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Item 32 Staff Report Resolution Authorizing the Town Manager to Execute a Contract with Peat Marwick Main and Company for Either 1) Phase I or 2) a Partial Phase I of Information System Consulting Servicesl TOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: February 15, 1990 TO: MAYOR AND TOWN COUNCIL FROM: DEBORAH ACOSTA, TOWN MANAGER SUBJECT: COUNCIL AGENDA DATE: 02/20/1990 ITEM NO. J? a` RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR EITHER 1) PHASE I OR 2) A PARTIAL PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES RECOMMENDATION: 1) It is recommended that Town Council adopt the attached resolution authorizing the Town Manager to execute a contract with Peat Marwick Main & Company in an amount NOT TO EXCEED $85,600 to provide the Town with PHASE I of Information Systems Consulting Services (ATTACHED RESOLUTION FOR THIS OPTION IS EXHIBIT 1). OR: 2) As an alternative, should Council prefer to have a "check point" during the course of the project, it is recommended that a portion of PHASE I be completed (needs analysis through recommendations) in an amount NOT TO EXCEED $62,500. This would not include the preparation of any RFPs or contract negotiations with any vendors (ATTACHED RESOLUTION FOR THIS OPTION IS EXHIBIT 2). BACKGROUND: At the Council meeting of February 5, 1990, Councilmember Eric Carlson requested that the Council report recommending an information systems consultant be revised by staff to focus exclusively on "Open Systems" as the "Town standard" and that Phase II be eliminated from the proposed study. A follow-up meeting was held on February 12, 1990, with Eric Carlson, representatives from Peat Marwick, and Town staff. Councilmember Carlson's concerns were discussed in depth. The meeting concluded with Councilmember Carlson's approval of staffs recommendation that the Peat Marwick firm be hired by the Town provided the five points listed in the DISCUSSION section of this report were addressed. PREPARED BY: DEBRA J. FIGONE, Assistant Town Manager Exhibits: 1, 2, 3, 4 Reviewed by: Attorney TOWN ACTION DIRECTED TO: ACTION OF COUNCIL: M G 12014 A:\CNCLRPTS\2-20-5 PAGE 2 fl (Th MAYOR AND TOWN COUNCIL SUBJECT: RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR EITHER 1) PHASE I OR 2) A PARTIAL PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES February 15, 1990 DISCUSSION: The five points brought up during the meeting with Councilmember Carlson focused on these issues: 1. That the end result and main objective of the study will be to have specific software solutions recommended by name. 2. That a cost benefit analysis would be an integral part of Phase I of the project. 3. That, unless proprietary systems are identified by staff (and are suitable stand- alone applications), the study will focus only on "Open Systems." 4. That staff will become self sufficient enough at the end of Phase I so as not to require consultant assistant for a Phase II (implementation and evaluation assistance from the consultant). The selected hardware/software vendors will be utilized for assistance in these areas. 5. That the cost of the study will be reduced if Council does not require an RFP/bid process for each of the four major system areas. Staff concurs with each of the points listed above and will include a copy of this Council report as an attachment to the potential contract with Peat Marwick. It was also noted that during the period of interim Town management, the Executive Task Force (Lee Bowman, Larry Todd, Peggy Murray, and Brian Jones) would need to commit to the time and involvement necessary to keep this project moving forward. In support of this, the Executive Task Force has drafted a memorandum to the Town Manager (see Exhibit 3). The Peat Marwick consulting firm has also included a letter of understanding for the concerns raised during the meeting with Councilmember Carlson (see Exhibit 4). Council has also asked whether this project should be delayed, pending the appointment of a new Town Manager and Assistant Town Manager. Staff firmly believes that it is not advisable to delay the project any longer. The initial stages of this project can proceed with the staff. If the project does proceed, no momentum is lost, and the new manager can review the conclusions upon their arrival. Given the age of our Wang