HomeMy WebLinkAboutCOM 0721.000 2000-2002 J~SV JOi k
Harry Kim 4°.•' ~ ~ William Takaba
Mayor Director
Nancy E. Crawford
• -
M;
:^p"~ Deputy Director
TE Oi<'HP~
COII)Irl~y Of ~~W~11
Finance I2epartment
25 Aupuni Street, Roam 118 • Hilo, Hawaii 96720
(808)961-8234 • Fax (808)961-8248
August 12, 2002
Honorable James Arakaki, Chairperson and
Members of the County Council
Hawaii County Council
25 Aupuni Street _
Hilo, Hawaii 96720
Re: Resolution for amulti-year lease agreement
Enclosed is a resolution authorizing the payment of funds for more than one fiscal year
for amulti-year lease agreement with a vendor that will be selected through the RFP
process for the acquisition of a core financial and human resource software system with
related components.
If there are any questions, please do not hesitate to call me.
William `~akaba
Director of Finance
AP ROV
Harry Kim
Mayor
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File No
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Ref. ~~te l~UG 1 9 2002
Harry Kim ~ ~~~t, William Takaba
Mayor Director
- Nancy E. Crawford
e•'~" .~''P°° DepuryDirector
County of Hawaii
Finance Depart>inent
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808)961-8234 • Fax (808)961-8248
~~II I I M
~e4~ august 26, 2002 _
~I`®: `The Honorable James Arakaki, Chairman,
and Members of the Hawaii County Council
FR®IlOm: Nancy Crawford
Deputy Director of finance
RE: New County Software
In October 2001 the Fiscal Software Selection Committee was formed to oversee the
process of selecting new enterprise software for the County. Our mission is to identify
the County's needs, issue an RFP to vendors, select a new system and implement the
new system, including conversion of current data. The committee includes
representatives from Finance, Data Systems, Police, Public Works, Parks and
Recreation, Housing and Civil Service.
The County's current maintenance agreement for Wang equipment and software
expires in 2005. Prior to that time the County wants to migrate all of the applications off
of that equipment. The committee has developed a schedule to accomplish the
acquisition and installation of the system within the desired timeframe. The schedule
calls for beginning implementation about a year from now and completing it by
December 2004.
The committee has spent the last several months researching governmental enterprise
systems, reviewing responses to a published request for information and developing
needs assessments. On September 12, 2002 we will be meeting with representatives
from all County departments to share our progress to date and to solicit input prior to
issuance of the formal request for proposals.
The new system we are contemplating will include general ledger, accounts payable,
purchasing, budget, payroll, personnel, inventory, cash management, and may include
other modules such as grant management and cost accounting.
At this time we are submitting a resolution for multi-year financing to purchase the new
software system. The cost for purchase, implementation and training will not be known
until we make a selection based on the RFP. We are looking for systems that would be
adequate to our needs for less than $1.5 million. The attached workpaper shows the
annual payment amounts for different principal amounts and interest rates. In addition
to the financing payments there will be an ongoing annual maintenance cost for the
software, which we are estimating to be a maximum of 20% of the software cost.
1=stimated total annual cost for software and maintenance ranges from $440,000 to
$660,000.
We welcome the Council's input as we proceed with this important upgrade to the
County's information technology system. Thank you for your support.
Approved:
May
cc: Director of Finance
Acquisition and Operating Costs for Fiscal Software System
Five Year Financing
Monthly Payments
Principal Interest Rates
Amount 6.0% 6.5% 7.0% FY '02 - '03 Budget
$ 1,500,000 28,999.20 29,349.22 29,701.80 $30,000/mo 3 mos $ 90,000
$ 1,250,000 24,166.00 24,457.69 24,751.50 $25,000/mo 3 mos $ 75,000
$ 1,000,000 19,332.80 19,566.15 19,801.20 $20,000/mo 3 mos $ 60,000
Additional first year costs would include site visits and some new equipment.
Annual Cost
Annual Total
Principal Monthly Annual Maintenance Annual
Amount Payment Payment Fees Budget
$ 1,500,000 30,000 360,000 300,000 $ 660,000
$ 1,250,000 25,000 300,000 250,000 $ 550,000
$ 1,000,000 20,000 240,000 200,000 $ 440,000