HomeMy WebLinkAbout2012 07 23 Regular 601 Enterprise Wide Software ReplacementCOMMISSION AGENDA
ITEM 601
July 23, 2012
Regular Meeting
REQUEST:
Informational
Consent
Public Hearings
Regular X
KS
City Manager
m
Department
The Finance and Administrative Service and Community Development Departments
requests The City Commission consider the Purchase and replacement of the City's current
Financial and Community Service's Departments business software with a single integrated
software package (New World Systems) and authorize the City Manager to execute all
necessary contracts.
SYNOPSIS:
City staff reports that the existing Finance and Community Development software is very
limited in addressing the current financial and business needs of a decentralized
environment where departments utilize best business practices to manage their own
information. The Directors of Finance and Information Technology were tasked to assemble
a steering committee to research the market for a modern Enterprise Resource Planning
(ERP) System that meets the needs of the City today and in the future. This agenda item is
needed for the Commission to consider the replacement of the City's current business
software with a single enterprise wide integrated solution "New World Systems ".
CONSIDERATIONS:
Background
The City of Winter Springs currently owns, operates and maintains two loosely coupled
applications that primarily support the Community Development, Finance, and Police
Departments. The Community Development application, Kiva from Accela Government
Software, services the permitting, plans review, inspections, and code enforcement
disciplines and offers read -only citizen access to permitting information. The current
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financial system, Munis from Tyler Technologies provides support for the finance, human
resources, utility billing, and employee self - service disciplines. It is the intent of this project
to obtain a new integrated solution that will have the ability to expand with the needs of the
City of Winter Springs and increase the overall functions, services, and communications
with the employees and constituents.
Relative to Kiva, the application has reached its "end of life cycle" stage in the market place
and the developer has abandoned all development and support activities for this
software. In addition to the stagnation of the base application software, the problem is
further complicated due to the fact that other components in the environment that comprise
the entire operating platform continue to change. This includes the Oracle Database, the
Oracle Application Server, the Microsoft Server, internet explorer and Client operating
systems, Java, and ColdFusion. As these components continue to evolve there is no
guarantee that the base Kiva application can continue to work since Accela no longer
provides operational certification for these components. Simply put, if we experience any
problems with this software the City is on its own to correct the concern.
Analysis and Selection of Software Reviewing and deriving a recommendation for an
ERP system for the City was no small undertaking and was accomplished using a phased
approach.
Analysis of Present System and Needs Over the past several months, the City has
concluded a thorough analysis of the core business information systems to identify how the
legacy system supports the current business processes through automation. The current suite
of application software consists of standard and custom modules provided by Munis and
Kiva, along with add -on functions developed by consultants and in -house staff as well as a
host of data that is maintained in department spreadsheets (Microsoft Excel). Custom
printing and reporting programs (Crystal, Oracle Reports and SQL) are used to mine
information from the legacy system for printing checks, code violation notices,
permits, utility bills and business licenses.
Specific attention was given to the following areas:
• Assembled list of routine tasks (weekly or monthly) accomplished using Munis and
Kiva.
• Assembled list of tasks non- routine (semi - annually, annually, or impromptu)
accomplished using Munis.
• Assembled list of routine and non - routine tasks managed using other systems such as
Microsoft Excel.
• Assemble list of shortcomings (pain points) with the existing software systems where
business processes are not supported through automation.
• Identify redundant data collection, shadow systems and paper processing.
• Reviewing specific strategic goals and organizational strengths and weaknesses
In surveying the market for potential ERP systems several vendors were identified, Hansen
Information Systems (Infor Public Sector,) SunGard Public Sector (IFAS, NaviLine,
ONESolution,) New World Systems (Logos.NET,) MSGovern (Innoprise Suite,) Edmunds
& Associates, Accela Government Software ( Accela Automation, TriBridge,) Tyler
Technologies, Inc. (Mums,) and SAP.
