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FINANCE CMO GK af f \finance\share\stfrpts\srbdJded wpd Santa MO~' t~ 1998
Council Meeting March 24, 1998
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Authonze the City Manager to Negotiate and Execute
Contracts wIth J D Edwards World Solutions Company for a Fmanclal
Management Information System and Software Maintenance
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate and
execute contracts with J D Edwards World Solutions Company (JOE) to purchase and
begm to Implement, from budgeted funds, a replacement financial management system for
$484,925, and software maintenance for $49,467
BACKGROUND
In adopting the FY 1997-98 Capital Improvement Program (CIP) budget, the City Council
appropnated funds for a new Financial Management System (FMS) On January 13,
1998, staff Identified for Council the high priority mterdepartmental, multi-year work efforts
underway These Included the replacement of critical software With year 2000 problems,
and the application of technology to Improve productiVity and effiCiency One of the most
Important of the the examples cited IS the replacement of FMS
Every administrative staff member and program manager relies on the City's FMS for
Information necessary to track and control expenditures The current FMS, purchased In
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1987, has been serviceable but does not provide Important features In varying degrees,
the newer financial management systems now available Incorporate these key features
. They substitute cost-efficient "best practices" electronic workflow control
systems for manual, paper OrIented procedures ThIs ensures faster
processing times With fewer errors
. They blend system components, such as budgeting and accounting, rather
than reqUiring numerous manual and machme interventions to effect
component mteractlons This reduces the potential for data entry error,
makes data available more qUickly, and reduces system operating costs
. They enable end users to create theIr own management reports In a timely
manner at any level of detail rather than waiting for the services of an ISO
programmer ThiS enhances the financial management and analYSIS
capabilities of program managers and releases ISD staff for other service
pnorltles
. They make It pOSSible to eaSily link actual costs to program performance
measures ThiS faCilitates program evaluation and Increases accountability
to the Council and public
. They allow end users to electronically venfy financial transactions to tl1e
onglnal source documents from which the transactions were generated ThiS
Increases the timeliness and effectiveness of Internal finanCial controls
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SELECTION AND IMPLEMENTATION OF THE NEW FINANCIAL MANAGEMENT
SYSTEM
Staff has completed a thorough review of available financial management software
appropriate for a City the size and complexity of Santa Momca An Inter-departmental
software selection committee sent Requests for I nformatlon to 39 compames to gather key
Information about their software, evaluated the responses and narrowed the field to four
vendors The four vendors submitted formal proposals and demonstrated the capabilities
of their software The selection committee evaluated the proposals and demonstrations
on the basIs of a) ablhty to meet the City's requirements, b) experience and success of
the vendor c) cost, and d) financial soundness of the vendor Staff also gathered
Information from jUrisdictions uSing the flnahst's software The selection committee
unammously selected the JDE software
The current FMS cannot operate Into the year 2000 With Council approval of the JDE
software, staff will pursue an aggressive twenty-one month Implementation schedule
beglnnmg Apnl1, 1998 to ensure full operation of essential components by July 1, 1999
Various specialized reports and other ancillary features will be Implemented by
December 31, 1999 The City will gam benefits primarily m the areas of productivity
Improvements, accounts payable/receivable and purchasing savings, and system
operations ThiS process Will Involve the engagement of temporary staff and system
Implementation experts to help mstall the new system, convert data, and train system
users while maintaining normal City fmanclal operations
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BUDGET/FINANCIAL IMPACT
CIP budget authonty for FY 1997-98 of $642,800 at account number 01-710-222-20098-
8900-99557 will be used to purchase the software and associated Implementation
services from JDE, and pay for software mamtenance and City Implementation costs
through June 30, 1998 The annual mamtenance agreement cost Will be $49,467, plus
the lesser of the annual change In the CPI or 10% As the new system Will benefit all
funds, related costs of staffing and hardware ($618.540) and expert Implementation
assistance ($711,204) Will be allocated to all funds and be mcluded In the Proposed
Budgets for FY's 1998-99 and 1999-00
RECOMMENDATION
It IS recommended Council authorize the City Manager to negotiate and execute contracts
with J D Edwards World Solutions Company to purchase and begm to Implement a new
financial management system for $484,925 and annual software maintenance agreements
for $49,467, plus the lesser of the annual change In the CPI or 10%
Prepared By Mike DenniS, DIrector of Finance
Candace Tysdal, Accounting Manager
Gayle Kirby, Financial Management Information Systems Project Manager
Jory Wolf, InformatIon Systems Manager
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