TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Patrick Griffin, Interim Information Technology Director
Tatyana Roujenova-Peltekova, Senior Management Analyst
SUBJECT:Title
Enterprise Project Implementation Update of Enterprise Resource Planning (ERP) and Enterprise Permitting & Licensing (EPL) Systems; Consideration of Adopting a Resolution Approving Amendment No. 7 for a Two-Year Term Extension of the ERP and Tyler System Management (TSM) Agreements with Tyler Technologies with a Not-To-Exceed Amount of $508,976; and Consideration of Adopting a Resolution Approving Amendment No. 2 for a Two-Year Term Extension of the EPL Agreement with Tyler Technologies with a Not-To-Exceed Amount of $124,022 (Interim Information Technology Director Griffin).
A) RECEIVE REPORT
B) ADOPT RESOLUTIONS NOS. 23-0089 AND 23-0090
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
a) Receive the project update report for the implementation of the Enterprise Resource Planning (ERP) and Enterprise Permitting and Licensing (EPL) systems;
b) Adopt Resolution No. 23-0089 approving Amendment No. 7 for a two-year term extension of the ERP and Tyler System Management agreements with Tyler Technologies with a not-to-exceed amount of $508,976; and
c) Adopt Resolution No. 23-0090 approving Amendment No. 2 for a two-year term extension of the Enterprise Permitting & Licensing (EPL) agreement with Tyler Technologies with a not-to-exceed amount of $124,022.
FISCAL IMPLICATIONS:
Sufficient funds are budgeted in the Information Technology Fiscal Year 2023-2024 and Community Development Fiscal Year 2023-2024 budgets. Funding for the year two renewals will be budgeted in the Fiscal Year 2024-2025 respective Department budgets.
BACKGROUND:
On July 17, 2018, the City Council approved the purchase of two major software enterprise solutions: 1) Tyler Munis Enterprise Resource Planning (ERP) system, supporting all financial, human resources, and payroll activities; and 2) Tyler Enterprise Permitting & Licensing (EPL) supporting planning, permitting, inspection, and code enforcement activities. During that meeting, the City Council requested regular updates on the implementation of both projects to ensure they remain on target and within budget. Prior project updates have been provided regularly to the City Council. With the completion of the EPL implementation project and the majority of the ERP modules, the City Council status updates were changed to semiannually beginning with the April 19, 2022 Council meeting. The last seminnual progress report was presented November 1, 2022.
DISCUSSION:
Since the initial purchase of the two Tyler enterprise systems, significant effort has been put forth to ensure the successful implementation of both systems. A number of critical milestones required focused effort from both City staff and the Tyler team, including among others: system configuration to ensure the software systems meet the needs of the City and our constituents; electronic workflow to reduce previously manual processes; security setup to ensure confidentiality of sensitive data; and development of standard and custom reporting to provide timely and accurate information.
Munis Enterprise Resource Planning (ERP) Software
In January 2021, the City began utilizing the Munis ERP system for its core financial activities. Additional modules of the system, including inventory, payroll, and timekeeping were implemented subsequently, and the Utility Billing module go-live occurred in early 2023. Modules remaining to be implemented include Business License, Open Finance (replacing the originally purchased Citizen Transparency Portal), and Enterprise Asset Management. The City project team continue to meet regularly to plan for these module implementations and to address software and/or process concerns related to the active components of the ERP and EPL systems.
The City has been successful in utilizing the features and functionality of both the EPL and ERP solutions, and staff continue to explore additional potential areas for increasing efficiencies and reducing redundant work processes. Overall, both implementations have been a success, and the projects were implemented within budget.
Enterprise Permitting & Licensing Solution
In January 2020, the City launched the first phase of the Enterprise Permitting & Licensing system, which provided the City’s first-ever public portal for applicants to apply for and track various building and planning activities. Within the next six months, the City implemented an electronic plan review and online payment systems which reduced the number of trips to City Hall for plan submittal and EPL-related payments, while also automating the plan review process. The system has been fully implemented and is being utilized by both City staff and our customers, providing significant improvements to the permit, inspection, and entitlement processes in place prior to implementation of the new system.
Agreements Extension / Renewal
The initial term of the City’s agreements with Tyler for both the ERP and EPL solutions was for five years, and are set to expire in August 2023. In order to continue to provide annual maintenance of the two systems, amendments extending the term of the existing agreements are required.
For the ERP system, Amendment No. 7 includes extending the term for the ERP and Tyler System Management (TSM) agreements for an additional two years. TSM services are required for server and database management and administration of the ERP, Cashiering, Content Management and all other ancillary products. The year one cost for the ERP system is $254,175 with year two capped at a not-to-exceed 5% cost of living (applied only to certain portions of the contract) for a maximum year two cost of $254,801. Additionally, the Amendment includes disaster recovery, conversion of unused travel to implementation services, and the addition of the PACE services for staff training and periodic system evaluations.
For the EPL system, Amendment No. 2 also extends the agreement for an additional two years. The extended services include EPL software maintenance and disaster recovery services. The year one EPL renewal is $60,498, with year two capped at a not-to-exceed 5% cost of living for a maximum year two cost of $63,524.
The extended ERP and EPL services will ensure that the City receives the latest software releases and updates correcting bugs and delivering new features and functionality over the next two years. The amendments also include disaster recovery services providing business continuity of the City’s enterprise systems in case of a disaster or cybersecurity event. If approved, the recommended amendments will extend the term of the ERP and EPL agreements from July 24, 2023 through July 23, 2025. Sufficient funds are budgeted in the Information Technology Fiscal Year 2023-2024 and Community Development Fiscal Year 2023-2024 budgets. Funding for the year two renewals will be budgeted in the Fiscal Year 2024-2025 Department Budgets.
PUBLIC OUTREACH:
Staff determined that public outreach was not required for this item.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA; thus no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT/ATTACHMENTS:
1. Resolution No. 23-0089
2. Amendment No. 7 - Tyler Technologies
3. Resolution No. 23-0090
4. Amendment No. 2 - Tyler Technologies