On Tuesday, Anchorage Assembly members will be asked to approve a contract extension of more than $1 million to help out the city's troubled software system known as SAP.

The system started out with a price tag of about $11 million seven years ago. It's now ballooned to $82 million. But, Municipal Manager Bill Falsey said the funding request won't add to the cost of the project since the money has already been approved in the city budget. Falsey said the municipality requires a further approval from the assembly to spend it.

The $1,150,000 extension would pay for the Peloton Group to continue their consulting services until the end of June. Peloton has already been working with the municipality to iron out glitches in the new system.

Falsey said he thinks by the end of the year, there won't be a need to pay consultants so much money to straighten things out, but added that some snags are to be expected since the system has been in operation for less than a year.

"Any time you turn on the system for the first time, there are going to be glitches to work out," said Falsey. "And we are finding now that we are stepping into this system, that we are really ironing out a lot of the wrinkles. But every time you do something for the first time you discover there are some more tweaks to be made."

Falsey said one thing that's improved dramatically is more accurate paychecks for city workers. He said during the first few pay cycles under the new system they had more than a thousand requests for adjustments and several city unions filed grievances.

Falsey said that system is working much better now. He said checks went out last Friday and they had very few complaints.

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