Title
Assignment of Hansen Software Licenses from the City of Wichita to Sedgwick County.
Body
Beginning in 2009, the City of Wichita purchased Hansen software licenses and related support for the utilization of its code enforcement staff and related departments that overlap into code enforcement operations. The Hansen software is utilized for a variety of activities, including but not limited to the following: (1) contractors pulling permits for jobs to complete; (2) scheduling, completing, and keeping records for any code enforcement staff inspections; (3) arrangement of payments made by contractors for said permits; (4) maintenance and tracking of contractors' licensing, insurance, and continuing education credits; and (5) sending reminders to contractors and code enforcement staff when an end-date for permit completion is near.
Subsequent to the original purchase in 2009, the City purchased additional Hansen software licenses. The total purchase price for these licenses exceeded $944,000. Effective on the 1st day of January, 2013, the MABCD was formed, combining code enforcement operations for the City and the County. As a part of that merger, the County ceased using its previous software program that performed some of the same services as those offered by Hansen, and began utilizing Hansen software.
As the merger evolves and city employees are replaced with county employees, it is necessary that Sedgwick County take over being the "licensee" for this software. This license transfer will enable MABCD to migrate to one IT and budgetary system when it moves into a consolidated facility later in 2015. Infor, the vendor of the Hansen software program, has indicated that in order for the County to continue to use Hansen and/or to take ownership of the licenses that had been purchased by the City, an assignment of said licenses would be required. The proposed agreements would transfer almost all of the Hansen licenses that the City has purchased since 2009, which have been paid in full, to the County. The County would then retain the rights to those licenses, with the City and its staff within the MABCD being considered an authorized user.
In order to complete the assignment, a $50,000.00 assignment fee is proposed. The City would pay $25,000.00 of that assignment fee and the County would be responsible for the other $25,000.00. Under the proposed assignment, the vast majority of the licenses would be owned free and clear by the County, but the County would be responsible for the annual support fee, which would be a maximum of approximately $105,000.00 in December, 2015, as the City has already paid the annual support fees that were due on December 23, 2014.
As part of the assignment, the County would also forfeit 30 of the licenses that are unused and that the MABCD does not anticipate needing in the future in order to reduce annual support payments by approximately $16,000 per year.
Recommended Action: Authorize the Chair to sign the agreements to effectuate the assignment.
Alternatives: The Board of County Commissioners could vote not to agree to the assignment of licenses.
Financial Considerations: Total cost associated with the agreement includes;
1) $50,000 one-time assignment fee to be paid in 2014. As included in the agreement, the assignment of the license fee will be $50,000, with the City and the County each being responsible for half. While the entirety of the cost will come from the MABCD County budget, the City's portion will be reimbursed from the City of Wichita special revenue fund.
2) Annual support costs of approximately $100,806 to maintain 136 licenses and numerous related functions. The City had previously maintained 30 additional licenses, which were unused. Savings from the reduction of 30 licenses is estimated at about $16,000 annually. The City of Wichita made this payment in November 2014, which was due on December 23, 2014. The County will be responsible for the cost beginning in 2015; this cost was not included in MABCD's 2015 budget, and it is anticipated that a budget transfer from the Operating Reserve will be necessary to cover it when the payment comes due in December 2015. There is a 5% year-to-year increase cap on the support fee for the next 5 years.
Legal Considerations: This assignment would transfer control and title of Hansen software licenses to Sedgwick County from the City. The County has authority to enter into this assignment pursuant to its home rule powers under K.S.A. 19-101 et seq. Pursuant to Charter Resolution No. 65, Section V. C. 2., the County's Purchasing Director has determined that Infor is the sole source vendor, due to compatibility with existing contractual services, supplies, materials, and/or equipment utilized in the operations of the MABCD. Approval is by simple majority vote.
Policy Considerations: N/A
Outside Attendees: N/A
Multimedia Presentation: No.