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Market Research
This phase began in April 2011 with a review of communities that had recently gone to the
market in order to replace their ERP systems. We identified and contacted the City of
Winter Haven, Florida; City of Dania Beach, Florida; City of Davie, Florida; City of Cocoa
Beach, Florida; City of Valdosta, Georgia; City of Battle Creek, Michigan; City of Ann
Arbor, Michigan; City of Tonawanda, New York; City of Concord, New Hampshire; City
of Bowling Green, Ohio; City of Des Plaines, Illinois; City of Oak Park, Michigan;
Northampton County, Virginia; and the City of Marion, Ohio to conduct a comprehensive
needs analysis and selection criteria for a City -wide ERP solution.
After careful consideration of all the vendors that provided Public Sector Software
Solutions the steering Committee invited New World Systems (Logos.NET,) Edmunds &
Associates, and MSGovern (Innoprise Suite) in for multi -day, in -house demonstrations of
their products.
After careful review of software vendors the steering committee requested New World
Systems to conduct an ERP & Business Process Review (BPR). In September 2011, key
members of Information Services, Finance, Payroll, HR, Community Development, Code
Enforcement, Parks, and Public Works convened at an all -day workshop to set high -level
ERP software goals, review current procedures and processes and identify areas ripe for
productivity and efficiency improvements.
Some of these goals are:
• Improving the issuance and management of Business Tax Receipts
• Eliminate the need for manual balancing between disparate systems
*Provide the ability to manage process workflows between departments and
constituents
• Provide real -time access to modified data
• Auditing- Create reports for CAFR - Currently a fee from auditors
• Overall ease of use
• Ease of inquiring on, reporting relevant data
• Ease of overall reporting. Crystal Reports is not user friendly
• Integration into Microsoft Office tools, Outlook, Excel and Word
• Allow greater self - service for Utility Billing Customers
• Better budgeting tool and tracking. Need to be able to see various levels and stages of
approval.
• Annual Salary Projections are done manually and is a 2 -3 week process
• Transition from a Oracle platform to a Microsoft SQL Server platform for easier
integration and reporting.
• Interface with Laserfiche for document preservation
• Better Miscellaneous Billing capabilities. Various departments use discreet billing
methods.
• Better control and reporting of Multi -Year Projects and Grants
• Incorporate best practices (improve city wide efficiencies)
• Timesheets on -line and integrated
• Allow city users to inquire and enter information based on security levels
• Minimize the number of Excel spreadsheets used for supplemental reporting
• Uniform look and feel across modules and functions to allow ease of training, cross
training and overall acceptance of the application
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Bid
A complete and comprehensive bid document was created and formal request for proposal
was advertised to all vendors that offered Municipal ERP Solutions on June 12 2011. This
opportunity to bid was placed on Demand Star and in the Orlando Sentinel Newspaper.
Two providers submitted bids for the City's review; New World Systems and Tyler
Technologies (Mums). The Chart below outlines the bids that were received:
Cost Analysis Current Environment
Project Cost for the New World Software are expected to be $ 550,192 as follows:
New World Software $150,600
Implementation $283,400
Contingency $ 40,000
Hardware $ 53,692
Kiva Data Migration $ 22,500
New World Systems software will replace and eliminate the following costs:
Munis current Maintenance $65,000
Kiva current Maintenance $48,500
Oracle D -Base $24,000
$137,500
Payback Assuming Cost Escalation of 3% on existing software
Software Cost
Implementation
Maintenance Fees
Year 2
($ 93,950)
Year 3
Year 1 $116,324
Tyler
($ 88,701)
Year 5
Year 2 $117,863
Technologies
$4,125
$156,225
Year 3 $119,448
(Mums)
Year 4 $122,217
Year 5 $125,028
Year 1 No charge
Year 2 $58,000
New World
Year 3 60,320
Systems
$150,600
$283,400
Year 62,733
Year 5 65,242
Cost Analysis Current Environment
Project Cost for the New World Software are expected to be $ 550,192 as follows:
New World Software $150,600
Implementation $283,400
Contingency $ 40,000
Hardware $ 53,692
Kiva Data Migration $ 22,500
New World Systems software will replace and eliminate the following costs:
Munis current Maintenance $65,000
Kiva current Maintenance $48,500
Oracle D -Base $24,000
$137,500
Payback Assuming Cost Escalation of 3% on existing software
Payback = 5.38 years Entire Project
Payback = 3.80 year for software only
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ANet Expense
Year 1
$ 390,192
Year 2
($ 93,950)
Year 3
($ 87,530)
Year 4
($ 88,701)
Year 5
($ 89
Total Net Savings /cost
$ 30,104
Payback = 5.38 years Entire Project
Payback = 3.80 year for software only
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Additional savings will be realized in the areas of personnel, hardware and service level
gains. These savings are not quantified in this proposal. While a new ERP system will take
12 to 18 months to implement, the long term efficiency and performance gains are
substantial.
