CITY OF POMONA
COUNCIL REPORT
July 1, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, City Manager
Submitted By: Sam Wong, Innovation and Technology Director SUBJECT: RESOLUTION AMENDING THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET FOR “FINANCIAL SOFTWARE PROJECT,” PROJECT NO. 428-2590-XXXXX-71048 AND AWARD OF CONTRACT TO PLANTE MORAN, PLLC FOR ENTERPRISE RESOURCE PLANNING (ERP) PROJECT MANAGEMENT AND ADVISORY SERVICES RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. – 2024-103 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA AMENDING THE FISCAL YEAR 2024-25 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY APPROPRIATING $3,320,000 OF AMERICAN RESCUE PLAN (ARP) FUNDS TO “FINANCIAL SOFTWARE PROJECT,” PROJECT NO. 428-2590-XXXXX-71048 Approve and award a Professional Services Agreement (PSA) to Plante Moran, PLLC (“Plante Moran”) for ERP project management and advisory services. The agreement is in an amount not-to-exceed $774,565; and Authorize the City Manager to execute the agreement and any extensions or amendments thereto on behalf of the City, subject to review by the City Attorney.
EXECUTIVE SUMMARY:
Approval of the recommended action will appropriate $3.32M of American Rescue Plan Funds for the “Financial Software Project,” Project No. 428-2590-XXXXX-71048 and onboard Plante Moran’s project management and advisory services to assess the City of Pomona’s ERP systems and procedures and guide the City’s efforts on potential system replacements.
Based on evaluation of proposals, Plante Moran was the most qualified, responsible, and responsive firm for the services needed.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
The proposed contract with Plante Moran is for FY 2024-25 and the next two fiscal years. The base cost of the contract with Plante Moran for ERP project management and advisory services is $477,310 with additional optional services at $297,255 billed monthly by time and material beginning in July with anticipated completion in December 2026. There is currently $217,231 of Series BG “AV” Bond Proceeds funds allocated to “Financial Software Project,” Project No. 428-2590-XXXXX-71048, and this action will appropriate another $3,320,000 of American Rescue Plan (ARP) Fund to the same project for a total of $3,537,231. The remaining funds are primarily reserved for the cost of ERP system licensing and one-time setup costs, as well as any other support services needed. Sufficient funding for future fiscal years will be budgeted accordingly from the Information Technology Fund for system maintenance, support, and licensing.
Project / Funding
“Financial Software Project,”
Project No. 428-2590-XXXXX-71048
Beginning Budget
$847,617
Appropriation of ARP Funding
$3,320,000
Revised Budget
$4,167,617
Expenses/Encumbrances at 6/18/24
($630,386)
Award of contract to Plante Moran
($774,565)
Remaining Available Budget
$2,762,666
PREVIOUS RELATED ACTION:
On February 27, 2017, the City Council created “Financial Software Project,” Project No. 428-2590-XXXXX-71048 and appropriated $632,675 of Series “AV” Bond Proceeds (now Ser. BG “AV”) and approved an agreement with Mitchell Humphrey.
On April 3, 2017, the City Council appropriated an additional $116,675 of Series “AV” Bond Proceeds (now Ser. BG “AV”) and approved an agreement with HdL.
On July 17, 2017, the City Council appropriated an additional $21,663 of Series “AV” Bond Proceeds (now Ser. BG “AV”) and approved an agreement with PDS.
On March 19, 2018, the City Council adopted Resolution No. 2018-26 approving the FY 2017-18 amendment to the CIP budget by appropriating $50,000 of General Fund funding from operating budget.
On December 17, 2018, the City Council adopted Resolution No. 2018-173 approving the FY 2018-19 amendment to the CIP budget by appropriating $26,604 from Series “BG” Bond Proceeds.
On June 3, 2024, the City Council adopted Resolution No. 2024-83 approving the ARP Spending Plan Update which includes allocation of $3.320M towards a New Citywide Enterprise Resource Planning (ERP) System.
DISCUSSION:
In January 1989, the City of Pomona awarded purchase contract to Mitchell Humphrey and Company of Missouri for FMS-80 General Ledger, Accounts Payable, Report Writer, and Automatic Transactions Modules, or collectively an ERP Financial Management System (FMS) for staff to perform and upkeep the City’s financial functions and financial record keeping. FMS remains in use by the City as the system of record for finances and have had various upgrades and new modules since its inception, some of which were upgraded under this project.
In December 1998, the City of Pomona awarded purchase contract to High Line Corporation for Personality Payroll, Time & Attendance, and Human Resources software. Personality remains in use by the City for payroll, benefits, and timesheet tracking. General upkeep of the system and adoption of new modules and upgrades were also performed since its inception.
In an effort to modernize the City’s digital landscape, the City is seeking innovative ERP systems that support open system architecture for cross-platform integration, strengthen operational efficiency, improve staff augmentation, and have strong vendor support to accommodate the City’s unique and growing needs. The Innovation and Technology (IT) department is collaborating with Finance and Human Resources (HR) to engage subject matter experts to guide the City’s ERP replacement efforts. The system of focus in order of priority: FMS, Timesheet/Payroll, HR. ERP system replacements subject to fund availability.
On March 26, 2024, a Request for Proposal (RFP) No. 2024-21 – “PROJECT MANAGEMENT AND ADVISORY SERVICES ERP SYSTEMS” was issued on the City’s electronic bidding platform. The solicitation notified 253 potential bidders, of which 79 prospective bidders downloaded the RFP, resulting in the City receiving ten proposals. The ten companies that submitted proposals are: AEF Systems Consulting, Avero LLC, Berry Dunn McNeil & Parker LLC, Coexsys, DATA CLIMB LLC, Guidehouse Inc., Integration Technology Partners, Panorama Government Solutions, Plante Moran PLLC, SoftResources LLC. Of the ten proposals, six met minimum qualifications and were evaluated on a 310-point scale based on Project Approach, Qualifications and Experience, Past Performance, and Price Proposal. The Evaluation Committee that consisted of four panelists from three departments selected Plante Moran’s proposal as the highest-ranking proposal.
Combined Scores
ERP Project Management and Advisory Services
RFP No: 2024-21
Rank
Firm
RFP & Cost Evaluation Score
Total Possible Points
310
1 Avero LLC
239.88
2 DATA CLIMB, LLC
213.59
3 Integrated Technology Partners
244.91
4 Panorama Government Solutions
260.10
5 Plante Moran PLLC
288.90
6 SoftResources LLC
275.00
Prepared by: Sam Wong, Innovation and Technology Director ATTACHMENT:
Attachment No. 1 – Resolution No. 2024-103
Award a Professional Services Agreement to Plante Moran, PLLC