Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.org.
In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.
Agenda Item Time Estimates include: (Minutes for Presentation + Council Discussion + Public Comment)
AGENDA
OXNARD CITY COUNCIL
FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
March 26, 2024
Regular Meeting - 5:00 to 6:30 PM
Zoom details to call-in for public comment during a meeting:
1. Dial Phone Number: (888) 475-4499
2. Enter Meeting ID: 826 0130 9369
3. Passcode: 330645
If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom call-in steps listed above. Once the presiding officer calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room. Press *6 when asked to unmute. Listen to the instructions provided virtually on the phone while on hold in the zoom waiting room. Please note that there is a slight time delay when viewing the meeting via television.
IN ACCORDANCE WITH ASSEMBLY BILL 2449, MEMBERS OF THE LEGISLATIVE BODY MAY MEET IN-PERSON OR REMOTELY. TO PARTICIPATE REMOTELY VISIT WWW.OXNARD.ORG.
To find out how you may provide public comment, please refer to the instructions below or at www.https://www.oxnard.org/city-meetings/.
The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.
Video recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.
*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.
YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:
1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.
2. EMAIL COMMENTS OR SIGN UP TO SPEAK REMOTELY BEFORE THE MEETING
a. Submit a request to speak remotely by 3 p.m. on the day of the meeting by using the form available at www.oxnard.org/citymeetings.
b. Submit an email to [email protected] by 3 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the legislative body prior to the start of the meeting and made part of the legislative record.
c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.
3. PROVIDING PUBLIC COMMENTS REMOTELY DURING THE MEETING
a. Follow Zoom details listed above.
1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
March 26, 2024 - Page 2
b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.
Please review the Zoom instructions on the registration page to help ensure there are no technical difficulties during your comments and help you understand public comment procedures using Zoom. Detailed participation instructions can be found at www.oxnard.org/city-meetings.
In the event of a disruption which prevents a legislative body of the City of Oxnard from broadcasting a meeting using a call-in option or internet- based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comment using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on a meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. However, if any of the broadcast options are disrupted, but any of the other broadcast options is still available to the public, the legislative body may take further action on items appearing on a meeting agenda without waiting for the disrupted broadcast option(s) to be restored.
A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.
B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.
C. CONSENT AGENDA
1. City Clerk Department
SUBJECT: Approval of Minutes.
RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the March 12, 2024 regular meeting as presented.
Contact: Rose Chaparro, (805) 385-7805
D. REPORTS
1. City Manager Department
SUBJECT: ERP Annual Report and Seventh Amendment to Agreement with Kreative Core Technologies. (10 minutes)
RECOMMENDATION: That the Finance and Governance Committee:
1. Recommend that the City Council approve and authorize the Mayor to execute a Seventh Amendment to the Professional Services Agreement with Kreative Core Technologies Corp (9431- 21-FN) in the amount of $5,300,000 for a new not to exceed contract amount of $10,020,000, and to extend the term for a year to December 31, 2025, for project management services related to the discovery, documentation, implementation, stabilization and ongoing IT support for all phases of the City’s multi-year enterprise resource planning (ERP) implementation, as well as some additional IT projects non-ERP projects;
2. Recommend that the City Council Approve $200,000 of new Transfer Out Appropriations in the General Fund (101) and corresponding Transfer In Revenues in the Capital Outlay Fund (301) in 2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
March 26, 2024 - Page 3
regard to additional ERP related costs anticipated in Fiscal Year 2023-24; and
3. Receive and file the ERP system annual report.
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/VdI92SUiKF4
Contact: Shiri Klima, (805) 385-7487
E. ITEMS FOR FUTURE AGENDAS
F. ADJOURNMENT
3 FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
CONSENT AGENDA
AGENDA ITEM NO. C.1
DATE: March 26, 2024
TO: Finance & Governance Committee
FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]
SUBJECT: Approval of Minutes.