Timing of Payments and General Fund Impact
The Steering Committee was successful in negotiating a three payment plan for the New
World Systems Software with zero cost. The following chart demonstrates the time and
impact to the various funds and assumes not spending the contingency.
Fiscal Year
2012
2013
2014
General Fund
$53,692
$84,000
Water and Sewer
$100,000
$150,000
Impact Fees
$100,000
Community Development
and (420)
$22,500
The distribution of expenses to cover this project reflect the general usage and allocation of
resources required to operate the General various other enterprise funds.
Beyond the initial requirement for an integrated ERP solution; tying together the disciplines
of finance, personnel administration, utility billing, permitting, and code enforcement;
research into the expansion of the base application also yielded tools for better managing
the plans review process and the City's geographic data. Two products, ProjectDox
Electronic Plan Review from Avolve Software and GeoBlade from Geographic
Technologies Group (GTG), are able to integrate with the New World Systems solution.
The inclusion of these two products into the City's suite of available tools, facilitate the
expansion of opportunities to improve customer service, resulting in greater customer
satisfaction. These tools give citizen- customers and government personnel from many
departments — and even outside agencies — access to plans, documents, and stored data in a
way that lets people work together better. They help government personnel cut through
information silos, share that information productively, provide better services, and do more
with less. It helps communities stay competitive and sustainable as evidenced by the fact
that other local agencies are rapidly deploying and using what has become the so
called "industry standard" mode of operation. Customers have been asking when these
tools will be available here as they have found processes to complete more quickly, more
accurately, and require less staff on both sides of the counter.
It is the staff recommendation that, when funding is available in the 420 fund, the City
acquire these two additional products to complete the set of tools to carry Winter Springs
into the forefront and serve as a model for others to follow.
FISCAL IMPACT:
The fiscal impact of this project is significant and understated in this agenda item. The
financial analysis has been simplified and only known hard cost reductions have been
included in order to keep the focus on the functional necessity of acquiring this new
software to meet the City's goal of providing Superior Customer Service at the lowest cost
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possible. This software will be the backbone and have a profound impact on the way the
City conducts business in the future.
The entire project has a purposed 5 year payback. The cash flow impact to the City will be
realized over 3 years; fiscal year 2012 is $253,692, fiscal year is $172,500 and fiscal year
2014 is $84,000.
The total impact to the General Fund is $137,692 over the next year fiscal years.
Management believes that current and future revenues and cost savings are significant and
adequate to afford moving forward with the project.
COMMUNICATION EFFORTS:
This Agenda Item has been electronically forwarded to the Mayor and City Commission,
City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and
the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the
respective Meeting Agenda which has also been electronically forwarded to the individuals
noted above, and which is also available on the City's Website, LaserFiche, and the City's
Server; has been sent to applicable City Staff, Media/Press Representatives who have
requested Agendas /Agenda Item information, Homeowner's Associations/Representatives
on file with the City, and all individuals who have requested such information. This
information has also been posted outside City Hall, posted inside City Hall with additional
copies available for the General Public, and posted at five (5) different locations around the
City. Furthermore, this information is also available to any individual requestors. City Staff
is always willing to discuss this Agenda Item or any Agenda Item with any interested
individuals.
RECOMMENDATION:
The Finance and Administration Department recommends that the City Commission
approve:
1. The purchase of New World Systems Software at a cost of $434,000.
2. Allow of a $40,000 contingency to be used at the City Mangers discretion on the
software project to further assure success and cover incidental expenses.
3. Purchase necessary IT equipment to house the New World Systems Software
4. Authorize the City Attorney and City Manager to sign and enter into contracts with a
single integrated software package (New World Systems) and authorize the City
Manager and City Attorney to prepare and execute all necessary contracts.
ATTACHMENTS:
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