REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to Superion, LLC for Hosted Utility Billing Software and Support (F-20-060)
Report
REPORT IN BRIEF
Approval is requested to award a contract to Superion, LLC of Lake Mary, FL for hosted Utility Billing software and support for a five (5) year period in a not-to-exceed amount of $497,306.81, and to delegate authority to the City Manager to renew the contract for up to an additional 5-year period, if pricing and service remains acceptable to the City and budget is available.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and services exceeding $100,000 in any one transaction.
Further, Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitation of bids or proposals would be impractical, unavailing or impossible.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City of Sunnyvale originally implemented its current utility billing system in 1999. This system is used for billing all water, wastewater, solid waste and recycling services provided by the City. The system was purchased from HTE, Inc. (now owned by Superion LLC, a subsidiary of Central Square), and both the software and hardware has been updated on numerous occasions over the past two decades. Since the initial implementation of the utility billing system, all hardware associated with the system has been located on premise at City Hall, and the vendor provides remote support for the system.
The existing server that hosts the utility billing system has reached end of life, and support will no longer be provided after June of 2020. Staff evaluated two options: procuring a new server or contracting with Superion LLC to host the utility billing system through their cloud-based system, which City staff will access remotely. It was determined that moving to an environment hosted by Superion LLC will help provide a secure and reliable system in which all hardware support and maintenance is provided by the vendor. The move to a hosted solution will also enable Superion LLC to better support our system needs, as they will have full access to the billing system.
The increase in the annual charges for a hosted solution is approximately $10,000, which will be partially offset by the cancellation of the hardware support provided, which is currently $3,400 per year. There will be additional one-time savings of approximately $54,000 since the City will not need to replace existing servers. In following standard practice, the Information Technology Department recommends that a hosted solution should be considered for an initial 5-10 year investment period. Therefore, staff is requesting an initial 5-year term of contract with the option to extend for up to an additional 5 years to provide this service as a hosted solution, provided the costs for this service are acceptable and budget is available.
FISCAL IMPACT
Implementation, ongoing maintenance and support costs are funded through the Fund 595/350 Technology and Communications Sub-Fund. The increased expenses are offset by cost savings from equipment that will not need to be replaced, with a net neutral effect on the budget through 2029. Upon completion of the ERP project, staff will begin a review of the utility billing system for potential software replacement. Moving to a hosted solution gives staff the time needed to do a proper evaluation of the best path forward prior to the end of the initial five-year period.
Funding Source
Fund 595/350 Technology and Communications Sub-Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a five-year contract to Superion LLC for hosted Utility Billing software and support in substantially the same form as Attachment 1 to the report, in an amount not-to-exceed $497,306.81,
- Authorize the City Manager to execute the contract when all necessary conditions have been met, and
- Authorize the City Manager to renew the contract for up to five additional years, based on acceptable pricing and service, and budget is available.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Kathleen Boutte Foster, Chief Information Officer
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Superion LLC Solutions Agreement