Title
Recommendation to Authorize the City Manager to Execute an Agreement with Carahsoft Technology Corporation, for a Five-Year Term in an Amount Not-to-Exceed $313,714, for Workiva Software for In-House Annual Comprehensive Financial Report and Popular Annual Financial Report Creation. (Information Technology 60626070)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Staff recommends City Council authorize the City Manager to enter into a five-year service agreement (Agreement) with Carahsoft Technology Corporation for the continuation of the City’s Workiva software subscription. The agreement allows the Finance Department to continue to produce the Annual Comprehensive Financial Report (ACFR) in-house utilizing the software’s capability to link financial data, have multiple users in the platform simultaneously, add comments, download unlimited versions for review and track changes.
BACKGROUND
A number of state and federal laws require the City of Alameda’s (City) financial statements to be audited annually by external auditors who are Certified Public Accountants. The City’s Finance Department prepares the detailed financial statements known as the Annual Comprehensive Financial Report (ACFR) each fiscal year. Eighteen months ago, while working with consultants F.H. Black, the Finance Department began using Workiva software to bring the ACFR in-house to streamline and expedite the ACFR process. The Finance Department would now like to renew the Workiva subscription when it ends in September 2024 for the continued creation of ACFRs and Popular Annual Financial Reports (PAFRs). Fiscal Year (FY) 2023-24 will be the City’s first PAFR publication, made possible in large part due to the functionality of the Workiva software.
DISCUSSION
In 2022, the City began using Workiva cloud-based financial reporting software to automate the creation of the ACFR. The platform focuses on transforming the way governments can manage and report financial data more efficiently. It automates repetitive work and eases the process of manually compiling data for audits and other financial reports.
Additional efficiencies were created by utilizing the Workiva platform to prepare the ACFR by:
• Using a single source of data
• Allowing data from the City’s financial system to map to multiple areas of the document directly and simultaneously
• Sharing documents with auditors in one location
• Linking of data to source documents
• Facilitating internal and external cross-collaboration and version control
• Automation of Government Accounting Standards Board (GASB) financial reporting presentation requirements
The existing agreement for these services expires in September 2024. Similar to Microsoft, Workiva uses resell partners for distribution of its software solution to smaller government entities. This allows mid-sized and small governments access to the software at a competitive price and a tailored solution for their needs. In anticipation of the expiration of the current agreement and the need for a five-year agreement, staff requested and received two bids from Workiva software reseller partners. Based on staff’s evaluation of the quotes, and the ability to negotiate a 5% annual cost increase instead of 7-11%, staff recommends the selection of Carahsoft to provide the City with the Workiva software and recommends a five-year agreement with Carahsoft be executed in an amount not-to-exceed $313,714.
ALTERNATIVES
• Authorize the City Manager to execute the agreement with Carahsoft as presented.
• Do not authorize execution of the agreement and provide other direction to staff. Not having this software available may lead to delays and/or a return of the ACFR compilation to our auditors.
FINANCIAL IMPACT
The five-year agreement as presented in the attached quote includes a single year quote of $56,774.23 and four (4) additional years of access totaling $256,939.30 for an aggregate total of $313,714 as detailed in the table below.
|
Quote Type |
Term |
Compensation |
|
Base Quote |
|
|
|
|
September 2024-2025 |
$ 56,774.23 |
|
|
Subtotal Base Quote |
$ 56,774.23 |
|
Options |
|
|
|
|
September 2025-2026 |
$ 59,612.95 |
|
|
September 2026-2027 |
$ 62,593.60 |
|
|
September 2027-2028 |
$ 65,723.29 |
|
|
September 2028-2029 |
$ 69,009.46 |
|
|
Subtotal Suggested Options |
$ 256.939.30 |
|
|
Total Agreement |
$ 313,713.53 |
Funds for this contract are budgeted in the Information Technology operating budget for Computer Software and Hardware (ORG 60626070) for FYs 2023-2025. FYs 2026-2029 will be subject to future appropriations.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
Receiving this report is in alignment with the City’s FYs 2023-26 Strategic Plan under the priority to Practice Fiscally Responsible, Equitable, and Inclusive Governance.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(4) of the CEQA guidelines because it involves governmental fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.
CLIMATE IMPACT
No identifiable climate impacts or climate action opportunities are associated with this report’s subject.
RECOMMENDATION
Authorize the City Manager to execute an agreement with Carahsoft to provide Workiva software for a five-year term in an amount not-to-exceed $313,714.
Respectfully submitted,
Margaret L. O’Brien, Finance Director
By,
Ross McCarthy, Controller
Exhibits:
1. Quote
2. Agreement