FINANCIAL SOFTWARE AGREEMENT WITH CENTRALSQUARE
CentralSquare Technologies, LLC (CentralSquare) provides the City’s integrated financial management, payroll, and utility billing software. The City has contracted with CentralSquare and its predecessors for software licensing and support services for approximately 20 years.
In December 2021, the City transitioned to a Software-as-a-Service (SaaS) agreement with CentralSquare. The original agreement included a two-year initial term with an option for a one-year renewal. The City Council subsequently approved annual renewals in November 2024 and November 2025. Staff has received a proposal from CentralSquare to renew the City's SaaS agreement for an additional one-year term beginning December 6, 2026, and ending December 5, 2027, at a cost of $180,957. This represents an increase of $19,515, or approximately 12%, over the current annual contract amount of $161,442.
The FY 2026/27 Adopted Budget includes $172,744 in the Information Technology operating budget for this software agreement. The proposed renewal exceeds the budgeted amount by $8,213, or approximately 4.8%. If approved, staff will incorporate the additional expense into the City's FY 2026/27 Adjusted Budget.
CentralSquare is the sole provider of the NaviLine software currently utilized by the City. Given the City's longstanding use of the system and its integration with essential financial, payroll, and utility billing operations, transitioning to another software provider would involve substantial implementation costs, staff training, and potential operational disruptions. As a result, competitive bidding is unlikely to provide a cost-effective alternative for the proposed one-year renewal.
Therefore, staff recommends that the City Council waive the competitive bidding requirements of the City's Purchasing Policies and Procedures and award a one-year contract to CentralSquare Technologies, LLC, in the amount of $180,957.44 for continued SaaS licensing and support services.
- Waive the requirement to solicit competitive proposals and award a contract to CentralSquare Technologies, LLC, a CentralSquare Company of Lake Mary, FL, in the amount of 180,957.44 for CentralSquare NaviLine software.
- Do not approve the contract and refer this item back to staff for further information.
CentralSquare is the sole provider for the integrated financial, payroll, and utility billing software used by the City. The City’s experience within this contract has been positive and mission-critical accounting processes continue to be completed. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as stated above.