RPVCCA_SR_2011_04_19_05_Acct_System_SoftwareCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Project Manager:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
DENNIS McLEAN,DIRECTOR OF FINANCE &h
INFORMATION TECHNOLOGY <g/b
APRIL 19,2011
ACCOUNTING SYSTEM SOFTWARE SELECTION
SERVICES CONTRACT .
CAROLYN LEHR,CITY MANAGER ~
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
Approve the attached agreement with the Government Finance Officers Association
(GFOA)for accounting system software selection services.
BACKGROUND
The City uses an accounting system to maintain the City's accounting records,manage
purchasing,accounts payable,trust deposits and issue business licenses.The City's
current system is the Naviline system licensed by Sungard.Naviline is housed on a
dedicated IBM AS400 server and was placed into service in 2005 for an initial cost of about
$70,000.The annual licensing and support cost is about $33,000.The Naviline system is
near the end of its useful life and its replacement has been funded.
Although no system is perfect,Naviline has a great number of limitations and is difficult to
use for management trust deposits and issuing business licenses.The City purchased a
custom report writing software to extract information that is not easily produced by the
system's standard output methods.The custom report writing software is not user friendly
either;and therefore,only one employee has learned to create reports using this solution.
As part of Management Partners'Organizational Assessment of 2008,one of the
recommendations was to "Plan and budget for the replacement of the financials system."
The Management Partners'report included the following observations:
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>-Naviline is used by small government agencies that are usually critical of the
system's design.
>-Naviline is not user friendly,and a financial application that is usable by line staff
provides tremendous value in the effective management of programs and services.
>-The Naviline system runs on a proprietary mini-computer (the IBM AS400),which
has the sole function of supporting the financial system.Maintenance of the mini-
computer is more costly than servers that can support multiple systems.
>-Financial systems with more modern designs are more intuitive allowing staff to
better support themselves,and use the same underlying technologies as those
used for other City business systems.
Staff agrees with the observations made by Management Partners.The FY1 0-11 budget
includes an appropriation of $500,000 for the replacement of the City's financial system.
DISCUSSION
Selection of a financial system is a complex process that includes determining the needs of
users in Finance and Information Technology (IT)and other departments,as well as the
current and future IT infrastructure.Considering the City's limited resources and expertise
in the selection of a new system,Staff recommends utilizing services of the GFOA to assist
with procurement.
GFOA is a non-profit organization with a purpose to enhance and promote the professional
management of governments for the public benefit by identifying and developing financial
policies and best practices.One of the primary authoritative written resources used by
government finance officers nationwide is written and published by GFOA:Governmental
Accounting,Auditing and Financial Reporting (commonly known as the "Blue Book").
GFOA staff has the necessary expertise and years of experience providing software
selection service to other government organizations.Staff contacted other finance officers
in Southern California who have used GFOA to procure new financial systems,and found
that other agencies have saved both money and time and believe that better selection
decisions were made.
Software selection services are also provided by private firms.Staff found that the cost of
service provided by private firms is typically 50%to 100%more than the cost of using
GFOA.In addition,private firms may not offer the same level of objectivity and
independence offered by GFOA.
The GFOA's proposal includes the following services:
>-Identify the City's requirements;
>-Develop a Request for Proposal (RFP);
>-Evaluate proposals;
>-Facilitate software demonstrations and subsequent discovery;and
>-Assist with negotiation of the vendor contract.
The proposed services are not subject to open market bid procedures under Municipal
Code section 2.44.060,which provides an exception for professional services including
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those provided by financial advisors and technology professionals.GFOA has proposed a
cost of $51,000 for its services to be performed over a 4-month period.Other finance
officers who have used GFOA software selection services believe that procurement
savings exceeded the cost of GFOA's services.
If the City Council approves the attached agreement with GFOA,Staff expects that the
procurement process will begin in July and a software system vendor contract will be
presented to City Council in late 2011.
FISCAL IMPACT
The FY1 0-11 budget is adequate to pay for the proposed software selection services at a
cost of $51 ,000.As part of the procurement process,Staff will determine if the $500,000
appropriation for replacement of the financial system is sufficient and will report to City
Council if additional funding is recommended.
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PROFESSIONAL/TECHNICAL SERVICES AGREEMENT
This Agreement is made and entered into this day of April,2011 by and
between the City of Rancho Palos Verdes (hereinafter referred to as the "CITY")and the
Government Finance Officers Association of the United States and Canada (hereafter
referred to as "CONSULTANT").
WHEREAS,the CITY desires to hire CONSULTANT to perform Software Selection
Services to assist the CITY with procurement of a replacement accounting system.
IN CONSIDERATION of the covenants hereinafter set forth,the parties hereto
mutually agree as follows:
ARTICLE 1
SCOPE OF SERVICES
1.1 Project Description
The Project is described as follows:
Software Selection Services for the City of Rancho Palos Verdes
replacement accounting system.
1.2 Description of Services
CONSULTANT shall:confirm and document the goals for the project,
develop a work plan to meet these goals,develop a competitive request for proposal
therefor,evaluate proposals submitted by prospective vendors,summarize and
document the functional capabilities of each proposal,facilitate vendor demonstrations,
facilitate further discovery,assist with vendor contract negotiation,and assist with
development of the implementation plan,as described in CITY'S Request For
Proposals and Consultant's Proposal,which are attached hereto as Exhibit "A"and
incorporated herein by this reference.
1.3 Schedule of Work
Upon receipt of written Notice to Proceed from the CITY,CONSULTANT
shall perform with due diligence the services requested by the CITY and agreed on by
CONSULTANT.Time is of the essence in this Agreement.CONSULTANT shall not be
responsible for delay,nor shall CONSULTANT be responsible for damages or be in default
or deemed to be in default by reason of strikes,lockouts,accidents,or acts of God,or the
failure of CITY to furnish timely information or to approve or disapprove CONSULTANT's
work promptly,or delay or faulty performance by CITY,other consultants/contractors,or
governmental agencies,or any other delays beyond CONSULTANT's control or without
CONSULTANT's fault.
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ARTICLE 2
COMPENSATION
2.1 Fee
(a)CITY agrees to compensate CONSULTANT a not to exceed amount of
fifty-one thousand dollars ($51,000)for services as described in Article 1.
(b)CITY may request additional specified work under this Agreement.All
such work must be authorized in writing by the Director of Public Works prior to
commencement.CONSULTANT shall be paid for such additional services in accordance
with CONSULTANT's Schedule of Hourly Rates attached hereto as Exhibit "A"and
incorporated herein by reference.
2.2 Payment Address
All payments due CONSULTANT shall be paid to:
Government Finance Officers Association
3076 Eagle Way
Chicago,Illinois 60678
2.3 Terms of Compensation
CONSULTANT will submit invoices upon completion and acceptance of each
deliverable as defined in Exhibit "A,"but no more often than monthly.
CITY agrees to authorize payment for all undisputed invoice amounts within
thirty (30)days of receipt of the invoice.CITY agrees to use its best efforts to notify
CONSULTANT of any disputed invoice amounts or claimed completion percentages within
ten (10)days of the receipt of each invoice.However,CITY's failure to timely notify
CONSULTANT of a disputed amount shall not be deemed a waiver of CITY's right to
challenge such amount.
Additionally,in the event CITY fails to pay any undisputed amounts due
CONSULTANT within forty-five (45)days after invoices are received by CITY then CITY
agrees that CONSULTANT shall have the right to consider said default a total breach of
this Agreement and be terminated by CONSULTANT without liability to CONSULTANT
upon ten (10)working days advance written notice.
2.4 Term of Agreement:
This Agreement shall commence on ,2011,and shall
terminate when all services as described in Section 1.2 of this Agreement are completely
performed by CONSULTANT.
ARTICLE 3
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INDEMNIFICATION AND INSURANCE
3.1 Mutual Indemnification
A.Subject to any limitation set forth below in Subsection B of this
Section,each party (the "Indemnifying Party")shall indemnify,defend and hold harmless
the other party and its respective officials,officers,directors,employees and agents (the
"Indemnified Party")against any and all actions,controversies,demands,suits,
proceedings,claims,causes of action,liabilities,losses,costs,interest,penalties,
demands, expenses and damages of any kind whatsoever (including reasonable attorneys'
fees,experts'fees and costs incurred in connection with the arbitration or resolution of any
dispute as set forth herein)(collectively,"Losses")related to or arising from,directly or
indirectly,any claims of third parties against the Indemnified Party arising out of the
negligent or reckless acts or omissions or willful misconduct of the Indemnifying Party or
any of its officials,officers,directors,employees or agents in the performance of this
Agreement.All duties under this Section shall survive termination of this Agreement.
