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HomeMy WebLinkAboutMinutes - July 16, 2013 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, JULY 16, 2013 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, July 16, 2013, commencing at 7:00 a.m. Present: Council Member Hansen, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Katzakian, and Mayor Nakanishi Absent: None Also Present: Deputy City Manager Ayers, City Attorney Schwabauer, and City Clerk Johl- Olson B. Topic(s) B-1 Receive Report on Replacement Financial and Utility Billing System Software (CM) Deputy City Manager / Finance Director Jordan Ayers provided a PowerPoint presentation regarding the City's financial system replacement. Specific topics of discussion included the current status of project, activities to date, recommended solution, Tyler Technologies, Inc. information, project time line, financials, payroll, work orders/revenue, utility billing, Software as a Service (SaaS), implementation, payments, and next steps. In response to Council Member Hansen, Mr. Ayers stated the IBM 400 system dates back to the early 1990s. In response to Council Member Johnson, Mr. Ayers stated two vendors dropped out due to concerns about competitiveness with another vendor and the City's need for specific content. Mr. Ayers stated two vendors remained for review and selection. In response to Mayor Nakanishi, Mr. Ayers stated Tyler Technologies has 1,400 customers throughout California including 45 cities. In response to Council Member Mounce, Mr. Ayers stated he spoke with Tyler Technologies' references directly at various agencies. Council Member Mounce and Council Member Johnson expressed concern regarding approving an incomplete agreement while negotiations are still pending and recommended pulling the item from tomorrow's agenda for additional time to consider the item. Council Member Mounce requested information regarding the references supplied by Tyler Technologies, including names, contact information, and comments provided by reference sources so that she could conduct additional research prior to project approval. The City Council also asked for additional information including the following: (1) hosted versus non -hosted options, feasibility, and costs; (2) back-up system management ability and recovery options; (3) response time and 24/7 availability for system inquiries; (4) information regarding Tyler Technology clients who are similar in size to the City of Lodi; (5) information regarding the existence of IT staff in other cities of similar size including the number of personnel and capabilities; (6) the ability to handle the proposed project in-house with the existing IT staff; and (7) the ability to have Tyler liable for the entire amount of an error versus a flat 5% of the quarter in the event that the error is of a larger nature. In response to Council Member Johnson, Mr. Ayers stated during his research and reference check efforts, he discovered both client complaints and compliments for Tyler Technologies. Mr. Ayers stated as is typical with industry vendors, more complaints are lodged electronically than compliments. In response to Council Member Hansen, Mr. Ayers stated with respect to security and system hacking, he did review an audit report for Tyler Technologies, which had nominal findings including the lack of conducting an exit interview for all employees upon termination. Mr. Ayers stated there were no significant findings regarding system hacking abilities. In response to Mayor Nakanishi, Mr. Ayers stated if the system is hosted by the City, any liability for security breaches would fall upon the City. He stated if it is hosted by Tyler Technologies, system breaches would be the liability of Tyler Technologies. In response to Council Member Johnson, Mr. Ayers stated as is industry practice with system transfers, the JDE system would continue running simultaneously while Tyler's system is implemented to ensure a successful transfer of all data. In response to Council Member Hansen, Mr. Ayers stated the City of Ukiah is in the process of system implementation with Tyler Technologies. In response to Council Member Mounce, Mr. Ayers stated if there is a change in business practice for the citizenry necessitated by the implementation of the new system, staff will notify the City Council promptly. In response to Council Member Johnson, Mr. Ayers stated the existing funding covers the first phase of the project and additional funds from the General Fund and utilities will be used for additional phases. General discussion ensued amongst the City Council regarding the process for removal of the item from tomorrow night's City Council agenda. Council Member Johnson asked that items of this type of significance be brought to the City Council at a Shirtsleeve Session at least two weeks prior to being agendized