FINANCE DEPARTMENT
M E M O R A N D U M
To: Honorable
Mayor and City Commission
From:
By: Brian K.
Raducci, Finance Director
Date: January 30,
2007
Subject: Computer Business System Applications
As you may recall, during the Visioning Retreat which was held in May of 2006, the Commission supported staff’s recommendation to replace the City’s current Computer Business System. The City administration’s intention is to find a new system that would improve operating efficiency and effectiveness as well as improve overall service delivery to our citizens. After receiving the Commission’s support, the staff conducted numerous vendor demonstrations and interviews in order to identify possible suitable vendors. Even a City Commissioner participated in the process to ensure that all of the City’s needs would be considered.
At the November 14, 2006 Commission meeting, the City Commission authorized the Administration to bring back the two (2) Number 1 Computer Business System Application Vendors to the City for final panel interviews. The purpose of this exercise was to discuss and verify the vendors’ business system software and its ability to meet the City’s business needs including – the ability to provide necessary applications within a specific timeframe, ability to implement timely, training, product cost and data conversion. The goal of this exercise was to determine which of these two (2) highest ranked vendors best meets the City’s business needs.
On December 4 and 5, 2006, New World Systems (Logos.net) and Tyler Technology (Munis), respectively, had their final panel interviews with the City’s Administration. The panel interviews consisted of various members of each vendor’s staff as well as the City Manager, Finance Director, IT Manager, the Assistant City Attorney and each department’s representative to ensure that the departments’ needs were properly identified.
As expected, both firms made good presentations during their panel interviews. In order to determine which vendor best met the City’s business needs, the City’s panel members considered and weighed the risk of going with one vendor over another. In addition, each vendor’s product commitment, cost and deliverables were seriously considered. After much deliberation, the Interview Panel Members determined that when taking all of the above into consideration, the Munis software package offered by the Tyler Technology best met the City’s business needs. In addition, the Interview Panel noted the following:
ü
Munis has been supplying Municipal and
ü Munis’ product has all of the City’s required/desired modules and interfaces for our business needs without the need for 3rd party applications
ü Munis has a large local and growing client base in Florida and is committed to proactive on-going incorporation of emerging technologies that meet or exceed their clients’ needs
ü Munis modules are scalable (feature and function rich) and will support emerging City needs
ü Munis’ product has advanced capabilities which are currently available in the eServices suite (e.g., executive, citizen and employee portals)
ü Munis licenses are based on a set of concurrent users (75 – allowing for growth) who have access to all modules
ü Munis provides on-line hosting of our live data as a disaster recovery service (e.g., an out-of-state hosting that allows our data to be accessed from any Internet connection)
ü Munis waived or eliminated several costs during the panel interview, representing a City savings of more than $63,000
ü Munis product is a fully-integrated system instead of a “best of breed” product
Expected Deliverables from Munis with regard to Performance and
Penalties
ü Munis agreed to generate and install new versions of user-friendly input screens during the installation period
ü The City’s screen layout and navigation issues will be taken into consideration during the implementation with priorities, actions and timelines established for resolution without any additional cost to the City
ü An agreed upon implementation plan that delineates both sides required resources that ensures the discussed City timeline is met
ü As much as possible, provide the same knowledgeable, professional training personnel, throughout the implementation period
ü Create a closing document that encompasses phased completions acceptance and the final acceptance criteria
ü Liquidated damages will be credited to the City for each business day that the productive use of the software is delayed
Munis Projected 5-year Cost
The projected 5-year cost for the Munis product is nearly $956,000.00 ($675,552.00 for software and $280,448.00 for maintenance), nearly $232,000.00 less than its competitor’s product
The cost of this project has been planned for in the FY 2007 Adopted Budget (MIS – Capital Improvement Program). The new computer business system is expected to provide the City’s technology needs for the next 12-15 years and therefore the City administration would recommend financing the acquisition through a capital lease as we have done with other similar high-end purchases.
Financing:
The financial “substance” of this acquisition would provide new computer application software systems, installation and training thereby improving response, reliability and reducing operating and costs. Furthermore, at today’s relatively low interest rates, the financing of this purchase would be favorable as compared to paying cash.
In order to proceed with this recommended capital
purchase, a funding source must be identified.
It is the Administration’s recommendation that the purchase of this new computer
application software systems, installation and training be financed via a
capital lease, as we have historically done with other similar high-end purchases.
The purchase would be financed over 7
years. To make future funding decisions
available to the City, a resolution guaranteeing a future funding source
through the temporary use of General Fund or any other fund’s resources is
being provided tonight for the Commission’s consideration. Such funds would be replenished with a
capital lease package.
RECOMMENDATION:
The City Administration recommends Commission’s consideration and approval of the attached resolutions to:
1.
Authorizing and directing the City Manager of the City
of
2. Establish the City’s intent to reimburse the cost incurred for the purchase of computer application software systems, installation and training with proceeds of alternative funding sources which may include, a capital lease with the total net financed not to exceed an amount of $675,552.00.
3. Authorizing and directing the City Manager to negotiate and enter into necessary agreements for a lease-purchase financing contract by and between the City and SunTrust Leasing Corporation for financing for the best possible terms and conditions, for the purchase of computer application software systems, installation and training.