B.Limitation of Liability:CONSULTANT's liability for any matter arising
under this Agreement or from any transaction contemplated herein,including without
limitation the provision of the services,shall not exceed the actual amount paid by an
insurer as a result of any claim made with respect to such matter under CONSULTANT's
insurance policies as set forth in this Agreement.The CITY acknowledges that this liability
cap is a material term upon which CONSULTANT has relied in entering into this
Agreement and that CONSULTANT would not have entered into this Agreement in the
absence of such provision.
3.2 General Liability
CONSULTANT shall at all times during the term of the Agreement carry,
maintain,and keep in full force and effect,a policy or policies of Commercial General
Liability Insurance,with minimum limits of one million dollars ($1,000,000)for each
occurrence and two million dollars ($2,000,000)general aggregate for bodily injury,death,
loss or property damage for products or completed operations and any and all other
activities undertaken by CONSULTANT in the performance of this Agreement.Said policy
or policies shall be issued by an insurer admitted to do business in the State of California
and rated in A.M.Best's Insurance Guide with a rating of A:vn or better.
3.3 Professional Liability
CONSULTANT shall at all times during the term of this Agreement,carry,
maintain,and keep in full force and effect a policy or policies of professional liability
insurance with a minimum limit of one million dollars ($1,000,000)per claim and aggregate
for errors and/or omissions of CONSULTANT in the performance of this Agreement.Said
policy or policies shall be issued by an insurer admitted to do business in the State of
California and rated in Best's Insurance Guide with a rating of A:Vn or better.If a "claims
made"policy is provided,such policy shall be maintained in effect from the date of
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performance of work or services on the CITY's behalf until three (3)years after the date of
work or services are accepted as completed.Coverage for the post-completion period may
be provided by renewal or replacement of the policy for each of the three (3)years or by a
three-year extended reporting period endorsement,which reinstates all limits for the
extended reporting period.If any such policy and/or policies have a retroactive date,that
date shall be no later than the date of first performance of work or services on behalf of the
CITY.Renewal or replacement policies shall not allow for any advancement of such
retroactive date.
3.4 Automobile Liability
CONSULTANT shall at all times during the term of this Agreement obtain,
maintain,and keep in full force and effect,a policy or policies of Automobile Liability
Insurance,with minimum of one million dollars ($1,000,000)per claim and occurrence and
two million dollars ($2,000,000)in the aggregate for bodily injuries or death of one person
and $500,000 for property damage arising from one incident.
3.5 Worker's Compensation
CONSULTANT agrees to maintain in force at all times during the
performance of work under this Agreement worker's compensation insurance as required
by the law.CONSULTANT shall require any subcontractor similarly to provide such
compensation insurance for their respective employees.
3.6 Notice of Cancellation
A.All insurance policies shall provide that the insurance coverage shall
not be cancelled by the insurance carrier without thirty (30)days prior written notice to
CITY,or ten (10)days notice if cancellation is due to nonpayment of premium.
CONSULTANT agrees that it will not cancel or reduce said insurance coverage.
B.CONSULTANT agrees that if it does not keep the aforesaid insurance
in full force and effect,CITY may either immediately terminate this Agreement or,if
insurance is available at a reasonable cost,CITY may take out the necessary insurance
and pay,at CONSULTANT's expense,the premium thereon.
3.7 Certificate of Insurance
At all times during the term of this Agreement,CONSULTANT shall maintain
on file with the CITY Clerk a certificate of insurance showing that the aforesaid policies are
in effect in the required amounts.The commercial general liability policy shall contain
endorsements naming the CITY,its officers,agents and employees as additional insured.
3.8 Primary Coverage
The insurance provided by CONSULTANT shall be primary to any coverage
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available to CITY.The insurance policies (other than workers compensation and
professional liability)shall include provisions for waiver of subrogation.
ARTICLE 4
TERMINATION
4.1 Termination of Agreement
(a)This Agreement may be terminated at any time,with or without cause,
by the CITY upon thirty (30)days prior written notice or by CONSULTANT upon ninety (90)
days prior written notice.Notice shall be deemed served if completed in compliance with
Article 6.13.
(b)In the event of termination or cancellation of this Agreement by
CONSULTANT or CITY,due to no fault or failure of performance by CONSULTANT,
CONSULTANT shall be paid compensation for all services performed by CONSULTANT,
in an amount to be determined as follows:for work satisfactorily done in accordance with
all of the terms and provisions of this Agreement,CONSULTANT shall be paid an amount
equal to the percentage of services performed prior to the effective date of termination or
cancellation in accordance with the work items;provided,in no event shall the amount of
money paid under the foregoing provisions of this paragraph exceed the amount which
would have been paid to CONSULTANT forthe full performance of the services described
in Article 2.1.
ARTICLE 5
OWNERSHIP OF DOCUMENTS
5.1 Ownership of Documents and Work Product
All documents,plans,specifications,reports,photographs,images,video files
and media created or developed by CONSULTANT pursuant to this Agreement ("Written
Products")shall be and remain the property of the CITY without restriction or limitation
upon its use,duplication or dissemination by the CITY.All Written Products shall be
considered "works made for hire,"and all Written Products and any and all intellectual
property rights arising from their creation,including,but not limited to,all copyrights and
other proprietary rights,shall be and remain the property of the CITY without restriction or
limitation upon their use,duplication or dissemination by the CITY.CONSULTANT shall
not obtain or attempt to obtain copyright protection as to any Written Products.
CONSULTANT hereby assigns to the CITY all ownership and any and all
intellectual property rights to the Written Products that are not otherwise vested in the CITY
pursuant to the paragraph directly above this one.
CONSULTANT warrants and represents that it has secured all necessary
licenses,consents or approvals to use any instrumentality,thing or component as to which
any intellectual property right exists,including computer software,used in the rendering of
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the services and the production of all Written Products produced under this Agreement,
and that the CITY has full legal title to and the right to reproduce the Written Products.
CONSULTANT shall defend,indemnify and hold the CITY,and its elected officials,officers,
employees,servants,attorneys,designated volunteers,and agents serving as independent
contractors in the role of CITY officials,harmless from any loss,claim or liability in any way
related to a claim that CITY's use of any of the Written Products is violating federal,state
or local laws,or any contractual provisions,or any laws relating to trade names,licenses,
franchises,copyrights,patents or other means of protecting intellectual property rights
and/or interests in products or inventions.CONSULTANT shall bear all costs arising from
the use of patented,copyrighted,trade secret or trademarked documents,materials,
equipment,devices or processes in connection with its provision of the services and
Written Products produced under this Agreement.In the event the use of any of the
Written Products or other deliverables hereunder by the CITY is held to constitute an
infringement and the use of any of the same is enjoined,CONSULTANT,at its expense,
shall:(a)secure for CITY the right to continue using the Written Products and other
deliverables by suspension of any injunction,or by procuring a license or licenses for CITY;
or (b)modify the Written Products and other deliverables so that they become non-
infringing while remaining in compliance with the requirements of this Agreement.This
covenant shall survive the termination of this Agreement.
Upon termination,abandonment or suspension of the Project,the
CONSULTANT shall deliver to the CITY all Written Products and other deliverables related
to the Project.If CONSULTANT prepares a document on a computer,CONSULTANT
shall provide CITY with said document both in a printed format and in an electronic format
that is acceptable to the CITY.
ARTICLE 6
GENERAL PROVISIONS
6.1 Representation
A CITY representative shall be Director of Public Works or his or her
designee,and a CONSULTANT representative shall be designated by CONSULTANT as
the primary contact person for each party regarding performance ofthis Agreement.
6.2 Fair Employment Practices/Equal Opportunity Acts
In the performance of this Agreement,CONSULTANT shall comply with all
applicable provisions of the California Fair Employment Practices Act (California
Government Code Sections 12940-48)and the applicable equal employment provisions of
the Civil Rights Act of 1964 (42 U.S.C.200e-217),and the Americans with Disabilities Act
of 1992 (42 U.S.C.§11200,et seq.).
