PURCHASE OF NEW BUSINESS LICENSE SOFTWARE AND SUPPORT SERVICES
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1 STAFF REPORT MEETING DATE: April 28, 2015 TO: FROM: City Council Michael Frank, City Manager Cathy Capriola, Assistant City Manager Brian Cochran, Finance Manager Jeff Carroll, Technology Manager 922 Machin Avenue Novato, CA (415) FAX (415) SUBJECT: PURCHASE OF NEW BUSINESS LICENSE SOFTWARE AND SUPPORT SERVICES REQUEST Consider adopting a resolution authorizing the City Manager to enter into a software license and support agreement with Progressive Solutions Inc. for the purchase of new business license software. RECOMMENDATION Adopt the resolution. DISCUSSION The City has had a comprehensive IT Master Plan for several years. One of the critical projects identified in the Master Plan for the Finance Division is replacement of the 19-year-old business license software module (a component of the City s overall legacy financial software, also in need of replacement). While initial planning supposed that this software would similarly be a part of the broader financial software replacement project, a variety of customer service needs and experiences in other cities have led staff to recommend replacing the existing system with a best of breed solution, independent of a future finance software solution. Background The business license function within the Finance Division is staffed by a 1.0 FTE Senior Accounting Assistant. This individual handles all aspects of the business license process, including but not limited to: Renewals of over 4,500 business licenses annually; An average of 500 new applications for business licenses annually; All payments for new and renewal licenses, virtually 100% of which are cash and check payments (no credit cards currently accepted); Reminder notices and collections for late payments and non-payments; cc15_073 1
2 An annual summer audit process, locating unlicensed businesses each year; Staff support for the annual business improvement district process, including any protests; and, Answering daily citizen and business questions and inquiries throughout the year. The current software utilized for this function is a module of the City s legacy financial system originally implemented in The software achieves the most basic functionality of maintaining a database to track licensed businesses; updating relevant contact information when needed; calculating the license fees due for an upcoming renewal year; printing renewal notices on a selfenclosed carbon-copy style mailer with limited room or options for customer communication and/or education; and generating new printed licenses. Compared to newer options, the system is cumbersome, inflexible, and is difficult to maintain. Other important drawbacks include: Few search capabilities (only three fields in the database are searchable); No ability to generate underpayment letters, audit letters, invoices, etc; these are all currently done manually on an Excel form; No credit card acceptance functionality; No ability to offer renewals via the web or customer self-service; Carbon paper stock used to print renewals and licenses is hard to read, expensive to buy, and looks out of date; No data analysis, query, or reporting features; and, No routing, workflow, or approval features to automate paper processes. Research and Selection Process Finance staff has been familiar with the main vendors of business license software for a number of years, having seen vendor demos and information at various conferences and professional gatherings. Additionally, most of the major government financial software companies offer a business license module as part of their overall suite of products. As mentioned above, early planning assumed that the business license software would be part of a larger financial system installation. Staff had discussions with other cities and reviewed surveys and information available on the California Municipal Revenue and Treasurers Association (CMRTA) list serve. It quickly became clear that most cities were opting for a specialized software vendor for business license and were happy with the software, whereas cities that had opted for a solution built into their financial system were not pleased with the features, vendor support, or ease of use. The two major vendors of business license software are Progressive Solutions and HDL. Both companies have offered a specialized product for many years and have many California local government clients. Staff viewed demos of both products, had lengthy discussions with both vendors, and visited a client site of each (San Rafael for HDL; Oakland for Progressive). In terms of features, both products offer a full-featured system that is well-tailored to managing a California municipal business license program. Staff s conclusion was that either one would work well in meeting the goals of the project. Pricing was a factor in the decision, though not the deciding factor. As outlined in more detail below, the up-front software costs for Progressive are $21,100. This price includes the software, installation, training, and data migration. A similarly specified HDL software solution was nearly three times as costly. Annual maintenance for the software is estimated initially at $5,
