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REQUEST FOR <br />COUNCIL ACTION` <br />CITY COUNCIL MEETING DATE: <br />APRIL 18, 2017 <br />TITLE: <br />AMEND AGREEMENT WITH INFOR <br />(US) INC FOR FINANCIAL SYSTEM <br />MAINTENANCE, SERVICES, AND <br />SOFTWARE LICENSES <br />{STRATEGIC PLAN NO. 7, 5A} <br />I TP►G[c]x:7 <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s` Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to amend the agreement with Infor (US) Inc. <br />for Lawson financial system maintenance, services, and software licenses in an amount not to <br />exceed $741,533 over an approximate three -year period from April 19, 2017, through May 31, <br />2020, subject to non - substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The City uses the Infor Lawson financial system to process, account for, maintain, track, and <br />report on the City's financial information and transactions. This includes functions for general <br />ledger, accounts payable, billing, accounts receivable, cash management, procurement, <br />inventory, asset management, grant management, projects and activities, budgeting, business <br />intelligence and reporting. The system is used to produce the Comprehensive Annual Financial <br />Report (CAFR) required by California State Law and the City Charter. <br />After a competitive procurement process, the City Council approved an agreement with Lawson <br />Software Americas, Inc. on March 3, 2008, to purchase the Lawson financial system (Agreement <br />A- 2008 -037). The system went live in September 2009 and replaced a legacy mainframe system <br />that was over 20 years old. Lawson Software Americas, Inc. was acquired by Infor (US) Inc. in <br />2011. <br />Staff recommends approving an Addendum, Services Work Order, and Order Form for annual <br />maintenance, professional services, and software licenses, respectively. The Addendum for <br />Multiyear Support Commitment modifies the maintenance term to decrease the annual <br />maintenance cap from 4% plus CPI rate to a fixed 3% rate, saving the City several thousand <br />dollars each year in maintenance costs during the three year term. Annual maintenance entitles <br />the City to receive software updates and technical support services which are required to ensure <br />system availability, proper operation, and legislative compliance. The Services Work Order <br />provides the City with professional services required to maintain, optimize, and improve the <br />25E -1 <br />