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ITEM #15 <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR THE COUNCIL MEETING OF AUGUST 15, 2006 <br />TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br />FROM: DILU DE ALWIS, FINANCE DIRECTOR 0" <br />SUBJECT: AWARD BID FOR BUSINESS LICENSING SOFTWARE TO <br />PROGRESSIVE SOLUTIONS IN AN ANNUAL AMOUNT NOT TO <br />EXCEED $30,000 <br />DATE: AUGUST 2, 2006 <br />BACKGROUND: <br />The City has contracted with HdL to provide business licensing software since February, <br />2000. The system keeps track of approximately 2,800 active license records. The current <br />system generates renewal notices but lacks a comprehensive revenue recovery module, <br />and web module (online renewal/payment). In addition, the current system manually <br />converts AB990 (State Board of Equalization) and AB63 (Franchise Tax Board) data <br />leaving staff with the task of generating exception letters for businesses that do not <br />currently have licenses. <br />DISCUSSION/ANALYSIS: <br />Diligent effort was made to solicit competitive proposals for business licensing software. <br />On December 15`h, 2005 the Request for Proposal was distributed to potential bidders, and <br />posted on the City's website. Staff obtained formal proposals from Progressive Solutions <br />and the HdL Companies. The bid abstract is attached. <br />Proposals from both companies were evaluated based on the criteria listed in the RFP, <br />including Quality of Workplan/Methodology, Ability to Perform, and Overall Cost. The <br />evaluation team invited both companies to provide comprehensive onsite product <br />demonstrations. Each vendor was asked to demonstrate how their software utilizes the $65 <br />deposit on new licenses before calculating the tax due as well as penalties and late <br />charges. HdL's software was not able to calculate the penalties/late charges but <br />anticipated that it would be available in a couple months whereas the software from <br />Progressive Solutions could. Further, Progressive Solutions provided a robust web based <br />renewal module with the functionality and features required to accommodate the City's <br />penalty and late fee schedules. HdL's is still in the design/development stage and isn't <br />expected to be piloted until next summer. <br />On June 13`h, HdL and Progressive Solutions were invited to participate in a Best & Final <br />round of negotiations to clarify technical support response times, conversion requirements, <br />and acceptance criteria. Upon receipt of the Best & Final proposals, staff re-evaluated the <br />