CITY COUNCIL AGENDA ITEM
Meeting Date: September 13, 2005
Subject/Title: Approve a resolution authorizing the City Manager to: 1) sign
a contract with SunGard Bi-Tech in the amount of $948,715, plus a 10%
contingency, for a total amount of $1,043,586.50, for a Financial Software
package, CIP Project #337-3114, 2) amend the contract, as needed, for
non-monetary items and 3) amend the CIP Budget Sheet.
Prepared by: Pat Meyer, Special Projects Coordinator
Submitted by: Pamela Ehler, Director of Finance and Information Systems
Approve a resolution authorizing the City Manager to: 1) sign a contract
with SunGard Bi-Tech in the amount of $948,715, plus a 10% contingency, for
a total amount of $1,043,586.50, for a Financial Software package, CIP
Project #337-3114, 2) amend the contract, as needed, for non-monetary items
such as implementation plans and 3) amend the CIP Budget Sheet.
In 1998, the City signed a contractual agreement with FundBalance, Inc. for
its financial software program. At that time, the City opted for a mid-level
solution based on the City’s size and needs at the time.
On May 24, 2005, by Resolution No. 2005-115, City Council adopted the City’s
2005/06 – 2009/10 Capital Improvement Program, which included the Financial
Software, CIP Project No. 337-3114.
The City’s current financial management system is provided by FundBalance,
which was implemented in 1999. Surrounding the core financial system are
several third party applications used by various departments within the City
(see chart below). Human Resources and Payroll functions are currently
outsourced to Automatic Data Processing (ADP).
Under our current system, many items are tracked and managed in Excel
spreadsheets including: Contract Management, Budgeting, Grant Management,
Cash Flow Management, Development Fees and Fixed Assets. Additionally, since
none of the City’s department functions are integrated with FundBalance,
duplicate entry and manual reconciliation is required. Examples include
monies received for permits, Park and Recreation classes and business
licenses which are collected from the departments on a daily basis and
manually entered into FundBalance. In addition, timekeeping for Public Works
and Police is done using Excel and is manually entered into ADP.
In addition to the current financial system, the City operates several
applications in various departments that are not integrated with the current
system. The following table identifies all current applications:
Application Vendor Status
Financials (GL, AP, AR, PO) FundBalance, version 2.5, plus some DOS
components. Replace with new system.
Grant Management Excel Replace with new system.
Treasury Management PFM Software Keep. Interface to new system.
Contract Management Excel Replace with new system.
Development Fees Excel Replace with new system.
Human Resources ADP HR Perspective Replace with new system.
Payroll/Timekeeping ADP, eTime Replace with new system.
Cash Flow Management Excel Replace with new system.
Fixed Assets Excel Replace with new system.
Permitting Sierra Systems Keep. Interface to new system.
Business License HDL Software Keep. Interface to new system.
Utility Billing Tyler InCode Keep. Interface to new system.
CLASS - Parks and Recreation Class Software Keep. Interface to new system.
GIS System AutoDesk Map (ESRI format) Keep. Interface to new system.
Document Imaging Laser fiche Interface to new system.
Since the implementation of FundBalance, the City has experienced
significant growth and operational requirements beyond the capabilities of
the current financial system. It has been determined that by replacing the
current system, the City will gain operational efficiencies by eliminating
the need for redundant processes and duplicate data entry, while improving
integration between the financial system and existing third party
applications. Additionally, the City will save approximately $50,000 per
year in ADP software costs by bringing the HR and Payroll processing
Key Replacement Factors
The primary business issues the City faces with the current system include
Lack of adequate integration with desktop applications.
Lack of flexibility and configurability to meet growth projections.
Lack of online approval or workflow.
Lack of drill down to source documentation.
Inability to maintain a detailed on-line transactional history and audit
trail of financial data.
Inability to create flexible, ad-hoc financial reports for management and
Limited ability to integrate financial information from other systems.
Limited ability to query financial databases and limited access to
Further, it is the City’s intent to eliminate many of the manual,
paper-based processes and inefficiencies by implementing a new system that
is flexible and which connects external systems through strong integration
In addition to finding a viable financial package, it was agreed that the
City needed a software program that 1) could integrate all City systems and
departments and 2) could keep pace with the City’s evolving technical
requirements. Selection criteria for the software package included:
increased efficiency for all City departments, ease of use for both power
users and occasional users and flexibility to accommodate both future growth
and technological advances. The chart below, which identifies applicable
software packages based on the size of the company, number of users
supported and software cost, was one of many tools used to identify
potential software solutions.
