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HomeMy WebLinkAbout25B - AGMT INOVAH CASHIERING SYSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 20, 2019 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ❑ As Recommended APPROVE THE THIRD AMENDMENT AND El El ONE YEAR EXTENSION IN THE AMOUNT ElOOrrdinance on 15' Reading ❑ Ordinance on 2nd Reading OF $129,437.94 FOR INOVAH CASHIERING ❑ Implementing Resolution SYSTEM SOFTWARE SUPPORT AND ❑ Set Public Hearing For HARDWARE MAINTENANCE WITH SYSTEM INNOVATORS, A DIVISION OF N. HARRIS COMPUTER CORPORATION (STRATEGIC PLAN NO. 7,5) CONTINUED TO FILE NUMBER CITY NAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute the third amendment to the agreement with N. Harris Computer Corporation, System Innovators, for ongoing professional software services and related hardware purchases and support and maintenance for the City's cashiering system by an additional amount of $129,437.94 which includes a ten percent (10%) contingency of $12,735.00, subject to non -substantive changes approved by the City Manager and Clerk of the Council. 2. Approve the exercise of the first year of a previously authorized two-year optional agreement extension, effective for the period January 1, 2020 through December 31, 2020, extending the current three-year agreement set to expire on December 31, 2019, along with a re -authorization for a second additional one-year extension for the period January 1, 2021 through December 31,2021 exercisable by the City Manager, subject to non -substantive changes approved by the City Attorney and City Manager. DISCUSSION The following City Departments: Finance and Management Services Agency, Parks, Recreation and Community Services Agency, and the Police Department; utilize N. Harris Computer Corporation, System Innovators ("System Innovators") cashiering software and hardware to process the receipt of City revenue. Specifically, this includes payments for municipal utility services bills, business license tax, hotel visitors' tax, utility users' tax, parking citations, and all other payments processed throughout the City facilities including the payment kiosk. The cashiering system is fully integrated into all City payments systems. 25B-1 Amendment to Agreement with System Innovators, a division of N. Harris Computer Corporation August 20, 2019 Page 2 On March 18, 2014, the City Council approved a three-year agreement with System Innovators for software support and maintenance services for iNovah cashiering system. On May 3, 2016 Council approved a second amended agreement to include ongoing software support and hardware systems maintenance for the annual calendar year periods (January 1 to December 31) of 2017, 2018, and 2019, along with one additional two-year optional contract extension for the annual calendar year periods of 2020 and 2021. The base contract extension periods (calendar year) 2017, 2018, and 2019) for software support and hardware maintenance have been paid to Consultant, System Innovators, in the amount of $128,311.57. Staff recommends approval of a third amended agreement with System Innovators, to ensure continuing annual software support for the City's cashiering system and hardware maintenance for cash drawers, receipt printers, and other associated equipment and software and to maintain the right to receive iNovah version software updates and technical support services. Along with the approval of the third amended agreement, additional software and hardware will be purchased from Systems Innovators for the Treasury Services section to assist with service level upgrades and to store as replacements when any City cashiering station needs to replace inoperable cash drawers, receipt printers, or other related equipment and to assist with the upgrade of iNovah software to new versions when necessary. The annual software and hardware support and maintenance fee payments are due semi-annually. The first installment is due January 15th of each year and the second installment is due the following July 15th of each year. Anticipated iNovah software support and hardware maintenance costs including tax total $145,448 and are outlined in the Fiscal Impact section below. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #7 Team Santa Ana, Objective #5 (create a culture of innovation and efficiency with the organization). 25B-2 Amendment to Agreement with System Innovators, a division of N. Harris Computer Corporation August 20, 2019 Page 3 FISCAL IMPACT Funds are budgeted during FY 2019-20, and will be budgeted for future years for on -going software support and hardware systems maintenance as follows: Fiscal Accounting Fund Accounting Unit, Account Year Unit -Account # Description Description Amount Treasury & Customer Service; FY 19-20 01110130-62300 General Fund Contract Services -Professional $ 27,087.21 Treasury & Customer Service; FY 19-20 01110130-62300 General Fund Contract Services -Professional $ 21,941.57 Treasury & Customer Service; FY 19-20 01110130-62300 General Fund Contract Services -Professional $ 12,735.00 Treasury & Customer Service; FY 20-21 01110130-62300 General Fund Contract Services -Professional $ 21,941.57 Treasury & Customer Service; FY 20-21 01110130-62300 General Fund Contract Services -Professional $ 22,866.30 Treasury & Customer Service; FY 21-22 01110130-62300 General Fund Contract Services -Professional $ 22,866.29 Total On -going Software Support & Hardware Systems Maintenance Cost: $129,437.94 APPROVED AS TO FUNDS AND ACCOUNT: Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. Third Amended Agreement ILTe3PIN11 25B-3 25B-4 EXHIBIT 1 THH?D AMENDMENT TO AGREEMENT THIS THIRD AMENDMENT TO AGREEMENT, is entered into on August 20, 2019, by and between System Innovators; a division of N. Harris Computer Corporation (System Innovators), a Florida corporation (hereinafter "Consultant'), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City"). RECITALS: A. The parties entered into a three year Software Support and Maintenance Agreement (Agreement A-2014-073) effective April 1, 2014 (hereinafter "said Agreement') by which Consultant has provided citywide support and maintenance services which include revisions, updates and enhancements to the Software and related Hardware and materials under the Agreement. B. The parties subsequently entered into a First Amendment to that Agreement (A-2014-358) on December 16, 2014 to expand the Scope of the Agreement to procure additional hardware and professional software services and related maintenance and support in connection with implementation of an Image Cash Letter Solution. C. The parties thereafter entered into a Second Amendment to that Agreement (A-2016-099) on May 3, 2016 to extend the Term by three (3) years beginning with the 2017 calendar year with the option to further extend said Agreement for one additional two (2) year period (calendar years 2020 and 2021). D. The parties contemporaneously amended Compensation under said Agreement beginning with third year of the original Term (calendar year 2016) to increase compensation to Consultant for additional professional software services and related maintenance and support. E. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Term under said Agreement to bifurcate the two (2) year extension period set out in the Second Amendment to the Agreement into two one (1) year extension periods and hereby exercise the first extension for the period beginning January 1, 2020 and ending December 31, 2020. F. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Scope of the Agreement for the third year of the amended Term to procure additional hardware and related maintenance and support and to correspondingly increase Compensation therefore in the amount of $27,087.21. In addition, the parties wish to include extra work and change order authorization for the remainder of the amended Tenn including the additional extension periods. G. In accordance with the terms and conditions of said Agreement, the parties wish to further amend the annual Compensation amount beginning for the 4th and 5th years of the amended Term covering the two one (1) year extension periods by the amount of $3,288.44 and further add a ten percent (10%) contingency amount in the sum of $12,735.00 for the remainder of the amended Term including the additional extension periods. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, as amended in the afore -mentioned First and Second Amendments to said Agreement, the parties agree as follows: 25B-5 1. The parties hereto now desire to amend said Agreement to amend the Term to bifurcate the single optional two (2) year extension period (calendar years 2020 and 2021) into two individual (1) year extension periods (calendar year 2020 and calendar yew 2021) and to further to hereby exercise the first said extension for the period beginning January 1, 2020 and ending December 31, 2020. The second remaining optional extension period for calendar year 2021 to be exercisable by the City Manager and City Attorney upon a written request executed by the City Manager, subject to non -substantive changes approved by the City Manager and City Attorney. 2. The parties hereto now desire to amend the Compensation under said Agreement for the third year of the previously amended Term (calendar year 2019) to increase compensation to Consultant by adding an additional Twenty Seven Thousand Eighty Seven Dollars And Twenty One Cents ($27,087.21) for additional professional software services and additional hardware, hardware maintenance, and support as set forth in ("Santa Ana Amended Schedule of Support & Hardware Maintenance 07/01/2019 - 12/31/2019 - 20190805-A — SAN70") and ("Santa Ana Hardware Purchase 07/01/2019 - 12/31/2019 — 20190805-B — SAN70") which are herein incorporated by reference as Exhibit A and Exhibit B, respectively. 