City of Brentwood
Home PageContact Us!Back

City Administration

2010 Council Goals and Strategic Plan | City Council Members | Calendar of Events | Elections
eNotification | Sub-Committees| Pledge of Allegiance Sign Ups | Invocation Sign Up
Live Streaming Council Meeting | Streaming PC Help |
Streaming Mac Help |

Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 6

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

RECOMMENDATION
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.

PREVIOUS ACTION
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.

BACKGROUND
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 functions in-house.

Key Replacement Factors
The primary business issues the City faces with the current system include the following:

 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 user purposes.
 Limited ability to integrate financial information from other systems.
 Limited ability to query financial databases and limited access to on-line/real-time data.

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 tool sets.

Vendor Selection
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 candidates.

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.

Implementation
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 Purchasing
o Click, Drag & Drill (CDD)
o Easy Laser Forms
o Documents Online

 Phase II – target implementation date is January, 2007
o Payroll
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

Success Factors
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 Communication Plan.
Dedicate the right level of resources to complete the project. Resource requirements for each phase will be determined during development of the Project Plan.
Identify and remain focused on the key requirements and business drivers for the project. Project Plan includes all project activities, deliverables and milestones.
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.

Cost/Benefit Analysis
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 RFP.

RFP Criteria
 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 capability.
 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.

Contract Pricing
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
Taxes 15,464.00
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 two years.
 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 above.
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.

FISCAL IMPACT
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 project.

Attachments:
Resolution
Contract
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 Brentwood hereby:

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:

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov