MANAGER S MEMO ITEM. $20, for 2006 T Total: $57, BUDGET AMOUNT: $55,000

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1 MANAGER S MEMO ITEM ITEM: Document Management System Implementation & Purchase of Additional OnBase Modules/Licenses WORKSHOP DATE: August 9, 2005 PREPARED BY: David Hankes, Internet Operations Administrator Liangfu Wu, Director of Information Services ACCOUNT: BID AMOUNT: $36, for 2005 $20, for 2006 T Total: $57, BUDGET AMOUNT: $55,000 PURPOSE: To provide a project update and seek approval for the purchase of additional components for the document management system PROJECT UPDATE Since Council approval of document management software system in June 2004, implementation has proceeded on schedule, and process improvements resulting in increased efficiency have already begun to take shape. The software was first deployed in the Human Resources Department, where the Personnel Action Request (PAR) process was identified as the first target for process improvement. PARs are forms heavily used in the Village for a range of personnel related matters from address changes to disciplinary action. The Human Resources Department receives between PARs a week, which typically require routing and approval by supervisors, directors, the Village Manager, the Finance Department and Human Resources. It was estimated that PARs required 5-7 days for complete routing. Expediting the process requires an employee to physically walk around to those individuals whose approval was required and present the form to them for signature. In June 2005, the traditional PAR process was replaced by E-PAR. All personnel related forms are processed by a predefined sequential workflow, therefore reducing the PAR process to one to two days. In addition, the process is now being executed without the need for hard copy printouts and does not require any individual to leave their desk. As discussed last year, document management technology can be used to serve up to four distinct purposes: 1) imaging, 2) document management, 2) content management and 4) process management. According to our research, most public agencies that implement this technology are somewhere between Stage 1 and Stage 2. The major advantage to the approach that the Village has selected is that our implementation process will touch upon all four of the purposes for which the software is intended. Continued application of this software will help to transform Village operations, overcome interdepartmental barriers that exist in most organizations, especially municipalities, and continue to result in greater efficiency, that ultimately will reflect positively on the Village s bottom line. The next target is the Village s plan review process which involves four departments: Fire (Fire Prevention), Public Works, Planning & Community Development, and Code Services. Our E-Permit system currently offers a tool that facilitates online permitting. However, the E-Permit program is not equipped to serve as a document management system that handles large maps and drawings. With OnBase, we will be able to establish a centralized review process with digitized maps and plans. Currently, there is an on-going project where the four departments and staff from IS are reviewing the existing permitting and plan review process, with the intent of establishing process improvements that allow the workflow to proceed more efficiently and predictably. The document management system will be vital in facilitating these process improvements. As the work continues, staff will provide 1

2 ongoing updates to the Village Council and the Chamber of Commerce, which has been playing an active role in assisting with these efforts. Gradually, the team charged with the implementation of the Document Management System is also planning to introduce the technology to other areas of Village operations. Implementation will soon involve imaging existing files, design of a new paperless filing system, and related process improvements. Regular updates to the Village Council will report on our progress. PURCHASE OF ADDITIONAL MODULES AND LICENSES Based on the purchase schedule presented to Council in 2004, staff has planned to acquire additional modules and licenses in These additional components have been budgeted for and are necessary to allow for the continued and expanded use of the system as planned. Budgetary Cost Estimate (Source: Report submitted to the Council on August 24, 2004) Components FY 04/05 FY05/06 FY06/07 FY07/08 FY08/09 Initial Purchase $102,000 A block of 10 user licenses $10,000 $12,000* WorkFlow modules $10,000 $10,000 $20,000** 5 Workflow user licenses $5,000 $5,000 Web server $10,000* App Enabler $13,500 Maint. Cost (18% of the Total) $20,000*** $26,500 $30,500 $35,500 Yearly Total: $55,000 $62,000 $55,500 $35,000 * The team estimates that a total of 30 user licenses are sufficient for the Village. For the current contract, the Village is offered a one-year price guarantee. Expected increase in prices after FY05/06 ** When the number of Workflow license reaches 5, it becomes an enterprise license. No more purchases are required. *** The maintenance cost usually is calculated based on 18% of the total cost As shown in the table above, the purchase of modules and user licenses extends over several years, and the timing of purchase is in line with the planned expansion of the technology. BUDGETARY IMPLICATIONS The budgeted amount of $55,000 was based on contract anniversary date. Our maintenance schedule is from Oct 1 Sept. 30 of the year. However, Hyland, the manufacturer of OnBase, is switching their maintenance term from a contract anniversary date system to a calendar schedule. As a result, the cost for renewing our existing maintenance agreement (for reminder of 2005) and purchasing additional modules is $36, In December, we will renew the maintenance agreement for the entire year of 2006 for the amount of $20,907. The current budget properly includes only one year (12 months), which extends through September of The cost for the last three months of 2006 ($5,242.50) will be recorded as prepaid and will be included in next year s budget and expensed in that year as well. ATTACHMENTS: Price Quote from Crowe (two pages) STAFF RECOMMENDATION: Staff recommends the purchase of additional modules, additional user licenses and renewal of the maintenance for the remainder of 2005 and the entire calendar year of Please note, this is a solesource purchase as an on-going project approved by the Council last year. 2

3 REQUESTED COURSE OF ACTION: That this item be placed on the on the Village Council s Consent Agenda for consideration on August 16,

