Explanation
BACKGROUND: This ordinance No. 1077-2013 authorizes expenditures of $6,924,542 and is a companion to ordinance No. 1078-2013, which authorizes expenditures of an additional $723,575: a total of $7,648,117. This legislation authorizes the City Auditor to enter into a contract with Tyler Technologies, Inc. for up to $5,619,677 for the implementation and support services related to the deployment of a new financial management system, specifically Microsoft Dynamics AX 2012 for Public Sector (Dynamics AX).
The contracted amounts include a Tyler-hosted solution for Dynamic AX. Depending on the performance and experience of the initial stages of the implementation, the City may decide to retain the Tyler-hosted solution, or may decide to deploy the hardware solution on premises, using Tyler's Managed Services. In the event the City decides to deploy the hardware solution on premise, an additional cost of $419,865 will be paid from the project to the City's Department of Technology, which may make purchase of software and hardware necessary in deployment of the financial management system under existing City Universal Term Contracts.
In addition, this ordinance authorizes the expenditure of up to $250,000 to Compaid, Inc. on the State of Ohio's IT Staff Augmentation Contract (state term schedule) for any additional IT staff needed to assist in the deployment of the financial management system.
Finally, this ordinance authorizes a total of $635,000 in contingency funds toward this project, for a Budget Book solution as required by the Department of Finance and Management and for any unforeseen expenditures that would be necessary in deployment of the financial management system. This contingency will be considered appropriated in the project noted below and may be expended to vendors named in this ordinance for implementation of this project. The authorization for contract of a Budget Book solution will be specifically requested in a future ordinance using the funding from this contingency.
The City's existing financial management system, Performance Series, has been in place since 1999. Performance Series, initially installed by KMPG Consulting, has been sold several times and is now owned by Cogsdale Corporation (a subsidiary of the Harris Group, which is part of Constellation Software Inc.). The latest significant update to the Performance Series software was released in September 2008. The vendor has not taken significant action to indicate that the software will be updated with more current technology and we believe the software will soon reach the end of its product life. As such, the City Auditor's Office and the Department of Finance and Management began a search for a new financial management system in mid-2010.
The search for a new financial management system included: research with the Department of Technology via their contract with Gartner, Inc. - a worldwide leader in information technology research and advisory services; attending product demonstrations at national and local conferences; participating in product demonstration webinars; and making inquiries of public sector software vendors.
The City of Columbus solicited Requests for Statements of Qualifications (RFSQ) pursuant to Columbus City Code 329.13 for Professional Services for the purchase and implementation of a Financial Management System. The RFSQ was advertised in the City Bulletin, published to the web on Vendor Services, and all registered vendors for the related commodities were notified via email or fax. Thirteen sealed statements of qualifications were received by the City Auditor's Office by the April 14, 2012 due date.
The initial responses were evaluated using (1) the competence of the Offeror to perform the required service; (2) the ability of the Offeror to perform the required service competently and expeditiously; (3) past performance of the Offeror as reflected by the evaluations of the city agency, other city agencies and other previous clients of the Offeror; and (4) functionality of proposed solution. On the basis of these evaluations, the committee (defined below) selected the highest rated six Offerors to provide webinar demonstrations of selected functionality. After the webinars, the committee requested technical proposals from five of these Offerors selected for further consideration. All five Offerors interviewed and met with Columbus personnel in order to enable accurate communication, to provide Offeror the opportunity to seek clarification in any matters pertaining to the proposal requirements, and to enhance the Offeror' understanding of the City's needs.
Technical Proposals were received and Offerors were ranked based upon the quality and feasibility of their proposals. Ratings were based upon the project plan, the functionality and benefits of the proposed system, satisfaction of the technical requirements, resource requirements, options for licensing, ongoing support, payment plans, and estimated total cost of ownership. The three highest rated Offerors were selected to make technical webinar presentations, to present a Treasury webinar, and to conduct two days of onsite scripted demonstrations to the Evaluation Committee.
Demonstrations were evaluated based upon available functionality, depth and breadth of product features, client interface, technical details, and overall compatibility with City's goals and needs. The Department of Technology provided technical assessments of the solutions presented. Final rankings were determined by the complete quality and feasibility of the Offerors responses to provide the best overall fit for the City in terms of application functionality, ease of use, technological direction, cost, resources required to implement and maintain, and compatibility with the Offerors.
The Evaluation Committee is comprised of cross functional stakeholders from the City Auditor's Office, the Department of Finance and Management, the Purchasing Office, and the Treasurer's Office representing the various financial disciplines within the system. Additionally, aside from its initial involvement with research and technical specifications, during the request for the technical proposal stage of the RFSQ, the Department of Technology provided technical assessments and recommendations after reviewing the technical sections of the Technical proposal and participating in scripted demo evaluation for the technical webinar portion of the demonstrations.
The final ranking of financial management software solutions by the evaluation committee members in compliance with Code Section 329.13 was as follows:
1) Tyler Technologies, Inc
2) CGI Group, Inc.
3) Denovo
The financial management software solution proposed by Tyler was selected as the best overall fit for the City.
The Capital Improvement Budget for the City of Columbus approved by City Council on April 1, 2013 with ordinance 0645-2013 included ten million dollars ($10,000,000.00) for the Financial Management System in Fund 783, Project 783002-100000.
FISCAL IMPACT: The financial management system project was approved in the 2013 Capital Improvement Budget with ordinance 0645-2013 for $10 million. Bonds for this project have not yet been sold; therefore, a transfer from the Special Income Tax Fund is necessary. This legislation is to authorize the initial appropriation and expenditure of up to $6,924,542 for a new financial management system.
