REPORT TO THE CITY COUNCIL
FROM: SANTINO DANISI, Controller/Finance Director
Finance Department
BY: KALEB NEUFELD, Assistant Controller/Assistant Director
Finance Department
SUBJECT
Title
Approve a four-year business tax licensing software services agreement with Progressive Solutions, Inc. for a total contract value of $395,931.14 (Bid File 12500203).
Body
RECOMMENDATION
Staff recommends that City Council authorize the Finance Director or designee(s) to execute a four-year contract in the total amount of $395,931.14 to provide business tax and licensing services to the City of Fresno Finance Department as outlined in the Request for Proposal (RFP) issued by the City (Bid File 12500203).
EXECUTIVE SUMMARY
The City of Fresno (City) currently has an Agreement with Progressive Solutions Inc. for business tax and licensing services, scheduled to expire on June 30, 2025. A Request for Proposal (RFP) was issued for business tax and licensing services and posted on PlanetBids on September 19, 2024. Six software companies responded to our bid with their submissions. A Review committee was formed consisting of Finance Business Tax and License staff, a staff member from Information Services Department (ISD), and a staff member from the Department of Purchasing. Each Proposal was examined for conformity with the criteria published in the RFP, consisting primarily of the company’s ability to meet the required services and its cost proposal for providing such services. Staff recommends awarding a four-year contract, in the amount of $94,638.25 (Year 1), with the base pricing increasing 3% for years two, three, and four; for a total of $395,931.14, to the existing software application provider, Progressive Solutions Inc.
BACKGROUND
As a large government entity, the City of Fresno (City) has extensive and complex business tax and licensing service requirements that are essential for ensuring the efficient operation of the City’s financial systems and safeguarding its financial assets.
The City relies on its business tax and licensing partner to manage a variety of critical financial activities, including the processing of business tax license applications, renewals, cashiering module and calculating complex business tax rate structures for multiple types of businesses. Such services are vital for maintaining smooth and secure financial operations, enabling the City to meet its obligations to vendors, employees, and the public while adhering to best practices and regulatory standards.
The Business Tax Division of the Finance Department has utilized Progressive Solutions Inc.’s business tax and licensing software for over fifteen years. The software has met all the Business Tax Division’s needs for billing and collection of tax revenue, including, but not limited to, tax returns and tax assessment invoice forms sent out by mail or by email; payment by mail, in-person or online; queries and reports to manage data entry and discover non-compliant tax payers; and a web service portal that allows customers to make payments and updates to their accounts online.
A Request for Proposal (RFP) was issued for business tax and licensing services and posted on PlanetBids on September 19, 2024. Six software application companies submitted proposals including Avocette Technologies, Carahsoft Technology, GovOs Inc., HdL Companies, Progressive Solutions Inc., and Tyler Technologies.
A committee was formed to review the proposals and include staff from the Finance Business Tax and License, Information Services and Purchasing Departments. The RFP called for the software companies to address eight main components of services for the City including Cashiering, Customer Support, Geographic Information System (GIS), Reports and Queries, Rate Structure and Calculations, and Billing and Notices, System Security, and Interface Capabilities. In addition, proposers were asked to provide pricing on several items for products and services that the City currently uses. Furthermore, each proposer was asked to explain any product(s) or service(s), in addition to the services already utilized by the City, that may provide additional benefit. Each proposer was also asked to provide various documents and detailed contract language for comparison to the City’s standard and preferred terms and conditions.
The committee evaluated each proposal by reviewing all material presented. In addition, three proposers provided a virtual presentation to the committee (e.g., Progressive Solutions Inc, GovOs Inc., and Tyler Technologies). As stated in the RFP, the committee based its evaluations on the following criteria: (i) Comprehensiveness of Services Provided, (ii) Public Sector Experience and Resources, (iii) Strength and Stability of Financial Institution, (iv) Assigned Relationship Manager/Team, (v) Charges for Services, (vi) Service Enhancements, (vii) Business Tax and License Solutions, and (viii) Other Factors.
Selection Committee Findings and Recommendations
All proposing companies provide a wide array of Business Tax and Licensing services; however, Progressive Solutions Inc. was able to offer solutions that most effectively facilitate targeted service operations for the City. As a result, the committee concluded that Progressive Solutions Inc. has the strongest credentials for the City’s Business Tax and Licensing needs and will provide the best value based on their strong presence in the municipal sector, their proven ability to effectively address the Business Tax and Licensing service needs of the City for the last fifteen (15) years, their high level of professionalism and the associated cost of continuance of partnership with the City.
Progressive Solutions Inc. provided the best comprehensive solution and provided detailed reports to illustrate the services that would be implemented that would most effectively optimize the City’s Business Tax and Licensing operations. Furthermore, with respect to fiscal impact, Progressive Solutions Inc. was the lowest bidders. The decision to pursue the Request for Proposal bid process was to determine whether other companies offered comparable business licensing software options at a lower price, while exploring new market technologies not utilized by the City.
Based on an in-depth review of all proposals and the committee’s evaluation of key criteria, including: (i) Comprehensiveness of Services Provided, (ii) Public Sector Experience and Resources, (iii) Strength and Stability of Financial Institution, (iv) Assigned Relationship Manager/Team, (v) Charges for Services, (vi) Service Enhancements, (vii) Business Tax and License Solutions, (viii) Other Factors, the committee recommends that Council award a four-year contract to Progressive Solutions Inc
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not implemented because no local firms responded to the RFP.
FISCAL IMPACT
The recommended contract with Progressive Solutions Inc. is a four-year contractual agreement. The base cost for year one is $94,638.25, with a 3% annual increase in years two, three, and four, resulting in a total contract value of $395,931.14.
Attachments:
Bid Evaluation and Committee Report
Service Contract