Report Prepared by: J.R. Wright, IT Manager, Information Technology
Title
SUBJECT: Approval of an Addendum for Professional Services Agreement With THOR, Inc. for $11,000 for AS/400 Programming Services to Support Central Square (Formerly, SunGard) Application Suite, for a Grand Total of $189,000
REPORT IN BRIEF
Authorizing an addendum for professional services agreement with the THOR Group for $11,000 for AS/400 programming services to support Central Square (formerly, SunGard) application suite.
RECOMMENDATION
City Council - Adopt a motion approving addendum #1 to the professional services agreement with THOR, Inc. and authorizing the City Manager or the Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by Staff; or
2. Deny; or
3. Refer to Staff for further evaluation.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2019-20 Adopted Budget.
DISCUSSION
On July 1, 2019 the City Council approved a Professional Services Agreement with THOR, Inc. for $178,000 for AS/400 programming services to support Central Square (formerly, SunGard) application suite.
The Central Square software suite is a vital technology to the City that runs critical business operations, including GMBA, building permits, business licenses, utility billing, payroll, and more. Currently the City is contracted with the THOR Group to support these custom modifications to the Central Square software suite. The THOR Group is a professional staffing agency, which specializes in this type of older technology. The proposed amendment is for AS/400 support and is not part of the new Tyler ERP migration.
In fiscal year 2019-20, the IT department sustained staffing shortages caused by long-term medical leave of absences of two regular full-time IT staff. These two City staff members were the supplemental staff used for day-to-day support of the AS/400. The Thor contractor assumed all of that responsibility in their absence. In addition, a Federal statute requiring a change to the dependent withholding calculation on the new 2020 W-4 form mandated a lengthy and unplanned AS/400 version upgrade in January of 2020. The THOR contractor was the only person capable of completing the additional software code changes necessary for the version upgrade.
The City is asking for an addendum to the contract for an additional 100 professional service hours @ $110 per hour totaling $11,000 to compensate for the additional workload. This is a 6.2% increase from the original contracted amount of $178,000 to $189,000.
IMPACT ON CITY RESOURCES
This expense will be paid out of fiscal year 2019-20 budget and funding is available in account 672-0404-512-1700.
ATTACHMENTS
1. Addendum #1 to THOR Master Services Agreement
2. Original Admin. Report
3. Signed THOR Master Services Agreement
4. Signed THOR Services Agreement Consultant Attachment