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HomeMy WebLinkAboutAgenda - 12-02-2002-6bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 2, 2002 Action Age ~ a~ Item No. SUBJECT: Presentation Regarding Proposed Business System Software DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, (919) 245-2652 Ken Chavious, (919) 245-2453 Donna Dean, (919) 245-2151 Elaine Holmes, (919) 245-2552 Dick Taylor, (919) 245-2276 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To receive information regarding the proposed replacement of the County's business system software in anticipation of a bid award for consideration by the Board on December 10, 2002. BACKGROUND: In the mid-1970's, the Orange County Data Processing Department staff purchased and significantly modified athen-state of the art legacy system software program to carry out the business functions for the County. The software recorded data for all financial information for such major areas as the General Ledger, payroll, fixed assets, revenue collections and purchase orders. A system was also developed in-house for Personnel Department data management. These systems were considered effective and efficient and were used by other counties and municipalities in the state. While the systems have been enhanced in some areas, the function remains substantially as written almost three decades ago. Information and functionality needs of the organization and the public have long since outstripped the capabilities of the system. Recognizing the need for updating these legacy systems currently used in managing the County's business information, a process for assessing the need and formulating a plan to address the need was begun in 1998 by the department heads in Finance, Budget, Personnel, Purchasing and Information Systems. With the guidance of the BOCC-appointed Information Technology Committee, the needs assessment was finalized in 2001, and an IT Consultant hired by the County developed a Request for Proposal. The County received eight responses to the Request for Proposal in February 2002. This significant project continues the IT Plan strategic initiative to replace legacy systems. Other legacy systems replacement projects that the Board of Commissioners have approved and are either recently completed or currently underway include the Register of Deeds Office, Sheriffs Office, Planning and Inspections Department, Board of Elections and Animal Control. Selection Process A selection team comprised of the aforementioned department heads and Assistant County Manager Rod Visser, in tandem with the County's consultants from Summit Business Solutions, analyzed the proposals from their specific business interest and recommended interviews with three firms. The interviews were held in March 2002 with participation from the selection team as well as the respective staff members that would be using the selected software to carry out their daily tasks and Jane Sparks, a member and representative of the IT Committee. Based on the Needs Assessment, two firms emerged as clear contenders to best meet the County's needs. The selection team conducted second round of demonstrations as well as visited sites where each of the firms were either fully implemented or nearing completion of implementation. Each of the top two firms have excellent products. However, the selection team is recommending the firm of MUNIS to supply the business system package based on the following factors: • The knowledge gained from the site visits regarding the implementation process and general software capabilities; and • In-depth comparison of each system's capabilities specifically in relation to Orange County's operation; and • Number of successful installations for local governments in North Carolina; and • Ease of implementation and resources needed to complete; and • Cost. Advantages of New System The MUNIS package will support General Ledger applications, fixed assets, the purchasing process, expanded human resources capabilities and will allow the County's budget to be prepared through the mainframe system rather than through a series of Excel spreadsheets as has previously been the case. The system will allow further efficiencies by allowing: • Purchasing functions may be carried out in an almost paperless environment; • The complete procurement process can be documented, providing helpful information in areas including, but not limited to the following: o Historical information regarding vendor performance; o Accumulated data regarding specific purchases or groups of purchases for all departments forming a basis for trend analysis, volume purchasing opportunities, etc. • County departments can better manage their financial data through user-friendly access of day-to-day analysis. In addition, the MUNIS system will provide interaction between the system and' desktop computers for generation of departmental revenue and expenditure reports that cannot be generated with the current system; • Web-based accessibility of functions such as employee self-service benefits management; • Flexibility and ease of use in creating ad hoc reports and analyses; • Dynamic accessibility of budget and expenditure information for quick-response use in Board meetings and work sessions; • Ease of data integration with other applications such as revenue operations. Implementation Process The implementation of the software package is estimated to be completed within six months. Although this is an aggressive timeline, with the help of the internal project manager assigned to the project, the timetable appears realistic. The financial applications, including General Ledger, Payroll, Purchasing, and Budget will be implemented first and are estimated to be completed within 90-120 days. Assuming a notice to proceed on the project is issued no later than December 13, 2002, the implementation can be completed while permitting the 2003-04 Budget/CIP preparation process to remain on schedule. This is critically important since the department heads responsible for leading that process will also be required to dedicate significant time to the implementation of the new software package. Internal Project Management For this critically important undertaking, staff proposes to use a project management approach modeled after the highly successful Y2K preparation process in 1999. In view of the constrained staff resources of each of the small departments that will be responsible for implementing the new software package, additional coordinating support from someone whose work effort is dedicated only to this project will be necessary for its timely and successful implementation. Since all department heads and key departmental staff involved with business system replacement will also have to carry out their day-to-day operational responsibilities, provisions for an internal project manager (IPM) was included in the MUNIS contract. The IPM will be responsible for coordinating all steps in the implementation process between the County and MUNIS and ensuring that the work is completed on time and accurately. The contract presented for Board consideration includes the equivalent of two full on-site days per week of the six-month contract period at a total cost of $57,200. The IPM will also be available to the County for telephone consultations at no additional cost. With the limited County-staff resources, this individual is key to the successful implementation of the MUNIS system. FINANCIAL IMPACT: The total cost of the MUNIS system has been negotiated at a not to exceed amount of $480,000, including the cost of the Internal Project Manager and data conversion. Staff proposes to add the cost of this package to the BB&T private placement proposal obtained for Landfill equipment and previously approved by the Board. The interest rate for the funds is 3.75% for afive-year term, yielding an annual debt service payment of approximately $107,000. Funds to support the 2002-2003 debt service payment are currently available through the IT Plan Capital Project Ordinance in the County's Capital Investment Plan. Funding for future payments can be addressed through annual appropriations the Board makes under the CIP for the IT Plan. RECOMMENDATION(S): The Manager recommends that the Board receive the information and provide any questions to staff in preparation for the proposed bid award on December 10, 2002.