RECOMMENDATION
That the Finance & Governance Committee approve the minutes of the March 12, 2024 regular meeting as presented.
BACKGROUND
Approval of Minutes.
STRATEGIC PRIORITIES
This agenda item is a routine operational item.
FINANCIAL IMPACT
There is no financial impact.
Prepared by: Rose Chaparro, City Clerk
ATTACHMENTS
1. MINUTES 03 12 2024 Finance & Governance
4 MINUTES
OXNARD CITY COUNCIL
FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
March 12, 2024
A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:00 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Go vernance Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Chair John C. Zaragoza and Member Gabe Teran were present in person. Member Gabriela Basua joined the meeting at 5:13 p.m.
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.
B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA (None Received.)
C. CONSENT AGENDA
1. City Clerk Department
SUBJECT: Approval of Minutes.
RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the February 13, 2024 regular meeting as presented.
It was moved by Memb er Teran, seconded by Chair Zaragoza , to approve the Information/Consent item as presented. VOTE: Teran and Zaragoza voted in favor; the motion carried 2-0. Member Basua was absent during this vote.
D. REPORTS
1. Finance Department
SUBJECT: FY22-23 Annual Comprehensive Financial Report and Summary Presentation.
RECOMMENDATION: That the Finance and Governance Committee receive, and recommend that staff proceed to the full City Council with, the FY 22-23 Annual Comprehensive Financial Report (ACFR) and summary presentation from the City's external financial auditors, Eadie + Payne, LLP.
(Presentation will be live upon consultant's request).
Javier Chagoyen Lazaro, Chief Financial Officer introduced Eden Casareno, Partner In - Charge of Attest Services with Eadie+Payne who presented and answered the Committees questions. Chief Financial Officer Chagoyen Lazaro also introduced Beth Vo, Assistant Chief 5 March 12, 2024 OXNARD CITY COUNCIL PAGE 2
FINANCE & GOVERNANCE COMMITTEE
Financial Officer and Cesar Perfecto, Control ler. N o public comments were received.
Discussion ensued among the Committee and staff.
It was moved by Member Teran , seconded by Member Basua, to approve the r ecommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)
F. ADJOURNMENT
There being no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 6:22 p.m.
ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair
6 FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
REPORTS
AGENDA ITEM NO. D.1
DATE: March 26, 2024
TO: Finance & Governance Committee
FROM: Shiri Klima, Deputy City Manager, (805) 385-7487, [email protected]
SUBJECT: ERP Annual Report and Seventh Amendment to Agreement with Kreative Core Technologies. (10 minutes)
RECOMMENDATION
That the Finance and Governance Committee:
1. Recommend that the City Council approve and authorize the Mayor to execute a Seventh Amendment to the Professional Services Agreement with Kreative Core Technologies Corp (9431-21-FN) in the amount of $5,300,000 for a new not to exceed contract amount of $10,020,000, and to extend the term for a year to December 31, 2025, for project management services related to the discovery, documentation, implementation, stabilization and ongoing IT support for all phases of the City’s multi-year enterprise resource planning (ERP) implementation, as well as some additional IT projects non-ERP projects;
2. Recommend that the City Council Approve $200,000 of new Transfer Out Appropriations in the General Fund (101) and corresponding Transfer In Revenues in the Capital Outlay Fund (301) in regard to additional ERP related costs anticipated in Fiscal Year 2023-24; and
3. Receive and file the ERP system annual report.
Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/VdI92SUiKF4
BACKGROUND
The City has used CentralSquare (formerly Superion, formerly SunGard) HTE/NaviLine as its main Enterprise Resource Planning (ERP) software since 1992. This software supported all financial reporting including payroll, purchasing, utility billing and business licensing functions; while it served the organization well for many years, thirty years later, it is slow and outdated. Other than job postings and performance reviews for certain job classes (which were moved to other software), the City’s human resources functions, including timesheets, were all manual and paper-based. The City’s permitting and land management functions are mostly manual and paper-based. Functions within the Community Development Department include building, planning entitlement, and encroachment permitting activities and are highly manual and paper-based. Between maintaining legacy processes, functional gaps in the software, and inadequate data extraction and reporting tools, City staff over the years have developed more than 150 standalone shadow systems (mostly Microsoft Excel spreadsheets and Access databases) to store, utilize, and analyze data.