CONTRACT COMPLIANCE:
Company FID#/CC# Expiration Date
Tyler Technologies, Inc. (Tyler) 75-2303920 4/25/2015
Compaid, Inc 23-2180878 10/26/2014
Title
To authorize the City Auditor to transfer $6,924,542.00 from the Special Income Tax Fund to the Auditor Bond Fund; to authorize the City Auditor to enter into contracts for the acquisition of professional services and computerized systems necessary to deploy a new financial management system; to authorize the appropriation and expenditure of up to $6,924,542.00 from the Auditor Bond Fund; and to declare an emergency ($6,924,542.00).
Body
WHEREAS, the City Auditor, the Director of Finance and Management, and the City Treasurer have determined that the City's existing financial management system software, originally purchased in 1999, is no longer being adequately updated and will soon reach the end of its product life; and
WHEREAS, the City Auditor and the Director of Finance and Management and their staffs, with the assistance of the Department of Technology, have conducted a search for and study of numerous financial management systems since 2010; and
WHEREAS, the City of Columbus solicited Requests for Statements of Qualifications (RFSQ) pursuant to Columbus City Code 329.13 for Professional Services for the purchase and implementation of a Financial Management System. The RFSQ was advertised in the City Bulletin, published to the web on Vendor Services, and all registered vendors for the related commodities were notified via email or fax; and
WHEREAS, the initial responses were evaluated using (1) the competence of the Offeror to perform the required service; (2) the ability of the Offeror to perform the required service competently and expeditiously; (3) past performance of the Offeror as reflected by the evaluations of the city agency, other city agencies and other previous clients of the Offeror; and (4) functionality of proposed solution. On the basis of these evaluations, the committee selected the highest rated six Offerors to provide webinar demonstrations of selected functionality. After the webinars, the committee requested technical proposals from five of these Offerors selected for further consideration. All five Offerors interviewed and met with Columbus personnel in order to enable accurate communication, to provide Offeror the opportunity to seek clarification in any matters pertaining to the proposal requirements, and to enhance the Offeror' understanding of the City's needs; and
WHEREAS, the Technical Proposals were received and Offerors were ranked based upon the quality and feasibility of their proposals. The three highest rated Offerors were selected to make technical webinar presentations, to present a Treasury webinar, and to conduct two days of onsite scripted demonstrations to the Evaluation Committee; and
WHEREAS, the Offeror demonstrations were evaluated based upon available functionality, depth and breadth of product features, client interface, technical details, and overall compatibility with City's goals and needs. The Department of Technology provided technical assessments of the solutions presented. Final rankings were determined by the complete quality and feasibility of the Offerors responses to provide the best overall fit for the City; and
WHEREAS, the selection of Tyler Technologies, Inc. and Dynamics AX 2012 for Public Sector solution meets the goals of best overall fit for the City in terms of application functionality, ease of use, technological direction, cost, resources required to implement and maintain, and compatibility with the software implementer; and
WHEREAS, additional functionality is necessary for the Department of Finance and Management's Budget Book preparation, additional solutions will be added to the financial management system selected to address those needs; and
WHEREAS, an emergency exists in the usual daily operations of the City Auditor's Office in that it is immediately necessary to authorize the City Auditor to enter into a contract with Tyler Technologies, Inc for the implementation and support services related to the deployment Dynamics AX 2012 for Public Sector and related systems to replace the City's current financial management system, thereby preserving the public health, peace, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor be and is hereby authorized to enter into contracts with Tyler Technologies Inc. and Compaid, Inc. for the acquisition of professional services and computerized systems necessary for the deployment of a new financial management system, specifically Dynamics AX 2012 for Public Sector. This financial management system will replace the City's existing accounting, budgeting, procurement, and asset management systems which will soon reach the end of product life. The contracts are authorized for up to the following amounts:
Tyler Technologies Inc. $5,619,677
Compaid, Inc. $ 250,000
Contingency $ 635,000
SECTION 2. The City Auditor is authorized to decide to deploy the system on premise with Tyler Managed Services rather than with the Tyler-hosted solution. In the event that decision is made, the City Auditor is authorized to pay the Department of Technology an additional amount of up to $419,865 for the purchase of necessary hardware and software and decrease the amount of the Tyler contract accordingly. The contingency amount will be used to fund unforeseen expenditure related to the deployment of this system and to fund a Budget Book solution for the Department of Finance and Management.
SECTION 3. That the sum of $6,924,542 is hereby appropriated from the unappropriated balance of the Special Income Tax Fund No. 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purchase during the fiscal year ending December 31, 2013, to City Auditor, Dept./Div. No. 22-01 , Object Level One 10, OCA 902023, Object Level Three, 5502.
SECTION 4. That the City Auditor is hereby authorized to transfer said funds to the Auditors Bond Fund 783 at such time deemed necessary by the City Auditor, and to expend $6,924,542 from Dept. 22 Project 783002-100001 OCA 783201 OL3 6655 or so much thereof as may be necessary.
SECTION 5. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and authorized for expenditure, and the City Auditor shall establish such accounting codes as necessary.
SECTION 6. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund when said project has been completed and the monies are no longer required for said project.
SECTION 7. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $6,924,542 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of the Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. That upon obtaining other funds for this project, the City Auditor is hereby authorized to repay the Special Income Tax Fund the amount transferred under Section 4 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 9. That the City Auditor is authorized to make any accounting changes to revise the funding contract or contract associated with the expenditure of the funds transferred in Section 4.
SECTION 10. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this resolution is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.