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Sparks City Council Meeting 10/10/2011 2:00:00 PM
Monday, October 10, 2011 2:00 PMLegislative Building, 745 4th Street, Sparks, NV 89431
Consent Items: 5.2
Title: Consideration, discussion and possible ratification of Phase II expenses for the Agresso Business World software implementation of Human Resources and Payroll modules.
Petitioner/Presenter: Jeff Cronk, Finance Director/Sherri Flynn, IT Systems Administrator
Recommendation: That the Council ratify the Phase II expenses for continued implementation of the Human Resources and Payroll modules.
Financial Impact: $210,000
Total Costs: $210,000.00
Total Costs: $210,000.00|
Fund: Capital Projects Account: 603242 Program: Information Delivery Management- Agresso HR/Payroll Implementation-Phase 2B (12-1003) Amount: $210,000.00 Budget Status: Budget Exists |
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: The Finance Director seeks approval to pay the vendor for the budgeted expenditures associated with Phase II of the ERP system implementation.
Background: In October of 2007 the Finance Department requested and received approval to negotiate a replacement for the then 17-year-old financial system. Ultimately the City entered into an agreement with Unit4 Agresso. The first phase of implementation included core financials; the second phase would be Human Resources and Payroll. In June 2008 Council authorized the expenditure necessary to implement Phase I. The total cost of Phase I was $341,719.90 for implementation (including travel) and $235,646.00 for software licensing (Phase I & II modules). These monies were allocated as a capital expense. Phase I went live in December 2009. While the initial agreement approved by the City Council referenced the Phase II plan and costs, the City Council approval only covered the Phase I costs. This agenda item seeks to ratify the expenses associated with the second phase.
Analysis: Phase II implementation costs had been estimated at $192,000. While travel had been held to a bare minimum, Phase I experience showed that more travel would be necessary for Phase II. The HR/Payroll phase is far more complex than core financials and requires more “face time” with consultants for a successful implementation. Phase II implementation commenced in October 2010. Partial funding of $115,000.00 was made available for the balance of FY 2010-11. The balance of funding ($210,000.00) has been included in the budget for FY2011-12. Monies for both fiscal years include implementation, travel, training and any additional consulting costs. As a vendor, Unit4 Agresso has gone above and beyond to work within the City’s financial constraints regarding the project schedule and milestone billings.
Alternatives: The Council could choose to shut down or delay the HR/Payroll implementation and continue using the old system.
Recommended Motion: I move to authorize the Finance Director to continue with Phase II, HR/Payroll, implementation of the Unit4 Agresso ERP system.
