City Council Meeting


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  H.3.       
Meeting Date: 08/17/2021  
Submitted For: Brandon Wright Contact: Kristoff Bauer, Deputy City Manager

COUNCIL ACTION
AGENDA ITEM:
Consider authorizing the City Manager to negotiate and execute a change order to the contract with Kreative Core Technologies for data extraction and conversion services in connection with the implementation of the new Enterprise Resource Planning System.
BACKGROUND:
The City Council approved a contract with Tyler Technologies for the acquisition and implementation of an Enterprise Resource Planning (ERP) system on April 6, 2021. On June 1, 2021, the City Council approved two service contracts to assist in the ERP implementation process. One contract is with VC3 to assist in the configuration process for the new financial system, and one contract is with Kreative Core Technologies (Kreative) for project management and for assistance in the configuration of other modules included in the ERP project, such as asset management for example.

Kreative has proposed two change orders; one change order related to enterprise system analysis and one change order for data extraction and conversion services. Staff is recommending the second change order, data extraction and conversion services, at this time.
FINDINGS:
An important and early step in the process of moving from one financial system to another is the extraction, transformation, and loading ("ETL") of data from the old system to the new. It is necessary to pull information from the legacy system and reformat it to be consistent with the needs of the new system and load it into that new system. Kreative Core is recommended for this additional work for three main reasons. First, the City lacks staff with the knowledge required to identify and extract data from the STW system. The City has always relied on STW for any past data related issues. Second, STW has been unresponsive to the City's requests to provide information and/or assistance in completing this ETL process. Third, the ETL process is a critical path of the implementation of the finance system. A delay in the ETL process could delay the process with potential cost implications.
 
The City is pursuing three paths to mitigate the potential cost of this work. First, staff is exploring a reduction in the amount of data, such as the number of years, to include in the ETL process, which could result in a credit change order to the contract with Tyler Technologies. Second, staff continue to seek a leverage point to gain STW's support in understanding information regarding how their system stores and configures the City's data to make the ETL process more efficient. Third, the City intends to negotiate with Kreative to ensure that the scope is what is truly necessary based on any information that may be forthcoming from STW or other sources. City staff is recommending that Council authorize the City Manager to execute a change order substantially in the form attached up to $105,000 in cost. This change order will provide the opportunity to proceed while also working to clarify and reduce the scope and cost if possible.
FINANCIAL IMPACT:

The Kreative Core contract authorized on June 1 was for $607,200 including a 10% contingency. Council authorized up to $650,000 to provide flexibility during the course of three years of the Enterprise Resource Planning ("ERP") project. The initial budget for the ERP project included an estimate of $797,500 for services of this kind. This change order would increase the Creative contract from $552,000 to $657,000. Staff is recommending an increase in authority of $55,000 to $705,000 to maintain some additional authority after the execution of this change order.

Contract Summary:

Initial estimate for supplemental services:                             $797,500

Contract with VC3                                                                  ($36,000)

Initial Creative contract authorization:                                  ($650,000)

Requested additional authority due to ETL change order:      ($55,000)

Remaining estimate:                                                                 $56,500

RECOMMENDATION:
Staff recommends that Council authorize the City Manager to negotiated and execute a change order to the contract with Creative Kore Technologies related to the extracting, transfer, and loading of data from the legacy STW system to the new Tyler financial system up to a maximum cost of $105,000 increasing the total authorized for that contract to up to $705,000.
MANAGEMENT REVIEW
Attachments
Kreative Core Service Contract
Data Extraction and Conversion Change Order


    

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