HomeMy WebLinkAboutIR 8842INFORMAL REPORT TO CITY COUNCIL MEMBERS
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To the Mayor and Members of the City Council
No. 8842
Date: May 15, 2007
Page 1 of 2
SUBJECT: Enterprise Resource Planning (ERP) Project for the City
Background: The City's current financial systems as well as the primary human resources system were
implemented prior to 1990. These and several other administrative systems are aging and labor intensive
to maintain, insufficiently integrated and do not contain adequate functionality and reporting capabilities.
The need to replace these legacy systems has been well documented through outside audits and reviews,
including the following recommendations:
• Assessment and possible upgrade of computer systems used in the accounting function. Deloitte & Touche —
Report to Management, Fiscal Years 2004 and 2005
• Undertake a comprehensive, enterprise wide financial systems replacement project involving both financial staff
and representatives of the operational units of city government. Maximus - Finance Department Operations Review
—August 22, 2006
Recommendation of City Staff: Replace the City's current legacy systems with an integrated, Enterprise
Resource Planning (ERP) system. The new system must integrate with the remaining City systems. The
initial scope of the project would include a review of the following key functions and supporting systems
of the City.
• Budget Development ■ Human Resources ■ Procurement
• Accounting/Finance ■ Benefits ■ Payroll
Other governmental organizations implementing ERP systems of similar size and scope have incurred
project costs, including software, hardware, and implementation services, in the range of $30 -$50 million
(our cost estimate could vary from this estimate).
Planned Approach: The staff recommends a three -phased approach to evaluating, procuring, and
implementing a city -wide ERP system Phase 1, described below, will initiate and complete the selection
process.
Phase 2 would entail negotiating contracts for selected software, implementation services, and hardware
vendors to ensure that the City receives the most favorable terms available and contracts providing optimal
assurances for the project's success. Finally, Phase 3 would be the implementation project to configure
and deploy the system throughout City.
Following Phase 1 of this project, estimated to be in the summer of 2008, the City Council will be
presented with additional recommendations to support the actual acquisition and implementation of the
ERP system
Recommendation for Independent Consultant ( Project Management): In considering the magnitude
of the proposed ERP project and its importance to the City's long -term administrative operations, City
staff determined the need to supplement the City's own functional expertise with that of specialists. These
Independent Consultants are familiar with ERP systems from public sector organizations and can identify
opportunities for improvement through new processes and systems.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8842
dO, 0-; Date: May 15, 2007
m,
r To the Mayor and Members of the City Council
Page 2 of 2
is SUBJECT: Enterprise Resource Planning (ERP) Project for the City
In November 2006, the City issued a Request for Proposal (RFP) for selection of an Independent
Consultant to provide expert guidance, oversight, and assistance to the City in its ERP efforts. Through
the competitive RFP evaluation and selection process, the Salvaggio, Teal & Associates (STA) proposal
rated highest of the seven proposals submitted. STA is located in Austin, Texas, and has provided similar
services for several local governmental entities in Texas and as well as eight other states across the U.S.
STA uses a proven ERP methodology to prepare a business case, develop functional requirements, draft
public sector procurement documents, and negotiate software and services contracts. Additionally, STA is
independent of all software and implementation services organizations and is, therefore, able to provide an
advocacy and liaison role for its clients without any entangling partnerships or alliances.
Independent Consultant (Project Manaeement) role: In Phase 1 of the project, the Independent
Consultant will perform the following key tasks to assist the City in determining potential benefits,
analyzing needs, and structuring the procurement process:
• Develop a Business Case — Analyze the expected costs and benefits of acquiring, implementing
and maintaining a new ERP system and determine the feasibility, advisability and best approach
for the City;
• Document Detailed System Requirements — Supplement the City's expertise in complex ERP
functionality and assist City staff in identifying "forward - looking" functional requirements for a
new system;
• Develop Procurement Documents and the Evaluation Process — Assist the City with preparation of
procurement documents for requirements, including terms and conditions especially critical for the
acquisition of ERP software and implementation services. The Independent Consultant will also
guide the development of a formal evaluation and selection process.
• Initiate Change Management Activities — Provide a proactive change process to increase the
probability of project success;
Staff recommends that the City contract with Salvaggio, Teal & Associates to fill the role of Independent
Consultant (Project Management). In order to progress with Phase 1 of this initiative, an M &C will be
brought to City Council later this month in the amount of $860,450 requesting authorization for the City
Manager to enter into a contract with Salvaggio, Teal and Associates for the ERP Project.
If you have questions, please do not hesitate to contact Karen Montgomery, Assistant City Manager, at
(817) 392 -6222 or Pete Anderson, Chief Information Officer, at (817) 392 -8781.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS