From
Keshnel Penny, Chief Information Officer
Title
Renewal of Tax Factory Support Software with Business Software, Inc., as a sole source provider, in the annual amount of $6,676.82 with 5% annual increase, for a one-year term with four additional one-year renewal periods for a total not to exceed $38,738.33 if all renewal periods are exercised and authorize the City Manager to execute any additional renewals with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal term(s)
Presenter
Keshnel Penny, Chief Information Officer
Recommended Action
Approve
Analysis
In February of 2015 the IT Department implemented Business Software Inc’s (BSI) Tax Factory software which is a payroll calculation component integrated with our Lawson financial system. The City was originally subscribed to the top tier level of software support, in 2019 City Staff opted to reduce to a lower tier of support still sufficient for our needs. This requested Council action is to approve the next five year’s expenditures which over the life of this contract will have surpassed $50,000 since the implementation of this software, therefore requiring City Council approval.
Renewal Period Amount
15’ $9,172.10
16’ $9,873.67
17’ $9,819.35
18’ $10,627.78
19’ $6,872.25 *Year in which City opted for a lower tier of Support
Expended: $46,365.15
20’ $7,010.66
21’ $7,361.19
22’ $7,729.25
23’ $8,115.72
24’ $8,521.51
Requested: $38,738.33
Grand Total: $85,103.48 *if all renewals are extended
Financial Consideration
Funding is provided in the FY 2020/2021 General Fund Operating Budget, Information Technology, Computer Software Maintenance (151010-63165).