HomeMy WebLinkAboutAgenda - 10-20-2009 - 4qORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 20, 2009
Action Agenda
Item No. L~- - ~
SUBJECT: Contracting with Property Information Management System Software V-endors,
Project Mana ers, and Transitional Contract Assistance
DEPARTMENT: Information Technologies, PUBLIC HEARING: (Y/N) No
Assessor, Revenue, Purchasing
ATTACHMENT(S): INFORMATION CONTACT:
Todd Jones, (919) 245-2285r
None John Smith, (919) 245-2101
Jo Roberson, (919) 245-2727
Pam Jones, (919) 245-2652
PURPOSE: To:
1) Authorize the County Attorney to develop/finalize the appropriate
documents and contracts for implementing the Property Information
Management System (PIMS) software including:
• two contracts for the software vendors (Patriot Systems and IIS)
• one for the licensing agency for the Billing and Collections
component (NCACC) and
• two for the project management consulting firms (Barry Strock
Consulting Associates and Visser Project Management Associates).
2) Authorize the Chair to sign all documents and contracts as
developed/finalized by the County Attorney; and
3) Authorize the Manager to sign future contracts for transitional assistance,
additional customization and hardware purchases required to cost-
effectively complete the project.
BACKGROUND: The County has relied on an internally developed software system for
tracking and managing land records, property valuation and payment data for over 30 years.
This system, known as the Legacy System, has been modified and enhanced over the decades
to meet the County's needs and has played an important role in helping the Assessor's Office
maintain accurate valuations while helping the Revenue Office maintain high collection rates.
The Legacy System, however, exists today on a fundamentally antiquated computing platform.
The underlying architecture makes it difficult to integrate with more modern software, an
increasingly important requirement as the County moves toward enterprise systems for greater
efficiencies. Further, the expertise for maintaining the Legacy System is increasingly difficult to
find and develop.
2
The departments of the Tax Assessor, Revenue and Information Technologies have been
working since 2005 to investigate replacing the Legacy System with a modern and more
supportable system. In 2006 work began on identifying functional requirements for a new
system. This was accomplished using consulting resources (Carolina Consulting Group)
working closely with the Chief Information Officer, Information Technologies' Business Analyst
and staff from the Tax Assessor's and Revenue offices.
From this functional requirements work, the departments and Purchasing developed a Request
for Proposal that was received on July 20, 2007. (North Carolina General Statute 143-129.8
authorizes local governments to use a "request for proposals" (RFP) process to purchase
information technology goods and services. This procedure provides flexibility in procuring
these potentially complex contracts. The RFP was issued following this statute that allows the
award to be made to the "best overall" proposal. Thirteen potential vendors were sent the RFP
and it was advertised in the Durham Herald and on the County web site. Three vendors
responded.
The departments and Purchasing met extensively with each of the three responding vendors.
The vendors' responses and functional demonstrations were evaluated against the functional
requirements. On the basis of the analysis of the responses, the departments of Tax Assessor,
Revenue and Information Technologies are recommending the County pursue a solution which
uses Patriot Systems of Boston, Massachusetts, AssessPro software, and the NCACC's (North
Carolina Association of County Commissioners) North Carolina Property Tax System product,
proposed and administered by IIS (Intelligent Information Systems) of Durham, North Carolina.
These two software applications together represent a solution that is the lowest risk, most cost-
effective and highest benefit among the various responses received and best overall solution for
Orange County. The Information Technology Advisory Committee has also endorsed this
selection and will continue to be involved in PIMS project discussions.
Because of the broad scope, cost and complexity of implementing a new Land Records and
Taxation system, the departments of the Tax Assessor, Revenue, Purchasing and Information
Technologies requested and were granted approval on December 11, 2007 to begin detailed
contractual negotiations with the two vendors. The sponsoring departments requested to
contract with a dedicated project manager and a legal consultant specializing in technology
contracts. The project manager's role was to track the myriad project details and coordinate
resources and schedules while utilizing project management principles used in previous IT
projects including the Munis project.
The BOCC approved contracting with the outside project management company known as
Barry Strock Consulting Associates on January 22, 2009. The consultant immediately began
the tasks as outlined above and has produced detailed contracts which cover all legal
responsibilities between the County and the vendors, with particular emphasis on collaborative
mandates between the two vendors themselves. The County Attorney's Office is currently
reviewing/finalizing these contracts to begin the actual conversion of data and implementation
of the Property Information Management System.
3
The contracts are as follows:
Patriot Systems Contract
Patriot Systems will be developing the PIN (Parcel Identification Number) application in
compliance with the Orange County PIN Ordinance and will provide the computer assisted
mass appraisal software to be utilized by the Assessor's Office to track and analyzing sales
data, list real property in the field, develop schedules of value, and apply these schedules in
revaluation years.
The Patriot contract totals $503,050.
IIS Contract
IIS will provide implementation, customization, training, integration and support services for the
North Carolina Property Tax System (NCPTS) Billing and Collections application. IIS is the
exclusive vendor for providing these services for NCPTS licensed by the NCACC
The IIS contract totals $875,975.
NCACC Contract
The North Carolina Association of County Commissioners licenses the NCPTS application to
counties within the state. While there is no licensing fee, the contract provides the specific
licensing framework as well as documenting NCACC's contractual relationship with IIS.
Barry Strock Consulting Associates
Barry Strock Consulting Associates will serve as key consulting partners in the PIMS project.
The firm's expertise in vendor management, and experience with the specific vendors the
County is working with will ensure the prompt identification and early resolution of interface
issues. In addition, its high level project management services (Phase III of the contract of
which the Board authorized signing on January 22, 2009) will provide oversight necessary for
meeting quality and schedule milestones.
Exercising Phase III of the standing signed contract with Barry Strock Consulting Associates is
not to exceed $54,480
Visser Management Consultant Services
The project stakeholders believe Rod Visser of Visser Management Consultant Services is
uniquely qualified for providing day to day project management oversight of the PIMS project.
Mr. Visser has extensive understanding of the Orange County tax system, personnel, and PIN
Ordinance requirements. Mr. Visser also has extensive understanding of North Carolina
property tax law and understands the ultimate goal the County is working to attain. With IT's
Business Analyst on extended maternity leave during critical phases of the project, this need is
all the more acute.
Mr. Visser will provide day to day project management services not to exceed $75,000
The BOCC has previously approved an initial procurement of $1.5 million dollars on a projected
total project cost of $2.5 million. Total costs related to all contracts equals a maximum of
$1,508,505 to be paid based on completed deliverables over two fiscal years.
Remaining costs associated with the PIMS project include:
Transitional Staffing
Transitional staffing costs include staff overtime payments, payment of temporary employees
and contracted retirees, and other possible contractual staffing. Since PIMS implementation
and training must occur and since at the same time normal day-to-day activities associated with
taxation and collection duties must also occur, some staff will have to work limited overtime.
There will be the need to incorporate others to handle the day-to-day responsibilities while staff
is involved in implementing and/or training. Former and retired personnel will need to be
involved to fill staffing gaps and to supply critical knowledge and expertise. The FY2009 -
2010 costs associated with overtime and temporary employment has been budgeted in each
departments' approved budgets. Contractual expenses associated with bringing back critically
needed retirees, and possibly others on contract, are projected to cost a maximum of $250,000
through project completion as of December 2010.
Software Customization
Software customization is always a requirement when working with third party software for use
in environments with unique statutory requirements. For example, customization will be
required to allow the County to readily configure the billing and collection systems to allow for
existing (and future) fees (like 3R and storm water fees) without incurring additional costs.
These types of project enhancements are projected to cost no more than $300,000.
Hardware Purchases
Finally, with new software and with improved capabilities, there will be additional hardware
acquired through state contract or government service agreements. Hardware will include items
such as servers, field approved tough books (especially tough laptops) for listing of real estate
in the field, larger monitors, and scanners. This expense is not expected to exceed $75,000.
The total PIMS project currently shows to be on target not to exceed the maximum approved
budget of $2.5 million.
Staff has worked with the towns and with another agenda item on tonight's meeting presented
the Addendum to the current Inter-local Agreement which will address the Towns contributing
toward the cost of acquisition of the billing and collection software portion of the system. The
percentage of participation is equivalent to the number of billings currently handled by Orange
County on behalf of each jurisdiction. Additionally, the towns have agreed to a cost percentage
associated with the yearly maintenance fee for the continued support of the billing and
collection software. The same percentage will apply to the yearly cost, as does the percentage
for acquisition of the software.
FINANCIAL IMPACT: The total cost of these contracts is not to exceed $1,508,505. Current
known costs have been identified through this contract process to be $875,975 for the services
of IIS in conjunction with the NCPTS acquisition for billing and collections. The cost for services
with Patriot Systems for the Land Records PIN System and the AssessPro Project is currently
$503,050. The Project Management contract for the services outlined above for Visser Project
Management Associates is not to exceed $75,000 The Project Management contract for
services outlined above for Barry Strock Consulting Associates is not to exceed $54,480. The
contract for the NCACC is required to proceed with the implementation of the NCPTS software
and has no direct associated cost. The monies for software vendor contracts will be paid in
increments as milestones are reached which are clearly defined within each contract. The
project management contracts will be paid as stipulated through the contracts with the approval
of the Core Team members.
RECOMMENDATION(S): The Manager requests the Board of County Commissioners:
1) Authorize the County Attorney to develop/finalize the appropriate documents
and contracts for implementing the Property Information Management System
(PIMS) software including:
• two contracts for the software vendors (Patriot Systems and IIS)
• one for the licensing agency for the Billing and Collections component
(NCACC) and
• two for the project management consulting firms (Barry Strock Consulting
Associates and Visser Project Management Associates);
2) Authorize the Chair to sign all documents and contracts as developed by the
County Attorney;
3) Authorize the County Manager to approve and sign contracts for transitional
assistance with contract or temporary employees not to exceed $250,000;
4) Authorize the County Manager to approve and sign contracts for additional
customizations to the software not to exceed $300,000; and
5) Authorize the County Manager to approve and sign future contracts for PIMS
related hardware purchases not to exceed $75,000.