SR 10-23-2018 3F
City Council
Report
City Council Meeting: October 23, 2018
Agenda Item: 3.F
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Revenue
Subject: Modification to Agreement No. 9756 (CCS) for Business License Software
Maintenance and Support Services and Software Development Services for
Finance Department
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to agreement #9756 (CCS) with HdL Software, LLC (“HdL”)
in an estimated amount of $169,000 to extend the agreement for three years, with one
two-year renewal option, for business license software maintenance and support
services and to increase the agreement amount for additional software development
services for the Finance Department. The modification will result in a 10-year amended
agreement for a new total amount not to exceed $378,275, with future year funding
contingent on Council budget approval.
Summary
The City currently uses HdL software to administer the billing and collection of business
license taxes as well as certain assessments, fees, and regulatory permits. Staff
recommends a first modification to extend agreement #9756 for three years, with one
two-year renewal option, for a new total amount not to exceed $378,275. A modification
to the agreement will ensure continued software maintenance and support while staff
works to redesign processes for the integrated permit center in the City Services
Building. The changes to the processes and the use of technology being designed for
delivering business license and permitting services will allow staff to better analyze
software system needs prior to issuing a Request for Proposal (“RFP”) for business
license software.
Discussion
The Finance Department uses HdL software to administer approximately 24,000
business license accounts and collect approximately $36 million in tax revenue,
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assessments, and fees annually. The City is undertaking the Total Workplace Project,
which aims to reimagine how the City delivers services to its constituents, including the
establishment of an integrated permit center in the new City Services Building, set to
open in spring 2020, and the evaluation of the permit center’s technological needs.
During this process, staff, along with consultants, will be analyzing and redesigning City
processes and creating roadmaps to assist staff through these changes. The outcome
of the Total Workplace Project could have a significant impact on the City’s
requirements for a business license system. Therefore, the new permit center will open
with the current business license system in place to allow staff time to assess and
procure an optimal new software system for the integrated environment after the City
Services Building has been operational for at least a year.
The City’s current agreement for business license software with HdL expires November
2018. Staff issued a Request for Information (“RFI”) in March 2018 to explore new
functionality in business license software. Seven vendors provided information and
demonstrations that showed significant improvements in business license software
systems specifically designed for public sector agencies since the City’s 2013 system
purchase. However, instead of issuing an RFP at this time, staff believes it is more
prudent to postpone procuring a business license system until the Total Workplace
Project is completed. This would allow staff time to align and integrate the system with
the new process optimization and technological functionalities identified under the Total
Workplace Project.
In addition to the annual maintenance and licensing fees, the modification will provide
for the development of custom features to improve functionality in the current business
license software system. System improvements include web module and workflow
enhancements, redesigning forms, development of metric reports that measure the
Business License unit’s performance, enhanced security features and increased
integration between the business license software system’s records to the City’s
financial system. These system developments are necessary to improve the customer
experience and minimize internal inefficiencies in the interim until the City can procure a
new business license system.
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Past Council Actions
Meeting Date Description
06/25/2013
(Attachment A)
Authorize agreement with HdL for business license software
maintenance and support services.
Financial Impacts and Budget Actions
Staff seeks authority to increase the HdL agreement amount and extend the agreement
term for three years, with one two-year renewal option.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
Modified
Request
Amount
FY 2018-19 Budget
Dept/CIP Account #
Total Revised
Contract
Amount
9756 $90,000 $51,000 C0107430.689000 $141,000
$119,275 $118,000 01300005.529230 $237,275
TOTAL $378,275
Funds in the amount of $16,500 are available in the FY 2018-19 budget for the Finance
Department and $51,000 in the FY 2018-20 Capital Improvement Program budget.
Future year funding is contingent on Council budget authorization.
Prepared By: David Carr, Assistant City Treasurer
Approved
Forwarded to Council
Attachments:
A. June 25, 2013 Staff Report (Web link)
B. Oaks Initiative Disclosure Form
REFERENCE:
Modified Agreement
No. 9756
(CCS)