system, it is also important to move forward prior to the system's ultimate failure. With the above modifications to the project, and the strong commitment of management staff, staff strongly recommends that Council move forward with approval for this project at this time. FISCAL IMPACT: A NOT TO EXCEED amount of $85,600 for option 1, or $62,500 for option 2 for consulting services from the 1988-91 capital budget allocation for Computer Systems Acquisition (Account No. 014-470-8366). EXHIBIT 1 RESOLUTION NO. RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos enter into a contract with Peat Marwick Main and Company in an AMOUNT NOT TO EXCEED $85,600 for Phase I of Information Systems Consulting Services, and that the Town Manager is authorized, and is hereby directed, to execute said contract in the name and in behalf of the Town of Los Gatos. ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the day of , 1989 by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS ABSENT. COUNCILMEMBERS SIGNED: MAYOR OF THE TOWN OF LOS GATOS ATTEST. TOWN CLERK OF THE TOWN OF LOS GATOS MG022090.R3 EXHIBIT 2 RESOLUTION NO. RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR A PARTIAL PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos enter into a contract with Peat Marwick Main and Company in an AMOUNT NOT TO EXCEED $62,500 for A PARTIAL Phase I of Information Systems Consulting Services, and that the Town Manager is authorized, and is hereby directed, to execute said contract in the name and in behalf of the Town of Los Gatos. ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the day of AYES: COUNCILMEMBERS , 1989 by the following vote: NOES: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS ABSENT COUNCILMEMBERS SIGNED: MAYOR OF THE TOWN OF LOS GATOS ATTEST: TOWN CLERK OF THE TOWN OF LOS GATOS MG022090.R4 EXHIBIT 3 INFORMATION SYSTEMS EXECUTIVE TASK FORCE TO: Deborah Acosta Town Manager FROM: Executive Task Force Lee Bowman i;, Planning Director Larry Todd Chief of Poll Peggy Murray `-* Library Director Brian Jones Information Syfis Coordinator DATE: February 15, 1990 SUBJECT: Support for Information Systems Project During Period of Interim Town Management We are enthusiastically in support of the information systems project as outlined, and although we can appreciate any concerns there might be in regards to the change in Town management, we wholeheartedly believe that this project should move forward and be implemented as soon as possible. The remaining members of the Executive Task Force, have a combined forty person -years of management experience and are firmly committed to seeing this project through to its completion. 02/15/90/9:09am/BNJ FEB 15 1990 Peat Marwick 2495 Natomas Park Drive Sacramento, CA 95833 2936 Ms. Debra J. Figone Assistant Town Manger Town of Los Gatos 110 E. Main Street Los Gatos, California 95032 Dear Ms. Figone: EXIllBff 4 Telephone 916 925 6000 Telecopier 916 641 3199 February 14, 1990 KPMG Peat Marwick (Peat Marwick) would like to thank you, Ms. Deborah Acosta and Mr. Brian Jones for providing us the opportunity on Monday to meet with Councilmember Eric Carlson to review several issues regarding our proposal to serve as the consultant to the Town of Los Gatos on the Information Systems Planning and Implementation Project. We believe that our meeting was most productive and that we are all now in agreement as to the scope and approach to be followed during the project. During our meeting, we reviewed the Town Council's concerns related to the following five issues: 1. Specific Recommendations; 2. Cost/Benefit Analysis; 3. Open Systems; 4. "Phase II" of Project; and 5. Cost. Our understanding of the resolution of each of these issues is presented in the remainder of this letter. Issue #1 - Specific Recommendations Peat Marwick agrees with the Town Council that the main objective of the study is the identification and selection of specific applications for the following areas: Administration; Police; Geo-base; and Library. The ultimate goal of our approach and workplan will be the development of specific recommendations for application solutions that the Town can acquire and implement to meet its information system requirements. The Town's requirements will be identified in Tasks 1 (Information Needs Assessment) and 2 (Definition of Departmental Information System Requirements). As requested by the Town, our efforts will conclude with contract negotiations (Task 6) with the successful vendor(s). Member Fem of __ Klynveld Peat Marwick Goerdeler KPMG'Peat Marwick Ms. Debra J. Figone Assistant Town Manager Town of Los Gatos February 14, 1990 Page 2 Issue #2 - Benefit/Cost Analysis Peat Marwick agrees with the Town Council regarding the importance of performing a cost/benefit analysis during the project. Our approach and workplan includes the assessment of costs and benefits of feasible alternatives (Task 3). During the project, we will attempt to identify benefits in terms of improved service to the public, reduced operating costs, improved productivity, improved efficiency, future cost avoidance, etc. We believe that if the benefits to be achieved through automation can be identified and weighed against the costs to be incurred, the Town will be able to make a more informed decision about setting priorities and establishing acquisition and implementation plans. Issue #3 - Open Systems Peat Marwick fully understands the Town Council's position related to the issues of open systems and the avoidance of vendor dependency. Our view of current trends in information technology includes a number of areas for governments that wish to establish the foundation for integrating and exploiting evolving technology. Important areas for consideration are open systems, portability and standardization. Peat Marwick understands that the Town intends to adopt a computing strategy that revolves around an "open systems standard". Our work with the Town, therefore, will concentrate on the identification and selection of open systems solutions that will satisfy the Town's information system requirements. Issue #4 - "Phase II" of the Project Another issue discussed during our meeting related to "Phase II" of the project. The main issue raised by the Town Council was in the area of Town staff gaining adequate knowledge in "Phase I" of the project to move towards self sufficiency in the performance of any tasks identified for "Phase II". Peat Marwick believes that the best results on projects of this type are achieved when client management and staff are actively involved in the project. During the Town's project, we will endeavor to involve department personnel in each functional area in the engagement, while hPeat Marwick Ms. Debra J. Figone Assistant Town Manager Town of Los Gatos February 14, 1990 Page 3 minimizing the disruption of daily operations. We will work with the staff of each department to ensure that data collected accurately reflect departmental operations, and functional and technical requirements. In the course of working closely with the Town's staff, we will take every opportunity to educate the staff regarding the appropriate use of information technology in meeting departmental needs. Through this approach, the Town's management and staff should be adequately prepared to address any of the tasks required for the implementation of the selected applications without the need for our assistance in "Phase II". Again, Peat Marwick agrees with the Town Council in that we view "Phase I" of the project as a cooperative effort between Town management and staff and our project team. We agree that our contract with the Town will only address the tasks identified as related to "Phase I". Issue #5 - Cost The final issue discussed during our meeting related to the total proposed cost of performing the project's six tasks ($85,600). Because the first three tasks of the project will result in the Town's requirements being defined, and potentially solutions being identified, we agreed during our meeting to review an alternative approach to the project. We agree that if specific applications could be identified in Tasks 1-3, the need for performing Task 4 (Prepare Requests for Proposals) and Task 5 (Evaluate and Select Information System Solutions) would be substantially reduced, if not eliminated. We anticipate that after the completion of Task 3, the Town and the project team will have a reasonably good idea of available alternatives and solutions. Therefore, we propose that an appropriate approach would be to have a "checkpoint" after Task 3. Through the use of a checkpoint, the Town and the project team would determine if the performance of Tasks 4 and 5 by Peat Marwick would be