September 16, 2008
City Council
Meeting: September 9, 2008
Agenda Item: 1-N
To: Mayor and City Council
From: Carol Swindell, Director of Finance
Subject: Business License System Software and
Cash Receipting System
Recommended
Action
Staff recommends that the
City Council authorize the City Manager to execute an amendment to Agreement
#6943 with HdL Software Companies in an amount not to exceed $11,000 to
implement integration of the business license software system with the Active
Networks cash receipting system.
Executive
Summary
To strengthen internal controls,
create efficiencies, and implement best practices in the handling of cash,
check and credit card payments, a citywide cash management software system is
being implemented. A core feature of the
system is integration with multiple other payment recording systems, including
the HdL Software Companies’ business license system used to record payment of
business tax and miscellaneous permit payments.
Integration of the two systems requires additional functionality and
work by HdL beyond the scope of the current contract. The funds for this amendment are available in
the General Fund.
Background
On March 11, 1998, the City executed a contract with the HdL
Software Companies for purchase and annual maintenance of a software system to
record payments of business license tax.
On August 14, 2007, Council authorized the purchase from the Active
Networks of a citywide cash management system to standardize the recording of
payments to the City. A key feature of
this system is integration with other City software systems, which will both
receive and feed payment data to the cash management system.
Discussion
The City issues more than 21,000 business licenses and associated
permits, annually, and receives more than $25 million in business tax and
associated fees. These payments are recorded
in the primary system, which utilizes HdL business license software, and then
summarized and recorded manually in the City’s financial system. Implementation of the Active Network cash
management system will provide an electronic link, allowing payments recorded
in Active Network to automatically flow to both the business license system and
to the main financial system. This
integration eliminates the need for manually keying payment data into two
separate systems, thereby decreasing error and creating operational
efficiencies. Integration requires
additional work by the HdL Software Companies, which is out of the scope of the
current contract.
Financial Impacts &
Budget Actions
Funds
for amendment of the current software contract are available in Account
C010362.589000. Staff requests a
transfer of $6,000 to Account 01224.533580 to cover the cost of the initial
module in the current year. Future year
maintenance costs of $1,000 per year for five years will be included in the
City’s annual operating budget for each of the fiscal years FY2009/10 through
FY2012/13.
Prepared by: Pamela
McGarvey, Acting Revenue Manager
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Approved: |
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Forwarded to Council: |
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Carol Swindell Director
of Finance |
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P. City
Manager |