7 In October 2019, the City Council decided to engage Tyler Technologies for its integrated ERP solution to replace existing software and manual processes. Tyler offers more modern technology to give our staff the tools necessary to conduct business, analyze data, and serve our residents better.
The total estimated cost of this project was initially set in 2019 at $14.9 million, consisting of the Tyler contract for $9.1 million (including contingency) and additional implementation costs of $5.8 million, including project management services, business process design costs, and organizational change management consulting services. Bonds were issued for $6.9 million in 2019 as part of a plan to finance the first major phases of one series of bonds and return to the market to finance the final phases at a later date. The project commenced in October 2019.
At its October 18, 2022, meeting, the City Council approved staff’s recommendation to issue new bonds, including funding required to complete the ERP Project and street improvements. The plan for bonds included pairing the software with the larger streets and alleyways improvements to reduce issuance costs and benefit from economies of scale. The bonds included a 15-year repayment period related to the ERP system (estimated useful life) and a 30-year repayment period for street work. The Council approved $9 million not-to-exceed par amount for the ERP portion and $36 million for the street improvements. Those bonds cannot be issued due to a lawsuit filed by Mr. Aaron Starr's Moving Oxnard Forward, a political corporation, which put a freeze on the City's ability to bond for projects in general.
At the March 21, 2023, Council meeting, the Council authorized the use of up to $2.5 million in General Fund reserves in order to continue with the ERP project, and subsequently approved another $3.0 million as part of the Fiscal Year 2023-24 adopted budget. Furthermore, the Council issued a resolution that would enable these funds to be reimbursed from a future debt issuance should the City be successful in this litigation. Although Mr.
Starr lost the initial lawsuit, he immediately appealed and hence extended the lawsuit to further delay the City's ability to bond again.
DISCUSSION
Project Financing - Risk to City's Budget Reserves
In order to continue with the ERP project and stay on track to deliver the much-needed system improvements, the City Council approved the use of General Fund reserves with a potential reimbursement made possible from future bond proceeds should the City prevail in its legal defense. The time frame for final resolution of the appeal is still unknown, and the amount of General Funds required depends upon how long the bond issuance is delayed. Staff recommends that the project continue with this funding approach, although we recognize that utilizing cash in this way may delay other equally-valuable projects.
Total Cost of Project
The project has expensed $10.6 million as of 12/31/2023, $3.7 million more than the initial bond proceeds received in 2019 of $6.9 million. Staff anticipates the project will consume a further $1.9 million by the end of FY 2023-24 for a total consumption of General Fund reserves of $5.6 million by June 30, 2024. While staff still needs to complete the discovery phase of Utility Billing and negotiate renewal of the Tyler contract after the initial five-year term (this fall), we anticipate that the initial estimate of $14.9 million may be lower than the full and final cost of the project. Current estimates of the cost to implement all phases of the ERP project are $20.2 million, an increase of $5.3 million from original estimates five years ago. This is because the project is much more complex and taking longer than originally anticipated due to all the gaps and clean-ups along the way, both in technology and in the implementing departments. Also, because the project is taking longer in time, software as a service (SaaS) fees are paid for by the project for a longer time rather than moved quickly to the IT Department. Finally, our IT Department has needed a lot of support -- both in implementation and later in maintenance -- by consultants.
8 The cost of operating and maintaining any software (including the ERP) after implementation is charged to the operating budgets across the City on an ongoing basis, not to the project. So, the total cost of the project listed above does not include the annual software fees paid to Tyler for the rights to use the software once the phase is live, nor does it include the annual cost of having City staff or consultants maintain the system after implementation.
