Recommendation
To approve contract with CGI to upgrade the City's financial, HR, and payroll systems in the amount not to exceed $144,500. The financial system includes, accounts payable, general ledger, purchasing and inventory systems. This upgrade will bring one of the City's most critical systems up to the most current version of the software, which will provide additional functionality to these systems and enable the City to implement additional applications including employee self service and performance budgeting systems in the future. Previous upgrades were funded out of the CIP, but due to the size and scope of this project, funding was included in the FY09 operating budget.

Discussion
This contract provides for 850 hours of professional services from CGI to complete the upgrade of the City's financial, HR, and Payroll systems from version 3.5 to 3.7. This upgrade also requires significant involvement of City staff and is expected to take six to nine months to complete. The work is broken out into three areas:

1. Technical Upgrade Services 450 hours
2. Functional Upgrade Services 140 hours
3. Project Planning, Guidance and Management 260 hours
Total 850 hours

The original estimate from CGI included 2,800 hours. Staff negotiated with CGI and value engineered the level of effort on CGI's part down to 850 hours. This lower level of hours requires City staff to take on a much greater role to complete the upgrade, utilizing in-house resources from the IT, Finance, and HR departments. While this will put a significant burden on in-house resources, City staff believes that this approach is achievable.

The upgrade provides improved functionality of the CGI software. Many improvements have been made to the purchasing module. The upgrade also includes additional reporting capability, tighter security and improved usability. Completing the upgrade brings the City to the latest version of the software, which ensures the highest level of support from CGI. Furthermore, version 3.7 of the software is required before additional modules including employee self service and performance budgeting can be purchased. These additional modules are part of the finance and human resources departments plans to improve efficiency and provide improved services to the public, employees, and the Mayor and Council.

Background
The City has been using the CGI (formerly AMS) software for more than twenty years. On December 13, 2004 the Mayor and Council approved "phase I," a major upgrade of the financial system from a mainframe-based system to the current web-based system (version 3.5). This project took approximately twelve months to complete with a budget of 2500 professional services hours and additional software purchases to upgrade general ledger, accounts payable, inventory and purchasing systems. The City was the first CGI customer to use a “starter kit” approach to the upgrade, where many of the tasks traditionally performed by CGI consultants were performed by City staff in Finance and Information and Technology, which achieved significant savings. This approach was successful and the City went live on the newly upgraded financial system in January 2006.

On May 22, 2006 the Mayor and Council approved "phase II," which included a major upgrade of the City's human resources and payroll systems from a mainframe-based system to the current web-based system (version 3.5). This project included 1500 professional services hours and additional software purchases. In March, 2008 the City went live with the newly upgraded HR and payroll systems.

Both phase I and phase II brought the City's financial, HR and payroll systems up to version 3.5 and were funded out of a CIP project. The current project staff is seeking Mayor and Council approval for is to upgrade these systems from version 3.5 to 3.7. This upgrade is more limited in size and scope and therefore the finance department determined that it was more appropriate to fund this in the FY 2009 operating budget.

Mayor and Council History
This is the first time this specific contract has been brought before the Mayor and Council. In December of 2004 the Mayor and Council approved the upgrade of the financial system and in May of 2006 the Mayor and Council approved the upgrade of the HR, and payroll systems from a mainframe-based system to our current web-based version of the CGI software. The Financial System Project first appeared as a funded project in the FY 2005 Adopted CIP, and it is in the current Adopted CIP, however due to the more limited size and scope of this project, the finance department budgeted funds in the FY 2009 operating budget.

Procurement Information
The contract is awarded in accordance with the City Code, Sole Source Procurement, Section 17-82 (a), as follows: "A contract of any value may be awarded without competition when the awarding authority determines, based on good faith review of available sources, that (1) There is only one (1) source practicably available for the required...service".

Fiscal Impact
This contract is expected to cover the costs of completing the upgrade and sufficient funds are available in account 110-700-0200-0201. The software licenses and maintenance costs for the CGI software is already provided for under a separate annual software maintenance contract with CGI.

Next Steps
Purchasing will issue a purchase order and CGI will begin to work with staff on this project.

Department Head:



Mike Cannon, Director of Information and Technology
Approved on: 01/28/2009

Assistant City Manager:


Jenny Kimball, Assistant City Manager
Approved on: 01/29/2009

City Manager:

Scott Ullery, City Manager
Approved on: 02/03/2009