Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Award of Request for Proposals (RFP) for Legacy ERP System Support to THOR, Inc. for a Five-Year Term and a not to Exceed Amount of $196,300
REPORT IN BRIEF
Staff recommends awarding an RFP for Legacy ERP System Support to THOR, Inc. for a five-year term and a not to exceed amount of $196,300 with specialized expertise required to maintain the City's Legacy ERP System during ERP transition.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the RFP and approving the Agreement with THOR, Inc; and,
B. Authorizing the 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 2026-27 Proposed Budget.
DISCUSSION
The City utilized the CentralSquare Enterprise Resource Planning (ERP) system for more than 30 years as its primary financial management software supporting core municipal operations including finance, payroll, utility billing, permitting, and business licensing. The system operates on the IBM AS/400 platform and utilizes RPG programming language, a legacy technology that requires specialized technical expertise.
The City began transitioning away from this legacy ERP platform to a modern ERP system and anticipates completing the transition in late 2026. During the transition period, the City continues to rely on the legacy system while replacement modules and systems are being implemented. Due to the specialized nature of the platform and the limited number of professionals capable of supporting the applications, the City entered into professional services agreements with THOR, Inc. to provide services.
At the time, the City utilized THOR's services agreement because staff was unable to identify qualified individuals or firms capable of providing ...
Click here for full text