R2023-202 Resolution Authorizing Professional Service Agreement with OpenGov Inc. for Food and Beverage Tax Conversion to Cloud Based Services

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Financial Management DATE: 10/2/2023 MEMO: TO: Honorable Mayor Moore Wolfe and Decatur City Council Members FROM: Scot Wrighton,City Manager Ruby F.James,City Treasurer&Director of Finance SUBJECT: Resolution Authorizing Professional Service Agreement with OpenGov Inc. for Food and Beverage Tax Conversion to Cloud Based Services SUMMARY RECOMMENDATION: City Administration recommends Council approval of the attached Resolution authorizing the City Manager and Chief Financial Officer to enter into a professional services agreement with OpenGov Inc. for implementation and maintenance services whereby OpenGov Inc. will provide cloud-based services to host the Food and Beverage tax platform. The agreement will be inserted into the Council packet no later than 5prrFriday, September 29. BACKGROUND: Currently,the Food and Beverage Tax system is manual and exists in a DB2 environment. The city is phasing-out its antiquated DB2 systems. Food and Beverage businesses deliver their tax forms and payments to the City through the mail or in person as the only options available at this time. The City proposes to automate this system because the DB2 technology is obsolete and must be converted to another system Also,this will allow the City's food and beverage businesses that are required to file tax forms and make tax payments to do so online,which is currently not available to businesses. OpenGov Inc. is a cloud-based system that is used by other similar municipalities for this purpose, such as Bolingbrook, IL and is a product that is user friendly and cost efficient. The City also looked at Munis Tyler but it was more expensive,not as user friendly, and did not have as robust features. Additionally, the City currently uses OpenGov Inc. for Licensing and Permits, giving us familiarity for implementation and adoption. The pricing obtained for implementation and maintenance fees from OpenGov Inc. for a four-year commitment are: 2023 -$19,500(implementation and maintenance) 2024-$24,400(implementation and maintenance) 2025 -$20,916(maintenance—5%increase) 2026-$21,961.80(maintenance—5%increase) POTENTIAL OBJECTIONS: None anticipated INPUT FROM OTHER SOURCES: None STAFF REFERENCE: Ruby F. James,City Treasurer&Director of Finance Anthony Cooling,Budget and Revenue Officer Jim Edwards,Director of Information Technology BUDGET/TIME IMPLICATIONS: With the assistance of the City's Information Technology Department,the conversion of the Food and Beverage Tax system will begin in October 2023 and be completed by December,2023. The initial cost of$19,500 is not included in the 2023 Information Technology budget,but can be paid out of contingency funds budgeted in the General Fund budget of the City. Staff believes this is the most efficient way of moving away from old DB2 systems that are no longer supported.