1 CITY OF SAN LEANDRO
Enterprise Resources Planning System Selection Project
2 AGENDA
Background Existing Challenges Selection Process Final Selection Financial Impacts Proposed Timeline Q&A 2 3
PROJECT BACKGROUND
Objective:
• Modernize City operations through a new ERP system.
Goals:
• Operational Effectiveness: Enhance information accuracy and accessibility. • Process Optimization: Align business processes with best practices. • System Enhancements: Support automation and efficiency • Productivity: Eliminate unnecessary tasks and redundancies. • Decision-Making: Use technology to improve communication and decision making Budget Task Force:
Identified the need for a new ERP system and recommended an initial $1.4 M appropriation, which Council approved.
4 Aging System:
• The primary ERP system, "Eden," is over twenty years old and is being phased out by Tyler Technologies.
• Limited to compliance updates with no broader functional improvements.
Hardware and Cybersecurity Risks:
• Significant investment required in hardware and infrastructure. • Infrequent updates and upgrades pose increased cybersecurity risks, compromising the safety and efficiency of city operations.
System Shortfalls and Deficiencies
• Limited reporting, reliance on manual Excel use, and outdated workflows (emails, paper forms) increase error risk.
• Missing crucial modules like project accounting and inadequate scheduling tools fail departmental needs.
CURRENT SYSTEM CHALLENGES
5 Collaboration with BerryDunn:
• Partnered to identify over 3,000 functional and technical requirements.
Two-Year Effort:
• Planning and issuance of a Request For Proposal (RFP). • Conducted demonstrations and discovery interviews.
• Engaged with cities and counties with similar systems.
Six proposals received from the following vendors:
- CentralSquare - Collaborative Solutions (Cognizant/Workday), - Forsys (Oracle) - Graviton (Oracle)
- NetSuite for Government - Tyler Technologies
VENDOR SELECTION PROCESS
6 VENDOR SELECTION PROCESS
Collaborative Effort:
• Selection process involved contributions from multiple departments, including Finance, Human Resources, IT, the CMO’s office, and Engineering. • Human Resources, Finance and IT worked closely to ensure the vendor met all essential operational and strategic needs.
Scoring and Evaluation Rounds:
• Round 1: Technical Proposal to shortlist for demonstration. • Round 2: Demonstrations.
Final Assessments:
• Round 3: Reference Checks and Cost.
• Best and Final Offer: Final round of scoring to determine the preferred vendor 7 Workday selected as the preferred ERP solution
- Cognizant , Robert Half, and Teller identified as implementation/additional partners
Contract Negotiations:
• Confirmed scope and approach.
• Realistic timeline established.
• Contracts with Workday and Cognizant finalized.
• Contracts with Teller and Robert Half still in progress.
SELECTED VENDOR & CONTRACT DETAILS
8 FINANCIAL IMPACT
Software Subscriptions and Services (Workday) $3,306,144 Additional Support – 3 years (Workday) $285,000
Training (Workday) $66,600
Implementation Services (Cognizant) $2,914,042
Staffing augmentation (Robert Half) $925,000
Cashiering Subscriptions (Can/Am) $534,844
Cashiering Services (Can/Am) $112,832
Total Ten Years Costs $8,144,522
Contingency $814,452
9 COST – 10 YEAR COST
Year Workday
Year 1 (FY25) $2,121,266
Year 2 (FY26) $2,169,436
Year 3 (FY27) $715,220
Year 4 (FY28) $445,328
Year 5 (FY29) $445,328
Years 6 – 10 (FY30 – FY34) $2,247,944
5-Year Total $5,896,578
10-Year Total $8,144,522
Total Costs by Year for Subscription, Implementation, Training, Staff Augmentation 10 PROPOSED ERP IMPLEMENTATION TIMELINE
Timeline Tasks
March 2024 – April 2024
• Scoring of the Vendors
• Vendor Finalization
May 2024 – July 2024
• Contract Negotiations
• Council Presentation (July)
August 2024 – September 2024
• Organizational Change Management (OCM)
planning
• Familiarize/Training in the new environment
October 2024 – September 2025 Phase 1: HR/Payroll Implementation October 2025 – June 2026 Phase 2: Finance Implementation July 2026 – December 2026 Project Closeout & Stabilization 11 PRESENTATION TITLE 11
ERP IMPLEMENTATION