3. Payment by City for additional professional software services and related hardware, maintenance, and support as set forth in Exhibits A and B shall be made in accordance therewith following receipt of proper invoicing, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals of said Agreement which may reasonably be expected by City. 4. The parties hereto now desire to amend Article VI "General" [Terms] of said Agreement to add the following subsection provisions as set forth below: 6-16 ("Extra Work") and 6-17 ("Change Order"). 6-16 Extra Work City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work 647 Change Order No extra work may be undertaken unless a written "Change Order" is first given by the City to the CONSULTANT, incorporating therein any material adjustment in the contract and/or the time to perform this Agreement, which said adjustments are subject to the written approval of the CONSULTANT. 5. The parties hereto now desire to amend Exhibit 1, Schedule B, of said Agreement for years 4 through 5 of the extended Term of said Agreement during which City agrees to pay and Consultant agrees to accept the fNovah Software and Hardware Support and Maintenance Payment Schedule as set forth below (to which a ten percent (10%) contract contingency in the amount of $12,735.00 is hereby added, exercisable solely in the discretion of City exercisable for extra requested work, materials, and/or hardware or software support by Consultant pursuant to a duly issued change order): r Optional Contract Extension Periods (2020 & 2021) Software and Hardware Support and Maintenance Year 4 - 2020 Calendar Year = $43,883.14 (previously $42,238.92 + additional $1,644.22) Year 5 - 2021 Calendar Year= $45,732.59 (previously $44,088.37 + additional $1,644.22) Total = $102,350.73 ($89,615.73+ contingency $12,735) 6. Payment by City for software and hardware support and maintenance as set forth in section 5 above shall be made in accordance therewith following receipt of proper invoicing, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals of said Agreement which may reasonably be expected by City. 7. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. 8. This Agreement must be signed below and may be signed in counterpart and delivered by fax, email as a PDF (Portable Document Format) file attachment, or other means that displays the original or a copy of the signatures. Any subsequent amendments may be signed and delivered in the same manner. N /// {Signatures on following page) 25B-7 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Agreement on the date and year first written above. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO Cityglt::� sy: Ryan odg Assistant City Attorney RECOMMENDED FOR APPROVAL [Cathryn Downs, Executive Director Finance & Management Services Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager CONSULTANT System Innovators, a division of N. Harris Computer Corporation August 7, 2019 ] ffrey Sumner Executive Vice President Tax ID# 98-0141520 r EXHIBIT A System Innovators (IS.1.11) (Santa Ana Amended Schedule of Support & Hardware Maintenance 07/01/2019 -12/31/2019 - 20190805-A — SAN70) S.I. - 07/01/2019 to 12/31/2020) �O,der ed Code�Ty�pe.w `,?'� Descnptiorr y., a y; Item Pence, 'Extended P ice,; Note Software Support (SWS) I Sl MAINT iNovah- SWS: 7/1/2019 to 12/31/2019 $ 15,703.69 $ 15,703.69 (includes COMPROD/COMTEST Datebase & Data Ticket Interfaces) I SI MAINT iNovah Additional Software Support for 100,000 $ 2,500.00 $ 2,500.00 receipts 1 Note Hardware Support (HS) 21 HWD MAINT TPG A776 Printer- HWX: 7/1/2019 to 12/31/2019 $ 105.00 $ 2,205.00 12 HWD MAINT APG Cash Drawer - HWX: 7/1/2019 to 12/31/2019 $ 35.00 $ 420.00 1 Note Third Party Support (TPM) 1 Sl - TPIVI Check 21 (ICL to Chase) - SWS: $ 1,910.08 $ 1,910.08 7/1/2019 to 12/31/2019 Note System Innovators will conduct receipt license audits on an basis. City of Santa current annual receipt license = "300,000" receipts. Subtotal $ 22,738.77 Tax $ 242.82 Total $ 22,981.59 2"1§ (1 EXHIBIT B System Innovators ("S.I.") (Santa Ana Hardware Purchase 07/01/2019 - 12/31/2019 — 20190805-B — SAN70) S.I. - 07/01/2019 to 12/31/2019 (Additional Hardware) Ouantity Ordered Code Type Description Item Price Extended Price 5 HWD Receipt Printers $ 599.00 $ 2,995.00 1 HWD Cash Drawer (till) $ 268.00 $ 268.00 1 HWD Imager $ 495.00 $ 495.00 Subtotal $ 3,758.00 Tax $ 347.62 Total $ 4,105.62 25 -fYO