tax, Utility User Tax and
special district assessments. This functionality provides for centralized maintenance
and reporting of various taxes collected by the City.
Vendor Selection
On November 5, 2012, staff issued a Request for Proposals (RFP) in compliance with
Santa Monica Municipal Code Chapter 2.24, in search of a qualified vendor to provide
business license software that would be used to support the administration, revenue
collection, billing and payment processing requirements.
The RFP was posted on the City's online bidding system for five weeks. The deadline
to respond was December 7, 2012. Four responses were received. A selection
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committee comprised of staff from the Business and Revenue Operations Division and
Information Systems evaluated the proposals in compliance with Section 2.24.072 of
the SMMC, taking into consideration criteria including but not limited to price, the quality
of the services offered, the ability to perform the service, the capacity to perform the
service, the applicability of the proponent's experience as it relates to the RFD's scope
of work, and whether the respondent would have available resources to accomplish all
elements of the scope of services.
The selection committee recommends HdL as the best bidder based on HdL's ability to
provide seamless integration with existing systems such as the City's cashiering
system, the company's technical expertise and ability to meet all of the requirements of
the business license software RFP, and pricing.
HdL Prime would provide a modernized platform that would assist with the
implementation of an online business license application and renewal system,
streamline the business license process and streamline the collection of miscellaneous
assessments and taxes collected by the City. The implementation of the new system,
including data migration, training, and software updates and prompt technical support
over a five -year agreement with HdL Software Companies, LLC would not to exceed
$209,275.
Financial Impacts & Budget Actions
The contract amount to be awarded to HdL is for an amount not to exceed $209,275
(includes a 10% contingency) over the next five years. Funds in the amount of $90,000
for implementation, data migration, customized reports and training are available in the
FY 2012 -13 Capital Improvement Program budget in account 0018016.589000.
Funds for the annual use fee in the amount of $20,050 have been included in the
FY 2013 -15 Proposed Budget, pending Council approval; the contract will be charged to
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account 01224.533580. Budget authority for subsequent years will be requested in
each budget cycle for Council approval.
Prepared by: Haley Favre- Smith, Business License Supervisor
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Contract No. 9756 (CCS)