|
Back to Calendar
Return
|
| ARF- 1660 |
Regular Agenda Item 3. F.
|
| Regular BOS Meeting |
|
|
|
| Information |
| Request/Subject |
| Approval of Amendment No. 1 to Software Contract with Colorado CustomWare, Inc.; & a Lease Purchase Agreement with Zions First National Bank |
| Background Information |
On December 5, 2007, Gila County entered into a Master Services Agreement with Colorado CustomWare, Inc. (CCI) to purchase RealWare, FieldWare, and GeoWare software systems. The agreement allows for an annual payment that covers the right to use the software, as well as provides a maintenance agreement for the software.
Initially, the Arizona Department of Revenue (ADOR) had planned to build a new system with the help of a company called Manatron. This contract would have replaced the software in eleven counties, including Gila County. To fund the endeavor, ADOR had assessed each participating county an amount between $2.20 and $2.35 per parcel. That project failed and ADOR notified all counties that were participating in the project, that ADOR was not going to continue with a state system.
CCI responded to an RFP for software that would perform the tasks that the state system was capable of performing. The RFP was issued by Navajo County on behalf of themselves, Gila County, Santa Cruz County, Greenlee County and Apache County. These five counties did not have the ability to purchase the system outright, so it was agreed that CCI would absorb all of the front end costs, and license costs and combine them with an annual support cost. It was further agreed to spread that cost out over a ten year period. At the time of the initial Master Services Agreement, that cost was calculated on the initial per parcel amount of $2.20, that was assessed by ADOR in their failed project, with a per parcel rate increase of $0.05 per year to top out at $2.35 per parcel. To date, for the last five years, Gila County has been paying CCI, an annual average amount of $101,000, which includes an annual maintenance charge.
Gila County has five years remaining on the lease purchase of the CCI software. |
| Evaluation |
Recently, CCI entered into an agreement with Zions First National Bank to finance the Software License Fees, in which Zions will pay a reduced amount of ten percent (10%) directly to CCI.
Per the terms of the proposed agreement from CCI, Gila County will pay CCI directly for the 2013-2014 year. CCI has reduced the annual payment for 2013-2014 of $101,233.30 by ten percent (10%), contingent on Gila County taking advantage of the financing offered by Zions First National Bank, thus the amount Gila County will pay for the 2013-2014 payment will be $91,109.99.
By Gila County entering into these agreements with CCI/Zions First National Bank for the remaining five years, the first year payment to CCI would be $91,109.99, thereafter, the payments would be split between CCI and Zions First National Bank for Maintenance Support of $28,523.78 and Lease Purchase of $62,586.22, respectively. The contracts would extend through fiscal year 2017-2018, resulting in a total savings to Gila County of $ 50,616.55 or a ten percent (10%) overall savings.
|
| Conclusion |
| It would serve Gila County to enter into an amendment with CCI, and, a Lease Purchase Agreement with Zions First National Bank for the remaining four years of the RealWare, FieldWare and GeoWare software systems. The County would realize a substantial monetary savings of $50,616.55. |
| Recommendation |
| County staff recommends accepting both CCI's Amendment No. 1 to the Software Contract, License; Clarification of Payment Terms; and Discount, and, the Lease Purchase Agreement proposed by Zions First National Bank. Acceptance of these documents results in a $10,123.31 annual savings to Gila County, with a total savings over 5 years of $50,616.55. |
| Suggested Motion |
| Information/Discussion/Action to approve Amendment No. 1 to Software Contract (which is an amendment to a Master Services Agreement) between Colorado CustomWare, Inc. (CCI) and Gila County; to approve a Lease Purchase Agreement between Zions First National Bank and Gila County whereby the County will realize an overall savings of $50,616.55 over a five-year period; and to adopt Resolution No. 13-02-04, which authorizes the approval of the Lease Purchase Agreement, all of which is needed for the Assessor's Office software package. (Joe Heatherly) |
|
|
|
|