AGENDA MEMORANDUM

 

 

Meeting Date:           July 14, 2008

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing a supplement to the master agreement for HTE, Inc. licensed programs with SunGard Public Sector adding a purchasing card module

 

 

Staff Recommendation:

Staff recommends execution of the supplement to the master agreement with Sungard Public Sector, Inc. for a total of $15,895.00.

 

Analysis:

This supplemental agreement is for the purchase of an additional HTE software module for procurement card processing.

 

On May 10, 2004, the City Commission adopted the current purchasing card policy and procedures.  This policy provided a purchasing or credit card program to be used by City employees.   The City selected SunTrust Bank as its card issuer.  The program has continued to grow and currently there are 275 active cards.   Last fiscal year the City made 11,044 purchase card transactions totaling $1,399,958.17, and the average transaction amount was $126.76.

 

When the City implemented the purchasing card program, staff purchased a software application called “Card Manager Plus powered by Works” from SunTrust Bank to administer the card program.  This software allows City departments and accounts payable to reconcile transactions and to assign general ledger account numbers, project numbers, and work order numbers to the transactions. 

 

The City received notice from SunTrust and Works in February 2008 that the agreement between SunTrust and Works would be terminated.  The City will no longer be able to use the Works software after August 2008.  SunTrust will be offering interested agencies the use of their own new software application ‘Enterprise Spend Platform’ at no additional cost to the City for its basic functionality.  The termination of this agreement between SunTrust and Works means the City must either implement the new software system provided by SunTrust or identify some other means to reconcile transactions.

 

HTE, Inc. has a module that can be used to reconcile purchasing card transactions.  The Purchasing Division with representatives from Information Technology and Accounting has evaluated this module.  The group has also received a demonstration of the new software from SunTrust.

 

Evaluation and Recommendation

After viewing both the SunTrust and SunGard Public Sector software applications, staff recommends the purchase and implementation of the Sungard application.  Although there is no direct cost for the SunTrust software, the Sungard product will provide savings in indirect costs that will exceed the direct costs.  The indirect cost savings will be realized in the following areas:

 

§ Card Issuer Dependence – The Sungard module is bank independent.  If the City changes banks or card issuers we would not have to implement a new software system.  This will save on employee training costs.

 

§ Integration - The Sungard module is tightly integrated with other Sungard applications already used by the City such as the general ledger, vendor master, and work orders.  General ledger accounts, work order information, and vendors can all be verified against the actual data using the Sungard module.

 

§ Future Maintenance – The integration will also minimize future maintenance of accounts, card holders, and approvals.  Integration of the Sungard modules eliminates additional maintenance.  Any changes to the general ledger will automatically be available to the Sungard module.  Using a third party solution will require information be maintained in both systems and will require those changes to be manually updated.

 

§ Reporting – The reporting available in the Sungard module is easier to use.  The City will also be able to write custom reports for each department using the Sungard QRep report writing tool already owned by the City.

 

§ Transaction Posting – Transactions from the Sungard module are posted in the general ledger as accounts payable transactions.  This provides for better reporting and integration with vendor and account activity.

 

§ Efficiency – The Sungard module will be easier to use.  The Sungard module has the same appearance and user interface as other Sungard modules already used by City staff.  The SunTrust product is web based and appears to be less intuitive.  One major criticism of the current Works program has always been its ‘cluttered’ appearance and lack of intuitiveness.

 

§ Performance – The Sungard module will run on City servers.  Performance or response time will not be an issue.  One of the top issues our departments have with the current software is the response time or performance.  The response time of the product is very slow.  This may be an issue with the new SunTrust software as it is also a web based solution. 

 

§ System Consolidation – Implementing the SunGard module will bring users into the NaviLine interface and the environment which they are familiar so training time will be much quicker.  Using the SunTrust product will have our users in another, different system that does not have the same look or feel as our current accounting and purchasing system.

 

§ Imaging – The Sungard module will allow the City to use the existing OptiView imaging solution from Advanced Processing Imaging in order to attach receipts and documents to the card transactions and thus provide more efficient processing of the back-up documentation for audit purposes.  The use of imaging with the SunTrust product is a multi-step process that is more cumbersome.

 

§ Records Retention – The SunTrust product retains records online for only two years.  After the two years the transaction information can be retrieved but for a request fee.  Use of the Sungard Module will allow for retention of transaction information in the GMBA module until the City decides to purge the data.

 

Cost

The cost of this module from Sungard is as follows:

 

     License Fees                          $10,350.00

     License Fee Discount            $  1,035.00

     Net License Fees                   $  9,315.00   Due October 1, 2008

 

     Training Fees                         $  1,400.00   Due as incurred, most likely this fiscal year

     Installation Fees                    $  1,400.00   Due as incurred, this fiscal year

     Project management Fees      $  1,400.00   Due as incurred, will not be needed by the City

     Annual Support                     $  2,380.00   Due October 1, 2008, ongoing annual cost

 

This expense was not known at the time the 2007 – 2008 budget was prepared.  We have negotiated with Sungard to allow us to begin using the module before August 2008 but delay payment of the license and annual support fees until October 1, 2008.  This expense will be included in the 2008-2009 Information Technology budget.

 

Options:

1.  Approve execution of the supplemental agreement with Sungard Public Sector; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact:

Sungard has deferred payment of the license fees and maintenance until October 1, 2008.  Fees for training and project management will be owed this fiscal year as incurred.  This will be a maximum amount of $2,800.00 and will be paid from the IT account number listed.  Total cost to the City will be $15,895.

 

Submission Date and Time:    7/9/2008 3:08 PM____

 

Department: __Mike Thornton_________

Prepared by:  _ Information Technology_                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required __X___                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________JB______                                     

                              

Deputy C.M. ________EFS   .                                                                         

Submitted by:

City Manager ___________________

 

Account No. _001-1633-513.54-50__

 

Project No. __NA______________

 

WF No. _____NA______________

 

Budget  _____$46,415.00_________

 

Available ____$20,199.02_________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT AMENDMENT WITH SUNGARD PUBLIC SECTOR FOR THE PURCHASE OF A PROCUREMENT CARD PROCESSING SOFTWARE APPLICATION; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute a supplement to the master agreement with SUNGARD PUBLIC SECTOR whose address is 1000 Business Center Drive, Lake Mary Florida 32746 for a HTE, Inc. Licensed Program ‘Procurement Card Tracking’.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _14th____ day of __July_,2008.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk