Departments of Finance and Information Technology
Reference: Financial System Implementation - Project Manager Contract
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Chris Neves, Director of Information Technology
Date Prepared: March 5, 2024
PURPOSE
To request City Council approval of a professional services contract to provide project management and other services in support of the City’s financial system replacement project.
BACKGROUND
On December 12, 2023, staff presented City Council with information regarding the age and functionality of the current financial system as well as a proposal for a replacement system. At that time, staff proposed awarding a contract to Tyler Technologies, a software provider specializing in software solutions for governmental finance. That contract was approved by City Council on December 19, 2023.
As part of the December 12 presentation, staff also noted that the project would require project management support and that a contract for those services would be coming forth at a later date. This resolution is for a contract for proposed project management support as well as other on-call services related directly to the project.
Financial system (ERP) replacement projects are highly complex due to the number of modules, transactions, and customers effected both internally and externally. These projects can last 18-24 months and require substantial staff time, particularly in the Finance and Information Technology Departments. Due to the complexity of these projects, the failure rate is high compared to other technology projects.
In order to help support a successful implementation, staff proposed hiring a skilled project manager that is familiar with the nuances of a financial system implementation, and specifically, with the software that we have selected to implement. A project manager supports the City in managing the needs and expectations of the software provider, including management of contract requirements. They also help to manage scheduling, deadlines, and “homework” requirements, holding both the software provider and City staff accountable for assignments. If there are issues to be addressed, the project manager acts as the liaison between the City and the software provider to resolve those issues. Overall, having an effective and experienced project manager helps ensure the project is successful.
Selection Process
In selecting a firm to provide these services, staff contacted other governments who’ve worked through similar projects as well as Tyler Technologies staff for recommendations. Through this early research, we learned that Tyler Technologies has an exclusive partnership with Koa Hills Consulting for implementation of their product. This partnership gives Koa Hills a unique ability to support implementation through their access to specialized tools and resources. Additionally, Koa Hills has extensive experience with the Tyler Technologies software that the City is choosing to implement, having completed 21 implementations and currently engaged in supporting an additional 27 projects.
Based on this information, staff met with Koa Hills staff on several occasions and also met with a Koa Hills client as a reference. All results were positive and led staff to believe that Koa Hills would be an effective project management firm for this project.
Based on this information, staff proposes awarding this contract to Koa Hills Consulting.
Pricing and Timeline
The project underway begins in March 2024 and will continue through October 2025, for a total of 18 months. Costs proposed would be split over two years.
Project Management
Cost Summary 2024 $ 124,200
2025 124,400
Total $ 248,400
The 2024 costs are currently included in the approved budget and no additional funds are being requested. The 2025 portion would be a one-time cost that will be requested in the 2025 budget process.
Travel Costs
Cost Summary 2024 $ 2,245
2025 4,490
Total $ 6,735
The vast majority of project work with consultants will occur remotely, so travel costs will be minimal. Any travel costs will be at the request and approval of the Finance or Information Technology Director and will be funded from existing operating budgets. No additional funding is being requested.
On-call Client Assistance/Support
Cost Summary 2024 $ 12,000
2025 22,200
Total $ 34,200
On-call support could include data conversion review or other backfill to support existing staff. This work would be incurred at the request and approval of the Finance or Information Technology Director and will be funded from existing operating budgets. No additional funding is being requested.
Overall Cost Summery
Contract total 2024 $ 138,445
2025 150 890
Total $ 289,335
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
Based on the amount of this contract, it requires Council approval. All 2024 costs are included in the 2024 approved budget and 2025 costs will be included in the 2025 budget request.
Work on the financial system implementation is beginning in March, so securing a project manager in the near future is necessary.
FINANCIAL IMPACT
The contract amount is detailed above.
STAFF RECOMMENDATION
Staff recommends approving the resolution for this contract.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve the resolution as proposed
• Request additional information
• Reject the resolution
Attachments:
• Resolution