HomeMy WebLinkAboutExhibit A-2Cos&pbsirc r4-�
Modernizing City Technology
The City continues the most far reaching technology modernization in its history. Outdated business systems are
being replaced with new software applications using modern technical designs capable of performing best
business practices. The internet, high bandwidth and mobile communication, geographic information systems,
business intelligence databases, and modern desktop and server hardware form the foundation for a reliable,
agile, technology future for Miami.
Capital budgets for 2008 and current year were not able to fund the development needed to complete our
strategic information technology projects. Therefore, this proposal recommends financing City technology projects
with a low interest rate Sunshine State loan in order to finish these projects without delay. The risk of system
failure is increasing, benefits are being postponed, the cost of operating both old & new systems is high, the
foundation for future improvements remains incomplete, and financial prospects are better now than later.
Three major initiatives, already underway, require your continued support — they should not be considered IT
projects, but direct business improvement projects. These priority projects were defined in the IT Strategic Plan,
are aligned with the Balanced Scorecard and, when complete, replace our remaining 20 year old systems with
modern software and hardware we will use into the next decade(s):
• ERP (Finance, Purchasing, HR, Payroll, Budget, CIP, ...)
• Land Management (Building, Zoning, Planning, Code Enforcement, Public Works, GIS, ...)
• Infrastructure (PCs, servers, scanners, storage ...)
These new technologies will allow us to refocus work by using computer systems to automate routine work
(transaction processing), freeing City staff for more challenging and valuable work such as analysis, critical thinking,
and problem -solving. These systems offer direct efficiencies and analytic tools that will help us cut costs, raise
revenues, better manage tight resources, become more productive, provide faster citizen services, and respond
directly to future economic challenges.
The Sunshine State Governmental Financing Commission has approved the City's request for a $20 million loan to
finance our IT Modernization projects. Re -lending pooled funds is a unique feature of the 1986 program that has
been successfully applied for more than 20 years, offering tax-exempt interest rates historically lower than 30-year
fixed rate bonds. Now is the right time to invest, we need to position ourselves for success this year and beyond.
While other organizations delay projects, we need to move forward, aggressively taking advantage of the excellent
talent pool made more affordable by the depressed economy.
Enterprise Resource Planning (ERP) systems are used by virtually every major corporation and government. ERP
replaces old, single -purpose (stovepipe) departmental systems and will be used by every City department for all
financial and human resources operations.
We have already completed: processes reviews, Phase-1 (financials, procurement, projects & grants); and 55% of
Phase-2 (HR, payroll, recruiting, and benefits). We plan to "go -live" in June 2009 with payroll and HR, followed in
Fall 2009 with employee self-service. We expect to complete ERP in 2D10 by adding the .Budget and CIP Project
Management capabilities.
Why do we need ERP Phase-2 now
1. The City's critical payroll and HR functions are running on an 18-year old mainframe system with
increasing risk of failure that could result in a major problem like 'no paychecks'. System modifications are
difficult, risky, expensive (the Moore system is old and maxed out); Unisys itself is questionable. We are
spending double the resources to support both old and new systems. Work-aroundsf interfaces between
the legacy system and ERP were designed for 3 not 18 months
2. City staff that built, operates, and can maintain legacy systems are retiring
3. CIP project management, accounting, and bond compliance are currently dependant on a limited, third -
party system. The City's Budget system is home-grown and not integrated with City financials.
4. ERP Phase II is already over 50% complete
5. Potential benefits of $18M over 5 years are delayed. Savings of approximately $750K annually is delayed
until the remaining legacy systems are replaced and the mainframe can be retired.
Land Management system (LM) is an integrated system to support all Planning, Zoning, Building, Public Works,
Code Enforcement functions of the City. All land -related activities: plans review, zoning, permits, inspections,
certificates of use, occupancy licenses, violations, etc., will be processed by the LM system with associated
geographic information system (GIS). Our LM Plan:
• First step for every function: review processes, streamline, and adopt 'best practices'
• Code Enforcement used by CE, Solid Waste, Hearing Boards, and Fire is operational. Public Works process
reviews are complete.
• Current phase Improves processes for Building Department functions: intake, inspections, plans reviews,
permits, cashiering as well as digitizing plans, tax cards, etc., plus Public Works Right of Way.
• Subsequent phases will incorporate current zoning and new Miami-21 procedures, Planning and Zoning,
Business Licensing, Expansion of GIS data layers and business applications
How will LM system improve citizen service
1. Lead the applicant through the maze of departments, phone numbers, fees and paper application forms
with limited instructions on where to go, who to see and in what order.
2. Give the applicant the ability to check the status of their request, pull and pay for permits, manage
subcontractors, schedule an inspection, and request inspection results without visiting or calling the MRC.
3. Provide electronic notification of significant milestones (i.e. plans approval or rejection)
4. Allow Electronic Plans Submittal and imaging benefits of concurrent review, space reduction, etc
5. Encompass the review, improvement, automation, and alignment with Miami-21 (if/when approved)
6. Eliminate the risk of error and unforeseen processing problems caused by current software that was
patched -up so many times over the last 25 years
7. Reduce the City's work effort required to process a permit by an estimated 25%.
Infrastructure Projects are the foundation for all City knowledge workers, benefits include:
• Deliver faster service to our citizens by providing mobile computing to city workers in the field
• increase computing power and capacities for demanding applications like video, images, GIS, computer -
aided design
• Save paper, space, and speed work with efficient technologies, like document imaging
• Eliminate costly mainframe operations
• Provide self-service capabilities via web
• Refresh technology with 5-year replacement cycle for equipment
• Achieve energy savings with new equipment and server `virtualization'
• Re -use equipment in over 30 elevate Miami eParks and eSeniors Learning Centers
Investment = $ 19.6M needed to complete ERP, Land Management, and 5-year infrastructure refresh.
• ERP is 70% complete - $8.6M Cost to complete. We have invested $10M buying and building this ERP plus
an equal amount streamlining processes, instituting best practices and learning how to use them
effectively (We are still learning how to ride the horse we bought.)
• LM is 20% complete - $6.8M Cost to complete. $1M spent to date.
• Infrastructure 5-yr cost = $4.3M
11/24/08