CR 95-41 Finance Computer System
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. March 2, 1995 o P 1\ \ ~ Council Report 95-041
FINANCE COMPUTER SYSTEM
Pro Dosed Action.
Staff recommends adoption of the following motion: Move to approve the Purchase of a new
Finance Computer System from Precision Computer Systems.
Overview,
The existing computer system was installed in 1984 and upgraded in 1987. The present system is
inadequate in both hardware and software applications. The proposed system will provide much
needed increase in capacity and allow for installation of a network system.
Primary Issues to Consider.
0 Replacement of the Finance System was in the Equipment Replacement Plan for
1994 at $70,200.
0 Purchase of a network system is scheduled in the Equipment Replacement Plan for
1995 at $24,300.
. SUDDortinS! Information.
0 Background
0 Executive Summary - Giske Consulting Group
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olm E. Schedler
Finance Director
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Back2round.
The standard useful life of a computer system, hardware and software, is generally five to eight
years. The first computer used in the Finance Department replaced an old bookkeeping machine
in 1984. In 1987, a partial upgrade was made for some hardware and software.
At present we are limited, at times, as to the ability to perform all required operations. At month
end and year end we must download information on a floppy disk (take the application software
and data off the present system) in order to run current payroll or utility billing and then restore
the information for daily inquiry and updates.
This is very time consuming, especially in light of current technology, and is prone to errors which
have frequently occurred in this process.
In July, 1994, the Council authorized the engagement of the Giske Consulting Group. Mr. Giske,
along with input from all members of the Finance Department, developed an RFP for a new
system.
Our goal was to replace the existing functions with better software, add new functions - fixed
e assets and miscellaneous billing, and replace most of the hardware with current state of the art
equipment for a faster operation. Present newer PC computers will be retained as work stations.
Bids were solicited in September, 1994. Replies were received from seven different companies.
Mr. Giske and Finance reviewed the bids and selected three vendors to make demonstrations of
their system to the City.
The major work then began in earnest to clarify how certain functions would be handled to the
Citis satisfaction. Also, we needed to make some modifications to ensure comparable bids.
Mr. Giske interviewed all department heads to understand their needs and plans for use of a
network and direct access to the finance computer for information only purposes.
A detailed report was prepared by Giske Consulting and discussed by staff. The executive
summary higWights the detailed report. Based on these reports and involvement with the vendors
through demos, letters and phone calls, staff recommends purchase of the Precision Computer
Systems.
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Costs
Purchase - Hardware, Software & Installation $81,700
Annual Maintenance on Hardware, Software & Network $10,250
Plus cabling and installing of network depends on number of
units connected to network and distance from main computer.
Budget
Finance & Network $94,500
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CITY OF HOPKINS
e Financial System Request For Proposals
Executive Summary
THE PROJECT
This document summarizes the results of a project conducted by Ray Giske of Giske
Consulting Group on behalf of the City of Hopkins. The purpose of the project was to acquire
financial system software and hardware for the City through the use of the Request for
Proposals (RFP) process. Specifically, the project included acquisition of software to support
the financial accounting, payroll, and utility billing functions within the City. The Request for
Proposals (RFP) process included three major steps;
1 ) A Request for Proposals was prepared which outlined In detail the City's
requirements for application software along with forms detailing the data to be
provided by the vendors;
. 2) The proposals received were evaluated which resulted in the selection of three
primary vendors;
3) The primary vendors were invited to provide on-site demonstrations of the
application software after which a final vendor was selected.
Additional detail on the project as well as the results is available in a companion document,
the project's Final Report.
PROPOSALS RECEIVED
Table 1 below provides a summary of the proposals received. The table lists the vendors
submitting proposals, the total one-time costs, the total recurring costs for maintenance on
the proposed hardware and software, along with comments regarding the evaluation.
Proposals were received from a total of seven vendors offering a significant range of options
for the City to choose among. Four of the vendors proposed a PC-based configuration while
three vendors proposed hardware configurations based on mid-range computers. All vendors
were able to propose a complete suite of application software although there were substantial
differences in the ways the application software was implemented.
The one-time costs for the proposed configurations ranged from a low of $34,376 to a high
of $141,794.
. Giske Consulting Group
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CITY OF HOPKINS
Financial System Request For Proposals
Executive Summary
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Table 1
Financial System Request for Proposals
Proposal Summary
VENDOR ONE-TIME ANNUAL COMMENTS
COSTS COSTS
Banyan Data Systems $34,376 $5,358 One of three finalists; However, software
lacked significant features.
Black Diamond (HTE) 141,794 8,972 Proposed costs were higher than other
vendors wi comparable equipment.
Eden Systems 59,510 5,663 Firm equipment configuration not included
in proposal.
LOGIS 19,260 48,476 Combined initial and annual costs resulted
in most expensive option.
New World Systems 132,943 9,729 One of two finalists.