6.3 Personnel
CONSULTANT represents that it has,or shall secure at its own expense,all
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personnel required to perform CONSULTANT's services under this Agreement.Any
person who performs engineering services pursuant to this Agreement shall be licensed as
a Civil Engineer by the State of California and in good standing.CONSULTANT shall
make reasonable efforts to maintain the continuity of CONSULTANT's staff who are
assigned to perform the services hereunder and shall obtain the approval of the Director of
Public Works of all proposed staff members who will perform such services.
CONSULTANT may associate with or employ associates or subcontractors in the
performance of its services under this Agreement,but at all times shall be responsible for
their services.
6.4 Conflicts of Interest
CONSULTANT agrees not to accept any employment or representation
during the term of this Agreement orwithin twelve (12)months after completion of the work
under this Agreement which is or may likely make CONSULTANT "financially interested"
(as provided in California Government Code Sections 1090 and 87100)in any decisions
made by CITY on any matter in connection with which CONSULTANT has been retained
pursuant to this Agreement.
6.5 Legal Action
(a)Should either party to this Agreement bring legal action against the
other,the validity,interpretation,and performance of this Agreement shall be controlled by
and construed under the laws of the State of California,excluding California's choice of law
rules.Venue for any such action relating to this Agreement shall be in the Los Angeles
County Superior Court.
(b)If any legal action or other proceeding,including action for declaratory
relief,is brought for the enforcement of this Agreement or because of an alleged dispute,
breach,default or misrepresentation in connection with this Agreement,the prevailing party
shall be entitled to recover reasonable attorneys'fees,experts'fees,and other costs,in
addition to any other relief to which the party may be entitled.
(c)Should any legal action about a project between CITY and a party
other than CONSULTANT require the testimony of CONSULTANT when there is no
allegation that CONSULTANT was negligent,CITY shall compensate CONSULTANT for its
testimony and preparation to testify at the hourly rates in effect at the time of such
testimony.
6.6 Assignment
Neither this Agreement nor any part thereof shall be assigned by
CONSULTANT without the prior written consent of the CITY.Any such purported
assignment without written consent shall be null and void,and CONSULTANT shall hold
harmless,defend and indemnify the CITY and its officers,officials,employees, agents and
representatives with respect to any claim,demand or action arising from any unauthorized
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assignment.
Notwithstanding the above,CONSULTANT may use the services of persons
and entities not in CONSULTANT's direct employ,when it is appropriate and customary to
do so.Such persons and entities include,but are not necessarily limited to,surveyors,
specialized consultants,and testing laboratories.CONSULTANT's use of subcontractors
for additional services shall not be unreasonably restricted by the CITY provided
CONSULTANT notifies the CITY in advance.
6.7 Independent Contractor
CONSULTANT is and shall at all times remain,as to the CITY,a wholly
independent contractor.Neither the CITY nor any of its agents shall have control over the
conduct of CONSULTANT or any of the CONSULTANT's employees,except as herein set
forth,and CONSULTANT is free to dispose of all portions of its time and activities which it
is not obligated to devote to the CITY in such a manner and to such persons,firms,or
corporations as the CONSULTANT wishes except as expressly provided in this Agreement.
CONSULTANT shall have no power to incur any debt,obligation,or liability on behalf of the
CITY or otherwise act on behalf of the CITY as an agent.CONSULTANT shall not,at any
time or in any manner,represent that it or any of its agents,servants or employees,are in
any manner agents,servants or employees of CITY.CONSULTANT agrees to pay all
required taxes on amounts paid to CONSULTANT under this Agreement,and to indemnify
and hold the CITY harmless from any and all taxes,assessments,penalties,and interest
asserted against the CITY by reason of the independent contractor relationship created by
this Agreement.CONSULTANT shall fully comply with the workers'compensation law
regarding CONSULTANT and its employees.CONSULTANT further agrees to indemnify
and hold the CITY harmless from any failure of CONSULTANT to comply with applicable
workers'compensation laws.The CITY shall have the right to offset against the amount of
any fees due to CONSULTANT under this Agreement any amount due to the CITY from
CONSULTANT as a result of its failure to promptly pay to the CITY any reimbursement or
indemnification arising under this Article.
6.8 Titles
The titles used in this Agreement are for general reference only and are not
part of the Agreement.
6.9 Entire Agreement
This Agreement,including any other documents incorporated herein by
specific reference,represents the entire and integrated agreement between CITY and
CONSULTANT and supersedes all prior negotiations,representations or agreements,
either written or oral.This Agreement may be modified or amended,or provisions or
breach may be waived,only by subsequent written agreement signed by both parties.
6.10 Construction
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In the event of any asserted ambiguity in,or dispute regarding the
interpretation of any matter herein,the interpretation of this Agreement shall not be
resolved by any rules of interpretation providing for interpretation against the party who
causes the uncertainty to exist or against the party who drafted the Agreement or who
drafted that portion of the Agreement.
6.11 Non-Waiver of Terms.Rights and Remedies
Waiver by either party of anyone or more of the conditions of performance under
this Agreement shall not be a waiver of any other condition of performance under this
Agreement.In no event shall the making by the CITY of any payment to CONSULTANT
constitute or be construed as a waiver by the CITY of any breach of covenant,or any
default which may then exist on the part of CONSULTANT,and the making of any such
payment by the CITY shall in no way impair or prejudice any right or remedy available to
the CITY with regard to such breach or default.
6.12 Severability
If any term or portion of this Agreement is held to be invalid,illegal,or otherwise
unenforceable by a court of competent jurisdiction,the remaining provisions of this
Agreement shall continue in full force and effect.
6.13 Notice
Except as otherwise required by law,any notice,request,direction,demand,
consent,waiver,approval or other communication required or permitted to be given
hereunder shall not be effective unless it is given in writing and shall be delivered (a)in
person or (b)by certified mail,postage prepaid,and addressed to the parties at the
addresses stated below,or at such other address as either party may hereafter notify the
other in writing as aforementioned:
To CITY:
Dennis McLean
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes,CA 90275
To CONSULTANT:
David Melbye
Government Finance Officers Association
203 North LaSalle Street,Suite 2700
Chicago,Illinois 60601
A party may change its address by giving written notice to the other party.
Thereafter,any notice or other communication shall be addressed and transmitted to the
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new address.If sent by mail,any notice,tender,demand,delivery or other communication
shall be deemed effective three (3)business days after it has been deposited in the United
States mail.For purposes of communicating these time frames,weekends and federal,
state,religious,County of Los Angeles or CITY holidays shall be excluded.No
communication via facsimile or electronic mail shall be effective to give any such notice or
other communication hereunder.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of
the date and year first above written.
Dated:_
Dated:_
ATTEST:
CITY CLERK
CONSULTANT
BY:-------------
BY:-------------
CITY OF RANCHO PALOS VERDES
A Municipal Corporation
BY:-------------MAYOR
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Exhibit "A":
City's Request For Proposal and Consultant's Proposal
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PROPOSAL TO:
CITY of RANCHO PALOS VERDES,CA
FOR:
Software Selection Services
Research and Consulting Center
April 12,2011
Note:This proposal and description of GFOA methodologies is for the City ofRancho Palos Verdes,CA
only.All information herein is confidential and proprietary to GFOA.Upon request by GFOA,all
materials submitted as part ofthis proposal must be returned or destroyed.
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G~GFOA
Software Selection Services
The Research and Consulting Center
Government Finance Officers Association
April 12,2011
Kathryn Downs
Deputy Director of Finance and Information
City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes,CA 90275
Dear Ms Downs:
The Government Finance Officers Association (GFOA)is pleased to present this
proposal to the City of Rancho Palos Verdes in response to its request for software
selection services.GFOA is excited about this opportunity and ready to bring to this
project our reputation for excellence in governmental consulting.As a not-for-profit
membership association,our mission-driven orientation means that we truly share
common goals with the City and are able to place your government's success above all
else.Our unique position allows us to be truly independent,objective,and focus solely
on identifying the best approach for the City,not a consultant's bottom line.
