Explanation
Background:
This ordinance authorizes the City Auditor to modify the existing contract with OnActuate Consulting US Inc. to provide funding for the first of four planned renewal options for professional services to support and maintain the City’s financial system, Dynamics 365 Finance (D365) and authorizes the expenditure of $693,000.00 for maintenance and support services.
D365, developed by Microsoft, has served as the City’s financial system since January 1, 2021, supporting essential functions such as accounting, accounts payable/receivable, budgeting, cashiering, fixed assets, procurement, sealed bidding, and vendor management. It serves as the system of record for financial operations including the City’s Annual Comprehensive Financial Report (ACFR) and debt issuance reports. Keeping this system fully operational, current, updated, and adaptable to evolving needs is critical to City operations.
OnActuate Consulting US Inc. is the City's designated Microsoft partner, filing support cases and assisting City staff with Dynamics updates, fixes, and feature applications. They also provide consulting and technical expertise for the Auditor’s cloud environment in Azure, Point of Sale extensions, and Power Platform development with authorized access to the City’s environments, DevOps, and Visual Studio subscriptions. Having Microsoft certified and platform experienced professionals is essential for maintaining operational readiness.
The current contract was authorized by Ordinance 0436-2025, passed by City Council on March 10, 2025 with a one-year initial term of April 1, 2025 through March 31, 2026 and included four one-year renewal options subject to available appropriation and City Council approval. This ordinance exercises the first renewal option for year two annual managed support. Beginning with this renewal, the hourly rate is adjusted annually, based on the lesser of either: 4% or the prior year’s annual CPI rate. Year two rate will be based on a 2025 CPI of 2.7% and results in savings of $9,000 for the City.
Fiscal Impact:
Funding of $693,000.00 is available in the Info Services Operating fund, Dept of Technology Operating subfund.
Contract Compliance:
OnActuate Consulting US Inc., CC#CC0048102, expires May 29, 2027, D365# 048102
Principal place of business: 10900 NE 4th ST Bellevue, WA 98004
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against OnActuate Consulting US Inc.
Emergency Designation:
Emergency action is requested to ensure uninterrupted access to D365, the City’s system of record for financial operations, thereby vital for recording revenue and maintaining continuity of essential city services.
Title
To authorize the City Auditor to modify an agreement with OnActuate Consulting US Inc. to add additional funding ($693,000.00) for the first of four annual renewal options subject to Council approval and appropriation for supplemental professional support, consulting and technical services for D365, Azure, point of sale, and power platform; to authorize the expenditure of $693,000.00, from the Department of Technology operating fund; and to declare an emergency. ($693,000.00)
Body
WHEREAS, there is a need for continued professional support, maintenance, technical, functional, and consulting services for D365, the City’s financial management system and platforms; and
WHEREAS, the current contract with OnActuate Consulting US Inc. was authorized by Ordinance 0436-2025 and passed by Council on March 10, 2025 and included four single year renewal options subject to available funding and City Council approval; and
WHEREAS, an emergency exists in the usual daily operations of the City Auditor's Office in that it is immediately necessary to authorize the City Auditor to modify a contract with OnActuate Consulting US Inc.to add additional funding and to prevent any interruption in services for Dynamics 365 Finance (D365), thereby ensuring continuity of city services and preventing delays in recording revenue. all for the immediate preservation of the public health, peace, property, safety and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor be and hereby is authorized to modify the existing contract to enter into the first of four single year renewal options subject to City Council annual appropriation and approval, with OnActuate Consulting US Inc. in the amount of $693,000.00 for professional services and resources related to supporting operations, consulting, and providing technical expertise for financial management system environment including D365, Azure, Point of Sale, and Power Platform.
SECTION 2. That the expenditure of $693,000.00, or so much thereof as may be needed is hereby authorized to be expended from Fund 5100 and subfund 510001 Dept. / Div. 47-02, Object Class 03, Main Account 63945, Program IT005 per the account codes in the attachment to this ordinance.
SECTION 3. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.