* Information based on Tier Chart from SoftResources
Beginning in March of 2003, staff contacted peer cities and used the
California Society of Municipal Finance Officers (CSMFO) web site, the
Government Finance Officers Association (GFOA) web site and financial
software industry web sites to generate an initial list of solution
providers. This research resulted in the compilation of a list of 11 viable
software companies. The Finance Director and the Chief Finance Officer then
reviewed the functionalities of each of the 11 companies and selected eight
of the vendors to present high-level demos. Based on the results of these
demos, five vendors - SunGard Bi-Tech, Eden Systems, Incode, Munis Systems
and SunGard Pentamation – were invited back for a second, more thorough
round of product demos. At this point, a City-wide Software Team, which
included various levels of users of our current system from the
Administration, Community Development, Engineering, Finance, Parks, Police
and Public Works departments, was established to evaluate the top five
During the months of December 2004 and January 2005, the City Software team
members attended software presentations from SunGard Bi-Tech, Eden Systems,
Incode, Munis Systems and SunGard Pentamation. Following the conclusion of
the presentations, the team unanimously agreed that SunGard Bi-Tech was the
best choice. The main reasons given for choosing SunGard Bi-Tech were: ease
of use; productivity solutions (e.g. workflows); real-time data available to
a wider audience; analysis and report capabilities; budgeting and modeling
solutions; financial reporting solutions; Click Drag and Drill (CDD)
features and document imaging.
To assist staff through the final steps of the software selection process,
the City contracted with SoftResources, a software consulting firm, in March
2005. SoftResources assisted in the development of a RFP for delivery to the
top five vendors and also consulted during the contract negotiations.
Between March and July 2005, staff continued its due diligence efforts by
visiting and calling SunGard Bi-Tech users.
In July 2005, based on the recommendation of SoftResources, staff members
attended additional scripted demonstrations and technical discussions with
SunGard Bi-Tech and Munis Systems, the team’s alternate choice. The result
of those demonstrations was verification that SunGard Bi-Tech was indeed the
team’s number one choice.
The planned implementation will utilize SunGard’s OnTrack implementation
methodology and will be implemented in three phases (see below). SunGard’s
OnTrack methodology consists of six stages: Plan, Prepare, Execute, Confirm,
Go Live and Support. During these stages a SunGard Project Manager will be
on-site a maximum of two weeks a month to help the City evaluate its current
business practices and to develop an implementation plan which ensures the
implementation will match, and with the new functionality available, exceed
the City’s current capabilities. Additional SunGard personnel (consultants,
developers and system administrators) will be on-site to provide training
and support through all three phases of the City’s implementation.
Phase I – target implementation date is July, 2006
o General Ledger
o Job/Project Ledger
o Accounts Payable with Bank Reconciliation
o Accounts Receivable/Cash Receipts
o Budgeting (includes budget item detail)
o Click, Drag & Drill (CDD)
o Easy Laser Forms
o Documents Online
Phase II – target implementation date is January, 2007
o Human Resources
o Fixed Assets
Phase III – target implementation date is April, 2007
o Contract Management
o Grant Management
o Budgeting (for positions)
o Employee Online
o Applicant Online
SoftResources provided the City with a list of critical success factors to
assist in implementation. These factors are already being addressed by the
City, as indicated in the table below.
Success Factor Status
City needs to proactively anticipate and manage the potential impact to the
user community and dedicate the required resources to support the success of
the implementation. Team has been selected.
Assign a Project Manager with the right skills, training and resource
availability. Project Manager selected.
Establish a Core Project Team; define and assign roles and responsibilities
for that team. Team has been selected.
Ensure support and buy-in for the project from all City staff (users to
senior management). Department meetings are planned as part of our
Dedicate the right level of resources to complete the project. Resource
requirements for each phase will be determined during development of the
Identify and remain focused on the key requirements and business drivers for
the project. Project Plan includes all project activities, deliverables and
Establish a change management initiative; recognize, identify and understand
the importance of change. Change Management Plan will be developed in
conjunction with the Project Plan.
Create a comprehensive project timeline that includes all phases and tasks.
Project Timeline will be developed in conjunction with the Project Plan.
Create a training program that considers all phases; pre-implementation,
implementation and post implementation. Training Plan will be developed in
conjunction with the Project Plan.
Focus the implementation towards eliminating redundancy and unnecessary
work. Business Process Reviews are included as part of the implementation.
Establish and manage expectations. Project Plan includes all project
activities, deliverables and milestones.
The City received responses to its RFP from all of the top candidates -
SunGard Bi-Tech, Eden Systems, Incode, Munis Systems and SunGard Pentamation.
The RFP responses included price quotes shown below. The prices quoted are
for software costs only.
1. Incode - $81,644.00
2. Eden Systems - $113,896.00
3. SunGard Bi-Tech - $117,322.00
4. SunGard Pentamation - $139,000.00
5. Munis Systems - $201,000.00
Although price was a significant factor in selecting a vendor, staff also
considered how well the vendors complied with the main selection criteria
defined in the RFP (see below). Staff determined SunGard Bi-Tech was the
only vendor which either met or exceeded all the criteria defined in the
Provide end-users with the ability to enter and manipulate data in an
on-line, interactive mode, including simultaneous access to files.
Allow for updates to be processed in real-time throughout the system.
Provide a web-enabled suite of applications.
Enable City-wide, intranet-based sharing of information.