We will bring to this project years of experience with other similar organizations in
addition to our research knowledge.Proposed for this engagement is an experienced team
with extensive knowledge of the software market AND government best practices.
We very much look forward to the opportunity to work with you on this project.If there
are any questions,please contact Dave Melbye,Consulting Solutions Manager at 312-
890-8523 or dmelbye@gfoa.org.
Sincerely,
Anne Spray Kinney
Director,Research and Consulting Center
Government Finance Officers Association
203 N.LaSalle Street,Suite 2700
Chicago,IL 60601
Phone:(312)977-9700
Email:akinney@gfoa.org
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Gb GFOA
Software Selection Services
TABLE OF CONTENTS
Overview of 'GFOA 4
GFOA Research and Consulting Products and Services 4
Project Work Plan 7
Our Understanding 7
Software Selection Services 8
Phase 1:Requirements and RFP Development 8
Phase 2:System Selection 10
Phase 3:Contract Negotiation 13
Experience and Qualifications 14
History ofGFOA Technology Consulting 14
Past Clients 14
References 16
GFOA Project Team 19
Price 20
Project Assumptions 21
General Assumptions 21
Appendix A:Project Team Resumes 23
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Gb GFOA
Software Selection Services
••Overview of GFOA
The Government Finance Officers Association (GFOA)is the premier association for
public sector finance professionals in the United States and Canada.Founded in 1906,
GFOA currently has over 17,000 members that look to GFOA as the gold standard for
identifying,developing,and communicating leading practices in government
management.As a non-profit organization,GFOA's mission is to enhance and promote
the professional management of governments for the public benefit.GFOA accomplishes
this mission by identifying and developing policies and practices and promoting them
through education,training and leadership.
GFOA's Research and Consulting Center (RCC)is nationally recognized for its
comprehensive analytical and advisory services,as well as for research on issues specific
to state and local governments'financial,human resource,procurement,and operational
management.Since beginning operations in 1977,the RCC has assisted hundreds of
cities,counties,public utilities;and other forms of government to create best practice
solutions to meet their unique challenges.Approximately 10 years ago,GFOA began
consulting for technology assessments,procurement,and implementation advisory
services.This practice now represents the majority of all GFOA engagements and GFOA
has built a reputation as the unparalleled leader in the field of providing objective,
independent advice along with negotiation support in the public sector.GFOA's highly
skilled staff of approximately 20 consultants delivers practitioner focused services that
leverage the GFOA member network,lessons learned from past research and consulting
experience,and the individual consultant's public sector background.
GFOA Research and Consulting Products and Services
GFOA provides a range of consulting services to meet our clients'needs including:
Organizational Assessments,Enterprise Resource Planning (ERP)and Other Technology
Advisory Services,Long Term Financial Planning,Strategic Business and Information
Technology Planning,Performance Management,and Budgeting.While focus for this
engagement will be providing software selection services for financial functions,we
understand very well that these systems are used as tools to support the underlying
processes and practices that are vital to producing results and are prepared to bring our
expertise in other areas to assist the City get the most from this project..
Focusing on advisory services related to governments'use of technology applications,
GFOA uses its experience with a full range of services shown below to provide
exceptional value to governments at each stage.Being involved with a variety of
governments working to solve a wide range of issues allows us to evolve with the market
and provide recommendations that are proven to work not only the specific task at hand,
but also in the larger perspective of using the system to be more efficient and effective,
and ultimately to drive better results.
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GFOA's Research and Consulting Center provides many services to members and other
government managers in addition to consulting services.The same consultants who
regularly advise clients also research and write white papers and journal articles,author
and edit publications,conduct training,coordinate GFOA's annual conference,and staff
best practice committees.
Research and Publications:GFOA conducts ongoing research with its member
network and communicates information on leading practices,lessons learned,and trends
in financial management such as technology utilization and governance.GFOA currently
has over 60 titles available.The following is a sampling of products recently written by
GFOA consultants.GFOA has included a copy of its IT Budgeting and Decision Making
book in with this proposal.
.:.Technologies for Government Transformation:ERP
Systems and Beyond
.:.IT Budgeting and Decision Making:Maximizing Your
Government's Technology Investments
.:.The ERP Book:Financial Management Technology from
A to Z (Expected release early 2010)
Government Finance Review:GFOA consultants also regularly contribute articles and
serve as reviewers for GFOA's bi-monthly publication,The Government Finance Review,
along with other leading journals,books,and white papers.The Government Finance
Review is distributed to all 17,000 GFOA members and contains articles written on best
practices in government management.
Best Practice Committees:GFOA has seven standing committees made up of leading
finance professionals from governments throughout the United States and Canada that
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meet regularly to develop best practices to promote and guide sound financial and overall
government management.
Award Programs:As a way of promoting and encouraging adaption of best practices in
financial management,budgeting,financial reporting,and other related topics,GFOA
administers various award programs to recognize governments for their achievements.
Annual Conference:GFOA's Annual Conference attracts approximately 5,000
government finance professionals and provides a forum to discuss innovative practices,
learn best practice examples,network with peers,and interact with exhibitors.
National Training:GFOA provides ongoing training seminars throughout the country to
assist members with continued professional development.GFOA consultants are regular
trainers at these events.
GFOA will bring to this project its reputation as an exemplar in governmental finance.
Its position as the leading source of information for public sector financial management
requires that GFOA staff and recommendations are subject to the most stringent ethical,
financial,and managerial standards for the public benefit.As a not-for-profit
membership association,our mission-driven orientation means that we share common
goals with our clients and are able to place your government's success above all else.
The GFOA Advantage
Government-focused -GFOA only works with governments.Improving
government management and practices is not our focus area,it's our only area.
Staff expertise -We understand governments and we understand the software and
technology market.Every single GFOA consultant is actively involved with research
and has relevant public sector experience as a practitioner.
Best practices -GFOA is a nationally-recognized leader in identifying and
promoting best practices in government
Membership-network -GFOA can leverage the experience of its members and
clients.This input helps us improve our methodology and approach and tailor it to
meet the changing needs oflocal government
Nonprofit -GFOA's mission is to identify,support,and help develop best practices
in government for the public benefit.We are a mission driven rather than profit
driven organization.Thus,our approach is strongly influenced by public sector
needs and oals.
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IIII Project Work Plan
The GFOA is excited about the opportunity to become involved with the City and
become a trusted partner as the City moves towards standardized financial systems and
processes.Over time,our approach has evolved,but throughout,the methodology and
approach have been,and continue to be,completely focused on public sector needs and
goals.The outline described here is based on our understanding of the City's needs,
however GFOA is open to discussions on how to alter this approach if needed.
The conceptual approach described here is a proven one,having been successfully used
by local governments across the United States and Canada for over ten years.This
approach is continually enhanced by feedback from the hundreds of public sector clients
that we work with,our own staff experience,and the vendor community.As a result,the
City of Rancho Palos Verdes can be assured that our approach is tailored specifically for
local government.
Our Understanding
The City of Rancho Palos Verdes is a contract city,serving a population of 43,000 in the
areas of Planning,Building and Safety,and Code Enforcement.Rancho Palos Verdes is
located on the coast in Los Angeles County,and is primarily a bedroom community for
greater Los Angeles.
City employment consists of 58 full-time staff and 20 to 30 part time employees.
Operationally,they are currently supported by the SunGard HTE financial system,which
the City is hoping to replace with a hosted solution that supports integrated financials,
purchasing,inventory and point of sale,business licensing and document imaging.The
City has asked GFOA for assistance both for its public sector technology experience as
well as its knowledge of the vendor community.
In response to the City's request,GFOA has developed this proposal,tailored to your
specific needs.Each phase is outlined in more detail in the following section.Assuming
an early June start date,GFOA believes that the following schedule is achievable:
Phase 1:Requirements and RFP
Development
Phase 2:Software Selection
Phase 3:Contract Negotiation
July,2011
September,2011
End of October,2010
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••Software Selection Services
GFOA procurement methodology,designed over 10 years ago exclusively for the public
sector,is proven,having been successfully used by over 200 local governments across the
United States and Canada over the last ten years.GFOA's methodology relies on
principles of fairness,attention to detail,and competition,yet remains flexible enough to
adapt to local procurement laws or other unique situations.In addition,the approach is
continually enhanced by feedback from the hundreds of public sector clients that we work
with,our own staff experience,and the vendor community.As a result,the City of
Rancho Palos Verdes can be assured that our approach is current,and will facilitate the
selection and successful contract negotiation with a qualified firm.That success sets the
stage for what will become a successful implementation and achievement of the City's
business outcome goals.
