City Council Agenda Report
Meeting Date: September 1, 2026
From: Alice Hui, Director of Finance/City Treasurer
Department: Finance
Submitted by: Marisela Martinez, Buyer
Subject
Amendment No. 3 to the Professional Services Agreement with SDI Presence LLC Recommendation
A. Pursuant to Sections 3.32.220(B) and 3.32.110(B)(3) of the Vernon Municipal Code (VMC), find that it is commercially unreasonable to rebid the existing services agreement with SDI Presence LLC as necessary project implementations have not yet been completed; and B. Approve and authorize the City Administrator to execute Amendment No. 3 to the Professional Services Agreement with SDI Presence LLC, in substantially the same form as submitted, extending the agreement for project management services for an additional one (1) year through August 19, 2027, with no increase in compensation.
Background
On April 20, 2021, City Council approved the Services agreement with SDI Presence LLC for project management services for Enterprise Resource Planning (ERP) system implementation in an amount not to exceed $819,000 for three (3) years. The funds for a project management consultant were approved by City Council on December 1, 2020, with the approval of the ERP Software system with Tyler Technologies, Inc. Since the inception of the contract, SDI has served as the project management consultant for the implementation of several modules in Tyler Technologies Enterprise ERP (formerly Munis) and Enterprise Permitting & Licensing (formerly EnerGov).
Amendment No. 1 was approved by City Council on August 1, 2023, for an additional $224,437.50 and extended the agreement to August 19, 2025. Despite completing the implementation of several modules, unexpected implementation challenges caused project delays and created a need for additional assistance beyond August 2025. Therefore, Amendment No. 2 was approved by the City Administrator on July 28, 2025, extending the agreement for an additional year through August 19, 2026. To date, the contract has a remaining balance of $182,700 and SDI’s services are still needed to continue with necessary upcoming ERP module implementations.
The implementation of the Accounts Receivable/General Billing (AR/GB) module was placed on hold in fiscal year 2025-26 as City Departments, including the Fiber Optics (Fiber) division of Public Utilities, continued to use Eden for billing. Eden is expected to reach end of life and be unsupported after March 2027. After the completion of the current utility billing system upgrade in October 2025, it was determined that CIS version 5 (CISv5) can in fact support Fiber billing.
Transition of the Fiber billing to CISv5 is underway and expected to go live before Eden reaches end of life. Having this confirmation from the Public Utilities department, implementation of AR/GB can restart since we no longer have to bring all the Fiber customers and open items into Munis.
Furthermore, two specialized billing-related products will also be included in the upcoming implementations. Resident Access (RA) allows customers to make online payments, and Incident Tracking will allow the Police Department to continue billing for false alarms. With these upcoming implementations in the forefront once again, Finance recommends that the agreement with SDI be extended for an additional one (1) year through August 19, 2027, to continue to have access to their expertise and support. Pursuant to VMC Section 3.32.220 (B) and 3.32.110 (B)(3), staff recommends the City Council deem the agreement commercially unreasonable to rebid as the ongoing project implementations have not been completed.
The proposed Amendment No. 3 has been reviewed and approved as to form by the City Attorney’s Office.
Strategic Plan Goals
Goal 5: Strengthen Organizational Efficiency and Financial Planning Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. Amendment No. 3 - SDI Presence LLC