Title
Recommendation to Authorize the City Manager to Execute a First Amendment to an Agreement with NexLevel Information Technology, Inc., to Add the Amount of $55,500 for Procurement and Software Selection Services for the City’s New Enterprise Resource Planning System and $17,000 to support the Corporation for Education Network Initiatives in California (CENIC) Pilot Project. (Information Technology 704.1)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Authorize the City Manager to Execute a First Amendment to an Agreement with NexLevel Information Technology, Inc., to Add the Amount of $55,500 for Procurement and Software Selection Services for the City’s New Enterprise Resource Planning System and $17,000 to support the Corporation for Education Network Initiatives in California (CENIC) pilot project
Background
Procurement and Software Selection Services for the City’s New Enterprise Resource Planning System:
In 2016, after the completion of a request for proposal process, the City contracted with NexLevel to prepare an Information Technology Strategic Plan. The goal of the Strategic Plan was to identify areas within the City that could or do rely on technology and develop a path that prioritizes advanced technology solutions and funding resources as they become available. NexLevel used an extensive process of information gathering, analysis, collaboration and review that included several workshops with key members of the City’s management team to review and prioritize proposed strategic information technology projects.
The completed Information Technology Strategic Plan identified the implementation of a modern, proven Enterprise-Wide Resource Planning system (ERP) as a high priority. The ERP would support improved processes for managing the finance, payroll, and human resource functions. NexLevel recommended that the new system have the ability to exchange information with other City business applications and to integrate with the City’s document management system (LaserFiche). Other ERP modules could also meet the City's need for time reporting, contract management, project management, budgeting, and training/certification tracking.
The City has utilized the same software for its finance and human resources functions, including accounting, budgeting, accounts payable, payroll, etc. for almost twenty years, going live with the current software in 1998. While functional, the software is dated, difficult to use, does not provide good reporting capabilities, and is out-of-sync with modern best practices and workflows. Because of the lack of capabilities of the system, the City is using work arounds and manual processes in many areas. In addition, the software was originally designed to meet the needs of educational institutions.
As part of the 2017-18 and 2018-19 budget, City Council approved the use of $1.5 million dollars toward the implementation of an ERP System as well as funding to support the development of the ERP needs assessment.
The Information Technology Director, the Finance Director and the Human Resources Director have been assigned as the project leads.
Corporation for Education Network Initiatives in California (CENIC) Pilot Project:
The City of Alameda, Alameda Unified School District (AUSD) and College of Alameda, one of four colleges in the Peralta Community College District geographically situated in the City of Alameda, are undertaking a unique partnership to support the high-end technology community thru the CENIC broadband pipeline.
CENIC is a nonprofit organization that operates the California Research and Education Network (CalREN), a high-capacity internet broadband network supporting over 20 million users, including students, educators, researchers and other public-serving institutions. Through a contract with the California State Library, our own Alameda Free Library is on CENIC’s internet pipeline. Today, our Library has the highest level of connectivity of libraries in the country providing our patrons with access to a wide array of areas such as business, government, science, health care, and education.
CENIC also provides connectivity to leading-edge institutions and industry research organizations around the world, serving as a catalyst for advancing education and research by providing its network essential for innovation, collaboration, and economic development. This pilot project is intended to attract more high tech businesses to Alameda Point and give Clean and Green research and development organizations an opportunity to connect to a 100gig capacity network that until now has only been available to educational institutions.
NexLevel will support the City’s efforts to plan and pilot the technical portion of the CENIC project.
Discussion
Procurement and Software Selection Services for the City’s New Enterprise Resource Planning System:
The implementation of an ERP system has several phases:
1. Procurement and Selection including:
• Defining the scope of the system and the organization’s requirements, including business processes and departmental needs (not just Finance and Human Resources);
• Identifying a detailed analysis of current gaps in the system;
• Developing a project plan and a request for proposal; and
• Evaluating vendors, implementation planning and contract negotiations.
2. Implementation including:
• Detailed analysis and documentation of work flow, business process and reengineering of processes;
• Data conversion; and
• Training of users.
3. Go Live
Because these ERP software systems are complex, expensive, and entail many business functions throughout the City, it is generally viewed as a best practice to enlist an experienced technology consultant to assist with the procurement and selection of a new system. This consultant will assist the City with reviewing its current processes, identifying best practices and software integration opportunities, researching current vendors in the local government software space, drafting and conducting a full request for proposal (“RFP”) process including multi-day software demos, and negotiating a final contract with the selected vendor.
The acquisition and implementation of an ERP system is a commitment to a long-term relationship. Most ERP solutions are expected to last a minimum of 10 years and they often are in place for 15 years or more. As a result, it is critical the City approach this project with both caution and thoroughness in their approach with each step taken toward the implementation of a new ERP system.
As part of NexLevel’s process for developing the Information Technology Strategic Plan, the consultants met with stakeholders throughout the City. In doing so, they developed an understanding of the City, its role in the community and its business processes. As a result, staff is recommending using NexLevel to provide support in the first phase of the implementation of a new ERP system. As part of the ERP needs assessment, system evaluation and selection of the ERP vendor, the City will include a request for a consultant to assist with the implementation of the new system.
CENIC Pilot Project:
NexLevel is proposing to provide technical services to support the planning, analysis, and project management to help the City evaluate and pilot CENIC to support economic development efforts at Alameda Point. Services will support the City’s staff to help fully define the approach, cost, and vendor support to:
• Establish main Point of Presence (PoP) location;
• Lay fiber connections/secure in-trench, over-head physical transport of fiber and/or air fiber at Alameda Point;
• Interconnect all fiber points at Alameda Point to the PoP;
• Establish the managed network; and
• Maintain the Network Operations Center (NOC).
FINANCIAL IMPACT
The cost of consulting services for procurement, software selection, and contract negotiating services for the City’s New Enterprise Resource Planning System is $55,500. The cost of technical consulting services to support the CENIC pilot project is $17,000. Combined with the original contract of $74,750, this will bring the total contract amount with NexLevel to $147,250.
In order to prepare for the implementation of the new ERP system, funding for consulting services to support the procurement and software selection process was included in the Information Technology Replacement Fund budget in Fiscal Years 2017-18 and 2018-19. As a result, no additional funds are needed for current phase of the project.
The Fiscal Year 2018-19 Information Technology budget for Office Equipment/Software Replacement includes funding of $1.5 million toward the implementation of an Enterprise Wide Resource Management software system. It is anticipated that the $1.5 million will support the procurement of the system and initial implementation, but that additional funds will be needed in FY 2019-20 to complete the project.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
There is no impact to the Alameda Municipal Code from the execution of this agreement.
ENVIRONMENTAL REVIEW
This action is exempt under California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because consulting services for procurement, software selection and contract negotiating services is not a project that has the potential for causing a significant impact on the environment, and CEQA Guidelines, section 15378(b)(2) which provides that CEQA review is not required for continuing administrative activities.
RECOMMENDATION
Authorize the City Manager to execute a First Amendment to an Agreement with NexLevel Information Technology, Inc., to add the amount of $55,500 for procurement and software selection services for the City’s new Enterprise Resource Planning system and $17,000 for technical consulting services to support the CENIC pilot project.
Respectfully submitted,
Carolyn Hogg, Information Technology Director
By,
Nancy Bronstein, Human Resources Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. NexLevel Agreement
2. First Amendment and Scope of Services