Phase 1:Requirements and RFP Development
GFOA will begin the project with a two to four hour kickoff meeting with stakeholders
that accomplishes the following:
•Reconfirm and document the business drivers and goals for the project
•Walkthrough of the methodology and workplan for meeting those goals
•Discussion of schedule,logistics and any known risks or issues
•An 'ERP 101'session that informs and educates stakeholders as to the
current state of the software market,what to expect during the selection
process,and an introduction to enterprise software implementation concerns.
GFOA will then begin working with the City to develop a set of functional requirements
that describe actions,calculations,tasks,and information that the new system must
handle to meet the City's needs.Requirements serve four important roles:
1)Communicate the city's needs to ERP vendors through a competitive RFP
2)Allow the City to compare the functional capabilities of different proposals and
document in detail what is included in each proposal.
3)Act as a warranty after go-live.Requirements are attached to the eventual
software and implementation agreement and vendors warrant each requirement
4)Guide during implementation design to ensure that all objectives are met and the
scope of the project does not unintentionally get cut down.
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GFOA uses a streamlined process for developing requirements that has evolved based on
the collective experience of working with more than 200 governments.Requirements are
developed using an iterative process that leverages GFOA experience by starting with a
"base"set of requirements that is prepared by GFOA consultants prior to the first
requirements session.GFOA estimates that approximately 80%of all requirements are
common to every government.By getting these out of the way,the City can focus on the
City's unique requirements in requirement gathering sessions with GFOA to ensure that
requirements are documented and identified to a high level of detail.
Unique requirements are gathered in a series of focus group meetings that explore the
operational processes of each group.Due to the integrated design of ERP systems,
GFOA develops requirements by functional area,not department.Therefore,in each
meeting,there will be representatives from across the organization.For this engagement,
GFOA expects the City to evaluate proposals covering the functional scope listed below.
Therefore,GFOA will dedicate sessions with a cross section of City staff to validate
requirements for each functional area that were gathered in the Needs Assessment phase.
Throughout the process of developing requirements,GFOA will lead allowing a minimal
time commitment from the City.
Anticipated Functional Scope:
•Core Financials (General Ledger,Accounts Payable,Accounts Receivable)
•Project Accounting
•Procurement (Requisitions and Purchase Orders,Vendor File Maintenance,
Reporting)
•Permitting and Licensing
•Point of Sale and Inventory Tracking (museum gift shop)
•Park-site Rentals and Tracking
The City is also interested in a system that will either have or be integrated with a
standard report writer such as Crystal Reports,and would also like to have document
imaging integrated with the application.Finally,the City is interested in exploring a
relationship with an application service provider (ASP)to host the system off-site.These
broad requirements will be addressed in a separate session from the functional
requirements gathering.
During this phase,GFOA IS also working to develop an RFP.The RFP will
communicate to the vendor community the City's expectations,scope,technical
standards,preferred implementation approach,and procurement process and will also
solicit an organized proposal that both GFOA staff and City staff will evaluate.Because
ofGFOA's experience with public sector ERP procurement projects,vendors are familiar
with GFOA processes,which create advantages for the City in the form of more detailed
proposals,more competitive proposals,and proposals that focus on differentiators among
vendors.GFOA develops each RFP to be as fair and vendor neutral as possible while at
the same time minimizing the amount of marketing information that vendors provide.
The detailed work that goes into the RFP is directly related to the development of a more
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detailed statement of work (discussed later in this proposal)and a more success of
implementation that achieves the City's business objectives.
In developing an RFP,GFOA will need to work closely with the City's project team as
well as its purchasing and legal staff to structure the procurement consistent with local
purchasing regulations or policies.
Phase 1:Tasks,Deliverables and Roles
~""g""~"'''Yfj*W@¥~4.Wi:l$tt*M~Zi~~rl!trb~W~~&i~;1 --I
GFOALead City Lead I
:~'t{§:::1;:~••"z.;."Z~""·""~-;::;;:~#..Ji{:.,.>~'f:'~~;:::::::::-:;';;"4;-;.;,I§:'S?1;-:;:";'$'j:ti1~~~Wit!~f~¥I;~1~~~lim"'l'li~jii$.f1N{fl!:~fJ;~~~t~_~
1)Prepare for and facilitate kickoff meeting ~
Deliverable:Kickoff meeting complete ~
2)Prepare meeting agendas and set up meeting ~~facilities
3)Facilitate detailed requirements gathering ~sessions
Deliverable:Prepare draft functional ~requirements
4)Review draft requirements and participate in ~detailed requirements gathering sessions
5)Develop RFP ~
6)Contribute necessary information that will be ~included in the RFP
Deliverable:RFP ~~
7)Distribute RFP to ERP vendors ~
Phase 2:System Selection
GFOA's methodology during System Selection is one of elevation rather than
elimination.Through 3 defined steps,vendors will be evaluated and scored according to
pre-defined criteria with the top vendors moving on to compete at the next step.GFOA's
standard evaluation process includes four steps in the table below.
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Software Selection Services
Step Vendors
~~en Propos~____Unlimited
Software Demonstrations 31------~_.._.__.._._--_._-
Discovery 2
Final Contract ~otiations 1
To prepare for system selection GFOA will work with the City to prepare a System
Procurement Plan that outlines the procurement process and acts as a guide for the City
and project team to understand the process and how to properly evaluate ERP proposals.
To come up with the System Procurement Plan,GFOA will also be working with the City
to define evaluation criteria at each step.Throughout the selection process,GFOA will
act as the City's advisor to identify differentiators,identify risks,and ensure the City is
making a decision with knowledge of all information.To remain completely
independent and continue to offer objective guidance in the best interests ofour clients,
GFOA does not recommend software and will not be advising the City on which ERP
system to elevate at each step.
Written Proposal Assessment
Upon receiving the written proposals from vendors,both GFOA's team and the City's
project team will begin a detail assessment and analysis.However,each will have a
slightly different focus.GFOA will focus on identifying risks and highlighting
shortcomings with each proposal.GFOA will also use its extensive experience to
compare each proposal to industry standards.Key findings and risk areas for the City
will be documented in a proposal assessment report.GFOA consultants will also conduct
a conference call with the City's evaluation team to discuss key issues.The City's
responsibility will be to evaluate proposals to determine which proposal is the best fit to
meet the City's needs.After the City conducts its own assessment and reviews the
GFOA report,the City will select up to three vendors to bring on-site for software
demonstrations.
Software Demonstrations
Software demonstrations provide an opportunity for City staff to view how the ERP
system will work.Generally,software demonstrations last from 2 to 3 days per vendor,
depending on scope and other factors.To facilitate comparison between vendors,GFOA
staff will develop detailed demo scripts for each vendor and facilitate the demo sessions
to guarantee that vendors stay on task and demonstrate essential features of the software,
not marketing material or "bells and whistles."Throughout the demos,GFOA staff will
document any issues for future clarification.GFOA will also assist the City with
checking references by providing advice and sample questions to ask.At the conclusion
of all three software demonstrations,the City will select two vendors to elevate to
Discovery.
Discovery
Discovery acts as the City's final opportunity to get any unresolved issues clarified before
it makes its final elevation.Prior to discovery,each vendor is asked to provide a written
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response to a request for clarification letter outlining any remaining issues.Then,during
discovery,each remaining vendor is invited back on-site for one more day of
presentation.During this discovery presentation,any remaining issues with software
functionality,implementation approach,data conversion,or scope are clarified and
vendors are asked to make any necessary revisions to their proposal.By clarifying
assumptions and understanding the City more clearly,the vendor is able to provide a
more detailed final proposal.Additionally,by clarifying outstanding issues at discovery
development of the statement of work becomes easier.At the conclusion of discovery,
the City will enter contract negotiations with one vendor.