Project Management & External IT Support Services
Kreative Core Technologies Corp. (Kreative) has been successfully providing project management and IT support services for the ERP project since September 2021. Kreative was instrumental in helping deliver the Core Financials phase of the project on time and under budget; it is now a key player in implementing Human Capital Management (HCM) as well as Enterprise Planning and Licensing (EPL), formerly called Energov.
Furthermore, given significant vacancies and challenges in hiring staff within the IT Department, Kreative has provided IT implementation, business systems analysis, production support and report writing services under the current agreement. In September 2021, the City entered into a contract with Kreative that has since been amended six times. Its current value is $4,720,000.
Staff recommends that Kreative continue to provide services for the remaining phases of the project. Thus, staff recommends that Council approve a seventh amendment to the Kreative agreement with the City, adding $5,300,000 for a new “not-to-exceed” amount of $10,020,000, and extend the contract term for one further year, ending December 31, 2025. This amendment provides Kreative the time to implement and stabilize HCM as well as implement EPL and implement most of Enterprise Asset Maintenance while finishing discovery for Utility Billing. IT support services for all phases are anticipated to continue under this agreement, and Kreative Core is continuing to manage organizational change management services. Finally, given Kreative’s performance and understanding of the City’s IT infrastructure, additional scope items are included within the seventh amendment to assist the City with other (non-ERP) needed improvements and upgrades to the City’s Information Technology. These include the assessment and remediation of the City’s MS Active Directory, readiness assessment and implementation of Microsoft 365 citywide, implementing new payment processing, IT security enhancements, and some other projects as detailed in the scope of the contract. The amendment is currently being drafted; if the Committee recommends that this report proceed to the City Council, the amendment will be attached to the staff report at that time.
Given the nature of ERP projects, and the frontloaded discovery of two major phases to be completed as part of this seventh amendment, staff anticipates returning to the Council in Fiscal Year 2024-25 to recommend additional project management, IT support and organizational change management services required to ensure effective implementation and stabilization of the final ERP phases.
Annual Update
1. Core Financials Complete; Budgeting Software in use for the FY 2024-25 budget.
In the last annual report, it was listed that implementation of Executime (an electronic time tracking system) was completed in the fall of 2020 and implementation of Bluebeam (an online electronic mapping and design sharing system for plan check) was completed in the summer of 2021. The Core Financials implementation phase was completed and launched on October 1, 2022. This large and complex phase of the ERP, which included Purchasing (requisitions, purchase orders, contracts), Accounts Payable (receiving invoices and issuing payments), Accounts Receivable (billing for City fees and charges and processing payments), Project Management (accounting for capital improvements within the City’s limit, and grant accounting), recording all financial transactions that result in monthly issuance of reports (balance sheet, cash flow, statement of government activities), and financial planning with its integrated budget projection and control tools. The new ERP provides real-time project reporting and budgetary controls for all capital projects and grant funded 9 activity. Council also approved a contract with OpenGov (budgeting software) on October 3, 2023, which staff is integrating with Munis Financials and is using to produce the Fiscal Year 2024-25 operating and capital budgets.
2. HCM (Human Capital Management) -- Implementation Commenced.
Human Capital Management (HCM) is a large phase encompassing all the functions and processes from recruitment through payment and termination of all 1,700+ employees, recording and processing all benefit payments, employment taxes, retirement plan contributions, and implementing various bargaining unit memorandum of understanding (MOU) agreements in relation to employee pay and benefits. The HCM phase includes integration with leading industry learning and recruitment tools, enhancing the way the City can identify, nurture and retain talent for the benefit of the organization and its residents and customers. The HCM phase is currently underway with configuration and functional testing. This module is expected to Go Live in the next month or two.
