Business Case
ERP PROJECT
PROJECT# 2024-001
ATTACHMENT A
City of Santa Maria
IT Division
110 E Cook Street, Room 7
Santa Maria, CA 93454
3/5/2024
Business Case ERP PROJECT #2024-001
2 TABLE OF CONTENTS
1. SUMMARY ................................................................................................................................ 3
2. ISSUE ....................................................................................................................................... 3
3. ANTICIPATED OUTCOMES ........................................................................................................ 4
4. RECOMMENDATION .................................................................................................................. 5
5. JUSTIFICATION ......................................................................................................................... 5
Business Case ERP PROJECT #2024-001
3 1. SUMMARY
The City of Santa Maria has been using Tyler Eden and Tyler Cashiering to track financial data since 1998, and a modern replacement is needed. In its current form, the application and database are hosted on premises and maintained by the IT Division. It lacks many features commonly available in an ERP (Enterprise Resource Planning) system such as sufficient electronic approval processes, document storage, audit trails, drill downs, budget, projects, and grant workflows, employee self-service and vendor self-service. Reporting is limited and requires supplemental spreadsheets and shadow systems. An approval system exists, but there are only a few that are included in the system, so most processes require the use of other systems such as Outlook, or paper forms to forward tasks. The Eden system is being phased out by Tyler and will no longer be supported as of March 2027. The City’s HR System, Neogov, was implemented in September of 2016 and contains some functionality found in ERP systems. However, it does not have full functionality for compensation, benefits and talent management. A single, unified system is required to implement industry best practices to maintain all employee records and payroll records. Neogov works well for the HR Division for recruiting, so this function may remain while others are replaced by the ERP in order to maintain one large umbrella system to be used City-wide.
2. ISSUE
Although the Eden application has served the City for many years, it lacks the functionality to manage finance and human resources information and processes effectively. Here are some of the issues:
1. Eden will reach its end of support within a couple of years (May 2027).
2. Most of the City’s Finance and HR processes are paper based. Examples include submitting timecards, requests for payments, travel authorizations, and a variety of other routine functions.
3. Eden’s reporting tools and drill-down capabilities into transactional data are inadequate. Without real-time, accurate data insights, decision-making processes are slow and prone to errors.
4. Eden lacks the capability to fully automate processes for purchasing, budget, projects, grants, accounts payable, accounts receivable, treasury and electronic bank reconciliation, payroll, and utility billing.
5. Eden is hosted on-premises, whereas most modern software systems are cloud-based to reduce the risk of system failures, and to reduce the amount of computing resources needed locally.
6. Eden does not have the capability to provide Application Programming Interface (API) connectors to share data among other City systems resulting Business Case ERP PROJECT #2024-001
4 in siloed data. For example, the IT Division tracks computer assets in the TeamDynamix system but are unable to pull data regarding the asset’s value unless it is statically assigned. As time goes on, and the asset’s useful life is met and it becomes eligible for replacement, Analysts are unable to see whether that condition has been met in TeamDynamix; they would need to review in Eden.
7. Timecards are paper or Excel based. Due to lack of electronic timecard capabilities and clear electronic approval processes, staff members spend significant time on processing timecards.
8. Although our purchasing guidelines are clear and well-defined, the Eden software does not have the tools necessary to build complex workflows and approval processes.
9. Eden is only accessible to City employees, so all utility billing and business license customers must contact Finance to get answers to questions. There is no self-service portal available to them. This results in a higher volume of phone calls to answer.
10. Eden lacks the ability to send ACH payments.
11. Neogov was intended to provide a host of HR services, but as we have been utilizing the system, it has been found to lack the requirements needed for the Human Resources Division.
12. Because of the aforementioned issues, central management of City financial management cannot be achieved resulting in siloed processes.
3. ANTICIPATED OUTCOMES
An ERP solution along with business process re-engineering has the potential to revolutionize the way the City operates and provide a high level of transparency.
1. The ERP System will last for at least a decade with no published end of support date.
2. The ERP System will provide an alternative to paper-based systems.
Approvals will be given electronically without the need for wet signatures and storing paper documents.
3. Real-time access to accurate data insights and advanced analytics tools will empower management to make informed decisions quickly.
4. Routine procedures for managing budgets, grants, accounts receivable, accounts payable, treasury and electronic bank resolution, payroll, and utility billing will be automated within the ERP System
5. The City’s chosen ERP will be cloud-based which will minimize the technology resources required and mitigate risk of data loss.
6. The City’s chosen ERP will have a host of API connectors to allow data to flow between other financial tracking systems such as CentralSquare’s Community Development, ZoomGrants, DebtBook, Progressive Solutions Business Case ERP PROJECT #2024-001
5 License Track, Remit Central, Telestaff, Active Net, FuelMaster, Genfare, WasteWorks TeamDynamix or AssetWorks, to name a few. A complete list of Integrations shall be maintained by the project manager.
7. Timecards will not require manual data entry by another employee.
Timecards will be reviewed and approved within the ERP by managers without the need to move Excel files into special folders to track them.
8. The new system will have the capability to build out workflows which are in alignment with best practice policies and procedures.
9. The ERP will provide improved self-service capabilities for utility billing and business license customers.
10. The ERP will increase the City’s capabilities to make and take electronic payments.
11. The future ERP will be able to meet all requirements of the Human Resources Division enabling the City to be proactive in talent management and career growth, and empowering employees to make informed decisions about their benefits and make adjustments with confidence.
12. Centralized management of financial processes will be the goal to minimize liability and increase accountability.
4. RECOMMENDATION
Cognizant proposed a solution that meets the City’s needs where they recommend implementing Workday services for Financials and HCM/PATT (Human Capital Management/ Payroll, Absence, & Time Tracking). In addition to Workday, Cognizant will provide an interface to SpryPoint for utility billing and Can/Am Teller for cashiering. The Workday HCM/PATT will replace some, but not all the functionality of Neogov. The “Onboarding” and “Perform” modules are the two modules that Workday is anticipated to replace. Neogov will continue to be used as a recruiting tool through its “Insight” / ”Online Hiring Center (OHC)” modules.
5. JUSTIFICATION
Time has almost run out for the Eden application with an anticipated end of support currently set as March 1, 2027. A new system needs to be chosen to continue managing City services. Although the software licensing for Workday, Teller, and SpryPoint exceeds the cost for Eden and some of the Neogov modules, the anticipated benefits and value realized by using the new system far outweighs the investment. Approximately $80,000 in software support cost savings for Eden are anticipated on an annual basis after the ERP go-live date.
An additional $44,881 in annual savings is anticipated from discontinuation of the Neogov Onboarding and Perform modules whose functionality will be Business Case ERP PROJECT #2024-001
6 replaced by Workday. A nnual costs for the new ERP will be approximately $350,000. The efficiency gained with simplified timecard processing, streamlined workflows, and API connectors justifies the increase in software costs and implementation fees. Efficiencies gained will not reduce staffing levels but allow us to focus energies where they are needed.
Approver Name Title Signature Date
Xenia Bradford Interim Finance Director
Dawn Jackson Interim HR Director
Jeffrey Marecic Chief Information Officer
2/28/2024
2/28/2024
3/8/2024