City Council Agenda Report
Meeting Date: August 1, 2023
From: Scott Williams, Director of Finance
Department: Finance
Submitted by: Marisela Martinez, Buyer
Subject
Amendment No. 1 to the Professional Services Agreement with SDI Presence LLC Recommendation
Approve and authorize the City Administrator to execute Amendment No. 1 to the Professional Services Agreement with SDI Presence LLC, in substantially the same form as submitted, for project management services for a total not-to-exceed $224,437.50, for an additional term of one year and four months.
Background
On December 1, 2020, the City Council approved the implementation of a new comprehensive Enterprise Resource Planning (ERP) system for the City. Given the complexity and breadth of this project, it was determined that the services of a project management consultant would also be required to achieve a successful implementation and deployment of the new system.
Accordingly, following a Request for Proposal process, on April 20, 2021, City Council approved the Professional Services Agreement with SDI Presence LLC (SDI) for project management services related to the City’s ERP system implementation in an amount not-to-exceed $819,000 for three years. Since then, SDI has provided project management services for the implementation of the Tyler ERP Munis software system, which includes modules for Budget and Purchasing, EnerGov, and the Munis Utility Billing Customer Information System. SDI works with Tyler and the City to ensure an effective deployment of all components of the ERP system, manages the multi-year project schedule, and monitors and communicates progress to City management.
Staff has worked diligently with Tyler and SDI on each phase of the implementation process resulting in the successful launch of several Tyler Munis modules including Budget, Purchasing, Accounts Payable, Contract Management, Capital Assets, and Project Management. Most recently, on May 1, 2023, the City launched use of Tyler’s permitting module, EnerGov, providing customers the ability to apply, check status, and pay for permits and business licenses online.
As of June 30, 2023, a balance of 211.50 hours remained available under the existing SDI Agreement, equating to $37,012.50. Although significant progress has been made in the City’s transition to a new ERP system, implementation changes and scheduling issues have caused project delays and have induced a need for additional assistance beyond the 211 hours. Staff is currently working on Accounts Receivable, Cashiering, Human Resource and Talent Management, ExecuTime Time & Attendance and Payroll, and is also in the early implementation stage for Utility Billing (scheduled to go live in about one year). Additionally, implementation for the Environmental Health module is set to start in December 2024. Staff and SDI estimate that an additional 1,282.50 hours and a term extension of one year and four months are sufficient to complete the ERP project implementation.
Staff requests approval of Amendment No. 1 for an additional $224,437.50 and to extend the term to August 19, 2025. This increase will result in a total agreement amount not-to-exceed $1,043,437.50. Pursuant to Section 3.32.030 (B) of the Vernon Municipal Code, if in the 12 months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000 pursuant to contracts with the vendor, then the amended contract shall be approved only by City Council.
The proposed Amendment No. 1 has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $224,437.50. Sufficient funds are available in General Fund, Information Technology Department, Professional Services – IT Account No. 011-010-110- 529210 for the current fiscal year and will be included in the FY 2024-25 budget.
Attachments
1. Amendment No. 1 – SDI Presence LLC