Phase 2:Tasks Deliverables and Roles
f,I.,',flilllJilllililrltr,iiil <
GFOALead City Lead
..~"~r
1)Prepare System Procurement Plan ~~
2)Conduct detailed proposal assessment ~~
Deliverable:Proposal Assessment ~
3)Elevate 3 vendors to software ~demonstrations
4)Prepare Demonstration Scripts ~
Deliverable:Demonstration Scripts ~
5)Facilitate Demonstrations ~
6)Elevate I or 2 vendors to Discovery ~
7)Prepare Request for Clarification (RFC)~Letters
Deliverable:RFC Letters ~
9)Facilitate Discovery Sessions ~
Deliverable:Facilitated Discovery ~Sessions
10)Elevate finalist vendor to contract ~negotiations
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Software Selection Services
Phase3:ConYactNegouauon
One of the most valuable services that GFOA provides its clients is the negotiation of
software contract and implementation service agreements.Too often,governments are
pitted against software vendors that have negotiated contracts many times before.
Understandably,software vendors and their implementation partners want to maximize
profit and minimize risk.GFOA has developed a unique contracting methodology that we
propose to utilize for this engagement.We use our membership network to benchmark
prices and terms.This approach is able to save clients far more money on their
software and implementation contracts than standard negotiation tactics.In some
cases,GFOA has saved its clients licensing and implementation costs equal to two to
three times our fees.
GFOA will be involved with the development of a software license contract,software
maintenance agreement,and implementation services agreement.In addition,GFOA will
assist with the Statement of Work (SOW).The SOW is the critical document that
outlines responsibility for the implementation and the primary reason GFOA consultants
provide such as high level of detailed analysis throughout the procurement.GFOA will
ensure that the City's statement of work is defined to a fine level of detail to prevent any
unnecessary issues or misunderstandings during implementation.Part of the reason that
the implementation phase for our clients has gone so successfully is because of the
detailed work GFOA does during SOW development.
Phase 3:Tasks,Deliverables and Roles
1)Assist with contract negotiations
2)Assist with development of implementation
statement of work (SOW)
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IIII Experience and Qualifications
GFOA's Research and Consulting Center (RCC)is nationally recognized for its
comprehensive analytical and advisory services and has worked to assist hundreds of
cities,counties,public utilities,school districts,and other forms of government over the
past 32 years.For the last 10 years,GFOA has been the unparalleled leader in providing
objective independent advice for assessing,procuring,and implementing enterprise
systems.
History of GFOA Technology Consulting
As the Year 2000 approached and many governments began procuring and implementing
new financial systems in preparation for Y2K,GFOA members demanded expertise with
assessing an organization's options,insight into the software market,and assistance in
negotiating contracts.Many firms provided these services,but were also often connected
to software or implementation firms and were in a position to directly benefit from their
recommendations.GFOA's position as a mission focused non-profit organization is
completely independent and can provide truly objective recommendations.With
experience and continued research into developments in the software market,GFOA has
been able to improve its approach and generate additional value for our clients through
reduced costs,reduced risk,and best practice recommendations to improve not only
technology,but also business process.What we offer is not simply an assessment or an
RFP,but a trusted partnership with an organization that truly judges the City's success as
the sole criteria for its success.As a result,GFOA is able to demonstrate true savings to
our clients that often exceed the value ofGFOA's consulting services.
Past Clients
The following map displays GFOA's past clients in the United States who used GFOA
for enterprise wide assessments and procurement services including many in California.
However,GFOA's knowledge and experience goes beyond past clients.GFOA
continually monitors changes in the technology market and regularly conducts research
into new technologies,new products,and improvements in business process.Each year
GFOA hosts the largest gathering of state and local public finance professionals at its
annual conference.In addition,GFOA consultants regularly meet with leading vendors
to stay informed of new developments.Finally,GFOA has access to and regularly uses
its membership network to provide insight into market trends,lessons learned,and best
practices.
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Highlighted on the map are GFOA clients that have used GFOA for system assessment
and procurement projects over the past 10 years.Listed below are a small ~ampling of
those similar in scope and size to the City of Rancho Palos Verdes.
•County of Berks,PA
•City of Cape Coral,FL
•Douglas County,KS
•City of Freeport,NY
•Kenai Peninsula City,AK
•City of Ketchikan,AK
•Lafayette Consolidated Government,Lafayette,LA
•Littleton Public Schools,Littleton,CO
•Moore County,NC
•City of Norfolk,VA
•City of Newport and Newport Public Schools,Newport,RI
•City of Richmond,CA
•City of Sana Ana,CA
•City of Sheridan,WY
•City of Spokane,WA
•City of St.Charles,IL
•City of Topeka,KS
•Walworth County Government,Elkhorn,WI
•Washington County,MD
•Whitemarsh Township,PA
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References
The GFOA takes great pride in its client base and encourages the City to contact past
clients.While the scope of each project is slightly different,the GFOA's professionalism,
attention to detail,objective advice,and ability to represent the best interests of our client
are constant.We strive to provide objective useful recommendations that are practical
and produce results.The references selected below represent a sample of recent clients of
similar size and a similar scope of work.
•:.City of Cape Coral,Florida
.:.City of Springfield,Illinois
.:.Lafayette Consolidate Government,Louisiana
.:.City of Santa Ana,California
.:.Encina Wastewater Authority,California
Reference #1
City of Cape Coral,Florida
Population:
Time Frame:
156,000
2007-2008
Synopsis:GFOA assisted the City of Cape Coral with development of an RFP for a new financial s)
developing detailed requirements that were used as part of a competitive procurement process.GFOA f,
demonstration and discovery sessions that allowed the City to make a decision on the system that best me tl
needs.In addition all details related to interfaces with other City's in place at the City were worked out.
GFOA led contract negotiations with the selected vendor to provide substantial savings and a contract that r
risks for the Ci movin forward.
Project Contact:
Tit/e:
E-mail:
Phone:
Linda Senne
Project Manager /Deputy Financial Services Director
lsenne@capecoral.net
239-574-0435
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Reference #2
City of City of Springfield,Illinois
Population:112,000
Employees:1,800
Time Frame:April,2005 to August,2006
Synopsis:The City of Springfield,IL engaged GFOA to conduct a needs assessment as
the first phase of a project to procure an enterprise system to support the City's finance
and human resource management functions.From that assessment,GFOA was asked to
prepare an RFP,provide system selection/vendor evaluation services,and contract
negotiation services.The scope of the engagement included general ledger,accounts
payable,accounts.receivable,purchasing,fixed assets,budget preparation and treasury
management.
Project Contact:
Title:
E-mail:
Phone:
Reference #3
Gayle R.Garner
Office of Budget and Management
ggamer(ii{cwlp.com
(217)789-2000
Lafayette Consolidated Government
Population:113,000
Employees:2,200
Time Frame:2007-2008
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Reference #4
City of Santa Ana,CA
Population:
Employees:
Time Frame:
330,000
3,500
January 2008 -Current
Synopsis:GFOA was asked to assist the City of Santa Ana with requirements definition,RFP
development,software selection,and contract negotiation for a complete ERP solution.
GFOA is currently involved with the City in performance of implementation advisory
services,which includes a significant amount of work in process improvement and change
management.The City is struggling with layoffs and does not have a dedicated project team,
so normal workload must be mixed with implementation causing a more prolonged
im lementation than on 'naIl intended.
Project Contact:
Tit/e:
E-mail:
Phone:
Reference #5
Bruce Fruchter
Project Manager
BFruchtcr@santa-ana.org
714-647-5408
Encina Wastewater Authority
Population:NA
Time Frame:2007-2008
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IIII GFOA Project Team
ERP selection projects require a dedicated team that truly understands the client along
with the proper blend of public sector and business process knowledge,technical
capabilities,ERP market awareness and communication/facilitation skills to deliver the
results that will transform the City's business systems.All GFOA consultants on this
project have multiple years of experience with similar projects,continually conduct
market research,and have prior public sector work experience -a claim that no other
firm can make.As a result our consultants are able to understand your unique needs and
future goals,and help develop an achievable approach for getting there.
GFOA's highly qualified professionals represent the most comprehensive knowledge and
experience for this type of work in the public sector.In addition to consulting
engagements,proposed project team members have written extensively on the subject for
GFOA publications,national journals and periodicals,and conducted training for
GFOA's annual conference and national training seminars.GFOA has assigned a team
of highly qualified and experience individuals to work with the City's team throughout its
engagement.The following consultants will form the project team and complete all work
on the City's engagement.
