Agreement With Accela, Inc. 04-04-16

8/18/2019 Agreement With Accela, Inc. 04-04-16

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I

CITY OF CARMEL-BY-THE-SEA

AGENDA BILL

TO:

Honorable Mayor and Members

of

the City Council

Chip Rerig, City Administrator

FROM: Sharon Friedrichsen, Director of Budget and Contracts

AB 1105

April 4 2016

Consent Calendar

SUBJECT: Authorization

of

Agreement with Accela, Inc. for implementation

of

a financial system and

a hosting agreement for a five year term for an amount not to exceed $199,500

AMOUNT OF EXPENDITURE $ 109,950 (Year 1)

$17 ,000 average annually

AMOUNT BUDGETED $ 150,000 (Year 1)

APPROPRIATION REQUIRED

0

RECOMMENDATION

Adopt a resolution authorizing the City Administrator to execute an agreement with Accela, Inc. for the

implementation

of

a financial system and hosting agreement for a five year term in an amount not to

exceed $199,500.

SUMMARY

City staff currently utilize the Multiple Operations Manager (MOM) system by Corbin Willetts for its

accounting and payroll functions. This system is outdated and does not meet the City's needs for a

more comprehensive and user-friendly finance system. As such, the replacement of the system with

one that provides improved functionality, analytics and reporting has been a long-standing goal of the

Council as part of its ongoing efforts to improve operational effectiveness, enhance decision-making

and provide additional transparency to the public.

In response to the desire to find a new financial system, staff issued a Request for Proposals for a

finance system with an optional payroll/human resources module that could be integrated with the

financial system. In particular, the system includes account receivables/payables , general ledger,

budgeting, project accounting, advanced purchasing, analytics and reporting, and payroll and human

resources modules, with the latter components being able to reduce manual entry

of

timesheets, allow

employee self-selection of benefits and provide other human resources-related tracking and analytics.

Two qualified vendors, Tyler Technologies and Accela, Inc., submitted proposals and were

subsequently invited to an interview and product demonstration session. The panel consisted

of

the

Interim City Administrator, City finance and IT managers, the City Clerk and a citizen representative

that has assisted the City with various projects and is cognizant of the limitations of the current finance

system. This latter viewpoint provided a resident perspective on public reporting needs.

Under both providers, the City is opting for a hosted, or cloud-based system, which means that the

finance system is housed by the company (or a third party working on behalf of the company) and staff

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access the system remotely. The use o a hosted system has several benefits including reduced City

costs for hardware/software and maintenance o a premise-based system; availability for staff to access

the system remotely; and regular updates and enhancements performed by the company that will keep

the system current and up to date.

Tyler Technologies provides a robust financial system with a high-level o security and extensive

recovery plan and received high remarks from client references about customer service. The firm is

known as a leading provider o finance systems for government clients and their system has many

advanced capabilities.

On

the other hand, Accela also has a long history

o

serving government clients

similar to Carmel and provides a competitively-priced finance system that will meet the City's needs.

The company also offers the opportunity for longer-term integration o its other modules pertaining to

legislative management, land use and a citizen relationship management under its civic platform.

While the City would be well-served under either system, the recommendation was largely influenced

by cost, including both the short-term initial costs o implementation and the long-term costs of an

annual subscription, particularly over an extended horizon. Other factors such as number o users,

annual subscription fee increases and length of the agreement were also considered.

As a result o this analysis, staff is recommending that the City enter into an agreement with Accela.

While the initial one-time costs for implementation are comparable, there is a significant difference

in

price depending on the length of a proposed agreement. Should the City enter into a five year

agreement, the price difference between the two firms is about 62,000. However, due to an annual

adjustment factor of five percent over the base subscription fee

or

Accela offset by a discounted rate

for a long term contract with Tyler, the base difference in costs between the two companies narrows to

4,600 over a ten year term. Under either scenario, Accela is still the lowest proposer.

The one-time cost for data conversion, implementation, training and project management is estimated

at 72,250, which includes 562 hours o data conversion, implementation and training assistance, with

an additional 15,000 for reimbursable travel costs based upon actual costs incurred. It is also

recommended that ten percent, or 7,225, be allocated for project contingencies. The first year o the

subscription fee is 15,476, resulting in an estimated project cost o 109,500. The Fiscal Year 2015-

16 adopted budget includes 150,000 for a finance system within the Vehicle and Equipment Fund.

While the annual subscription fee will be included within each subsequent year of the operating budget

and paid to the vendor on an annual basis, it is recommended that Council approve a five year

agreement with Accela, Inc. as the cumulative annual payments would exceed 24,999 and require

Council authorization in accordance with Municipal Code 3.12.230. The five year cost is estimated at

90,000 or an average o 18,000 a year. (In comparison, the current annual cost of MOM is 8,600.)

PRIOR CITY COUNCIL ACTION

Council included funding for a new system within the FY 15-16 budget, adopted on 15 June 2015.

ATTACHMENTS

1

Resolution

Date

Chip Rerig, City Administrator

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CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

RESOLUTION NO. 2016 -

A RESOLUTION OF THE CITY COUNCIL

O

THE CITY OF CARMEL-BY-THE-SEA

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AN AGREEMENT WITH

ACCELA, INC. FOR IMPLEMENTATION OF A FINANCIAL SYSTEM AND A HOSTING

AGREEMENT FOR A FIVE YEAR TERM FOR AN AMOUNT NOT TO EXCEED 199,500

WHEREAS, the accounting system used by the City is outdated and the City desires a

more robust finance, purchasing and payroll/ HR system; and,

WHEREAS, a system upgrade was identified within the City's 2013-2017 Information

Technology Strategic Plan and the 2014-2019 Five Year Capital Improvement Plan and funding

of 150,00 was included within the 2FY2015-16 adopted budget; and

WHEREAS, the City issued a request for proposals for a finance system and published

the notice inviting bids

in

the Monterey Herald on December 3 and 9, 2015,

in

accordance with

Municipal Code 3.12 .340, and received two proposals in response to this solicitation; and

WHEREAS, the City has selected Accela, Inc. to

be

the cloud-based system provider

and proposes to enter into an agreement with Accela for a one-time implementation cost of

87,250, plus the first year of the subscription fee costing 15,476.

WHEREAS, staff recommends the City Administrator be authorized to execute change

orders due to unexpected software anomalies that may arise during implementation; and

WHEREAS, the City wishes to utilize the new financial system for a minimum of five

years and anticipates the cost over five years to be approximately 90,000; and

WHEREAS, Municipal Code 3.12 320 require contracts of 25,000 or more to be

approved

by

Council resolution.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA DOES:

1

Authorize the City Administrator to execute an agreement with Accela, Inc . for

implementation and hosting fees for an amount not to exceed 102,726 (plus sales tax).

2 Authorize the City Administrator to execute change orders for implementation in a not to

exceed amount of 7,225.

3 Authorize the City Administrator to execute a hosting agreement with Accela, Inc for an

initial term of five years for an amount of approximately 90,000 (plus sales tax).

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY

THE-SEA this 4

h

day

of

April, 2016, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS


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SIGNED:

Jason Burnett Mayor

ATTEST:

Ashlee Wright

City Clerk

Agreement With Accela, Inc. 04-04-16

Documents

Transcript of Agreement With Accela, Inc. 04-04-16