Precision Computer 80,690 9,703 Recommended Option.
Systems
Tautges, Redpath & Co 80,300 11, 550 Firm equipment configuration not included
. (Fund Works) in proposal.
PRIMARY VENDORS
After reviewing the proposals and contacting the vendors for clarification and additional
information, three primary vendors were selected and invited 10 demonstrate the applicatioll
software for the Finance Dept. staff. The primary vendors included Banyon Data Systems,
Precision Computer Systems, and New World Systems. The demonstrations were scheduled
one vendor at a time (one day each) over a 2 week period. All demonstrations were scheduled
at the City of Hopkins City Hall.
After meeting with the primary vendors, customers/users for some of the vendors were
contacted to discuss the features, level of satisfaction, and service provided by the vendors.
In addition, a number of Questions were asked the vendors and issues were discussed which
provided clarification on service and application software capability. Finally, adjustments to
hardware configurations were made in order to provide comparable configurations both for
purposes of comparing costs and to more accurately meet the needs of the City.
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Giske Consulting Group
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CITY OF HOPKINS
Financial System Request For Proposals
Executive Summary
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Table 2
Financial System Request for Proposals
Finalists Comparable Configurations
COMPONENT PRECISION COMPUTER SYSTEMS NEW WORLD SYSTEMS
APPLICATIONS General Ledger General Ledger
Budgeting Budgeting
Accounts Payable Accounts Payable
Purchase Order Purchase Order
Accounts Receivable Accounts Receivable
Payroll Payroll
Utility Billing Utility Billing
Fixed Assets Fixed Assets
SYSTEM SOFTWARE Novell 3.12 05/400
Progress Novell 3.12
COBOL Run-Time Client Access/400
Results RPG
Query/400
EQUIPMENT INTEL Pentium 100 PCs rBM AS/400 Mini-Computer
2 Gigabytes Disk 2 Gigabytes Disk
Backup Storage Device Backup Storage Device
. Local Area Network Local Area Network
Laser Printer Laser Printer
Hi-Speed Printer Hi-Speed Printer
Modem Modem
UPS UPS
COST: One-Time $81,700 $107,448
Annual Mtnce. 51,250 53,165
RECOMMENDED NEXT STEPS
Based on the responses received, the approaches presented by the vendors and the analysis
conducted, we believe that the proposals presented by either Precision Computer Systems or
New World Systems could satisfactorily meet the needs of the City. The vendors have the
following strengths in common:
Both have full-featured software;
Both have strong and loyal customer base;
Both have strong commitment to the municipal government sector;
Both appear to have made a strong commitment to the upgrading software and
hardware to continue to be current;
Both provide substantial improvements over the current software and fully meet the
needs of the city.
. We believe, however, that the Precision Computer Systems configuration most closely meets
the needs of the City. The major strengths of the Precision Computer System proposal are:
Giske Consulting Group ~
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CITY OF HOPKINS
Financial System Request For Proposals
Executive Summary
. 1. The proposed one-time costs are less than the New World Systems proposal by
more than $25,000. A very significant portion of the cost difference is due to the
central computers proposed. Precision Computer Systems proposed a local area
network (LAN) using an Intel Pentium-1 00 processor as the server. New World System
proposed an IBM AS/400 mid-range computer which requires a significantly higher
investment.
2. The Precision Computer Systems proposed hardware and system software
configuration is a PC-based local area network and offers a more uniform platform
environment throughout the City. The City appears to be committed to implementing
computer applications which operate on local area networks. The Precision Computer
Systems proposal is consistent with this approach while the New World Systems
proposal would require the City to support two substantially different operating
environments. The New World System proposal would be more acceptable if the City
were committed to implementing more applications in a central computer environment.
The limitations of Precision Computer Systems proposal, however, include:
1. While the Payroll and Utility Billing applications have recently been re-written using
a fourth generation language, financial applications, those to be use in the long term,
are currently in the final stages of development. Consequently, the City's financial
records may need to be converted twice, once to the new vendor and once to the
. newly programmed application.
2. The vendor has a history of supporting the UNIX operating system and is relatively
new to the Novell operating system.
Based on our analysis, the comments of the City staff following a review of user
documentation and vendor demonstrations, we recommend the City proceed with the
acquisition of the Precision Computer Systems application software. In order to do so, one of
the first steps should be to meet with the vendor and begin the lrTlplementation planning. VVe
believe the following steps should be taken:
1 . Make final decision on the vendor and on the specific application modules to be
acquired at this time. Certain applications were proposed (e.g., cash receipting) but
were not necessarily considered a requirement for the City.
2. Meet with the selected vendor to make final adjustments to the proposed hardware
configuration to more accurately reflect the needs of the City.
3. Review the standard contract offered by the vendor and ensure that written and
verbal considerations made since the initial proposal was received are, in fact, included.
4. Prepare a more detailed implementation plan including dates for system installation
and training, data conversion, and full implementation.
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