MEMORANDUM

TO: Pete Sprague, President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Mark Fowler, Purchasing Officer

Craig Chapman, Acting Finance Director

Shane Horan, Assessing Director

Bob Jones, Systems Manager

Ed Oberts, Assistant to the Mayor

Tony Oliver, Enterprise Applications Manager (Project Manager

DATE: October 1, 2003

SUBJECT: Resolution 2003-108, Authorizing Award of Contract for the "Software and Implementation Services - Computer Assisted Mass Appraisal (CAMA), Tax Billing and Collection System" to Manatron, Inc.

In February 2003, the Finance and Assessing Departments, in consultation with the MIS Department, solicited proposals for the "Software and Implementation Services - Computer Assisted Mass Appraisal (CAMA), Tax Billing and Collection System". The Government Finance Officers Association (GFOA) served as the Borough's third party consultant with expertise in the software field.

The objective of the solicitation was to acquire a Tax Appraisal and Collection system that: integrates across Assessment and Collection functions that share in a common data base, increases efficiencies through a single entry data capture, supports remote data collection devices to leverage field work efficiencies, and empowers the user with analytical tools and report writing capabilities.

In total, the Borough received 6 proposals. After a thorough review of the proposals, two firms were invited to provide onsite demonstrations of their products. It has been determined that Manatron, Inc. best meets the needs of the Borough.

The Borough's current tax billing and collection system is twenty years old and well beyond its expected useful and productive lifecyle. The current tax system is not capable of supporting the ever challenging pace of technology.

The maturity of third-party software solutions is at a point where software vendors can offer cost-effective and functionality flexible solutions to the marketplace, allowing the Borough to move away from the highly proprietary Unisys hardware and software platforms and move into the new industry standard "vanilla" or COTS (Commercial Off The Shelf) hardware and software solutions. The purchase of the Manatron, Inc. integrated solution will allow the Borough to comply with the administrative directive of migrating away from the mainframe, and replacing three of our in-house developed and maintained applications with a single third-party integrated software solution.

Therefore, it is the recommendation of the committee to enter into a contract with Manatron, Inc. for the purchase of software and implementation services in the not-to-exceed amount of $643,000.00.

Funds have been budgeted and are available in account numbers 407.19015.CAMAS, 407.19015.04CAM, and 407.19015.03WEB.