necessary. If these Tasks are determined to not be needed, the project team would move on to the performance of Task 6 (Contract Negotiations). As a result, we agree that the not -to -exceed fee for Tasks 1-3 would be $62,500, leaving an amount of $23,100. Any additional fees billed to the Town would only be incurred if we are tasked by the Town to perform specific activities related to Tasks 4, 5 and 6. -Peat Marwick Ms. Debra J. Figone Assistant Town Manager Town of Los Gatos February 14, 1990 Page 4 Again, we appreciate the opportunity to further address these issues and to assist the Town in this most important project. If you have any questions regarding the information provided in this letter, additional information, please contact me or Mr. Peter R. Julicher in our (916) 925-6000. Very truly yours, describe how we can or if you require any Sacramento office at KPMG PEAT MARWICK Stuart L. Nelson, Senior Manager cc: Executive Task Force OFFICE OF THE TOWN CLERK ORDINANCES & RESOLUTIONS ORIGINATING DEPT: COUNCIL AGENDA DATE: COUNCIL AGENDA ITEM: SUBJECT: ,40 'Pe )j)dii-tAilicji2 Al a. DEPARTMENT DISC ON FILE WITH CLERK? YES: NO: RESOLUTION ORDINANCE Number: )qqt) — � Number: Date of Adopt: i a b, Date of Intro: Date of Adopt: ZONE CHANGE: COUNCIL ACTION: AYES: NAYES: ABSENT: ABSTAIN: COUNCIL MEMBERS NAMES: Joanne Benjamin, Eric D. Carlson, Robert L. Hamilton, Brent N. Ventura Mayor Thomas J. Ferrito. ORDINANCES and RESOLUTIONS MUST BE RETURNED TO TOWN CLERK BY WEDNESDAY AT 12 NOON. ORDINANCES MUST BE READY FOR IMMEDIATE PUBLICATION CLK: D4:\OTHER\ORDRES RESOLUTION 1990-45 RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR A PARTIAL PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos enter into a contract with Peat Marwick Main and Company in an AMOUNT NOT TO EXCEED $62,500 for A PARTIAL Phase I of Information Systems Consulting Services, and that the Town Manager is authorized, and is hereby directed, to execute said contract in the name and in behalf of the Town of Los Gatos. ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 20th day of February, 1990 by the following vote: COUNCILMEMBERS: AYES: Joanne Benjamin, Eric D. Carlson, Robert L. Hamilton, Brent N. Ventura and Mayor Thomas J. Ferrito. NOES: ABSTAIN: ABSENT: SIGNED: A'I'I'EST: /s/ Thomas J. Ferrito MAYOR OF THE TOWN OF LOS GATOS /s/ Marian V. Cosgrove TOWN CLERK OF THE TOWN OF LOS GATOS MG022090.R3 February 20, 1990 Los Gatos, California MINUTES OF FEBRUARY 20, 1990 Continued to March 5, 1990 MINUTES OF FEBRUARY 12, 1990 Motion by Mr. Ventura, seconded by Mrs. Benjamin, to approve the minutes of February 12, 1990 as submitted. Carried unanimously. CODE ENFORCEMENT/REFERRALS TO TOWN ATTORNEY Informational item received and filed. PLAZA LA POSADA 241/UNDERGROUND NONLIVING SPACE/RESOLUTION 1990-44 Motion by Mr. Ventura, seconded by Mrs. Benjamin, that Council adopt Resolution 1990-44 entitled, RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS GRANTING THE APPEAL OF A DECISION OF THE PLANNING COMMISSION IN GRANTING APPROVAL OF PLANS FOR THE CONSTRUCTION OF A NEW SINGLE- FAMILY RESIDENCE IN THE R-1:10.000 ZONE AND MODIFYING SAID APPROVAL (241 PLAZA LA POSADA -RONALD J. HAAS), incorporating the findings and decision of the Town Council at its meeting of February 5, 1990. Carried by a vote of 4 ayes. Mr. Carlson voted no asking that record show that it is not fair to limit the living space to 2,472 sq. feet. Motion by Mrs. Benjamin, seconded by Mr. Hamilton, that the swimming pool is not required to be filled in before construction of the home. Carried by a vote of 4 ayes. Mr. Ventura voted no. INFORMATION SYSTEMS/PEAT MARWICK/CONTRACT/CONSULTING SERVICE Motion by Mr. Carlson, seconded by Mr. Ventura, that Council adopt Resolution 1990-45 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT WITH PEAT MARWICK MAIN AND COMPANY FOR A PARTIAL PHASE I OF INFORMATION SYSTEMS CONSULTING SERVICES, which includes needs analysis through recommendations but does not include preparation of RFPs or contract negotiations with vendors. Carried unanimously. BUDGET REPORT/SECOND QUARTER Recommendation to continue this item to March 5, 1990. BEER AND WINE WITH MEALS/C-2 ZONE/MODIFICATION OF TOWN POLICY Motion by Mr. Ventura, seconded by Mr. Carlson, to reagendize this item and schedule it for a Public Hearing. Carried unanimously. TC:D1:MM022090 10