RESOLUTION
NO. ______________
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF NORTH LAUDERDALE, FLORIDA AUTHORIZING AND DIRECTING THE CITY MANAGER OF
THE CITY OF NORTH LAUDERDALE TO TAKE ALL STEPS NECESSARY TO EXECUTE AGREEMENTS
WITH TYLER TECHNOLOGIES, INC. FOR THE PURCHASE OF COMPUTER APPLICATION SOFTWARE
SYSTEMS, INSTALLATION AND TRAINING AT A COST NOT TO EXCEED $675,552.00;
PROVIDING FOR THE ALLOCATION OF FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the
City of
WHEREAS, the City
Commission of the City of
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
Section 1: That the City Commission of the City of North Lauderdale, Florida, be and the same does hereby authorize an expenditure for the purchase of computer application software systems installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc.
Section 2: That the funds for said purchase shall be provided from the FY 2007 Adopted Budget (G/L 530-0801-519.64-10).
Section 3: The City Manager is authorized to take all steps necessary to enter into an Agreement with Tyler Technologies, Inc.
Section 4: This Resolution shall become effective immediately upon its passage and adoption.
PASSED and ADOPTED by the City Commission of the City of North Lauderdale, Florida, this 30th day of January, 2007.
APPROVED AS TO FORM:
CITY ATTORNEY SAMUEL S. GOREN
MAYOR JACK BRADY
VICE MAYOR RICH MOYLE
ATTEST:
CITY CLERK C. MILLI DYER
RESOLUTION NO. ______________
A RESOLUTION OF THE CITY OF NORTH
LAUDERDALE, FLORIDA ESTABLISHING ITS INTENT TO REIMBURSE THE COST INCURRED FOR
THE PURCHASE OF COMPUTER APPLICATION SOFTWARE SYSTEMS, INSTALLATION AND
TRAINING WITH PROCEEDS OF ALTERNATIVE FUNDING SOURCES, WHICH MAY INCLUDE A
CAPITAL LEASE, WITH THE TOTAL NET FINANCED NOT TO EXCEED AN AMOUNT OF $675,552.00;
PROVIDING FOR CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Commission of the City of North Lauderdale, Florida (the “Issuer”), has determined that a need exists to provide funding for the acquisition of computer application software systems, installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc. to increase service delivery to the City of North Lauderdale, said funding to be provided for in the 2006-2007 Fiscal Year or 2007-2008 Fiscal Year depending upon delivery date, at a net cost not to exceed an amount of $675,552.00;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
Section 1. The foregoing “WHEREAS” clause is true and correct and hereby ratified and confirmed by the City Commission.
Section 2. The Issuer hereby expresses its intention to be reimbursed from proceeds of alternative funding sources which may include a capital lease or any other tax exempt debt instruments to be paid by the Issuer in connection with the City providing funds for the acquisition of computer application software systems, installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc. to increase service delivery to the City of North Lauderdale. This Resolution is intended to constitute a “declaration of official intent” within the meaning of Section 1.150-2 of the Income Tax Regulations.
Section 3. The expenditures to be reimbursed pursuant to this resolution will be incurred after the date hereof in connection with payments made from the General Fund or any other City fund to provide funding for the acquisition of computer application software systems, installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc. to increase service delivery to the City of North Lauderdale.
Section 4. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict.
Section 5. If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution.
Section 6. This Resolution shall become effective immediately upon its passage and adoption.
PASSED and ADOPTED by the City Commission of the City of North Lauderdale, Florida, this 30th day of January, 2007.
APPROVED AS TO FORM:
CITY ATTORNEY SAMUEL S. GOREN
MAYOR JACK BRADY
VICE MAYOR RICH MOYLE
ATTEST:
CITY CLERK C. MILLI DYER
RESOLUTION NO. ______________
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF NORTH LAUDERDALE, FLORIDA AUTHORIZING AND DIRECTING THE CITY MANAGER TO
NEGOTIATE AND ENTER INTO NECESSARY AGREEMENTS FOR A LEASE-PURCHASE FINANCING
CONTRACT BY AND BETWEEN THE CITY OF NORTH LAUDERDALE AND SUNTRUST LEASING
CORPORATION FOR FINANCING FOR THE BEST POSSIBLE TERMS AND CONDITIONS, FOR THE PURCHASE
OF COMPUTER APPLICATION SOFTWARE SYSTEMS, INSTALLATION AND TRAINING; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of North Lauderdale intends to acquire computer application software systems, installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc. to increase service delivery to the City of North Lauderdale; and
WHEREAS, the City Commission of the City of North Lauderdale has further determined that a public service need exists for computer application software systems, installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc. to increase service delivery to the City of North Lauderdale and its residents, citizens, and business community; and
WHEREAS, the
City Commission has further determined that it is in the best interests of the
public to acquire computer application software systems, installation and
training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc. to
increase service delivery to the City of
NOW, THEREFORE, BE
IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
Section 1: That the City Manager of the City of North Lauderdale, Florida, be and the same is hereby authorized and directed to negotiate and enter into necessary agreements for lease-purchase financing contract, for the best possible terms and conditions, by and between the City of North Lauderdale and SunTrust Leasing Corporation for the financing of the acquisition of computer application software systems, installation and training at a cost not to exceed $675,552.00 from Tyler Technologies, Inc.
Section 2: This Resolution shall become effective immediately upon its passage and adoption.
PASSED and
ADOPTED by the City Commission of the City of
APPROVED AS TO FORM:
CITY ATTORNEY SAMUEL S. GOREN
MAYOR JACK BRADY
VICE MAYOR RICH MOYLE
ATTEST:
CITY CLERK C. MILLI DYER