Utilize extensive alerts, triggers and rules-based workflow capabilities
throughout the system.
Provide import/export capability between financial software and MS Office
applications (e.g. Excel and Word).
Utilize user-friendly reporting tools and query functions with drill down
Provide a product “out of the box” with minimal customization required to
support the City’s requirements.
Support integration of all financial functions with existing systems such
as Parks and Recreation and Permitting systems.
The comparison shown above was based solely on pricing provided in response
to the City’s RFP. Since that time, the City has chosen to purchase three
additional software applications – Employee Online, Applicant Online and
Form Designer – which account for the $19,479.00 increase in SunGard
Bi-Tech’s contract pricing versus their RFP pricing. Following is a
breakdown of the contract costs:
Application Software License and Fees (RFP) $ 117,322.00
Additional Applications 19,479.00
Professional Services 736,450.00
Travel by SunGard 60,000.00
Total Contract Price $ 948,715.00
The Application Software License Fees are a one-time charge.
The Professional Services covers support provided by Bi-Tech personnel,
both on-site and off-site, during the three phases of the City’s
implementation (see Implementation section). These costs will be spread over
Travel costs will be spread over two years.
Taxes are a one-time charge.
Additionally, there will be on-going maintenance charges consisting of: 1)
an annual maintenance fee for customer support and software updates and 2) a
monthly charge for Application Service Provider (ASP) services. These
charges, estimated to be $117,360.00 annually, are covered under Maintenance
Service agreements and are not included in the total contract price shown
Based on SunGard Bi-Tech’s pricing, their high marks for customer support,
their proven success in implementing their product and the fact they either
meet or exceed all the criteria defined in the RFP, staff recommends the new
financial software be provided by SunGard Bi-Tech.
The cost of this contract is $948,715, plus a 10% contingency of $94,871.50,
for a total amount of $1,043,586.50. The budget for this project, which was
submitted May 24, 2005 and approved by City Council as part of the 2005/06 –
2009/10 Capital Improvement Program, totals $1,500,000 over four fiscal
years, 2004/05 to 2007/08; however, the budget for this fiscal year is only
$800,000. Therefore, it is necessary to re-allocate funds to accommodate the
cost of the contract. The original budget and the proposed amended budget
are shown below.
Original Budget Amended Budget
05/06 05/06 Difference_
Planning & Design $ 150,000 $ 150,000 $ 0
Software/Hardware $ 250,000 $ 400,000 $ 150,000
Project Administration $ 400,000 $ 550,000 $ 150,000
Total Project Budget $ 800,000 $ 1,100,000 $ 300,000
These monies will be paid out as the project phases are completed. The final
payment will be not be made until all software programs have been
implemented, which is estimated to take at least two years. The project is
funded through the Information Systems Replacement Fund and Finance has
confirmed there are sufficient funds for the proposed budget amendment.
On-going maintenance costs are estimated to be $117,360.00 annually and are
also budgeted through the Information Systems Replacement Fund. No
additional funding sources are necessary and no revenue offsets are
anticipated. There will be no known future reduction of costs to this
CIP Budget Sheet
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE
CITY MANAGER TO: 1) SIGN A CONTRACT WITH SUNGARD BI-TECH IN THE AMOUNT OF
$948,715, PLUS A 10% CONTINGENCY, FOR A TOTAL OF $1,043,586.50, FOR A
FINANCIAL SOFTWARE PACKAGE, CIP PROJECT #337-3114, 2) AMEND THE CONTRACT, AS
NEEDED, FOR NON-MONETARY ITEMS SUCH AS IMPLEMENTATION PLANS AND 3) AMEND THE
CIP BUDGET SHEET.
WHEREAS, In 1998, the City signed a contractual agreement with FundBalance,
Inc. for its financial software program; and
WHEREAS, on May 24, 2005, by Resolution No. 2005-115, City Council adopted
the City’s 2005/06 – 2009/10 Capital Improvement Program, which included the
Financial Software, CIP Project No. 337-3114; and
WHEREAS, since the implementation of FundBalance the City has experienced
significant growth and operational requirements beyond the capabilities of
the current financial system; and
WHEREAS, in addition to finding a viable financial package, it was agreed
that the City needed a software program that 1) could integrate all City
systems and departments and 2) could keep pace with the City’s evolving
technical requirements.; and
WHEREAS, based on SunGard Bi-Tech’s pricing, their high marks for customer
support, their proven success in implementing their product and the fact
they either meet or exceed all the criteria defined in the RFP, staff
recommends the new financial software be provided by SunGard Bi-Tech.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
1. Authorizes the City Manager to sign a contract with SunGard Bi-Tech in
the amount of $948,715, plus a 10% contingency, for a total amount of
$1,043,586.50, for a Financial Software package, CIP Project #337-3114; and
2. Authorizes the City Manager to amend the contract, as needed, for
non-monetary items such as implementation plans; and
3. Authorizes the City Manager to amend the CIP Budget Sheet.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at
a regular meeting held September 13, 2005 by the following vote: