HomeMy WebLinkAboutDELOITTE & TOUCHE, LLP - 1999-10-18F�
HINTINGTON
BEACH
TO:
FROM:
DATE:
SUBJECT:
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
Mike Dolder, Fire Chief
Connie Brockway, City Clerk
October 21, 1999
Enterprise Resource Planning Business Systems Software, Hardware, and
Consulting Services
Transmitted to you for distribution are the following documents:
J.D. Edwards Contract
Deloitte & Touche Contract
Avnet Computer Agreement
Vertex Inc. Agreement (Insurance needed)
Infosys Business Solutions Contract
These contracts and agreements were approved at the October 18, 1999 City Council meeting.
They have been executed by the Mayor and City Cleric as directed by Council.
Insurance copies for J.D. Edwards and Deloitte and Touche, LLP have been forwarded to the
Risk Management Department. Please provide the City Clerk's Office with any additional
insurance upon receipt.
Cc: Colleen Keith, Senior Department Analyst, Fire Dept.
Shari Freidenrich, City Treasurer
John Reekstin, Administrative Services Director
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Council/Agency Meeting Held: /Z- ZZ—
Deferred/Continued to:
UKAppro ed ❑ Conditionally Approved ❑ Denied
6W City Clerk's Signafuire
Council Meeting Date: October 18, 1999
Department ID Number: FD 99-010
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator
PREPARED BY: MICHAEL P. DOLDER, Fire Chief
JOHN REEKSTIN, Administrative Services ctorl'e
SHARI L. FREIDENRICH, City Treasur�
SUBJECT: FUNDING AND ACQUISTION OF ENTERPRISE RESOURCE
PLANNING BUSINESS SYSTEMS SOFTWARE, HARDWARE, AND
CONSULTING SERVICES
Statement of issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
Should the City replace its current Business System hardware and software by acquiring
integrated Enterprise Resource Planning software developed by J.D. Edwards World
Solutions and implemented by Deloitte and Touche, LLP?
Funding Source:
The City Council has previously appropriated $2,250,000 in General Fund revenue,
$1,517,162 in carry -forward capital projects revenue, and $1,000,000 from the Water Fund
toward the Enterprise Resource Planning (ERP) software and Optical Imaging projects.
However, since this appropriation, additional ERP project details and costs for the 3-Phase
project have been identified through extensive scoping and requirements meetings with J.D.
Edwards, Deloitte & Touche, and Avnet Computer identifying the total project cost to be
$7,015,531. As a result, Phase I will require an additional appropriation of $870,238.
Proposed additional funding sources for Phase I include: $511,623 in Equipment
Replacement fund bankruptcy recovery revenue, $272,277 in unexpended FY 1998/99
Equipment Replacement Revenue, and $86,338 in Capital Projects fund bankruptcy recovery
revenue. A Fiscal Impact Statement for this appropriation is included in Attachment 1.
A subsequent supplemental Phase 11 appropriation request of $1,378,131 will be included in
the FY 2000/2001 unfunded projects list. Phase III costs for a FY 2001/2002 Utility Billing
software implementation is sufficiently funded in the Water Fund budget and no additional
appropriation is required.
R QUEST FOR COUNCIL ACTON
MEETING DATE: October 18, 1999
Recommended Actions:
DEPARTMENT ID NUMBER: FD 99-010
1. MOTION TO: Appropriate $870,238 to the ERP Business System software
implementation from the following funds: $511,623 in Equipment Replacement fend
bankruptcy recovery revenue, $272,277 in unexpended FY 1998199 Equipment
Replacement fund revenue, and $86,338 in Capital Projects fund bankruptcy recovery
revenue.
2. MOTION TO APPROVE AND AUTHORIZE THE MAYOR AND CITY CLERK TO
EXECUTE:
A.) A contract with J.D. Edwards World Solutions for Software Services and
Maintenance totaling $1,236,976 including City's limited indemnity obligation to
J.D. Edwards per Article V, Section 6(D)(ii).
B.) A contract with Deloitte & Touche, LLP for J.D. Edwards Enterprise Software
Application and Implementation totaling $1,934,834.18 including a revision
capping consultant's liability to the City under the Hold Harmless provision of the
contract at $6,000,000.
C.) An agreement with Avnet Computers to provide Conference Room Pilot
Implementation and Configurable Network Computing consulting totaling
$415,288.11, including changing the standard Hold Harmless language limiting
scope to professional services and capping the exposure to the aggregate value
of the contract totaling $415,288.11.
D.) An agreement with Vertex Inc. for payroll tax software and maintenance
totaling $12,765.
E.) A contract with Infosys Business Solutions for supplying contract personnel
to provide automation services for maintaining and converting existing business
system software, and automation services for Building & Safety operating
systems for time and materials not to exceed $240,000.
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3. OTION TO: Amend the FY 1999/2000 budget by adding one Department Analyst
Senior position to the Fire Department and one Administrative Secretary position to the
Administrative Services Department fund d within the ERP project budget.
4. 'MOTION TO: Authorize the Fire Chief and Administrative Services Director to enter into,
on behalf of the City, all supplemental agreements or documents with J.D. Edwards;
Deloitte & Touche, LLP; Avnet Computers; Vertex Inc.; and Infosys Business Solutions,
LLC, necessary to implement the services and/or arrangements with these companies
and enter into any amendments to the agreements with these companies, which do not
�xceed $50,000 and fall wit' in the total project budget.
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Alternative Action(s):
1. Take no action and continue using existing software and mainframe computer
hardware.
This alternative does not require an immediate expenditure. However, since the
manufacturer no longer supports the mainframe computer hardware, system failure
irRP Business System Purchase B -2- 10112/99 5:08 PM
0
REQUEST FOR
COUNCIL ACTIQN
MEETING DATE: October 18, 1999
DEPARTMENT ID NUMBER: FD 99-010
becomes critical with time. A mainframe failure will cripple the City's ability to collect
revenues and make payments.
2. Take action on a portion of the contracts/agreements, funding appropriation,
and/or position requests.
The appropriation request, contracts/agreements, and position requests although
separate, are companion documents that provide the necessary resources to complete a
successful ERP business system implementation. Partial approval of the motions will
have a negative effect on the City's overall ability to replace current business systems.
Analysis:
The City's current customized business system software was developed by City staff
approximately 25 years ago and, with continued updates, has served the City's needs very
well. However, the City's current and future operating needs require the replacement of the
business system software and the unsupported mainframe computer it currently runs on.
Replacing the current software is critical in order to: 1) be competitive, 2) eliminate
independent computerized databases, which require duplication of effort, 3) implement
process improvement opportunities permitted by single point of data entry, electronic
workflow and Web -based technologies, and 4) meet City auditor requirements for improved
record retrieval and asset management. The software change is also motivated by the
availability of new generation "client/server" based technology which replaces mainframe
hardware, improves effectiveness, and lowers the cost of information technology
investments.
The enterprise business system replacement project was evaluated in the following areas:
1. Software
2. Consulting
3. Training
4. Hardware
5. Staffing
6. Timing/Cost
Software — A ten -member core team, consisting of the Administrative Services Director, City
Treasurer, Fire Chief, Finance Director, Chief Accountant, Personnel Director, and four
Information Systems staff members as well as over thirty City staff users, has collectively
spent over two thousand hours reviewing the world's four leading Enterprise Resource
Planning (ERP) software vendors. Based on design and performance, the top two choices,
J.D. Edwards and SAP, were reviewed more extensively including site visits to current
government users, which included Oceanside, CA; Orlando, FL; Phoenix, AZ; and
Sacramento County, CA.
Based on the extensive review described above and review of proposals submitted by J.D.
Edwards and SAP, staff is recommending the purchase of J.D. Edwards World Solutions as
the provider of the City's new ERP software. This new software will
is easier to support in the long term and eliminates dependence on
be "off the shelf' which
customization.
ERP Business System Purchase B -3- 10/12199 5:08 PM
RQUEST FOR
COUNCIL ACTION
MEETING DATE: October 18,1999
DEPARTMENT ID NUMBER: FD 99-010
The J.D. Edwards software license, service and maintenance agreement (Attachment 2)
totaling $1,265,341 includes licenses for the following application modules: Foundation
Suite, Financial Suite, Logistics/Distribution Suite, Human Resources Suite, Payroll
Suite, Computer User Education, Job Costing, Fleet Management, Property
Management, Customer Service Management, Facility Management, and Utility Billing.
Additional third party software will also be required for payroll tax calculation, cash receipting,
business license, and investment management. The Vertex Inc. software and license
agreement (Attachment 3) is included for immediate implementation of the payroll tax
calculation software at a cost of $12,765. Subsequent requests will be made for City Council
approvals of agreements with other third party software providers necessary to complete the
City of Huntington Beach's business system software replacement project. These third party
software products are compatible with the J.D. Edwards Enterprise software.
Consulting — Staff is recommending that Deloitte & Touche, LLP be the implementor of the
ERP software project and conversion of existing data. Deloitte & Touche has extensive
experience in implementing J.D. Edwards software including, most recently, serving as the
implementor for the City of Culver City. During the first two years of a three-year
implementation, Deloitte & Touche will help guide City staff in implementing all of the
software modules except the Utility Module, which will be installed in the third year with J.D.
Edwards as the implementor. Phase 1 and Phase iI consulting services provided by Deloitte
& Touche for the implementation of J.D. Edwards Enterprise software are described in
Attachment 4 at a total cost of $1,934,834.18. Using a Big 5 consulting firm ensures that the
City will have the opportunity to incorporate "best business practices" in developing new
workflow choices.
Infosys Business Systems' services and agreement (Attachment 5) is for contract
programming/automation services required to maintain both the existing accounts payable,
accounts receivable and payroll programming and resources during the transition of these
programs to the J.D. Edwards software. Automation services are also required for the
maintenance of Building and Safety's current computerized inspection program and are
included in the contract. This contract covers the 3-year implementation period with a cap of
$240,000 per year.
Training — Success of an ERP project not only involves the implementation of new hardware
and software but, equally as important, the knowledge transfer of the new software's
operations and training of City staff in the effective use of the system. The proposed project
will provide significant training for the City staff implementing the software as well as training
for the entire citywide user group. Most training will be conducted at J.D. Edwards' Costa
Mesa site or at City Hall. User group training is also included in a Computer User Education
module available to each user at their desktop PC. This education module also provides a
framework for documenting procedures for all processes that the City implements as part of
the new ERP system. These training costs are included in the J.D. Edwards agreement.
ERP Business System Purchase B -4- 10/12199 5:08 PM
R• UEST FOR COUNCIL ACT
MEETING DATE: October 18, 1999
DEPARTMENT ID NUMBER: FD 99-010
Hardware — Hewlett-Packard hardware, which is the current City standard, will be acquired
for the client/servers and configured by Avnet Computer. Avnet will also serve as a technical
resource on hardware issues related to the project. Avnet's agreement (Attachment 6)
costing $415,288.11 provides for sufficient hardware and technical support to implement the
J.D. Edwards ERP business system software and connection to the City's existing network
and remote sites. The City's Microsoft Office software standard, which is also required as
part of the J.D. Edwards' ERP software implementation, will operate on this new hardware.
Staffing — The ERP business system software implementation is one of the most significant
and complex organizational tasks that the City has or will undertake. The challenge is both
complex and labor intensive. Over forty City staff members will be directly committed at
various points during the 3-year project. These forty plus staff members are equivalent to
upward of eleven full time City employees. Deloitte & Touche will be providing the equivalent
of five full time employees to the project as well. Part of the City's implementation costs
includes funding for new positions as well as backfilling positions required for the project.
Several positions within various City departments, with Administrative Services impacted the
most, will need to be backfilled during the ERP project implementation. Positions that require
75% — 100% commitment to the project are considered to be full time and will require direct
backfill. Duties of existing staff who are providing 25% - 50% of their time to the project will
either be absorbed within the department, or assigned to supplemental staff on a contract
basis or through temporary employment agencies.
Additional position requests, including a Database Manager, will be submitted for City
Council consideration in the near future. However, two positions require immediate full time
replacements to begin the project. The Project Manager position (100%), to be filled by
Colleen Keith, Department Analyst Senior from the Fire Department, and one Administrative
Secretary (100%) for the Administrative Services Department are positions that require
immediate replacement. Both of these positions will require staffing amendments to the FY
1999/2000 budget. After project implementation is complete, the additional positions will be
absorbed into the organization via attrition or will be eliminated.
TiminglCost— The three-year ERP implementation project will be divided into three, one-
year phases.
Phase I - will implement Financials (General Ledger, Accounts Payable, and
Accounts Receivable); Distribution (Procurement); Payroll; Human Resources;
Budget Module; Payroll Tax Calculator; and Cash Receipting. Cost - $4,555,101.
Timing/Cost (Cont.)
Phase 11— will implement Job Costing; Activity Based Costing; Fixed Assets; Invoice
and Work Order; Fleet and Property Management; Facility Management; Customer
Service Management; Business License; and Investment Management.
Cost - $1,459,630.
Phase Ili — will implement Utility Billing followed by the removal of the mainframe
computer. Cost - $1,000,800.
ERP Business System Purchase B .5- 10/12199 5M PM
*QUEST FOR COUNCIL ACAN
MEETING DATE: October 18, 1999
DEPARTMENT ID NUMBER: FD 99-010
To protect the City, based on future funding availability, City Council could choose to delay
Phases II and III. All contracts/agreements have language provisions. allowing for such
cancellation. However, the full benefit of enterprise software improvements cannot be
achieved without implementing all of the software modules. Delaying Phase II and III would
add costs to the project and make mainframe hardware failure more probable.
Timing of the project is critical to a successful implementation. Fortunately, the City's two-
year budget provides for a first -year Phase I environment that produces the greatest staff
availability for a successful implementation. However, Phase 1 must be completed within FY
1999/2000 and requires that the project be approved and started immediately to meet this
time line. Failure to start immediately could jeopardize the entire project forcing a start time
delay until FY 2001/2002. Based on the unsupported mainframe, a two-year start delay
would stretch the project to five years and would compromise the operability of the current
financial systems.
Summary of Recommended Actions
Requested Action
Description
1.
Appropriation of funds to cover Phase
Funding Source:
I costs ($870,238)
• Equipment Replacement Fund
Ca ital Projects Fund
2.
Approve J.D. Edwards
Enterprise Software
Contract $1,236,976
Training, Service & Maintenance
3.
Approve Deloitte & Touche Contract
Consulting for Software Implementation
$1, 934, 834.18
4.
Approve Avnet Computer Agreement
Hardware and Technical Support
$415,288.11
5.
Approve Vertex Inc.
Payroll Tax Software
Agreement $12,765
6.
Approve Infosys Business Solutions
Programming Maintenance and Conversion
Contract $240,000
7.
Budget Amendment (Covered in
Add Positions:
Project Budget)
• One Department Analyst
One Administrative Secretary
8.
Authorize Fire Chief/Admin. Services
Authorization for supplemental agreements or
Director to enter into agreements
documents $50,000 limit within project Budget)
New Appropriation Criteria:
In March 1998, the City Council adopted three criteria to follow in requesting a new
appropriation: 1) It is an unanticipated emergency, 2) It is required to implement labor
negotiations, or 3) It is a new expense that is offset by related new revenues. This request
falls under Criteria 1, as the additional Phase I expense was unanticipated and must be
considered an emergency since we must begin the Phase I process by November 1, 1999 in
ERP Business System Purchase B -6- 10/12/99 5:08 PM
•QUEST FOR COUNCIL ACRON
MEETING DATE: October 18, 1999
DEPARTMENT ID NUMBER: FD 99-010
order to meet the other time lines set for Phases Il and ill. Failure to initiate this project may
result in the failure of our mainframe computer causing an economic crisis.
Finance Board Position:
Technology updates, including the ERP Business System software replacement, have been
presented to the Finance Board on numerous occasions. During the most recent
presentation, on September 15, 1999, the Finance Board strongly supported the need to
immediately purchase and implement the new ERP software.
Environmental Status: None
Attach ment(s):
City Clerk's
•..• Number No. Description
I Fiscal Impact Statement.
2 J.D. Edwards Software License, Service & Maintenance Agreement &
Insurance Certificates. = b 00. / 0
3 Vertex Inc. Software & License Agreement. VE Goo. r O
4 Professional Services Contract Between the City of Huntington Beach
and Deloitte & Touche, LLP for J.D. Edwards Enterprise Software
Application and Implementation & Insurance Certificates.
5 Professional Services Contract Between the City of Huntington Beach
and Infosys Business Solutions, LLC for Automation Services &
Insurance Certificates. /N boo. ,C
6 I Avnet Computer Conference Room Pilot implementation and
Confaurable Network Consultinq Aqreement &: Insurance Certificates.
Ay 600• /o
ERP Business System Purchase B .7- 10113199 10:08 AM
0
•�, CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, City Administrator
From: John Reekstin, Director of Administrative Services
Subject: FIS 2000-01 Business System Funding .
Date: October 4, 1999
As required by Resolution 4832, this Fiscal Impact Statement has been prepared for
"Business System Funding."
The table below shows this action's effect on the City's estimated fund balances and
working capital at September 30, 2000.
New Money Budgeted in 1999/2000
Bankruptcy Recovery Money
1998/99 Appropriations Authorized in 1999/2000 Budget
Additional Funding Requested
Total
Capital
Equipment
Projects
Replacement
Fund
Fund
Total
$ 2,250,000
$ -
2,250,000
66,338
511,623
597,961
1,517,162
-
1,517,162
-
272,277
272,277
$3,853,500
$783,900
$ 4,637,400
If the Council approves this action there will be no effect on the estimated Capital
Projects Fund Balance at September 30, 2000. The monies have either been previously
approved for the 1999/2000 budget or have not been committed (bankruptcy recovery
money).
Council has previously appropriated $2,250,000 in reserve General Fund revenue and
$1,517,162 in carry -forward capital projects revenue, from fiscal year 1998/99. This
action will appropriate the additional $870,238 needed to fully fund Phase 1 and. the
initial steps for Phase II for the ERP project.
If the Council approves this action, the estimated working capital of the Equipment
Replacement Fund at September 30, 2000 will be reduced to $1,406,000.
dlenj
J hn Reekstin,
Director of Administrative Services
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
DELOITTE AND TOUCHE, LLP
FOR JDED,WARDS ENTERPRISE SOFTWARE APPLICATION AND IMPLEMENTATION
THIS AGREEMENT is made and entered into this 18 th
day of October
1999, by and between the City of Huntington Beach, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and Deloitte & Touche, LLP, a limited liability
partnership, hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to engage the consulting and implementation services of
CONSULTANT in order to assist CITY with the implementation of JDEdwards Enterprise
Software Applications; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of the
Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service
contracts have been complied with; and
CONSULTANT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. WORK STATEMENT
CONSULTANT will be responsible for the scope and nature of the services and
the method and manner of CONSULTANT's performance of those services regarding Phase I
and 2 of CITY's implementation of JDEdwards Enterprise Software Applications as specifically
described in Exhibit "A" (Project Scope & Deliverables), which is attached hereto and
incorporated into this AGREEMENT by this reference. These services shall sometimes
hereinafter be referred to as the "PROJECT." In carrying out the PROJECT, CONSULTANT
shall provide to CITY JDEdwards Enterprise Software Applications trained personnel as
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•
described specifically in Exhibit "B" (Project Resources Spread Sheet), which is attached hereto
and incorporated into this AGREEMENT by this reference. CONSULTANT shall not have the
authority to act as an officer or director of CITY or to represent or obligate CITY in any manner.
CITY agrees to provide, at its own cost and expense, reasonable working space and materials
which may be necessary in connection with the performance by CONSULTANT of the services
required pursuant to this Agreement. It is understood and agreed that to the extent that
CONSULTANT's services may include advice and recommendations, all decisions in
connection with the implementation of such advice and recommendations shall be the
responsibility of, and made by, CITY.
3
CONSULTANT hereby designates Tim Province, who shall represent it and be its main
contact and agent in all consultations with CITY during the performance of this AGREEMENT.
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this AGREEMENT. CITY resources and level of effort required to meet
PROJECT timelines are specified in Exhibit "B." In addition, CITY shall cooperate with
CONSULTANT in the performance by CONSULTANT of its services hereunder, including,
without limitation, providing CONSULTANT with reasonable facilities and timely access to
data, information and personnel of CITY. CITY shall be responsible for the performance of its
employees and agents and for the accuracy and completeness of all data and information
provided to CONSULTANT for purposes of the performance by CONSULTANT of its services
hereunder.
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3. TIME OF PERFORMANCE
Time is of the essence of this AGREEMENT. The services of CONSULTANT
are to commence as soon as practicable after the execution of this AGREEMENT and all tasks
specified in Section 1 shall be completed no later than two (2) years from the date of this
AGREEMENT; provided, however, that this time period will be extended by delays outside of
CONSULTANT's reasonable control. A timely completion is of significant importance to
CONSULTANT, and CONSULTANT will notify CITY promptly in writing, -if CONSULTANT
believes there are delays that would jeopardize the targeted completion dates. These times may
be extended with the written permission of CITY. In addition, given the proximity to January 1,
2000 as well as the required involvement of CITY's team and others, CONSULTANT makes no
assurances that the scope of services for this AGREEMENT will be completed in a time frame
sufficient to avoid any Year 2000 problems.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY agrees
to pay CONSULTANT a fee, which includes all costs and expenses, not to exceed one million
nine hundred thirty-four thousand eight hundred thirty-four dollars ($1,934,834). Within thirty
(30) days after the execution of the AGREEMENT, CITY will provide to CONSULTANT a
retainer of fifty thousand dollars ($50,000). Thereafter, CONSULTANT will bill CITY its fees
monthly at eighty thousand six hundred eighteen dollars ($80,618) for twenty-three (23) months
and thirty thousand six hundred eighteen dollars ($30,618) for the final twenty-fourth (24)
month. Without limiting its rights or remedies, CONSULTANT shall have the right to halt or
terminate entirely its services until payment is received on past due invoices.
g:ljm f/99agree/De)oitre#3
•
•
5. PRIORITIES
In the event there are any conflicts or inconsistencies between this AGREEMENT
and CONSULTANT's proposal, the terms and provisions of the AGREEMENT shall govern.
6. EXTRA WORK
In the event CITY requests additional services not included in Section 1 or
changes in the scope of services described in Section l,and CONSULTANT agrees in writing to
perform such services, CONSULTANT will undertake such work only after receiving written
authorization from CITY. Additional compensation for such extra work shall be allowed only if
the prior written approval of CITY is obtained.
7. METHOD OF PAYMENT
A. CONSULTANT shall be entitled to monthly payments towards the total
fee set forth herein in accordance with the payment schedule set forth in Section 4.
B. Delivery of work product: A copy of every weekly progress report and'all
deliverables set forth in this AGREEMENT shall be submitted to CITY to demonstrate progress.
toward completion of tasks. In the event CITY rejects or has comments on any such product,
CITY shall identify specific requirements for satisfactory completion. Any such product which
has not been formally accepted or rejected by CITY shall be deemed accepted.
C. CONSULTANT shall submit to CITY an invoice for each monthly
payment due. Such invoice shall:
1) Reference this AGREEMENT;
2) Describe the services performed;
3) Show the total amount of the payment due;
g:/jmf/99agree/DeEoitte#3 4
4) Include a certification by a principal member of CONSULTANT's
firm that the work has been performed in accordance with the
provisions of this AGREEMENT; and
5) For all payments include an estimate of the percentage of work
completed.
Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is
making satisfactory progress toward completion of tasks in accordance with this AGREEMENT,
CITY shall promptly approve the invoice, in which event payment shall be made within thirty
(30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld.
If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the
reasons for non -approval within seven (7) calendar days of receipt of the invoice, and the
schedule of performance set forth in Section I shall -be suspended until the parties agree that past
performance by CONSULTANT is in, or has been brought into compliance, or.until this
AGREEMENT is terminated as provided herein.
D. Any billings for extra work or additional services authorized by CITY
shall be invoiced separately to CITY. Such invoice shall contain all of the information required
above, and in addition shall list the hours expended and hourly rate charged for such time. Such
invoices shall be approved by CITY if the work performed is in accordance with the extra work
or additional services requested, and if CITY is satisfied that the statement of hours worked and
costs incurred is accurate. Such approval shall not be unreasonably withheld.. Any dispute
between the parties concerning payment of such an invoice shall be treated as separate and apart
from the ongoing performance of the remainder of this AGREEMENT.
g:/j m f/99agree/Deloitte#3
r1
LJ
•
8. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS
CONSULTANT agrees that all weekly progress reports and all deliverables set
forth in this AGREEMENT, shall be turned over to CITY upon termination of this
AGREEMENT or upon PROJECT completion, whichever shall occur first. In the event this
AGREEMENT is terminated, said materials may be used by CITY in the completion of the
PROJECT or as it otherwise sees fit. Title to said -materials shall pass to CITY upon payment of
fees determined to be earned by CONSULTANT to the point of termination or completion of the
PROJECT, whichever is applicable.
9. HOLD HARMLESS
CONSULTANT shall protect, defend, indemnify and save and hold harmless
CITY, its officers, officials, and employees, and agents from and against any and all liability, loss,
damage, expenses, costs (including without limitation, costs and fees of litigation of every nature)
arising out of or in connection with CONSULTANT's performance of this AGREEMENT or its
failure to comply with any of its obligations contained in this AGREEMENT by CONSULTANT,
its officers, agents or employees except such loss or damage which was caused by the sole
negligence or willful misconduct of CITY. CONSULTANT's liability under this Section 9 is
capped at a maximum of six millions dollars ($6,000,000).
10. - WORKERS' COMPENSATION INSURANCE
Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges
awareness of Section 3700 et seq. of said Code, which requires every employer to be insured
against liability for workers' compensation; CONSULTANT covenants that it will comply with
such provisions prior to commencing performance of the work hereunder.
g:/jmf/99agree/De1oiUe#3 6
CONSULTANT shall maintain workers' compensation insurance in an amount
not less than the State statutory requirements.
CONSULTANT shall require all subcontractors to provide such workers'
compensation insurance for all of the subcontractors' employees. CONSULTANT shall furnish
to CITY a certificate of waiver of subrogation under the terms of the workers' compensation
insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation.
11. GENERAL LIABILITY INSURANCE
In addition to the workers' compensation insurance and CONSULTANT's
covenant to indemnify CITY, CONSULTANT shall obtain, a policy of commercial general
public liability insurance, including motor vehicle coverage covering the PROJECT. Said policy
shall provide coverage in not less than the following amount: combined single limit bodily
injury and property damage, including products/completed operations liability and blanket
contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which
includes a designated general aggregate limit, the aggregate limit must be no less than
$1,000,000 for this PROJECT. Said policy shall include CITY, its agents, its officers,
employees and volunteers as Additional Insureds, and shall specifically provide that any other
insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage
and that CONSULTANT's insurance shall be primary.
Under no circumstances shall the above -mentioned insurance contain a self -
insured retention, or a "deductible" or any other similar form of limitation on the required
coverage.
g:/jm fl99agree/Deloitte#3
12. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall obtain a professional liability insurance policy covering the
work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's
professional liability in an amount not less than $1,000,000 per occurrence and in the aggregate.
A claims -made policy shall be acceptable if the policy further provides that:
A. The policy retroactive date coincides with or precedes the
CONSULTANT's start of work (including subsequent policies purchased
as renewals or replacements).
B. CONSULTANT will make every effort to maintain similar insurance
during the required extended period of coverage following project
completion, including the requirement of adding all additional insureds.
C. If insurance is terminated for any reason, CONSULTANT agrees to
purchase an extended reporting provision of at least two (2) years to report
claims arising from work performed in connection with this
AGREEMENT.
D. The reporting of circumstances or incidents that might give rise to future
claims.
13. CERTIFICATES OF INSURANCE
Prior to commencing performance of the work hereunder, CONSULTANT shall
furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverages as required by this AGREEMENT; said certificates shall:
A. provide the name and policy number of each carrier and policy;
B. shall state that the policy is currently in force; and
g:/jmf/99agree/De1oitte#3 8
r-i
�J
E
C. shall promise that such policies shall not be suspended, voided or canceled
by either party, reduced in coverage or in limits except after thirty (30)
days prior written notice; however, ten (10) days prior written notice in the
event of cancellation for nonpayment of premium.
CONSULTANT shall maintain the foregoing insurance coverages in force until
the work under this AGREEMENT is fully completed and accepted by CITY.
The requirement for carrying the foregoing insurance coverages shall not derogate
from the provisions for indemnification of CITY by CONSULTANT under the AGREEMENT.
CITY or its representative shall at all times have the right to demand the original or a copy of all
said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the
premiums on all insurance hereinabove required.
14. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in the performance of this
AGREEMENT as an independent contractor. CONSULTANT shall secure at its expense, and
be responsible for any and all payment of all taxes, social security, state disability insurance
compensation, unemployment compensation and other payroll deductions for CONSULTANT
and its officers, agents and employees and all business licenses, if any, in connection with the
services to be performed hereunder.
15. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike
manner. CITY may terminate CONSULTANT's services hereunder at any time with or without
cause, and whether or not PROJECT is fully complete, by giving written notice to
CONSULTANT not less than thirty (30) days before the effective date of termination. If CITY
g:/j m f/99agree/Delo itte#3
exercises its option to terminate this AGREEMENT, CITY will not be responsible for payment
of fees or costs incurred by CONSULTANT after CONSULTANT's receipt of the notice of
termination, and, in any event, the total amount owed to CONSULTANT shall not exceed that
month's payment. Any termination of this AGREEMENT by CITY shall be made in writing,
notice of which shall be delivered to CONSULTANT as provided herein.
16. ASSIGNMENT AND SUBCONTRACTING
This AGREEMENT is a personal service contract and the supervisory work
hereunder shall not be delegated by CONSULTANT to any other person or entity without the
prior written consent of CITY. If CONSULTANT desires to use. subcontractors to provide
specific services requested by CITY that fall within the scope of this AGREEMENT, these
subcontractors shall submit, through CONSULTANT, a billing rate schedule and proof of
insurance as required by this AGREEMENT. CITY maintains the sole and exclusive right to
review and approve, or decline, the use of any subcontractor.
17. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this AGREEMENT, except as provided as follows:
A. CONSULTANT Technology. CONSULTANT has created, acquired or
otherwise has rights in, and may, in connection with the performance of services hereunder,
employ, provide, modify, create, acquire or otherwise obtain rights in, various concepts, ideas,
methods, methodologies, procedures, processes, know-how, and techniques; (including, without
limitation, models; templates; the generalized features of the. structure, sequence and
organization of software; use interfaces and screen designs; general purpose consulting and
g:/jmf/99agree/De1oitte#3 10
software tools, utilities and routines; and logic, coherence and methods of operation of systems)
(collectively, "CONSULTANT Technology).
B. Ownership of Deliverables. Except as provided below, upon full and
final payment to CONSULTANT hereunder, the tangible items specified as deliverables or work
product in the proposal, engagement letter or contract to which these items are attached
("Deliverables") will become the property of CITY. To the extent that any CONSULTANT
Technology is contained in any of the Deliverables, CONSULTANT hereby grants CITY, upon
full and final payment to CONSULTANT hereunder, a royalty -free, fully paid -up, worldwide,
non-exclusive license to use such CONSULTANT Technology in connection with the
Deliverables.
C. Ownership of CONSULTANT Property. To the extent that
CONSULTANT utilizes any of its property (including, without limitation, the CONSULTANT
Technology or any hardware or software of CONSULTANT) in connection with the
performance of services hereunder, such property shall remain the property of CONSULTANT
and, except for the license expressly granted in subsection B above, CITY shall acquire no right
or interest in such property. Notwithstanding anything herein to the contrary, the parties
acknowledge and agree that (a) CONSULTANT will own all right, title, and interest, including
without limitation, all rights under all copyright, patent and other intellectual property laws, in
and to the CONSULTANT Technology and (b) CONSULTANT may employ, modify, disclose,
and otherwise exploit the CONSULTANT Technology (including, without limitation, providing
services or creating programming or materials for other clients). CONSULTANT does not agree
to any terms that may be construed as precluding or limiting in any way its right to (a) provide
consulting or other services of any kind or nature whatsoever to any person or entity as
g:/jmf/99agree/De1oitte#3 1 I
CONSULTANT in its sole discretion deems appropriate or (b) develop for itself, or for others,
materials that are competitive with those produced as a result of the services provided hereunder,
irrespective of their similarity to the Deliverables.
18. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY employee
in the work performed pursuant to -this AGREEMENT. No officer or employee of CITY shall
have any financial interest in this AGREEMENT in violation of the applicable provisions of the
California Government Code.,
19. NOTICES
Any notice or special instructions required to be given in writing under this
AGREEMENT shall be given either by personal delivery to the office of CONSULTANT's agent
(as designated in Section 1 hereinabove) or to office of CITY's Fire Chief as the situation shall
warrant, or by enclosing the same in a sealed envelope, and delivering by overnight carrier,or by
United States certified mail, return receipt requested, addressed as follows, and shall be effective
upon receipt:
TO CITY:
Michael Dolder
Fire Chief
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
20. IMMIGRATION
TO CONSULTANT:
Tim Province, Partner
Deloitte & Touche, LLP
695 Town Center Drive
Costa Mesa, CA 92626
CONSULTANT shall be responsible for full compliance with the immigration
and naturalization laws of the United States'and shall, in particular, comply with the provisions
of the United States Code regarding employment verification.
g:/jmf/99agree/De1oitte#3 12
21. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside
the scope of services contemplated hereunder. CONSULTANT understands that pursuant to
Huntington Beach City Charter. Section 309, the City Attorney is the exclusive legal counsel for
CITY; and CITY shall not be liable for payment of any legal services expenses incurred by
CONSULTANT.
22. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and provisions of
this AGREEMENT or to secure the performance hereof, each party shall bear its own attorney's
fees.
23. FORCE MAJEURE
CONSULTANT shall not be liable for any delays resulting from circumstances or
causes beyond its reasonable control, including, without limitation, fire or other casualty, act of
God, strike or labor dispute, war or other violence, or any law, order or requirement of any
governmental agency or authority.
24. GOVERNING LAW AND SEVERABILITY
The construction and interpretation of this AGREEMENT shall be governed by,
and construed in accordance with, the laws of the State of California (without giving effect to the
choice of law principles thereof). If any provision of these terms is found by a court of
competent jurisdiction to be unenforceable, such provision shall not affect the other provisions,
but such unenforceable provisions shall be deemed modified to the extent necessary to render it
enforceable, preserving to the fullest extent permissible the intent of the parties set forth herein.
g:/jmf/99agree/De1oine#3 13
25. ENTIRETY
The foregoing, and Exhibits "A" and "B" attached hereto, set forth the entire
AGREEMENT between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be
executed by and through their authorized offices the day, month and year first above written.
DELOITTE & TOUCHE, LLP, a limited
liability partnership
By:
_..—_ print
ITS: (circle one General Partne anaging
Partner
REVIEWED AND APPROVED:
Ci dministrator
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
Mayor
ATTEST:
City -Clerk to _, y _
APPROVED) AS TO FORM:
'WC ity Attorney op 10/:71�
INITIATED AND APPROVED:
Y&qaL21
Ij
Fire Chief
g:/jmf/99agree/De1oitte#3 14
•
•
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
DELOITTE AND TOUCHE, LLP
FOR .1DEDWARDS ENTERPRISE SOFTWARE APPLICATION AND IMPLEMENTATION
Table of Contents
1
Work Statement.....................................................................................................1
2
City Staff Assistance................................................................................................2
3
Time of Performance...............................................................................................3
4
Compensation..........................................................................................................3
5
Priorities.......................................................................................4
6
Extra Work...............................................................................................................4
7
Method of Payment..................................................................................................4
8
Disposition of Plans, Estimates and Other Documents...........................................6
9
Hold Harmless.........................................................................................................6
10
Workers' Compensation Insurance..........................................................................6
11
General Liability Insurance............................................................. .....................7
12
Professional Liability Insurance..............................................................................8
13
Certificates of Insurance..........................................................................................8
14
Independent Contractor............................................................................................9
15
Termination of Agreement.......................................................................................9
16
Assignment and Subcontracting..............................................................................10
17
Copyrights/Patents...................................................................................................10
18
City Employees and Officials..................................................................................12
19
Notices.....................................................................................................................12
20 Immigration..............................................................................................................12
21 Legal Services Subcontracting Prohibited...............................................................13
22 Attorney's Fees.........................................................................................................13
23 Force Majeure..........................................................................................................13
24 Governing Law and Severability..........................................................13
25 Entirety......................................................................................:14
EXHIBIT A
Exhibit A — Scope of Services & Deliverables
Application Suites (Modules)
scope
Out, of Scope `
•
Foundation
•
Foundation
Address book
Development tool set
Data dictionary
Documentation system
Report Writing i
EDI
Security Officer
Menu manager
•
Financial suite
Financial suite
General ledger
Cash basis accounting
Accounts receivable
Time accounting
Accounts payable
Multi -currency processing
Financial Modeling and
Budgeting
Fixed assets Phase 2
•
Logistics/Distribution
Log isticsldistribution suite
suite
Bulk stock management
Procurement
Service Orders
Inventory (Phase 2)
Work Order Management
(Phase 2)*
Activity Based Costing
Phase 2
•
Human Resources
I •
•
Payroll
i •
•
Job Costing Phase 2)*
•
•
Fleet Management
Prase 2
•
Property Management
•
Phase 2
•
Customer Service
•
Management Phase 2
•
Facility Management
•
(Phase2)**
•
Utility Billing (Phase 3) �
* Applications used for grant management solution
*" D&T will provide project oversight only
Implementation Approach
Standard
Solutions Express Standard Path is characterized by:
• Improvement 1 redesign of key business processes
• Some change leadership facilitation
• Some end user training 1 knowledge transfer
Assumptions:
Business Process Improvements to be implemented under Intensive:
1) Procure to Pay
2) Budgeting
3) Timekeeping 1 Payroll
ee Facilitation of Data Conversion and Interfaces: D&T will aid the City of Huntington
Beach in the scoping, visioning, and design of data conversion and interfaces.
Testing and execution of data conversion and interfaces will be performed by City
resources. Data conversion items to be performed are:
1) Actual GIL balances for 2 years (98/99)
2) Budget GIL balances for 2 years (98/99)
3) Active Customers for the last 2 years
4) Active Vendors for the last 2 years
Interfaces to be performed are:
1) Cash Receipts
2) Timekeeping
3) Check printing
Phase 1 Key Key Tasks
Activities
Standard
Scoping (Define
Project)
Confirm project scope,
deliverables, approach and
1
•
workplan
Establish core team and
•
Steering_Committee
Confirm roles and
participation requirements
of Steering Committee,
external project team and
WDS resources
Finalize project
management procedures
Develop detailed project
Training Plans
Maintain Project Plan and
Communication Plan
Maintain Project Files and
Communication
Develop deliverable sign -
off procedures
Identify risks and
contingencies
Define CNC workplan
Confirm deployment and j
replication of hardware and j
software ,
Finalize change
management strategy
Maintain Risk & +
Contingency Tracking
Maintain Project Issues & I f
Project Change
= Lead Deloitte & Touche
C= Joint Task
0 = Lead Huntington Beach
Mana ement
Confirm overall data i
conversion approach
Develop a Data
Conversion Plan
+ Identify & Confirm Overall
Data Conversion Tools
Define Key Business
+
Process Im rovements2 '
Confirm overall interface
approach
Develop an Interface Plan
Understand technology
infrastructure
Develop End User Training and
Performance Support Strategy
2 Key Business Process Improvements. All key process improvements identified below will be performed
under Intensive. Under Standard, 1)- 3) will be performed. 1`o business process improvements will be
done for Rapid.
1) Procure to Pay
2) Budgeting
3) TimekeepingiPayroll
4) New Employee Recruiting
5) HR Benefit Administration
b) A/R Billing
Visioning and
Key Tasks
Standard
Targeting
Definition
■ Execute Team
Complete training of all
Manager 1 Lead
Team Managers and +
Training
Leads prior to Visioning
Sessions
■ Conduct Process Identify Critical To -Be Processes
Modeling usin SolutionsPrints I
Define Level 3 To -Be Process
model(using SolutionsPrints
Identify key information
requirements
■ Define Data &
Application
Define application
C
requirements
Requirements
Develop To -Be data I
conversion approach I
Develop To -Be integration
approach and
requirements
Conduct vision/application
gap analysis
Identify significant process
improvements which can +
be rolled out prior to JDE f
go -live
• Define Control
Define system security and
Requirements
audit controls
Define system reliability
and continuity controls
• Define Technical
Confirm technical
07
Requirements
integration requirements
Define technical
development standards
Study input files and export O i
targets, data_mapping
Define integration points
0
for third -party modules and
standalone modules
Design Key Tasks
Standard
■ Define post -
implementation
sign -off criteria
■ Prepare for
i Install Conference Room
Conference Room
. Pilot environment
Pilot CRP
Develop test scripts
• Perform CRP
Configure package to the
extent required to conduct
CRP
Perform test scenarios
described in the CRP
scripts
Document CRP results
Check actual results
against expected results
Document and resolve any
discre ancies
Refine system
configuration and re -
perform tests
Identify and resolve issues I
arisinq from CRP
■ Develop Review "To -Be" Business
Configuration I Process Model and
I
Documentation I completed CRP Scripts
3 Test scripts will be the basis of our CRP sign -off. Test scripts to be developed for each type of
implementation are:
1) Intensive & Standard: Scripts include designed process improvements
2) Rapid: Standard D&T test scripts for a Rapid implementation will be utilized.
Prepare a consolidated
configuration document
I I
which includes:
- Option and parameters
that must be selected I i
- How each user I
i requirement will be i
supported j
- How each user i
transaction will be
supported i
- The scope and function
of custom development
efforts
- All data conversion
processes
- Analysis of organization
impacts and
implementation
considerations
- Design of all output,
input, interfaces, on-line
help, security, control
requirements
Obtain formal sign -off from the
Project Steering Committee
before commencingnext phase
Data mapping of input and
target ME files
i
Install and configure
j
deployment and enterprise
f
server
■ Design Conversion
a
Programs
■ Design Interface
5
Programs
Data Conversion to be included in each implementation are:
Intensive: G/L balances for 98i99 year, active customers for the last 2 years, active vendors for the
last 2 years, open invoices and PO's at year-end 2000
Standard: G L balances for 98199 year, active customers for the last 2 years, active vendors for the
last 2 years
5 Interfaces to be included in each implementation are:
Intensive: Cash Receipts, Timekeeping, Check printing, Invoice printings, PERS, and 1 user defined.
Standard: Cash Receipts, Timekeeping, and Check printing.
Construction
Key Tasks Standard
■ Execute Core Complete training of all I i
Team Training I
Core Team Members prior
to CRP
■ Configure I Install CRP environment
Applications CNC task
Configure applications
- Copy best available
"base" configuration
into JDE
- Set up the options,
parameters and tables
- Set up or modify inquiry
screens and reports
• Implement
Provide for necessary audit
Assurance
trails and archiving
O
Controls and
Procedures
Design and implement
O
user -group rivile es
Install the defined
O
procedures and controls for
data integrity
Develop data resource
gatekeeper/custodians'
Q
roles and res onsibilities
Develop general
information resource
Q
management procedures
! and controls
Refine system
O
configuration and re -
perform test
■ Test Configured
I Review and revise test
i
Application
I scripts
Identify the business
requirements to be tested
Prepare sample data and
ex ected results
Develop procedures for
recording test results and
logging and resolving
6 Configure applications for each type of implementation are defined as follows:
Intensive & Standard: D&T role will be primarily supervisory while City employee keystrokes at a
workstation
Rapid: D&T role will be to key in the configuration set-up. While City employees are
not guaranteed knowledge transfer
issues
Allocate scripts to
members of the testing
team
Prepare and load data in
accordance with identified
requirements
Perform test scenarios
C
described in the
1
configuration test scripts
Document test results
Resolve issues and re -
perform tests as
appropriate
Document any changes to
the system configuration
■ Develop Data
Program coding for
Conversion
3
conversions
Program S
■ Develop
Application
Program coding for
1
interfaces
Interfaces a
j
Implementation
(resting and
Key Tasks
Standard
Delivery)
a Conduct
Install Environment with
Integration &
final setup
41
Acceptance
Testing
Develop Integration Test Scripts
4C
Develop Acceptance Test
41
Scripts
Perform Integration Testing
Perform Acceptance
Testing
Perform Tuning/CNC
■ Convert Data
Convert data in
accordance with the
agreed approach
Populate the system with
any new data elements
Carry out conversion
validation procedures
Document the validation
O
process
Ensure data integrity
O
between legacy and new
s stems
Obtain acceptance that
O
data has been successfully
converted
■ Develop Cut -Over
Identify and assemble cut -
Plan
over team
Review package and
technical support
requirements I
Assign roles and
responsibilities
j Identify required forms and
statione
Develop cut -over checklist
j Define issue resolution i
process
Review and refine the risk
0
assessment and I
•
0
contin ncy plans
Define operational policies
41
and interim procedures
Assemble and publish cut -
over plan
• Complete
Create Design books and
Production Setup
layout program
s ecifications
Obtain Go -Live Signoff
• Conduct Rollout
Install production
environment I
Initiate and monitor
o erations
Assist users in operation of
I
package and redesigned
business processes +
Resolve problems and
stabilize operations
Develop a backup strategy
•
•
Post Implementation
Assessment,
Support, and
Key Tasks
Standard
Knowledge Transfer
■ Post Go -Live Backup plan assessment
Assessment
Post go -live CNC
assessment
System application security
O
and controls assessment
System hardware
O
administration strategy
assessment
■ Post Go -Live Application post go -live I0 1
Support + support and knowledge
transfer
Phase / Key
Activities
Deliverables I Standard
I I
Phase 9- Scoping
and Planning
Project Charter
Project Work tan
Project Roles Definition
and Participant
Commitment
✓
Project Management
Standards and Reporting
Procedures
✓
! Risks and Contingencies I ✓
Document
Communication Plan
Training Strategy
Technical Architecture Plan/
CNC
✓
Data Conversion Strategy and
Work Ian
Systems Integration/ Interface
Strategy and Work Ian
✓ +
Scope Statement
I
Change Control Process
Process Budget I
Phase 2-
Visioning and
Targeting
Definition
Update Scope Statement
Revised Project Budget
Change Requests
Revised Project Plan
Status Reports
Workplan Updates
To -Be Business Model
Application Requirements
+ Data and System Control ✓ �,j
Requirements
Technology Requirements
Integration Requirements
I �
Phase 3- 1 Training Schedule I
Redesign
✓
CRP Environment
CRP Scripts
Configured CRP Applications
Consolidated Configuration
Design Document
✓
Phase-4
Construction
Completed CRP Scripts
✓
Logged Results, Issues, and
Agreed Resolutions
✓
Updated Package Configuration
Documentation
1
Configured Package
Installed Configuration
Environment
!
Interface Development
1 I
Data Conversion
1 I
Phase 5- Testing
and DeliveryResults
Integration & Acceptance Test
✓
Installed Testing Environment
Integration Test Scripts I
Completed Acceptance Test 1
Scripts
Logged Results, Issues, and
Agreed Resolutions 1 ✓
Client Acceptance of System
Converted Data
Developed and Tested Data ✓ { 1
Conversion Programs
Trained Client Staff +
Final Documentation for
Applications and Technical I ✓
Environment
Final Documentation of
j Procedures and Controls
✓ (1)
Live System
Implemented Interfaces and
Modifications
✓ �� )
Training Materials
Roll -Out Cut -Over Plan
Log of Problems & Resolutions
(1) Limited in Scope
•
•
EXHIBIT B
Exhibit B - Project Resources Spread Sheet
(Standard Implementation Approach)
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P�
INSURANCE
•
•
AON
October 1, 1999
BY COURIER / FACSIMILE
CONFIDENTIAL
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attention: Chief Michael Dolder
Dear Sir:
PROFESSIONAL INDEMNITY INSURANCE
RE: VERIFICATION OF INSURANCE
City of Huntington Beach
Aon Global Professional Services
In accordance with instructions received, we have pleasure in enclosing the Verification as
requested.
We trust you will find the enclosed to be in order.
