Item 4F AudioS outhlcal �e
Item 4F
Authorize the City Manager to sign an
agreement with Tyler Technologies (MUNIS)
for the purchase of a license and maintenance
agreement for the Finance, Human Resource
Information Management and Utility Billing
software applications in the amount of
$599,000 plus $136,636 in additional /optional
services and equipment
November 21, 2006
Vii
credera
MAXIMUc
Authorize the City Manager to sign an agreement with Tyler Technologies (MUNIS)
for the purchase of a license and maintenance agreement for the Finance, Human
Resource Information Management and Utility Billing software applications in the
amount of $599,000 plus $136,636 in additional /optional services and equipment.
Agenda
• Background
— IT Alignment Study
— Software Selection
— Functionality & Benefits
• Software Implementation
— Approach
— Timeline
— Costs
• Question & Answer
Background - IT Alignment Study s3
• The ITA/ignmentStudy, completed in April 2006, identified improvement
opportunitiesin four significant areas
• Strategy Recommendationsand a supporting IT Alignment Roadmap were
developed to address the opportunity areas
• The first majorprojectin the IT Alignment Strategy Roadmap is the
implementation ofnewsoftwareto support the Financial, Human Resources
and Utility Billing functions performed by the City
Assessment Findings
Strategy Recommendations
Implement . online Po
1. Missing system functionality results
in manual or inefficient business
Immediate
processes
Improvements •IT Governance
Technology infrastructure is
Implement • Financials /HR/UB
complicated and lacks critical
Foundational . Public service ops
integration between applications
software . public safety ops
3. Current applications make
difficult
expand .online self service
reporting and analysis or
existing
even impossible in some cases
systems • online Records
4. Current foundational applications
Implement . DRC IT Enablement
are based on out of date
technology & hard to
New
systems •Improved Reportin
are use
Note: Projects /initiatives outlined in red are associated with
the Financials, HR & Utility Billing software implementation -
The City conducted an IT Alignment Study which was completed in April 2006. The
study identified four areas in which the city could realize sign improvement in
business processes, including:
-Missing system functionality resulting in manual or inefficient business
processes.
-Technology infrastructure that is complicated and lacks critical integration
between applications.
-Current applications that make reporting and analysis difficult or even
impossible in some cases.
-Current foundational applications that are based on out of date technology
and hard to use.
The first major project in the IT Alignment Strategy Roadmap is the implementation
of new software to support the Financial, Human Resources and Utility Billing
functions performed by the City.
Background — Software Selection f
■ A software selection project was initiated in June 2006
to identify the best software package to support the
City's Financial, HR and Utility Billing functions
The selection process is summarized below
• Over 1500 business requirements were developed and
validated by a cross section of City staff
• An RFP covering the required business functionality was
developed and distributed to 13 separate municipal software
providers
• Seven vendors responded
• After detailed RFP analysis was completed, 2 of the 7
respondents were invited to demonstrate their software
• Each vendor demonstration took 2 days to complete
• 1 vendor, Tyler Munis, was the clear overall best fit
• City staff followed up with reference checks and a site visit
• City worked with the vendor to draft a contract
`9
The software selection project for the Finance, Human Resources and Utility Billing
software began in June 2006, with the assistance of the consulting team of
Maximus /Credera. The goal of the process was to identify the best software package
to support those functions.
The consulting team, working with a selection committee of over 20 city staff, from
the impacted departments, identified over 1,500 business requirements which were
validated by the selection committee. The consulting team then developed a
Request for Proposal (RFP) covering the required business functionality and
distributed it to 13 separate software providers. Seven vendors responded to the RFP
f
Background — Software Selection S•
Each vendor RFP response was evaluated a balanced set
of criteria that included cost, vendor viability, product
functionality, implementation approach and other
technology evaluation criteria (see table below)
The two highest scoring vendors across all categories
were invited to demonstrate their software
Punmonatiry creev creev creev veuow
oN os �s
The consulting team did an initial analysis of the proposal that were received, using
a balanced criteria that included cost, vendor viability, product functionality,
implementation approach and other technology evaluation criteria. Based on the
initial evaluation three (3) firms were selected by the staff selection team for further
evaluation and review. The staff selection team consisted of more than 20
employees who would directly use the selected software from Office Assistants to
Directors. The staff selection team then rated each proposal each of the proposals
individually. The individual ratings were then combined into an overall rating for
the three firms. After this detailed review and rating two (2) firms were invited to
demonstrate their software to the staff selection team.
