Explanation
BACKGROUND: This ordinance No. 1078-2013 authorizes expenditures of $723,575 and is a companion to ordinance No. 1077-2013, which authorizes an additional $6,924,542: a total of $7,648,117. This legislation authorizes the City Auditor to enter into contracts with G Treasury SS, LLC, Crowe Horwath LLP, and Vinimaya Inc. for the acquisition of hosted software solutions and professional services for the implementation of GTreasury ONE Enterprise and Vinimaya vMarketPlace. These solutions will be implemented in conjunction with the City's financial management system implementation. Contracts will be entered into with the following vendors for noted purposes and amounts related to this project:
Company/ Contract purpose/ Not to Exceed
G Treasury SS, LLC/ Software and implementation services for GTreasury in the Treasurer's Office/ $136,800
Crowe Horwath LLP (Crowe)/ Project Management and Business Analysis for the Treasurer's Office GTreasury implementation./ $166,575
Vinimaya, Inc. / Software and implementation services for Vinimaya's vMarketPlace to enhance the City's eProcurement/ $420,200
Please see background section of Ordinance 1077-2013 for details regarding the vendor selection for the financial management system.
In the process of selecting a financial management system solution, two areas were identified as requiring additional functionality outside the core functionality of all the evaluated Financial Management solutions. The Treasurer's Office requires a systematic way to account for daily banking transactions, bank reconciliation, and investment activity and must also interface with the City's accounting system. After reviewing all of the contract, catalog, and shared services features of the Offerors, the Purchasing Office preferred a solution that will augment the provided functionality of the financial management system to aggregate catalog content from various City of Columbus contracts and externally manage the content into a single site. This will reduce the City's administrative effort, present a common user interface for catalog content, allow comparison shopping of multiple contracts for similar items, decrease implementation complexity, and provide functionality for catalog content to be shared with others to support shared services initiatives. Through the process of evaluating many solutions, the evaluation committee identified solutions to these areas. The solutions identified to address City needs; GTreasury and Vinimaya were proposed subcontractors by Offerors other than Tyler. Based on information obtained during the evaluation and negotiation process, the Evaluation Committee decided to negotiate with those vendors directly.
The GTreasury Management System is a treasury and cash management software solution that is needed to improve the efficiency and effectiveness of the City Treasurer's Office by replacing the outdated systems currently being used. The City will be contracting with GTreasury for software as a service solution and related implementation services for its treasury automation platform. This application will be hosted and managed by GTreasury based on its ability to better manage and its greater experience with secure interconnections with banks and the SWIFT (Society for Worldwide Interbank Financial Telecommunication) cooperative. In addition, the City will contract with Crowe Horwath LLP (Crowe) for consulting services related to the implementation of GTreasury. Crowe, one of the largest public accounting and consulting firms in the United States, will use its industry experience to:
· Evaluate the current processes and operations of the Treasurer's Office.
· Design future processes that will leverage the capabilities of the new Financial Management System. Future processes will be designed both for efficiency improvements and for the effectiveness of internal controls.
· Assess the organizational structure of the Treasurer's Office and define the key roles and responsibilities of the organization.
· Provide project management assistance for the implementation of the GTreasury Solution and the implementation of the future processes and controls.
Vinimaya vMarketPlace is a hosted software as a service solution which extends eProcurement system(s) to purchasing that drives significantly increased employee adoption while maintaining all established purchase controls and reducing the cost of supplier enablement and content management. Vinimaya's solutions help address issues with catalog management, contract compliance, punchout management, user adoption, provide a more efficient and effective purchasing process, and help facilitate shared services opportunities when they arise for contracting. Vinimaya, Inc. is certified by the South Central Ohio Minority Development Council (SCOMDC) as a Minority Business Enterprise.
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 $723,575 for the acquisition of hosted software solutions and professional services.
CONTRACT COMPLIANCE:
Company FID#/CC# Expiration Date
G Treasury SS, LLC 26-2512854 4/24/2015
Crowe Horwath LLP (Crowe) 35-0921680 10/31/2013
Vinimaya 31-1710063 4/22/2015
Title
To authorize the City Auditor to transfer $723,575.00 from the Special Income Tax Fund to the Auditor Bond Fund; to authorize the City Auditor to enter into contracts with G Treasury SS, LLC, Crowe Horwath LLP, and Vinimaya, Inc. for the acquisition of hosted software solutions and professional services for the implementation of GTreasury ONE Enterprise and Vinimaya vMarketPlace; to authorize the appropriation and expenditure of up to $723,575.00 from the Auditor Bond Fund; to waive the competitive bidding provisions of the Columbus City Codes, 1959; and to declare an emergency. ($723,525.00)
Body
WHEREAS, the City Auditor, the Director of Finance and Management, and the City Treasurer have identified a need for additional functionality in the implementation of a new financial management system; and
WHEREAS, this additional functionality was identified in the competitive bidding process used to select a financial management system; and
WHEREAS, additional background is provided in Ordinance 1077-2013; and
WHEREAS, it is in the best interest of the City of Columbus to waive the competitive bidding requirements of Chapter 329 of the Columbus City Code; 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 contracts with GTreasury, Crowe Horwath LLP, and Vinimaya for the acquisition of hosted software solutions and professional services for the implementation of GTreasury ONE Enterprise and Vinimaya vMarketPlace in order to facilitate replacement of the City's aging 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 G Treasury SS, LLC, Crowe Horwath LLP, and Vinimaya, Inc. for the acquisition of hosted software solutions and professional services for the implementation of GTreasury ONE Enterprise and Vinimaya vMarketPlace. These solutions will be implemented in conjunction with the City's financial management system implementation, submitted for authorization with Ordinance No. 1077-2013. The contracts are authorized for up to the following amounts:
G Treasury SS, LLC $ 136,800
Crowe Horwath LLP $ 166,575
Vinimaya, Inc. $ 420,200
SECTION 2. That this Council finds it in the best interest of the City of Columbus to waive the competitive bidding requirements of Chapter 329 of the Columbus City Code.
SECTION 3. That the sum of $723,575 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 $723,575 from Dept. 22 Project 783002-100001 OCA 783201 OL3 6655 or so much thereof as may be necessary.
SECTION 5. That contingency amounts provided for in Section 1 of companion Ordinance No. 1077-2013 are also applicable to the contracts authorized hereinabove in Section 1.
SECTION 6. 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 7. 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 8. 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 $723,575 (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 9. 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 10. 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 11. 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.