DATE: March 26, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: CHANGE ORDER TO THE AGREEMENT WITH SYSTEM INNOVATORS FOR THE PURCHASE, IMPLEMENTATION AND MAINTENANCE OF THE INOVAH SOFTWARE SYSTEM AS THE CENTRAL CASHIERING SYSTEM, AMENDMENT TO THE AGREEMENT WITH ENTERPRISE TECHNOLOGYSERVICES, AND APPROPRIATE FUNDS FROM THE INFORMATION TECHNOLOGY SOFTWARE RESERVES
RECOMMENDATION
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Staff recommends that the City Council approve a Change Order to the Software License and Services Agreement with System Innovators, in the amount of $16,466 annually, to include two additional real time integrations for Parking Permits and the General Ledger (GL) Validation for payments in the iNovah Software System for a total contract amount for implementation and a five year support contract of $882,841; approve Amendment 4 to the Professional service agreement with Enterprise Technology Services, in an amount not to exceed $21,280, for Oracle General Ledger Validation; appropriate $37,746 from the Information Technology software reserves to the Financial Services Department; and authorize the City Manager to execute the change order and the amendment.
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BACKGROUND AND ANALYSIS
On March 27, 2024, the City Council approved the Software License and Services Agreement with System Innovators, in the amount of $216,151, for the purchase and maintenance of a central cashiering system and year one of the Software as a service (SaaS) fees for hosting services of the web-based system. The iNovah cashier system will replace the existing cashier system and will integrate with current software systems for Utility Billing, Parking Citations, Development Services and Business Licenses. It will provide cashiering software for City Hall East, Police, and Harbor, and further enable online payments through the City’s website. Additionally, the new system will entail the acquisition of new hardware to facilitate secure EMV credit card transactions, a technology and payment method designed to limit fraud by using embedded computer chips on credit and debit cards at all locations. Furthermore, iNovah will offer hosting services for all credit card transactions, ensuring Payment Card Industry (PCI) compliance.
The integrations for Parking Permits and the GL validation were not included in the original scope of the Software License and Services Agreement with System Innovators, but are needed to provide real time updates for purchases of the Annual Beach Lot Permit Program, the Beach Area Residential Permit Parking Program, the Preferential Parking Permit Program and the Oversized Vehicle Parking Permit Program. The GL validation is needed to ensure proper posting and accuracy of daily receipts and reconciliation to the general ledger.
General Ledger validation was not part of the original scope of work with Enterprise Technologies Enterprises and is needed to complete the validation between the two systems. This additional work would add another $21,280 in onetime costs for a total not to exceed amount of $63,480 to Enterprise Technology Services for the work on the iNovah Central Cashiering System and Oracle Integration.
The annual Software as a service (SaaS) fees for System Innovators to host services of the web-based system and maintain system integrations would increase $16,466 annually with these two additional integrations, increasing the SaaS fee from $146,090 to $162,556 annually.
FISCAL IMPACT
Staff is requesting a onetime appropriation of $37,746 from the IT Software Reserves account 831.3100.0039 to the Revenue Management account for year one of the iNovah Software System SaaS fee. A transfer and budget appropriation of $37,746 is needed from 1841.6900.0101 to 211010101.6800.0841.
|
Account |
Requested Appropriation |
Amount |
Funding Source |
Amount Available |
|
One-time: |
|
|
|
|
|
Revenue Management |
211010101. 5305 |
$ 37,746 |
IT Software Reserves 841.3100.0039 |
$2.9M |
Future years’ cost will be budgeted through the annual budget process.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Donna Trevizo, Financial Services Division Manager
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Change Order 1
3. Amendment 4