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HomeMy WebLinkAbout12/21/2011 - City Council - Minutes - SpecialUNAPPROVED MINUTES - AMENDED COUNCIL MEETING December 21, 2011 A special meeting of the Council of the City of Salem, Virginia, was held in Council Chambers, City Hall, 114 North Broad Street, on December 21, 2011, at 8:00 a.m., there being present all the members of said Council, to wit: Byron Randolph Foley, John C. Givens, Jane W. Johnson, William D. Jones and Lisa D. Garst; with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, Assistant City Manager and Clerk of Council; Frank P. Turk, Director of Finance; Mike Stevens, Communications Director; and Stephen M. Yost, City Attorney, and the following business was transacted: Mayor Foley requested that Council receive report and consider awarding contract for the Enterprise Resource Management Implementation Project; and WHEREAS, the City Manager stated that Council is aware of the ERP process that has been taking place; he stated that two years’ worth of work has been done to determine the best fit for Salem; he stated that extensive research and reference checks have been done as part of this process, including multiple on-site demonstrations by MUNIS, KRONOS, and New World Systems; he further stated that after a thorough review, a consensus was developed by the City and school system that the “financial management software,” which includes applications such as general ledger, accounts payable, accounts receivable, budgeting, fixed assets, financial reporting (including the Annual Superintendent’s Report, Auditor of Public Accounts Report, and CAFR preparation), offered by New World best meets the needs of both the City and Schools; he stated that New World Systems has offered a “sweetheart deal” if the City could sign a contract before the end of the calendar year; he further stated that the New World package does not include Human Resources, payroll, time-keeping, and leave balance reporting; he stated that the purpose of the special meeting is to authorize the City Manager to execute a contract with New World Systems in order to move forward in the process; he further stated that the School Board has met and authorized Dr. Seibert to sign the contract on behalf of the school division; he stated that this process has been done in conjunction with the schools; therefore, the same systems will be utilized “across the board”; and WHEREAS, a discussion was held regarding the KRONOS Payroll and Human Resources Systems that will be utilized by the city and the schools; and ITEM 1 CONTRACT AWARDED FOR ENTERPRISE RESOURCE MANAGEMENT IMPLEMENTATION PROJECT 2 WHEREAS, it was noted that Council previously authorized a contract with KRONOS for a time-keeping and leave balance reporting system; he stated that the city has undergone a business review process, and the school system will also undergo the process with KRONOS; and WHEREAS, a discussion was held regarding the implementation process, etc.; and WHEREAS, Councilwoman Garst questioned how the software will affect the man hours required for processing payroll, etc.; and WHEREAS, Angela Sellers, Director of Technology Systems, stat ed that efficiencies will be the outcome; people can do more with their time; and WHEREAS, the Director of Finance stated that the implementation of the software package will not cause layoffs; employees will become more efficient and be able to spend more time on other duties; he stated that large budget dollar savings will not be seen and that additional staff will be required as part of the implementation process; and WHEREAS, Councilman Jones questioned if the additional staff would be a temporary or permanent position; and WHEREAS, the City Manager stated that initially two additional personnel will be needed in Technology Systems during the implementation process; one position will be considered a contract employee who would probably be in place for two years to serve as the implementation coordinator; the person would work under the supervision of the Technology Systems Director, but would be responsible for working across the school division and the city to make the implementation process as smooth as possible (coordinating training, work that needs to be done in-house and with the vendor, etc.); in addition to the contract employee, one additional permanent position will be needed for support for the hardware and software piece of the implementation process; and WHEREAS, Councilman Jones questioned if there would be more personnel or less personnel at the end of the implementation process; and WHEREAS, the City Manager stated that Technology Systems will have at least one additional person; the Technology Systems Director will need to advise if additional personnel are needed; he further stated that it is guesswork at this point, but it is his hope that once the system is in place, that there may be an 3 opportunity as personnel retire or skill sets change, some personnel could move from administrative, purely paperwork positions into some other productive positions; he stated that he does not foresee a reduction in staff, but some staff will be moved around to enhance productivity; and WHEREAS, a discussion was held regarding personnel changes (additions, reductions, etc.), the implementation coordinator to be hired, training associated with the implementation, etc.; and WHEREAS, the Technology Systems Director stated that New World Systems had already offered to discount the software by 20 percent, then offered to discount the software 40 percent if the contract was signed by the end of the calendar year; since the HR and payroll components were removed from the software package, the implementation costs were also reduced; she stated that New World Systems also discounted the licenses needed for the software; she stated that KRONOS originally offered a 60 percent discount, then offered an 85 percent discount if the schools were also included; she sta ted that a decision has to be made by March 2012 in order to receive that discount; and WHEREAS, the City Manager stated that the first five years of maintenance is defined in the contract and a discount on the maintenance has been given also; and WHEREAS, the Technology Systems Director stated that the maintenance can be negotiated further out and can be discounted also; and WHEREAS, Vice Mayor Givens questioned if a different company would need to be utilized after five years or so from implementation; and WHEREAS, the Technology Systems Director stated that what has been chosen is currently the newest platform of technology; she stated that she feels that what has been chosen will be utilized for a very long time; and WHEREAS, Councilman Jones questioned if the financials, etc. have been checked on the company; and WHEREAS, it was noted that a thorough review has been given and the company is financially sound; and WHEREAS, the City Manager noted that the KRONOS piece was discussed in November, this particular piece is the major piece, but there are several other pieces that will come before Council over the next six to twelve months: the PCI, 4 cashiering piece; the real estate piece; etc.; and WHEREAS, the Technology Systems Director noted that the contract with New World is not only the financials, it also includes community development (building permits, code enforcement, and utility billing); and WHEREAS, Mayor Foley questioned when the financial pieces will be implemented; and WHEREAS, the Technology Systems Director stated that she would like to see the core financial piece implemented by July 1, 2012, as well as the time- keeping piece; she stated that the new chart of accounts is needed in order for everything to work together; and WHEREAS, Councilman Jones questioned how soon the work will begin after the contract is signed; and WHEREAS, the Technology Systems Director stated that after the contract has been signed, the implementation team will be brought in and will work for approximately two months gathering information and determining what the departments need to get it to work; she said that there is no customization for the software, just configuration of the software; and WHEREAS, the City Manager noted that some of the work has already started on the chart of accounts, payroll portion, etc.; and WHEREAS, it was also noted that some of the work can be done remotely instead of on-site; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, the City Manager is hereby authorized to execute a contract with New World Systems for the financial management portion of the ERP, and extend the KRONOS product by adding Payroll and Human Resources for a total complementary package which includes payroll, Human Resources, time-keeping, and leave-balance reporting – the roll call vote: Lisa D. Garst – aye, William D. Jones – aye, Jane W. Johnson – aye, John C. Givens – aye, and Byron Randolph Foley – aye. There being no further business to come before the Council, the same on motion adjourned at 8:28 a.m.