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Katy council approves consultant engagement to assess city ERP system using ARPA funds

3037511 · February 10, 2025
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Summary

The City of Katy approved an engagement letter with Plante Moran (Plant Moran) to conduct a needs assessment and procurement support for a potential enterprise resource planning (ERP) system, using American Rescue Plan Act (ARPA) earned interest funds and a TIPS cooperative contract (No. 230601). Council approved the engagement by motion.

The Katy City Council on Feb. 10 authorized the mayor to sign an engagement letter with Plante Moran PLLC to assess the city's enterprise resource planning (ERP) needs and assist with vendor selection and potential implementation work.

Why it matters: An ERP assessment can reshape finance, human resources and payroll systems across city operations; council described the work as a step to determine whether Katy’s current municipal software meets long-term needs and to build a transparent procurement process.

Background and scope: Councilmember Dan Smith introduced the matter and said he had seen demonstrations of other municipal systems and wanted a third-party assessment to avoid a procurement process driven by sales pitches or internal biases. He said the city needs a more robust, scalable system to improve timeliness, reporting and analytics and to help retain finance staff. Natalie Schwartz, principal in the government management consulting practice at Plante Moran, told council Plante Moran performs needs assessments, writes baseline requirements, drafts RFPs consistent with procurement strategy, assists with vendor evaluations, and can support contract negotiation and implementation. She listed recent Texas municipal clients and said Plante Moran is independent and does not sell a particular software product.

Funding and contract path: Staff stated the source of funds for the engagement is ARPA earned interest and that the contract would use the TIPS cooperative purchasing contract number 230601. Council noted the importance of using a third-party, independent consultant to ensure a thorough procurement and to protect staff from making an incomplete selection.

Council action: Councilmember Roy Robertson moved and Councilmember Dan Smith seconded the resolution authorizing the mayor to sign the engagement letter with Plante Moran PLLC. The motion carried; council announced the outcome as carried by voice vote.

What the consultant will do next: Plante Moran will perform a needs assessment across departments, develop baseline software and process requirements, draft an RFP aligned with the city’s procurement approach, assist with vendor evaluation and contract negotiation, and — if requested by the city — provide implementation support. Staff noted the firm’s capabilities in finance, HR, payroll, data management and analytics and said many municipal clients retain the same Plante Moran team from selection through implementation.

Speakers (selected): Natalie Schwartz (principal, Plante Moran), Anthony Bond (IT director, City of Katy), Councilmember Dan Smith (motion sponsor), Councilmember Roy Robertson (mover), Councilmember Dan Smith (second).