During the period of HCM development, the City will continue to use its legacy system, HTE, to perform all payroll calculations, payments and benefit calculations, taking that information and translating it into the appropriate Munis accounting codes such that all activity will be reportable and managed against the adopted and revised budgets that are held in Munis. Testing will continue to ensure accuracy of payroll in Munis.
Additionally, the Police and Fire Departments have a need for advanced scheduling unique to public safety.
Each of these departments has identified software specific to its scheduling and used by a significant number of California law enforcement and firefighting agencies. Should the City Council separately approve this software, these systems would begin a six-month implementation and integration with Munis in Summer 2024.
3. EPL (Planning, Permitting, Licensing) - Discovery Complete - Implementation commenced.
The EPL discovery phase took place throughout calendar year 2023. This effort included detailed reviews of all current permitting processes within the Community Development Department as well as secondary users who participate in the plan review process, such as the Fire and Public Works Departments. In depth discovery sessions were held with subject-matter experts from each Community Development division unit, including Building, Land Development Engineering, Planning, and Code Compliance. These efforts helped define our current procedures for the purpose of better communicating our needs with the EPL software vendor to ensure all current processes and procedures are captured in the new system. This effort has also provided the opportunity to identify current roadblocks and or process inefficiencies so that solutions can be determined during the EPL implementation phase. Staff began the implementation phase of EPL in January 2024, working with Tyler and Kreative to configure the software in line with the City’s needs and outcomes from the discovery phase. It is anticipated that this implementation will continue through fiscal year 2024-25 and will launch in Spring 2025.
4. EAM (Enterprise Asset Management) -- Discovery Complete.
The EAM module discovery was completed in March 2024 and the implementation timeline will be heavily dependent upon the staff resources able to dedicate time to multiple major phases of the active modules (EAM, EPL, and UB) at the same time. Staff are still performing the tasks and activities required to meet current operational needs, as well as implementing other active modules. Many of the same staff are required to work on more than one phase and/or more than one active module. This results in needing to adjust the timeline to reflect this constraint, essentially extending out the timeframe for the EAM module project.
5. Utility Billing -- Discovery is Anticipated to be Completed in Summer 2024.
Utility Billing has completed the current state assessment of the discovery phase and is now reviewing future 10 state gap analysis and recommendations. The implementation of this module has been moved from January 2025 to January 2026 to accommodate the limited availability of City resources required to work on the implementation, given the need to support other phases. This module is scheduled to go live in mid-2027.
STRATEGIC PRIORITIES
This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.
FINANCIAL IMPACT
The ERP Project was budgeted at $14.9 million for all five phases. As of December 31, 2023, $10.6 million has been spent on the delivery of Executime, Bluebeam, and Core Financials, and with HCM poised to launch very soon. Staff recommends $200,000 in general fund reserves be appropriated and transferred to the Capital Outlay Fund (301) in the FY 2023-24 to cover anticipated ERP expenses in excess of the adopted budget. The total cost of the ERP implementation is now estimated at $20.2 million through fiscal year 2027-28.
The proposed seventh amendment to the consulting services agreement with Kreative Core for Core Financials and HCM project management services has a not-to-exceed amount of $10,020,000 for the time period September 2021 through December 31, 2025. The costs associated with the discovery, implementation, stabilization and support of all ERP phases will be paid by the ERP capital project in fund 301 through the existing project budget, with continued allocation of General Funds.
The IT Department continues to have numerous vacancies and thus considerable staff savings that help to offset some but not all the anticipated contracted costs for IT support services, additional scope items within the Kreative Contract charged to the IT Fund 731. Furthermore, as the City launches ERP modules, the annual software licensing costs are charged to the IT operating fund.
Future budgets will include the appropriations necessary to cover anticipated costs of completing the project phases planned for those fiscal years, and staff may return with a recommendation to reimburse the General Fund if and when the City prevails in the appeals court for the ability to issue bonds.
