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October 22, 2026 City Council Regular Meeting
Title
19. Authorize the City Manager to Execute a Contract for Software as a Service (SaaS) Subscription from MHC Northstar Software, Inc. in the Amount of $57,375.24. (IT Department)
Strategic Priority
GOAL 6:  Always Be a High-Performing Government
Description

Authorize the City Manager to approve the renewal of MHC NorthStar Software with MHC Software, Inc. in the amount of $57,375.24. The software is utilized by the Finance Department to support critical financial and payroll-related functions, including Accounts Payable Payments, Supply Chain, Payroll Enterprise, and Employee Tax processing. The renewal will provide continued access to the software necessary to support tax reporting, payroll processing, vendor payment security, electronic document management, system maintenance, and technical support. 

Year 1: $57,375.24 / October 31, 2026 – October 31, 2027

Year 2: $57,375.24/ October 31, 2027 – October 31, 2028  

Continued access to MHC NorthStar will allow the Finance Department to maintain reliable payroll and tax document processing, support IRS reporting requirements, and maintain efficient vendor payment and financial operations. Failure to renew could disrupt payroll tax reporting, W-2 and 1099 processing, payment security, and other essential financial processes. Delivery: As needed. Terms: Net 30 days.

The vendor is: 

S.S. MHC Software, Inc.  (Burnsville, MN) (D) $57,375.24

A pre-bid conference was not conducted, as this is a sole-source contract procurement because MHC is the only source to provide this software. It is critical to have maintenance and support from the original provider to ensure authorized, knowledgeable, and timely vendor support when and if it is necessary.  (D) Indicates non-local, non-DBE business.

Local available: No 
Total sent: 1 
Total received: 1 

Recommendation

Approval

Contact
Tim Moody, Director, ITS
Financial Impact
Expenditures of $57,375.24 from Internal Service Fund
Review Comments
Attachments
Exhibit 1: Funding Verification - MHC SaaS Subscription.pdf
Exhibit 2: Purchasing Notes - MHC SaaS Subscription.pdf
Agenda Plus