HomeMy WebLinkAboutOrdinance 17573-05-2007Ordinance No 17573-05-2007
AN ORDINANCE INCREASING APPROPRIATIONS IN THE SPECIALLY
FUNDED CAPITAL PROJECTS FUND IN THE AMOUNT OF $1 120 000 FROM
AVAILABLE FUNDS FOR THE PURPOSE OF EXECUTING A CONTRACT
WITH SALVAGGIO TEAL & ASSOCIATES CONSULTING FOR THE
ENTERPRISE RESOURCE PLANNING PROJECT PROVIDING FOR A
SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH
TEXAS
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2006-
2007 in the Budget of the City Manager there shall also be increased appropriations in the
Specially Funded Capital Projects Fund in the amount of $1 120 000 from available funds for the
purpose of executing a contract with Salvaggio, Teal & Associates Consulting for the Enterprise
Resource Planning project.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3
That this ordinance shall be cumulative of Ordinance No 17142 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance
are in direct conflict with such other ordinances and appropriations, in which instance said
conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4
This ordinance shall take effect upon adoption
APPROV D TO FORM AND LEGALITY
As istant i y ttorney
ADOPTED AND EFFECTIVE. May 29, 2007
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 5/29/2007 Ordinance No 17573-05-2007
CONTINUED FROM A PREVIOUS WEEK
DATE Tuesday May 22 2007
LOG NAME 04ERP 06-0252 REFERENCE NO C-22133
SUBJECT
Authorize the City Manager to Execute a Consulting Agreement with Salvaggio Teal & Associates
Consulting for the First Phase of the Enterprise Resource Planning Project and Adopt Appropriation
Ordinance
RECOMMENDATION
It is recommended that the City Council
1 Approve the transfer of $1 120 000 00 from the Information Systems Fund to the Specially Funded
Capital Projects Fund for the Enterprise Resource Planning Project (ERP)
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by
$1 120 000 00 in the Specially Funded Capital Projects Fund from available funds and
3 Authorize the City Manager to execute a consulting agreement for the first phase of the ERP Project with
Salvaggio Teal & Associates Consulting (STA) in an amount not to exceed $860 450 00
DISCUSSION
The City desires to replace the current legacy systems used for financial and administrative purposes with
an integrated enterprise solution called an Enterprise Resource Planning (ERP) system Many of these
systems are aging lack desired functionality including necessary reporting requirements, and are
insufficiently integrated As a result, it is difficult to retrieve information in a timely manner
On May 15 2007 the City Council was presented an Informal Report about the current status of the
financial and administrative systems and the need for an ERP system at its Pre-Council meeting
A Request for Proposals (RFP) was issued in November 2006 to assist the City as it embarks upon one of
the most ambitious and far-reaching business and technology transformation initiatives in its history
Through this initiative the City desires to replace its current collection of legacy financial and administrative
information systems with an integrated enterprise solution commonly known as an Enterprise Resource
Planning or ERP system Accordingly the City is seeking to engage the services of a qualified Consultant to
provide expert guidance oversight and assistance to the City in the management and execution of this
strategic initiative The City received seven responses to the RFP The scope of the procurement was to
engage the services of a consultant to provide guidance oversight, planning assistance and
recommendations to achieve the overall goal Respondents were judged on relevant experience and
qualifications, record of satisfactory performance proposed contract price and the ability to comply with
RFP An evaluation team was created with representatives from the City Manager's Office Human
Resources, Finance Budget and IT Solutions. The process included presentations to the evaluation team
before making a selection References were checked for the vendors who made the short list. Salvaggio
Logname• 04ERP 06-0252 Page 1 of 3
Teal & Associates Consulting (STA) has successfully engaged projects with the City of Houston The State
of Texas Health and Human Services Commission the State of Tennessee the State of Kentucky and the
State of Arkansas Other references were provided by the recommended vendor
The ERP project shall consist of three phases.
Phase I (Initial M&C) Planning and Acquisition Criteria -Project Start-Up Cost/Benefit Analysis, Needs
Assessment, Cost Estimates Return On Investment, Business Case Requirements document, RFP (for
product selection) Vendor Evaluation criteria and Vendor Selection criteria
Phase II Contract Negotiations -Negotiation Plan Software/Hardware Vendor (product) selection
Implementation team selection and Training staff selection.
Phase III Implementation and Oversight -Quality Assurance Infrastructure Guidance and Quality
Assurance Implementation Change Issue and Risk Management, Integration and Testing Facilitation
Training Facilitation Go-Live and Post Go-Live Stabilization and Support.
Successful completion of the project will require extensive City Staff involvement. The current high level
estimate targets project completion in Fiscal Year 2010-2011 The City Council will receive periodic
updates and staff will bring back appropriate funding requests for Phases II and III as part of the annual
budget process
A project of this magnitude will require significant financial commitment from this Council and future City
Councils. For Fiscal Year 2006-07 the accounting transaction to fund the initial phase of the STA contract
and other City expenses will come from budgeted funds in the Information Systems Fund The approved IT
Solutions Department FY 2007 budget includes $1 120 000 00 These funds will be transferred to the
Specially Funded Capital Projects Fund for a total of $1 120 000 00 to be appropriated in the project fund
Phase One of the consulting agreement has a cost not to exceed $860 450 00 The remaining $259 550 00
in first year funds are to cover staffing costs for the project and other expenses. The project will take at
least three years to implement and it is estimated that the total cost is at least $30 to $50 million including
software hardware implementation services and additional authorized City staff positions (our cost
projection could vary from this estimate)
M/WBE-In accordance with City of Fort Worth Ordinance No 15530 the City has goals for the participation
of Minority Business Enterprises and Women Business Enterprises (M/WBE) in City contracts. Salvaggio
Teal and Associates (STA) is in compliance with the City's MM/BE Ordinance by committing to 8 percent
participation The City's goal on this project is 10 percent.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance funds will be available in the current capital budget, as appropriated of
the Specially Funded Capital Projects Fund
TO Fund/Account/Centers
2) C291 511010 031030078480 $36,624.00
2) C291 511010 041030078480 $73,248.00
2) C291 511010 131030078480 $36,624.00
FROM Fund/AccountlCenters
1)C291 538070 0045000
3) C291 539120 041030078480
$1.120,000.00
$860.450.00
Logname 04ERP 06-0252 Page 2 of 3
2) C291 511010 141030078480 $36,624.00
C291 539120 041030078480 $929.380.00
2) C291 531180 041030078480 7 500.00
1) & 2~ $1,120.000.00
C291 472068 041030078480
Submitted for City Manager's Office b~ Karen Montgomery (6222)
Originating Department Head. Peter Anderson (8781)
Additional Information Contact: Pete Anderson (8781)
Barbara Sharpe (2896)
Logname 04ERP 06-0252 Page 3 of 3