for action at a City Council meeting. Ed Miller spoke in regard to his concerns about security and hosting, the inclusion of vehicle and fleet information, and outsourcing the service if it is in the best interest of the City to do so. Kevin Bell, representing the Mid -Management labor group, spoke in support of the services currently provided by the IT Department and encouraged retention of the system in-house. C. Comments by Public on Non-Aaenda Items - None D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:00 a.m. ATTEST: Randi Johl-Olson City Clerk AGENDA ITEM 13601 CITY OF LODI ,. COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Report on Replacement Financial and Utility Billing Systems Software MEETING DATE: July 16, 2013 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Receive report on replacement financial and utility billing system software. BACKGROUND INFORMATION: The City is currently using software for its financial and utility billing systems that date to the late 1990s. These systems are outdated and at the end of their useful lives. The City issued a Request for Information on November 15, 2012 and received responses from 10 vendors on January 4, 2013. A team of City staff reviewed the proposals and recommended four firms be invited to demonstrate their software for staff to evaluate. Ultimately, two firms provided demonstrations of their software capabilities. Staff is recommending Tyler Technologies, Inc. be awarded the contract and that Tyler host the software rather than the City hosting the software. Staff will present activities to date and provide the Council and public with an overview of the recommended software. A representative from Tyler Technologies, Inc. will be present to address any questions that Council may have regarding the recommended solution. FISCAL IMPACT: Total cost for the recommended solution is $2,003,956 over a seven-year period. Costs will be paid as each phase is available for use. Once fully implemented, on- going costs of $276,174 are anticipated. By comparison, costs of the existing systems are $336,600 per year. Net on-going savings of $60,426 per year are anticipated. FUNDING AVAILABLE: $1 million has been set aside for this project; additional funding will be appropriated each budget year for annual fees. JA/ja Jordan Ayers Deputy City Manager APPROVED: tsAl Konradt Bartlam, City Manager Financial Systems Replacement Shirtsleeve Session July 16, 2013 Current Status o Financials ■ JD Edwards (GL, AP, HR, Payroll, Purchasing) ■ Vertex E -CIS (Utility Billing) ■ Stand alone Business License ■ Limited project accounting ■ Stand alone Fleet Maintenance ■ Fixed Assets (Excel spreadsheet) ■ Not up to current version o IBM AS400 platform o Annual Maintenance $337,100 ■ Software/ Hardware maintenance $132,100 ■ Staff costs $205,000 2 Activities To Date ► Request For Information (Nov 2012) ► Vendor Responses (Jan 2013) ►Evaluation of Responses (Jan 2013) ►Short List of Vendors (Jan 2013) ►Vendor Demos (Feb/Mar 2013) ►Reference Checks/Follow-up (Mar/Apr 2013) ►Site Visit (May 2013) ►Contract Negotiations (June/.July 2013) 3 Recommended Solution ► Tyler Technologies, Inc. o MUNIS ► Windows based ► .NET architecture ► Fully integrated ► Regularly updated ► Hosted by Tyler 4 Tyler Technologies, Inc. ► Over 25 years ERP experience ► Public Sector only ► More than 1,400 clients live on Munis o Over 400 using SaaS model ► Publicly traded company (TYL) 5 Timeline o Phased implementation 09/01/2013 07/01/2014 01/01/2014 09/01/2014 12/01/2014 10/01/2014 03/01/2015 09/01/2015 0 Financials ► General Ledger ► Budget ► Accounts Payable ► Purchasing ► Fixed Assets ► Inventory (with bar coding) ► Project and Grant Accounting ► Dashboard Reporting HR/Payroll E Applicant Tracking o HR Management o Payroll with Employee Self Service Work Orders/Revenue ► Fleet and Facilities Management ► Accounts Receivable ► Business License ► General Billing ► Cashiering ► Citizen Self Service M Utility Billing r Utility Billing 10 Software as a Service (SaaS) ► SaaS • Tyler will host and maintain the software • City `rents' from Tyler • Servers in Maine and Texas • Fail -over capability/ redundancy • Eliminates need for local servers and maintenance • Satisfies audit findings regarding disaster recovery and business continuity • Likely to result in 2 fewer IT positions 11 Implementation ► Project Plan ► Chart of Accounts ► City Staff • Project Manager -Deputy City Manager • Project Team -Various subject matter experts • Additional duties • May back -fill with part-timers/retirees ► Tyler Staff o Typically on-site one week per month 12 Payments ► Total cost 0 $2,003,956 over 7 year period ► Paid as modules become available ► Annual on-going cost once fully implemented o $276,174 13 Next Steps ► Approve contract tomorrow night ► Begin implementation 14 Questions?