HomeMy WebLinkAboutResolutions - 2020.12.07 - 33954MISCELLANEOUS RESOLUTION #20632 December 7, 2020
BY: Commissioner Helaine Zack, Chairperson Finance and Infrastructure Committee
IN RE: MANAGEMENT AND BUDGET/HUMAN RESOURCES DEPARTMENT/COUNTY EXECUTIVE
— COMPLIANCE OFFICE — FINANCIAL AND HUMAN CAPITAL MANAGEMENT SYSTEM
REPLACEMENT PROJECT — IMPLEMENTATION EXTENSION
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Board of Commissioners authorized Miscellaneous Resolution (MR) #18252 in July
2018 to replace the County's PeopleSoft financial system and human capital management system
with the Workday product; and
WHEREAS MR #18252 authorized transfers totaling $13,780,841 during FY 2018 — FY 2020 for the
Workday project implementation; and
WHEREAS the Workday project was planned as a phased implementation with an aggressive two
(2) year timeline; and
WHEREAS Phase I of the implementation went live July 18, 2020 and consisted of Human
Resources, Time Tracking and Payroll; and
WHEREAS Phase II of the implementation is still underway and consists of the financial,
procurement and treasury applications; and
WHEREAS Phase III of the implementation recently kicked off and consists of Human Resources
Talent and Performance; and
WHEREAS project implementation delays occurred with Phase I of the project and have had a
downstream impact as many of the same resources are required for the multiple project phases; and
WHEREAS Enterprise Resource Planning (ERP) systems are notoriously time consuming, complex,
and difficult to implement under ideal circumstances; and
WHEREAS there are many factors that have contributed to the project implementation delays such
as resource demands, resource turnover, volume and complexity of numerous integrations, as well
as the impact of the COVID-19 pandemic; and
WHEREAS the COVID-19 pandemic has increased the workload of the departments responsible for
the Workday implementation in addition to the already significant Workday implementation workload
that was on top of day-to-day operations; and
WHEREAS Phase I go -live was delayed by approximately four (4) months and is still in the process
of working toward stabilization; and
WHEREAS Phase II was originally planned with a go -live date of October 2020; and
WHEREAS Phase II has been delayed due to resource demand overlap associated with Phase I, as
well as the adverse COVID-19 pandemic, and is working toward a go -live to be in alignment with the
County's fiscal year; and
WHEREAS Phase III implementation is underway with an expected go -live in early calendar year
2021; and
WHEREAS due to the delays of the project additional financial resources will be required to
complete the implementation and to cover the essential support costs of systems that will be
required until the Workday implementation is complete; and
WHEREAS additional costs necessary to complete the Workday implementation namely include
costs from the contracted implementer, Accenture (which acquired Sierra Cedar), Information
Technology employees and contractors, PeopleSoft financial system application support, solution for
point of sale replacement with integration to Workday, and archival solution for the PeopleSoft
legacy data; and
WHEREAS the estimated additional cost required to complete the Workday implementation project
is $5,200,000; and
WHEREAS funding is available from an assigned fund balance that is included in the FY 2020 Year
End Report resolution titled Improving Government Services (GL Account #386466); and
WHEREAS a portion of funding may be sought from Coronavirus Aid, Relief, and Economic Security
Act (CARES Act)'s Coronavirus Relief Fund (CRF) as the COVID-19 pandemic had a direct result on the
required effective and timely collaboration for this important project; and
WHEREAS the County has retained outside expert counsel in Pierce Monroe & Associates assisted by
Guidehouse (formerly PwC) to ensure compliance with the CARES Act and full utilization of federal
funding resources; and
WHEREAS any use of CRF dollars for the Workday project delays will be vetted through the above
referenced expert counsel and determination made as to the amount eligible.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes
an additional appropriation of $5,200,000 for Financial and Human Capital Management System
Replacement Project.
BE IT FURTHER RESOLVED that the $5,200,000 be transferred a General Fund Assigned Fund
Balance that is included with the FY 2020 Year End Report resolution titled Improving Government
Services (GL Account #386456) to the Financial and Human Capital Management Replacement
Project Fund #42100 Project #100000002816.
BE IT FURTHER RESOLVED that if any costs are deemed eligible for use from CRF funding that
the qualified amount be returned to the General Fund Assigned Fund Balance titled Improving
Government Services (GL Account #386456).
