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HomeMy WebLinkAbout20 - BA-062 - Finance Billing & HR SoftwareMay 23, 2000 Agenda Item No. 20 CITY OF NEWPORT BEACH Administrative Services Department Resource Management • Fiscal Services • M.I.S. • Revenue • Accounting May 15, 2000 TO: HONORABLE MAYOR AND MEMBERS OF COUNCIL From: Dennis Danner, Administrative Services Director 0. 40 SUBJ: FINANCE, BILLING AND HUMAN RESOURCES SOFTWARE EXECUTIVE SUMMARY: An opportunity has arisen to implement a major upgrade of the primary Finance, Billing and Human Resources Management software used throughout the City for an exceptionally reasonable cost. The existing system, which is the most widely used functional software in the City, is old and problematic. Staff had reluctantly been anticipating the necessity of moving toward a replacement system. Conversion would have been a major undertaking, and cost estimates were $1.542.0 Million. On the other hand, the cost of the upgrade now available to the existing system will be less than $200,000. The upgrade will preclude the necessity to obtain replacement software indefinitely. For several reasons, timing is a key factor. Because of this and the wide spread use of the software, staff of various departments have identified available reductions in their current year budgets which can be reprogrammed to offset approximately 72% of the cost. Approval of additional funding of approximately $55,000 and authority to move forward with the upgrade are requested. BACKGROUND: The City's primary Finance, Billing and Human Resources management software is Pentamation. Here are some significant points: • The current system is over ten years old. Some upgrades to various modules have been performed, but it is essentially the same system. • There are approximately 150 users Citywide. Often there are 80 -90 concurrent users. • It is very user un- friendly • Character (terminal) based system • No pull -down menus • Difficult to navigate • Cumbersome • Quirky • Hard to get information into or out of Finance, Billing and Human Resource Software Report Page 2 • Power users have gotten accustomed to it, but casual users — who should be using it more — often avoid it. • It is rapidly becoming a dinosaur CURRENT SITUATION: A major new software release from Pentamation is now available. Staff has seen demonstrations and evaluated improved functionality and features of the new software products. The new release addresses almost all areas where there has been a history of problems. The update provides many improvements: • It is much more user friendly. • It runs under windows, and a web component simplifies and makes use of Internet browsers. • It has enhanced capabilities in billing, fund accounting, human resources manager, purchasing, accounts payable, business licenses, and other areas. • It has Document Imaging capabilities. • It has excellent reporting type information, especially for managers. Example: Employee information, with a photograph, could be easily accessible to the City Manager and others. Also budget status and other financial information. • It enhances the ability to streamline multiple bills statements into one or two. There are two implementation issues: Budget and timing of installation. Installation, training and transition will require careful planning and coordination so as not to disrupt current business practices. The implementation timing must be coordinated so as not to impact budget preparation and audit periods, as well as billing and payroll cycles. Full implementation will take several months. There are many additional complicating issues, three of which should be mentioned: 1. The GASB 34 conversion is on the horizon. This is a significant event which will require changes in financial reporting and fix asset accounting. Any changes to the accounting software (a basic part of Pentamation) must be done either before or after GASB 34, and before would be better. Some features in the new Pentamation release will make the GASB 34 transition easier. 2. Many local modifications to the existing software during the ten years we have used it have been implemented. Deciding which of these modifications need to be brought across to the new system, and making that happen, is a significant part of the process. Janice Manning, our long -term Systems Analyst, did much of this work. She will be a key participant in the transition effort, but she plans to retire later this year. 3. A related issue is that the new HP9000 computer in the proposed FY 2000 -01 budget needs to be in place first. If approved, scheduling will not be a problem. Finance, Billing and Human Resource Software Report Page 3 Implementation cost estimates are as follows: Migration Analysis and Coordination Software Installation, Configuration and Setup Data Conversion Training Third Party and Companion Software Contingency Total $20,000 $19,045 $18,800 $45,000 $62,415 $31,00 ....................... $196,260 At this time, these costs are not firm, but they can be taken as a not to exceed figure. Sufficient negotiations have taken place with the vendor that little room remains for changes. Training cost estimates are particularly soft. Pentamation's proposed cost for training is based on a new site installation. Actual cost, in our situation, may be significantly lower due to the experience the City has already had using Pentamation software modules. In light of the timing of this opportunity and the wide spread use of the software, staff has identified FY1999 -2000 savings in other areas which can be used to cover a significant portion of the project costs. Total proposed funding sources are as follows: FY 1999 -2000 Approptiations City Manager $4,200 Administrative Services $50,000 Public Works $40,000 General Services $15,000 City Clerk $2,015 Fire Dept. - Capital Project $30,000 New funding authority $55,045 Total $X62 RECOMMENDATION: It is respectively recommended that the City Council approve the proposed action, funding realignments, and budget amendment as specified. City of Newport Beach BUDGET AMENDMENT 1999 -00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations X Transfer Budget Appropriations SOURCE: X from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 062 AMOUNT: 81s6,2so.00 Increase in Budgetary Fund Balance AND X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To transfer savings in several departments and authorize new funding authority to provide for purchase, implementation, training, etc., of an upgrade to the City's Finance, Billing & HR software. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description Fund Balance Control Description Amount Debit Credit $55,045.00 $1,015.00 $1,000.00 $1,000.00 $500.00 $500.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 $196,260.00 Description Division Number 0630 Admin Services - MIS Account Number 8080 Services - Proflrech Division Number 0210 City Clerk Account Number 7040 Overtime, Misc Division Number 0210 City Clerk Account Number 9000 Office Equipment Division Number 3110 General Services - Admin Account Number 8030 Maintenance & Repair - Equipment Division Number 3110 General Services - Admin Account Number 8080 Services - Profrrech Division Number 3110 General Services - Admin Account Number 9010 Computer Equipment Division Number 3130 General Services - Field Maintenance Account Number 7020 Salaries - Perm Part Time Division Number 3130 General Services - Field Maintenance Account Number 8080 Services - Proflrech Division Number 3140 General Services - Operations Support Account Number 8222 Traffic Supplies Division Number 3140 General Services - Operations Support Account Number 8224 Roadway Paints & Bars Amount Debit Credit $55,045.00 $1,015.00 $1,000.00 $1,000.00 $500.00 $500.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 $196,260.00 EXPENDITURE APPROPRIATIONS (3603) - continued Description Division Number 3150 General Services - Refuse Colleciton Account Number 8250 Special Dept Expense - NOC $3,000.00 Division Number 3170 General Services - Parks, Etc. Account Number 8080 Services - Proffrech $2,000.00 Division Number 3170 General Services - Parks, Etc. Account Number 8234 Insecticides /Herbicides /Fungicides $1,000.00 Division Number 3170 General Services - Parks, Etc. Account Number 8235 Plant Materials $1,000.00 Division Number 7014 Miscellaneous & Studies Account Number C2330436 Urban Wildland Interface Mitigation $30,000.00 Division Number 7501 Distribution and Piping Account Number C5500075 Reclaimed Water Irrigation Program $40,000.00 Division Number 0630 Admin Services - MIS Account Number 8030 Maintenance & Repair - Equipment $30,000.00 Division Number 0630 Admin Services - MIS Account Number 8110 Utilities NOC $20,000.00 Division Number 0310 City Manager Division Account Number 7110 Car Allowance $4,200.00 Signed: Signed: Signed: City Council Approval: City Clerk S'i6 -oo Date S OD ate Date