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Citi/ of Cotton <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF APRIL 6, '1999 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />APPROVAL: HENRY T. GARCIA, CITY MANAGER <br />FROM: DILU DE ALWIS, ACTING FINANCE DIRECTOR <br />SUBJECT: SETTLEMENT AGREEMENT WITH CITY AND HARRIS COMPUTER SYSTEMS INC. <br />DATE: MARCH 22,1999 <br />BACKGROUND: <br />In Fiscal Year 1995/96, Finance solicited bids for the services of Financial Software and Utility Customer Information <br />System software which were awarded to Eden Financial Systems (Eden) and Harris Computer Systems (Harris) <br />respectively. <br />DISCUSSION/ANALYIS: <br />In January 1996 the City of Colton awarded a bid to Harris Computer Systems to install a Customer Information/Utility <br />Billing System. However, due to the complexity of the required systems, Harris has not been able to meet their contractual <br />obligations, and has requested to terminate the contract. The City of Colton paid Harris a total of $52,000 from inception to <br />date. Of this amount it was determined that approximately $20,000 was expended by Harris to make various changes that <br />were requested of them after the initial signing of the contract. This has resulted in the settlement amount of $32,000 we <br />feel is equitable. <br />ALTERNATIVES: <br />None <br />FINANCIAL IMPACT: <br />Apply the $32,000 settlement from Harris Systems to the Utility Reserves account, and to apply the same towards new <br />Utility Customer Information System. <br />RECOMMENDATION: <br />Staff recommends that Council approve the settlement between the City of Colton and Harris Computer Systems. <br />Item 4 9 <br />