Yours sincerely,
1 _ '
Gail Inniss
Senior Account Representative
Enclosure
cc: Suzette Curtin,
Deloitte & Touche LLP - Wilton, Connecticut
cc: Carl R. Kikerpill,
Deloitte & Touche LLP — Costa Mesa, California
F:'%D]T-.CORK`-.VOFT-.99-00voi ,99-OOdtv i4D.doc. l
Alinet In,%
1801 McGil! College Ave. • Suire -00 • Montreal, Que., Canada H3A 2N4 • tel: (514) 288-22 3 • tax: (514j 982-5175
AONAon Global Professional Services
VERIFICATION OF INSURANCE
We, the undersigned Insurance Brokers, hereby verify that ZC Specialty Insurance Company
has issued the following described insurance which is in force as of the date hereof: -
PROFESSIONAL INDEMNITY INSURANCE
NAME OF ASSURED: DELOITTE & TOUCHE LLP (U.S.A.) and others as more
fully described in the Policy.
POLICY NO.
ZS 97MIN-P100002
LIMIT:
CANCELLATION:
INSURER
ZC Specialty Insurance Company
US$1,000,000 (an annual aggregate)
PERIOD
12:01 a.m. June 1 st, 1999
to
12:01 a.m. June 1st, 2000
This policy is non -cancellable during the period shown.
SUBJECT TO THE TERMS, CONDITIONS, EXCLUSIONS AND LIMITATIONS OF THE
POLICY.
This document is furnished as a matter of information only. The issuance of this document
does not make the person or organization to whom it is issued an additional Assured, nor does
it modify in any manner the contract of insurance between the Assured and the Insurer. Any
amendment, change or extension of such contract can only be effected by specific endorsement
attached thereto. i;° -i-" ED A6 TO F-vR14:
GAIL, :IUT"i':.'i , City Attorney
By:: D.I Cit-y Attorney
ISSUED TO: City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
ISSUED AT: Montreal, Quebec Per V�
DATE: October 1, 1999 Divisional
Director
1801 McGill College Ave.. Suire 700 • _'lfonrreal, Que.. Canada E13A 2N • tel: i51-0 288-22-3 -tax: (514) 982-51. 5
E:➢TT':CORK..VOFP:99-00voi 99-00divid0.doc
OCT-05-1999 15:33
ACORD CERTIM., A- 0 C7�f :: L�At3tL
PRODUCER Serial # 607206
Aon Rj$k Services Inc Of NY
Two World Trade Center
New York, NY 1 OW
212-" 1-1000
INSURED
DELOITTE & TOUCHE USA LLP
TEN WESTPORT ROAD
WILTON, CT 06897-0820
P.02/03
E f`i"�`��1� U \iiG• 09/28/99
ONLY AND CONFERS NO RIGHT$ UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW-
cornPaNir
TRANSPORTATION INSURANCE CO
A
— COMPANY
CONTINENTAL CASUALTY CO. -
E
COprpwNY
TRANSCONTINENTAL INS. CO.
C
COMPANY
Q
`OVERAGES
THIS iS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO TkE INSURED NAMED ABOVE FOR THE POLICY PERIOD �
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS.
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I
............. ---
CO POLICY EFFECTIVE POLICY EXPIRATION' I
LTR
TYPE OF INSURANCE POLICY NUMBER DATE (MMJDWM DAYE (MIIpODIYY) LAUTS
GENERAL. LIABILITY
GENERAL AGGREGATE
S l.UVV,UUU
A X CCMMERCIALGENERAL LWBILITr GL189168152
6101/99 G101/00 PRODUCT$.COMPlOPAGG
i — 2,06D.066 j
CLJtiIM&IAAOE iC- OCCUR
PERSONALS wvINJURY
5 1,OQD,000
A X CWNER'S &CONTRACTOR'S PROT
EACHOCCU--RRENCE---
—
S 1,000,000 ,
FIRE DAMAGP (Arty one fife)
-S 1.00Q,a00 '
MED EXP (Any ww Perw)
i
r+V r Vmaav,rG yMq�r r r
B ' x ANY AUTO
ALL OWNED AUTOS
SCHEOULEDAUTOS
HIRED AUTOS
MON•OWNED AUTOS
BUA189158183 6101199 6101100
COMBINED SINGLE LIMIT S 1,000.000
_
BUA189158202 TX 6101199 6101100 P-aerslmlUpY� s 1
: EODILY INAIRY� 5 -
PHYSICAL DAMAGE (PerepGiden)
$5W (COMMOLL) DIEDU ; PROPERTY DAMAGE
GARAGE LIABILITY
APPROVED A6 i Ur ter ' ;AUTO ONLY - EA ACCIDENT S
--- ANY AUTO
GAIL HUTTON r City Attorney OTHER THAN AUT 0 ONLY: M
City Attorney
By.;} Dep tY EACHACCIDENT S
- --
--". AGGREGATE S --�---..
EXCESS LUlBIuTY
EACH OCCURRENCE S
UMBRELLA FORM
1
10/�AGGREGATE S
rr
OTHER TWAN UMBRELLA FORM
- -— ---`---�.
S
wORKEITS COMPENSATION AND
X rp{My, IMITS Ere
(�+ EMPLOYERS, LIABILITY
WC1891558185
6/01M 6101100 EL EACH ACCIDENT - — ' 3 1,QD0,000
"411 u INCL
EL DISEASE • POLICY LIMIT 5 1,000,000
OFMCEas #,RE: X Exc4
EL D18EA$E -EA EMPLOvEE 5 1,ODO,000
OTHER
The City of Hunti.n3ton
Beach, its
officers and employees are included as additional insureds
as their interests may
appear.
in 'r WN • :7.z�';•,:� .f;,sr• ,:krq .:ti • :r..
�.,c:::.ti4- .- .�a...:wc... .. a. .�I�i...'+a'ti `'_.
SHOULD ANY OF THE ABOVE DESCRffiED POLICIES EM CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE 15SUINO COMPANY 93MMINUM TO MALL
City of'Huntington Beach
30 DAYS wR17TEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
r
38163200
ACOW25-S JI ) :.TIM
.. V,..
.°
OCT-05-1999 15:33
•
•
P.03/03
POLICY NUMBER: GL 1 89158152 COMMERCIAL GENERAL LIABILITY
ENDT. NO. 12
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTRACTORS (FORM B)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
Name of Person or Organization:
ANY PERSON OR ORGANIZATION FOR WHOM YOU ARE OBLIGATED TO PROVIDE
GENERAL LIABILITY INStMANCE- BY A WRITTEN CONTRACT OR AGREEMENT.
(If no entry appears above. information recuired to compiete mis encorsernent vili oe shown in the Declar t:onf
as applicable to th s endorsement
WHO IS AN INSURED (Section II) s amended to include as an insured the persc^ cr orgarizat on si o..%- :-. -ne
Schedule. but only with respect to liability arising out of "your work'' for that m5ured by or for you.
OUR LIMIT OF LIABILIT'Y.FOR THE.ADDITIONAL INSURED WILL NOT EXCEED THE
LIMITS OF LIABILITY OF THIS POLICY OR THE LIMITS OF LIABILITY REQUIRED
BY THE WRITTEN CONTRACT OR AGREEMENT, WHICHEVER IS LESS.
THE INCLUSION OF MORE THAN ONE INSURED IN THIS POLICY WILL NOT OPERATE
TO INCREASE OUR LIMIT OF LIABILITY.
CG 20 10 11 E=, ;,c;;y-rg;,.. in,surarce Ser'.:es O� _ .
TOTAL P.03