4 Crowe Chizek and Company LLC Member Horwath International 70 West Madison Street Suite 700 Chicago, Illinois Tel Fax July 26, 2005 Mr. David R. Hankes Internet Operations Administrator Village of Downers Grove 801 Burlington Drive Downers Grove, IL Dear David: As you requested, I have summarized costs for (a) maintenance renewal for existing OnBase modules, (b) pricing for new OnBase modules, and (c) maintenance for new OnBase modules. As we discussed on the phone, it appears that Hyland is trying to synchronize its maintenance agreements to a calendar year. Accordingly, I have presented a couple of numbers related to maintenance. One would be to synchronize to the calendar year end, and the other represents the annual maintenance cost. I have also attached a summary of the new modules requested, with pricing and maintenance. Please note that the pricing reflects the price protection we wrote into the OnBase agreement last year for purchases within one year of your initial install. Also, please recall that maintenance is always based on list price. Here is a summary of the pricing. Item Maintenance Renewal for Existing Licenses Calendar year synchronization (10/1/ /31/2005) Annual maintenance 2006 (1/1/ /31/2006) Price $3, $14, New Licenses License Fee (see attachment 1) $31, Maintenance on New Licenses Calendar year synchronization (09/1/ /31/2005) Annual maintenance 2006 (1/1/ /31/2006) $2, $6, I am awaiting confirmation from Hyland that they will bill maintenance at the start of the year for the full year of 2006, and will also be asking them to prepare and send a letter outlining their new program for calendar year end so Dr. Wu can have this as part of his budget request. Also, if you find there are significant problems with this switch, let s discuss to see if creative payment timing might help. Let me confirm the Hyland maintenance process for sure, and this should be good to go. Please call me on my mobile at if you have any questions on this or the other software license issue we discussed this morning. Best regards, Kevin J. Ohl

5 Attachment 1 New Module Pricing Detail OnBase Server Modules "Protected" "Protected" Product Name Product Code List Price # Ordered Price Extended Price Price Extended Web Server WTIPW1 10, , , $9, $9, Sub-Total: 10, , $9, OnBase Client Modules "Protected" "Protected" Product Name Product Code List Price # Ordered Price Extended Price Price Extended Concurrent Client CTIPC1 1, , , $ $9, Sub-Total: 12, , $9, OnBase Workflow Modules "Protected" "Protected" Product Name Product Code List Price # Ordered Price Extended Price Price Extended Workflow Departmental Server WFIPD1 10, , , $8, $8, Workflow Concurrent Client WFIPC1 1, , , $ $4, Sub-Total: 15, , $12, Software Total: 37, , $31, OnBase Annual Maintenance Product Name Product Description Selection Price Extended Price Annual Maintenance MAINT1 6, , $6, Sub-Total: 6, , $6, Software + Maintenance Total: 43, , $37, Services + Software + Maintenance Total: 43, , $37,800.00

6 RESOLUTION NO. A RESOLUTION AUTHORIZING AN AMENDMENT TO A SOFTWARE MAINTENANCE AGREEMENT BETWEEN THE VILLAGE OF DOWNERS GROVE AND CROWE CHIZEK AND COMPANY, LLC as follows: BE IT RESOLVED by the Village Council of the Village of Downers Grove, DuPage County, Illinois, 1. That the form and substance of a certain Amendment to a Software Maintenance Agreement (the Agreement ), between the Village of Downers Grove (the Village ) and Crowe Chizek and Company, LLC ( Crowe Chizek ), for the maintenance of the OnBase document management system software, as set forth in the form of the Agreement submitted to this meeting with the recommendation of the Village Manager, is hereby approved. 2. That the Village Manager and Village Clerk are hereby respectively authorized and directed for and on behalf of the Village to execute, attest, seal and deliver the Agreement, substantially in the form approved in the foregoing paragraph of this Resolution, together with such changes as the Manager shall deem necessary. 3. That the proper officials, agents and employees of the Village are hereby authorized and directed to take such further action as they may deem necessary or appropriate to perform all obligations and commitments of the Village in accordance with the provisions of the Agreement. 4. That all resolutions or parts of resolutions in conflict with the provisions of this Resolution are hereby repealed. law. 5. That this Resolution shall be in full force and effect from and after its passage as provided by Passed: Attest: Village Clerk Mayor 1\wp8\res.05\Crowe-Chizek-softmaint-add

7 ADDENDUM TO A SOFTWARE MAINTENANCE AGREEMENT BETWEEN THE VILLAGE OF DOWNERS GROVE AND CROWE CHIZEK THIS ADDENDUM dated this day of, 2005, by and between the Village of Downers Grove, an Illinois municipal corporation (hereinafter referred to as Village ), and Crowe Chizek and Company, LLC (hereinafter referred to as Crowe Chizek ), in consideration of the following mutual covenants, terms and agreements, hereby agree to amend the Software Maintenance Agreement between the Village of Downers Grove and Crowe Chizek ( Agreement ), whose effective date was October 1, 2004, as follows: 1. That the effective date of the Agreement as stated in paragraph 8 (a) shall be extended through December 31, All terms and conditions of the October 1, 2004 Agreement and any other addendums thereto shall apply equally to this Addendum Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed as of the day and year first specified above. VILLAGE OF DOWNERS GROVE BY: CROWE CHIZEK BY: ATTEST: ATTEST: DATE: DATE: 1\wp8\agr,05\Crowe-Chizek-add