3 Staff Recommendation Staff recommends the selection of Progressive Solutions LicenseTrack software. Progressive appears to have a long history of happy clients in California who are utilizing the software, some of whom we spoke to during the research process. Additionally, a March 2015 survey of more than 70 California municipalities showed that the LicenseTrack is one of the leaders in the industry for California business license software. Some of the benefits that this software will offer Novato include: A modern, windows-based interface with easy-to-read icons and the ability to have multiple client files open at the same time; Querying capabilities on any field in the database, and the ability to perform actions on query subsets; Integration with US Postal Service databases for address verification; Ability to send to clients directly from the software and retain records of this communication within the software for reference in the future; Pre-designed renewal and license forms that print on regular laser printers and 8.5x11 paper, plus can be formatted as we like and can include scannable coupons, barcodes, etc.; Full online renewal capabilities for renewing businesses including credit card acceptance; Approval workflows for zoning approvals, police permits, etc.; and, Integration with outside databases, such as the Board of Equalization data, for better auditing and compliance monitoring. Staff feels that this new software is the best choice for Novato and will give the business license function a significant upgrade in productivity, efficiency, and improved processes for our staff. The customer experience should be vastly improved as well, with easier to read forms and letters and the ability to renew, update selected customer profile information, and pay online. Attached is a resolution for the City Council s adoption, authorizing the City Manager to execute a Software License and Services Agreement, including a Software Maintenance Agreement with Progressive Solutions Inc. FISCAL IMPACT The project is funded within the technology portion of the CIP budget, with a total estimated budget of $39,500 (including $3,400 contingency). A breakdown of project costs is in the table below. This project includes software licenses, installation, data transfer and training as well as additions to our virtual server environment and server license. Vendor provided maintenance of the software will initially be $5,300 annually. Staff is in discussions with the vendor for a 3-year prepaid maintenance option, which we may recommend exercising if it makes sense for the City. One-Time Costs Software Licenses (includes base LicenseTrack, Web Renewals, $15,000 and discount) Installation and Setup $1,200 Data Migration $1,500 Training $2,400 Credit Card Interface $1,
4 Total Software/Data $21,100 Hardware and Associated Network Components $15,000 Contingency $3,400 TOTAL COST $39,500 ALTERNATIVES 1. Do not sign the agreement and continue using existing software. 2. Do not sign the agreement and select and negotiate with a different vendor. ATTACHMENTS 1. Resolution 4 4
5 CITY COUNCIL OF THE CITY OF NOVATO RESOLUTION NO RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A SOFTWARE LICENSE AND SERVICES AGREEMENT WITH PROGRESSIVE SOLUTIONS INC FOR NEW BUSINESS LICENSE SOFTWARE WHEREAS, The City s Finance Division is responsible for implementing section 8-1 of the Novato Municipal Code relating to business licenses; and WHEREAS, the City has been using the same software for administration of the business license program since 1996; and WHEREAS, said software is antiquated, cumbersome, and not conducive to efficiently implementing the business license program; and WHEREAS, local business owners who need to pay their annual license fees can currently only utilize cash or check and consistently request the ability to pay with a credit card and pay online; and WHEREAS, City staff diligently evaluated a variety of available options for potential replacement software vendors suitable to provide business license software; and WHEREAS, based upon that review, City staff has determined that Progressive Solutions Inc, with its LicenseTrack software, is best suited to meet the needs of the City; and WHEREAS, Progressive Solutions will also provide ongoing software maintenance and support at an estimated annual cost of $5,300; and WHEREAS, the table below shows the project one-time cost estimates: One-Time Costs Software Licenses (includes base LicenseTrack, Web Renewals, $15,000 and discount) Installation and Setup $1,200 Data Migration $1,500 Training $2,400 Credit Card Interface $1,000 Total Software/Data $21,100 Hardware and Associated Network Components $15,000 Contingency $3,400 TOTAL COST $39,500 res4874 5
6 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Novato hereby authorizes the City Manager to execute a Software License and Services Agreement with Progressive Solutions Inc for the purchase of new business license software and maintenance services. * * * * * * I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Novato, Marin County, California, at a meeting thereof, held on the 28 th day of April, 2015, by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT: Sheri Hartz, City Clerk Approved as to form: City Attorney of the City of Novato res4874 6
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