BE IT FURTHER RESOLVED that the FY 2021 budget is amended as follows:
GENERAL FUND 4101001 FY 2021
Revenue
9010101-196030-665882
Planned Use of Balance
$5,200,000
Total Revenue
$5,200,00
Expenditures
9010101-152130-788001-42100
Transfers Out -HR-Financial Syst Proj
$5,200,000
Total Expenditures
$5.200.000
HR — FINANCIAL SYSTEM REPLACEMENT PROJECT 4421001
FY 2021
Project Business Unit MAJOR, Project #100000002816
Activity ID GLB, Analysis Type GLB
Revenue
9016001-152130-695500-10100
Transfer In — General Fund
$5,200,000
Total Revenue
$5,200,000
Expenditures
9016001-152130-731458
Professional Services
$2,450,000
9016001-152130-730373
Contracted Services
291,700
9016001-152130-731780
Software Support Maintenance
248,300
9016001-152130-773630
Info Tech Development
2,210,000
Total Expenditures
Chairperson, on behalf of the Finance and Infrastructure Committee, I move the adoption of the
foregoing resolution.
Commissioner Helaine Zack, District #18
Chairperson, Finance and Infrastructure Committee
FINANCE AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
FINANCIAL & HUMAN CAPITAL MGMT SYSTEM REPLACEMENT PROJECT
Description
Additional One -Time Costs
Accenture (Sierra Cedar acquired by Accenture)
Implementation (through October 2021)
IT
IT Labor- incremental:
Additional hours for Data Extracts, Integrations, Reports, Support (more hours were used in Phase I)- See hours below
Point of Sale (POS) Replacement- IT Component for Integration
Retirement of PeopleSoft Data - project to determine data archival and retrieval system
Contracted Services:
TeleSoft / Connect System Modifications
Sympro System Modifications
Add'I Workday HCM Development Support
Other Vendor integrations
Software Maintenance:
Rimini Street- PeopleSoft Maintenance Extended through 11/30/21 (Financials only)
Siteminder Software for PeopleSoft Access through 12/31/21
Additional One -Time Totals' - -
Projected remaining project plans & hours, IT Labor:
Arch & Configuration/Integration Requirements
Integrations (ADP, Job Accounting/Invoicing & All Others assigned to OC)
Data Pull - E2E
Data Pull - E2E v2
Data Pull - Gold
WD Impl & Go -live support- Phase II
Report Development
Overall Program Contingency
Hours needed to complete Phase II
Less Remaining IT Hours as of 9/30/20
Hours that need funding
'New or updated hours since last provided
Additional
One-time
Estimated
Cost Contingency Total
$2,441,600 $8,400 $2,450,000
1,056,300 214,430 1,270,730
526,770 - 526,770
412,500 - 412,S00
EXHIBIT 1- Additional Appropriation Request
FY2022 FY2022 Total by Year
$2,245,833 $204,167 $2,450,000
1,143,657 127,073 1,270,730
526,770 - 526,770
412,500 - 412,500
9,000 - 9,000 9,000 - 9,000
7,500 - 71500 7,500 - 7,500
265,200 - 265,200 265,200 - 265,200
- 10,000 10,000 10,000 - 10,000
164,300 - 164,300 127,789. 36,511 164,300
84,000 - 84,000 63,000 21,000 84,000
$4,967,170 $232,830 $5,200,000 $4,811,249 $38B,751 $5,200,000
Hours Comments
600 •Add'I hours needed for requirements gathering, design and meetings for OC
assigned integrations
9400 •3 project Integration plans(ADP(500), JA/IS(2400), Dev(4700 hours +800 hours for
Cityworks))
400 `Add'I hours needed for back and forth with users and Accenture as well as taking
on add'I DGW's; (Includes 120 hours (Budgets and Amended Budgets))
1000 High level estimate - New Scope
500 High level estimate
1500 Hours based on Phase I actuals
600 *Estimated that IT will develop 1000 hours of Phase It reports, hours are already in
an approved project plan but are being used on HCM reports
1350 Contingency
14350
1837
12513
Resolution #20632
December 7, 2020
Moved by Gingell seconded by Luebs the resolutions on the amended Consent Agenda be adopted.
AYES: Gingell, Hoffman, Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham,
McGillivray, Middleton, Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack,
Gershenson. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted.
lJ�
t HER BY A PFOVETHIS F+ESOLUTION
CHIEF LEFU'TY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A M7
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown; Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December 7,
2020, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court
at __Pontiac,
Michigan this 71h day of December, 2020.
Lisa Brown, Oakland County