Dave Melbye:Engagement Manager:Dave is the Consulting Solutions Manager for
GFOA,and principal author of GFOA's change management methodology and approach.
As a former public sector CIO and consultant,Dave brings over 20 years of experience in
information technology experience to GFOA and GFOA clients.
Mike Mucha:Project Manager and Lead Consultant Mike is a senior
consultant/analyst and has led many technology assessment and procurement projects
including engagements with the City of Raleigh (NC),Sonoma County (CA),City of
Spokane (WA),and the Encina Wastewater Authority (CA).Mike was also the senior
analyst for the City of Sheridan,WY,and specializes in technology projects for smaller
governments.In addition,Mike is actively involved in GFOA market research efforts for
ERP software.
Nadeen Biddinger:GFOA Negotiation Lead.Nadeen has been a senior manager for
GFOA since 2005 and is the principal negotiator for all GFOA software and
implementation procurement projects.Nadeen was also the project manager for the City
of Sheridan,WY project.Prior to coming to GFOA,Nadeen,worked for the City of
Indianapolis for many years in various capacities,and is intimately familiar with the
types of issues that cities face as they look at ERP projects.
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Software Selection Services
••Price
The GFOA takes pride in completing consulting projects on time and on budget.All
pricing is provided as a fixed fee inclusive of all expenses incurred by GFOA.It is quite
possible that the total number of hours spent on this engagement will exceed the GFOA's
estimate,but since this a fixed fee engagement that will not impact the project budget.
Participation in short calls to deal with unexpected issues,minor additional research,or
other minor adjustments will not result in cost increases.The GFOA sees this
engagement as a partnership centered on helping the City achieve its goals.Therefore,we
are committed to providing quality services at affordable prices.All fees include travel
expenses.
$100003
Phase Milestone Cost
1 Requirements and RFP Development
Kickoff Meeting $2,500
Draft Functional Requirements $6,000
RFP $3,000
Total Phase I $11500
2 Software Selection
System Procurement Plan $1,500
Proposal Assessment $10,000
Demonstration Scripts $3,000
Facilitated Demonstrations $12,000
RFC Letters $3,000
Total Phase II $29500
Contract Negotiations and SOW assistance (Billed Hourly at $185 /Not to Exceed
TOTAL $51,000
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II1111 Project Assumptions
General Assumptions
.:.The proposal assumes that the contract will be completed within the timeframe set
forth in the Estimated Project Timeline as set forth in the prior section of this
document.The timeline for the project assumes that your organization will have
its staff available to complete the project within the timeframe proposed .
•:.If it becomes necessary for your organization to request additional resources or
expand scope,such.additional work shall be secured as an amendment to the
contract between your organization and GFOA,and the work will be performed at
an hourly rate of $185 per hour,plus a travel loading rate of $50 per hour for all
time expended on-site .
•:.Your organization's staff will be reasonably available for interviews and will
participate in the project as agreed upon and appropriate.Your organization
agrees not to cancel meetings once established (which would raise our travel
costs).
•:.Unless otherwise stated,your organization agrees to confirm acceptance of
deliverables within a mutually agreed upon number of business days.If a
deliverable is not accepted,your organization must state in writing to the GFOA
Project Manager the changes needed to the deliverable to gamer its acceptance .
•:.GFOA conducts the majority of the engagement work on a fixed fee engagement,
where payment is due upon completion of each phase for all the deliverables in
that phase.GFOA will invoice for all completed phases at the end of each month.
Any time and expenses portion of the engagement will be billed on a monthly
basis .
•:.GFOA is a non-profit membership association made up of members representing
organizations like the City.Therefore,GFOA's liability and indemnification
under any agreement reached with your organization will be limited to the extent
of claims paid by insurance coverage currently in force .
•:.When performing work on-site,GFOA staff will require meeting rooms and
access to a projector.
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.:.GFOA has proposed 3 on-site visits during this engagement as follows.GFOA is
open to increasing its on-site presence,however additional costs may apply.
Visit On-site Visits On-site Days
1
2
3
Kickoff and Requirements Gathering
Vendor Demonstrations (2 weeks)
Discovery
4
6
.:.GFOA has attempted to limit travel as much as possible for this engagement.
However,due to the size of the scope,and the detailed nature of this assessment,
three trips are necessary,and possibly four if demonstrations need to be scheduled
in separate weeks.However,in preparing this proposal,we made an effort to
limit costs and conduct as much work remotely as possible,without reducing the
quality of our work.
.:.Standard GFOA on-site visits include 1 consultant,however,GFOA may bring
additional consultants on site as necessary.As indicated in this proposal,for this
engagement,that consultant will be Mike Mucha .
•:.The proposal assumes that no more than three vendors/vendor teams will be short-
listed for product demonstrations .
•:.One GFOA staff member will attend a maximum of three product demonstrations
of 2-3 days per product.The demonstrations will be held over consecutive weeks
to maintain continuity in the evaluation process .
•:.Additional GFOA staff may attend the software demonstrations to gather data for
our own research or for training purposes.There is no charge for these extra
resources .
•:.Your organization will hold an on-site Discovery session for the two vendors
elevated for negotiations after the software demonstrations.One GFOA staff
member will attend a maximum of two Discovery sessions lasting one day each.
Discovery sessions for both vendors occur on consecutive days
.:.Additional GFOA staff may attend the Discovery sessions for research or for
training purposes.There is no charge for these resources.
Contract Negotiation
.:.After the City elevates a final proposer,all contract negotiation work is charged
through time and material billing invoiced once per month .
•:.All negotiations activities occur off-site.
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IIII Appendix A:Project Team Resumes
Dave Melbye
Consulting Solutions Manager,Research and Consulting Center
Professional Profile
Mr.Dave Melbye joined GFOA in 2007,and is now the Consulting Solutions Manager for the
Research and Consulting Center.Mr.Melbye has over 20 years experience in both private and
public sector information technology projects,specializing in strategic and tactical planning,
decision support systems,project management and software selection methodologies,and
systems integration.He is the primary author of GFOA's Change Management methodology,and
is currently assisting several organizations with change management strategy development and
planning for large enterprise projects.Mr.Melbye also developed an innovative requirements
definition approach for use in software selection projects.
Prior to coming to GFOA,Mr.Melbye spent five years as the CIO for the Milwaukee Metropolitan
Sewerage District,where he led MMSD's ERP selection,implementation and optimization
projects in addition to leading the lIT function.Mr.Melbye has worked for both national and
regional liT Consulting firms,haVing served as Director of the Enterprise Application Integration
practice for a Chicago-based firm as well as Practice Director for a Milwaukee-based firm
specializing in lIT outsourcing.Mr.Melbye has also worked in several capacities on financial
systems projects in the public utilities sector,and led software selection and development teams
with Wisconsin Public Service,Wisconsin Southern Gas Company,and Wisconsin Gas (now We
Energies).Mr.Melbye holds a BA from Lawrence University in Appleton,WI.
Professional Experience
•
•
•
Dunn Countv.WI Project Manager for a Technology Needs Assessment for financial,
human resources,payroll,and medical billing applications.The assessment incorporated
operations at four different locations across twenty departments,and resulted in a series
of recommended improvements in administration,finance,cash receipting,and other
areas.The assessment included a detailed review of the information technology
department in order to assess the department's ability to support the recommended
changes in business practices.
Jefferson Countv.WI Project Manager for a Management Information Systems
Operational Audit,October 2008 to February,2009.Mr.Melbye developed the approach
and led a joint project team through a detailed analysis of all information technology
functions at the County.The analysis was structured to provide findings and
recommendations across organizational,technical competence,planning and
communications,and application platform lines.Mr.Melbye adopted a participative
workshop approach for this project to ensure a greater degree of client acceptance,
increasing the likelihood of successful implementation of the recommendations.
Sonoma County.CA Project Manager for Business Case Development,HRMS Software
Selection,and Implementation Advisory Services,June,2007 to present.Mr.Melbye led
a combined client and consultant team through a preliminary business case analysis to
determine strategic direction for the HRlPayroll,time entry,and retirement processes of
this northern California county.He then served as the project manager for the software
selection process,and was responsible for development of their change management
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strategy and communications plan.Mr.Melbye is now serving as an implementation
advisor for the installation,testing and deployment of a software solution from HighLine
Corporation.
