CR 94-122 Authorize Hiring Computer Consultant
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. June 28, 1994 ~ Council Report 94-122
AUTHORIZE HIRING OF A COMPUTER CONSULTANT
Proposed Action
Staff recommends that the Council approve the following motion: Move that the Hopkins City
Council authorize the City Manaoer to enter into an aQreement with Giske Consulting Group to
assist in the acquisition of a new computer system.
Adoption of this motion will enable staff to work with Giske Consulting Group to acquire new
software and hardware for the Finance Department.
Overview
According to the Equipment Replacement Plan, the Finance Department computer system is
scheduled to be replaced in 1994. The current system is ten years old. It is slow and it running
out of storage space. More important than the hardware limitations are the limitations of the
software. The current software package from Computoservice has many deficiencies. In addition
to the financial system software, staff is aiming at acquiring a system that can support
. interconnecting other departments with finance.
In order to acquire a new system staff feels that it is necessary to hire a consultant. Staff solicited
quotes from four different organizations. The City received two proposals:
Giske Consulting Group - $12,000 - $15,000
McGladrey & Pullen - $25,000 - $30,000
Based upon the costs and recommendations that the City received from other cities, staff is
recommending that the City enter into an agreement with Giske Consulting Group.
Primary Issues to Consider
. Why is a new computer system needed?
. Why is it necessary to hire a consultant?
. Where will the money come from for this project?
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JaJTt~sA. Genellie
tJsistant City Manager
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. Council Report #94-122
Page 2
Analysis of the Issues
. Why is a new computer system needed?
The current system is ten years old. The hardware is dated which causes the system to be
slow. It is also running out of storage space. The major problems with the current system,
however, result from the software.
The utility billing system has a limited number of fields for indicating costs. This causes
problems with such things as having different rates for different sizes of garbage
containers.
The type of reports that are available from the system are limited. Many reports from
Finance have to be done using spreadsheets or word processing software because the
system cannot produce them.
The annual budget is done using spreadsheet software. All of the numbers need to
reentered in the spreadsheets because the current system does not accommodate
budgeting.
Other departments would like to access the data contained in the Finance Computer. This
. currently is not possible.
. Why is it necessary to hire a consultant?
This project is not unlike the acquisition of the telephone system. It involves the purchase
of a technically sophisticated and expensive system. A consultant provides two distinct
advantages. First the consultant has the time to devote to the project. This project will
entail preparing a needs analysis, preparation of a request for proposal, the evaluation of
proposals, and the implementation of the new system. Staff does not have the time to
devote to this project. Secondly a consultant provides expertise. Even if staff had the time
to prepare an RFP, it lacks the experience and knowledge to evaluate the proposals.
. Where will the money come from for this project?
The money will come from the Equipment Replacement Plan. The estimated cost for this
project will be between $75,000 and $175,000. Prior to sending out the Request for
Proposal, staff will have a more accurate estimate of costs.
Alternatives
1. Authorize hiring of Giske Consulting Group. This will allow staff to begin the process of
acquiring a new computer system.
2. Do not authorize the hiring of a computer consultant. This will require staff to either try
and acquire a system without assistance or postpone the acquisition.
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