Prepared by: Mark Sewell, Assistant Chief Financial Officer
ATTACHMENTS
1. Presentation
11 ERP Annual Report and Seventh Amendment to
Agreement with Kreative Core T echnologies
Mark Sewell, Assistant Chief Financial Officer
Finance Department
Finance and Governance Committee
March 26, 2024
12 RECOMMENDATION
That the Finance and Governance Committee:
1. Recommend that the City Council approve and authorize the Mayor to execute a Seventh Amendment to the Professional Services Agreement with Kreative Core T echnologies Corp (9431-21-FN) in the amount of $5,300,000 for a new not to exceed contract amount of $10,020,000, and to extend the term for a year to December 31, 2025, for project management services related to the discovery, documentation, implementation, stabilization and ongoing IT support for all phases of the City’s multi-year enterprise resource planning (ERP) implementation, as well as some additional IT projects non-ERP projects;
2. Recommend that the City Council approve $200,000 of new Transfer Out Appropriations in the General Fund (101) and corresponding Transfer In Revenues in the Capital Outlay Fund (301) in regard to additional ERP related costs anticipated in Fiscal Year 2023-24; and
3. Receive and file the ERP system annual report
2 13
WHAT IS ERP? (ENTERPRISE RESOURCE PLANNING)
There are separate technology systems that provide foundational framework for nearly all City functions including:
1. Financial Management
2. HR, Timekeeping & Payroll
3. Community Development
4. Assets Maintenance
5. Utility Billing
The ERP integrates these functions so they “speak to each other” 14 TOTAL COST OF PROJECT
• Project has expensed $10.6 million as of 12/31/2023, $3.7 million more than the initial bond proceeds received in 2019 of $6.9 million • Staff anticipates project will consume a further $1.9 million by the end of FY 2023-24 for a General Fund total of $5.6 million by 6/30/2024 • Current estimates of cost to implement entire ERP project are $20.2 million, an increase of $5.3 million from original estimates 5 years ago, because:
• Project is more complex and taking longer; there are lots of gaps and clean-ups along the way, both in technology and in the implementing departments, due to serious tech debt and budget cuts in the past • Since the project is taking longer in time, software as a service (SaaS) fees are paid for by the project for a longer time rather than moved quickly to the IT Department
• Our IT Department has needed a lot of support -- both in implementation and later in maintenance -- by consultants 4 15
ANNUAL UPDATE 5
Phase/Module Description Status
Core Financials Capital assets, General
Ledger, purchasing, etc.
Went live on 10/1/2022; just audited;
Budgeting Software in use for current budget
Human Capital
Management (HCM)
HR and payroll processes,
integrate all City
employee data in one
system
In progress: we are configuring, testing, and
expecting to go live in the next month or two
(PD and Fire may add on advanced scheduling
this summer, which isn’t technically ERP)
Enterprise Planning &
Licensing (EPL)
Planning, Permitting,
Licensing
Discovery complete; implementation
commenced
Enterprise Asset
Management (EAM)
Public Works Discovery complete; will begin
implementation this calendar year (2024)
Utility Billing (UB) Utility Billing Discovery is anticipated to be completed in Summer 2024
16 RECOMMENDATION
That the Finance and Governance Committee:
1. Recommend that the City Council approve and authorize the Mayor to execute a Seventh Amendment to the Professional Services Agreement with Kreative Core T echnologies Corp (9431-21-FN) in the amount of $5,300,000 for a new not to exceed contract amount of $10,020,000, and to extend the term for a year to December 31, 2025, for project management services related to the discovery, documentation, implementation, stabilization and ongoing IT support for all phases of the City’s multi-year enterprise resource planning (ERP) implementation, as well as some additional IT projects non-ERP projects; and
2. Recommend that the City Council approve $200,000 of new Transfer Out Appropriations in the General Fund (101) and corresponding Transfer In Revenues in the Capital Outlay Fund (301) in regard to additional ERP related costs anticipated in Fiscal Year 2023-24;and
3. Receive and file the ERP system annual report
6 17
End of Presentation
18