•Fairfax County, VA Assistant Project Manager and Business Analyst for requirements
definition phase of Fairfax's ERP selection project,November 2007 to July,2008.Duties
included planning and education for the HR/Payroll functions,and development of
business process maps for nearly 100 operational functions in HRlPayroll and
procurement.
•Lafayette Consolidated Government.Lafayette,LA Provided change management
education and training for Lafayette's ERP sponsors,management,and project team,
April to October,2008.Mr.Melbye also developed an overall change management
strategy and communications plan for the implementation team,integrating GFOA's
approach with the Lawson implementation plan.
•City of Santa Ana,CA Change management consulting for the Lawson ERP
implementation,October 2008 to present.Mr.Melbye assisted the City's change
manager with development of a broad-based readiness assessment program for the
implementation teams in procurement,finance,and utility billing applications.Mr.Melbye
also assisted with development of project team communication tools including seminars,
newsletters and web pages.
Education
B.A.,Lawrence University,Appleton,WI
Publications and Papers
(1)Municipal Why-Fiin Government Finance Review,October,2007
(2)Knowledge Management:Putting the Pieces Together in Government Finance Review,
April,2008
(3)The ERP Book:Financial Management Technology from A to Z.Chicago,IL:GFOA.
Anticipated Publication December,2009.
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Mike Mucha
Senior Consultant,Research and Consulting Center
Professional Profile
Mr.Mucha is a Senior Consultant with the GFOA Research and Consulting Center and focuses
on ERP market research,ERP procurement,organizational assessments and performance
management.Mr.Mucha regularly conducts research into the ERP market for GFOA clients and
has performed numerous analyses and cost estimation studies for GFOA clients including:the
City of Sheridan (WY),City of Spokane (WA),Encina Wastewater Authority (CA),Pima County
(AZ),Douglas County (KS),and Town of North Hempstead (NY),among others.Mr.Mucha also
coordinates GFOA activities for performance management and is heavily involved with GFOA's
work to identify,develop,and communicate best practices in that area.Prior to his arrival at
GFOA,Mr.Mucha worked for the Sports and Exhibition Authority of Pittsburgh and Allegheny
County.
Professional Experience
•City of Spokane,WA -After beginning this project as the senior analyst,Mr.Mucha is
now serving as the day-to-day project manager for the City's HRMS procurement project.
Mr.Mucha was responsible for all the requirements gathering and RFP development,and
will be facilitating vendor demonstrations and selection in early 2010.
•City of Sheridan,WY -Mr.Mucha was the lead analyst for the City's ERP project,which
included a needs assessment in the areas of financials,work orders,and HR/Payro11.Mr.
Mucha also led the procurement process as the lead analyst in developing requirements
and a comprehensive RFP.Mr.Mucha also facilitated vendor demonstrations and
assisted with the negotiation process.
•City of Danbury,CT -Mr.Mucha is currently assisting the City with an analysis and
assessment of all financial functions and processes as part of a performance
measurement and management project.
•
•
•
•
City of Raleigh (NC)Mr.Mucha coordinated the ERP selection and evaluation project for
the City of Raleigh (NC).As part of the project,Mr.Mucha assisted the City in evaluating
multiple software vendors for both software and implementation services and by
performing detailed assessments of each proposal and the resulting statement of work to
identify risk for the City.
Pima County (AZ)Mr.Mucha recently completed an organization-wide assessment for
Pima County that resulted in RFP for financial,human resource,and work management
functionality.Mr.Mucha is currently involved with developing statement of work with the
finalist vendors.
City of Portsmouth (VA)Mr.Mucha led efforts in the City of Portsmouth (VA)to conduct
an assessment of the current budget process and design an improved process and
implementation plan for the City's move to biennial budgeting.As part of the
engagement,Mr.Mucha also worked to increase the City's capacity for performance
management.
Bernalillo County (NM)Mr.Mucha led the procurement and accounts payable
assessment for Bernalillo County (NM).This project included a detailed review of
procurement policies and configurations in SAP and benchmarking research to help
identify,develop,and recommend best practices to the County.
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•Performance Management Advisory Commission Mr.Mucha coordinates activities for the
National Performance Management Advisory Commission,a joint initiative with 11
national public sector membership organizations to identify,develop,and communicate
best practices for performance management.
Education
B.B.A in Economics,University of Iowa,Iowa City,IA
M.S.in Public Policy and Management,Carnegie Mellon University,Pittsburgh,PA
Publications and Papers
(1)Capital Project Planning and Evaluation.Chicago,IL:GFOA,2008
(2)The State and Local Government Performance Management Sourcebook Anticipated
Publication December,2009.
Mr.Mucha has also published numerous articles in The Government Finance Review and other
leading publications on technology,performance management,and fiscal impact analysis/cost
benefit analysis.
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Nadeen Biddinger
Senior Manager, Research and Consulting Center
Professional Profile
Nadeen Biddinger joined GFOA in 2005,and is a Senior Manager in the Research and
Consulting Center.Ms.Biddinger has 22 years experience in local government,with twelve
years in public sector information technology projects,specializing in outsourcing,project
management,software selection methodologies,systems integration,and contract negotiations.
Prior to coming to GFOA,Ms.Biddinger was the Deputy CIO for the City of Indianapolis/Marion
County where she led the Outsourcing Effort in 2004 and managed the first year of
implementation.
Professional Experience
•
•
•
•
•
•
Littleton Public Schools,CO Project Manager for a Technology Needs Assessment for
financial,human resources and payroll applications.The assessment resulted in an RFP
being released with system selection activities and contract negotiations.The District is
in the process of implementing an integrated ERP solution that will help them deal with
reduced staffing and avoid redundancy.
Lafayette Consolidated Govemment,LA Project Manager for a Needs Assessment for
financial,human resources and payroll.This government managed three entities -the
Centre Development District for economic and cultural restoration;the Communications
District for Homeland Security and Emergency Preparedness;and the Public Power
Authority to purchase and sell electric power to the City Utilities System.Following the
assessment,GFOA provided system selection services,contract negotiations,and
targeted Change Management activities to motivate the staff to embrace the changes an
integrated system would bring to their environment.
City of Sheridan,Wyoming Project Manager for a small government to guide them
through the issuance of an RFP,system selection and contract negotiations by coaching
the stakeholders at appropriate levels._The GFOA team still performed analysis of all
applications and business activities in order to identify functional requirements for an
RFP,thus ensuring a strong warranty for implementation.Unfortunately once a contract
was negotiated the City was hit with revenue stream problems and had to postpone the
implementation.
City of Santa Ana,CA Project Manager for implementation advisory and quality control
consulting for the Lawson ERP implementation,April 2008 to present.Ms.Biddinger
assisted the City's Project Manager in reviewing deliverables and managing contract
issues during the implementation phase to ensure the City stayed on target.Research
was performed related to the City's payroll process and union issues with
recommendations to improve process and avoid duplicate efforts.The City did not feel
they could migrate from their legacy payroll system until all issues are resolved with their
local employee unions.
Pinellas County,FL Project Manager to guide the county through the issuance of an
RFP,implementer selection and contract negotiations for their current Oracle E-Business
software.This project is still in progress with negotiations nearing completion.GFOA
expects to continue on with this client in an Implementation Advisory Role once the
project begins.
Contract Negotiations In this role Ms.Biddinger works in tandem with each of the GFOA
Project Managers to ensure that the final phase of system acquisition for all GFOA
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project clients is a satisfactory one.The process results in a detailed Statement of Work
with defined scope and milestones plus competitive pricing for software and
implementation services and improved contract protection language that generally save
governments a great deal of money,while mitigating the risk for possible change orders
during project implementation.
Education
B.S.BA from Indiana Wesleyan University in 2000 -graduated summa cum laude and received
the class Outstanding Professional Award.
Paralegal Certification from IUPUI,Indianapolis,Indiana.
Publications and Papers
(1)The Information Technology Role in Disaster Recovery and Business Continuity,
Government Finance Review,December,2007.
(2)Contributing Chapters to The ERP Book:Financial Management Technology from A to Z.
Chicago,IL:GFOA.Anticipated Publication December,2009.
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