Background — Software Selection f
Each vendor who was selected to participate in
demonstrations was evaluated for software functionality,
technical fit, vendor viability, maintenance /support, cost
and implementation approach
The Tyler MUNIS product scored highest in all functional
areas as shown in the graph below
Essential Fit Test
100%
90%
80%
]0%
60%
50%
40%
80%
20%
0%
0%
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Crit,na
Each vendor was allowed two days to demonstrate their software. The staff
selection team then again rated the two firms using criteria including; software
functionality, technical fit, vendor viability, maintenance /support, cost and
implementation approach.
One vendor, Tyler Technologies MUNIS was the clear overall best fit as rated by the
staff selection team.
f
s.
Background — Software Selectioi.
The Tyler Technologies MUNIS product was the final
selection based on their high marks across all areas
Tyler Technologies, with Headquarters in Dallas,
focuses exclusively on solutions for the public sector
Largest company solely dedicated to providing software
and IT Services to the public sector
Publicly traded on NYSE (TYL); in business for over 40
years
Annual revenues over $172 million and employs over
1,325 staff
Serves nearly 4,500 customers; MUNIS is used by over
1,200 customers
Local customers include City of Frisco, Mesquite ISD,
Irving ISD and McKinney ISD
MUNIS installs between 60 and 70 new customers
annually 1 4.
Tyler Technologies MUNIS was the final selection based on their high marks across
all areas.
Tyler Technologies, with headquarters in Dallas, focuses exclusively on solutions
for the public sector. They are the largest company solely dedicated to providing
software and IT services to the public sector, are publicly traded on the NYSE and
have been in business for over 40 years. Local customers include the City of Frisco,
Mesquite ISD, Irving ISD, and McKinney ISD. Tyler Technologies MUNIS installs
between 60 and 70 new customers annually.
Background — Functionality & Benefits S
The Tyler MUNISproduct is an integrated solution and therefore significantly
addresses a key finding from the ITAfignment Strategy that the City's existing
applications lack critical integration points
4
The Tyler MUNIS product is an integrated solution and therefore significantly
addresses a key finding from the IT Alignment Strategy that the City's existing
applications lack critical integration points. Implementation of Tyler MUNIS will
significantly address three of the four recommendations from the IT Alignment
Strategy project.
Background — Functionality & Benefits n i
Implementation of Tyler MUNIS will significantly address three of the
four recommendationsfrom the ITAfignmentStrategyproject
Implement Foundational Software
. Improved Financial Management
Financials/ HR/ Utility Billing
Windows interface easyto use
Integrated data model without duplicate data
Financial transactions tied to budget
Greatly enhanced functionality (AP, AR, GL, UB)
Workflow enabled (e.g. PO approval process)
Single customer /parcel view; integrated data model
Document management &GIS integration
Expand Existing Systems
. Employee Self Service
Online Self Service
Web based benefits registration, W4, address updates
Web based access to pay stubs
Web enabled entry of time and expenses
Online application for open positions
Citizen & Vendor Self Service
Utility bill inquiry
PO inquiry
Complaint tracking
Implement New Systems
. Operational Reporting
Improved Reporting
Strong Query by Example within application
Crystal Report interface with security
• Strong GASB -34 Reporting Module
• Business Intelligence /Scorecarding
Adhoc analytical reporting
Dashboardsand scorecards
Link strategy, initiative and measurement
Incorporate other data sources (e.g. Crimes)
Implementation - Timeline • t •
City of Southlake High Level Project Plan
Notes
• The first phase of each project is the Project Planning Phase. During this
phase, MUNIS will coordinate with the City and MAXIMUS detailed
interviews to finalize the final project plan.
• The Finance and Procurement implementation will begin in mid - December
and will move into production in October 2007.
• The Utility Billing implementation will begin shortly after the financial
system and will also move into production in October 2007
• The HR and Payroll systems implementation will begin in May and go live
on January 1, 2008. �C
The project will begin with a planning phase during which MUNIS will coordinate with the
Cit and MAXIMUS details interviews to finalize a project plan
The Finance and Procurement implementation will begin in Mid - December and move to
final production in October 2007
The Utility Billing implementation will parallel that of the Finance implementation and will
move into production in October 2007
The HR and Payroll implementation will begin in Mid -year and go live on January 1, 2008
The City has negotiated a fee of $599,000 plus $50,636 in additional services and
equipment. This amount does not include travel or the expense of a performance bond
estimated to be approximately $86,000.
The implementation costs for the software applications purchased under this agreement are
$1.410 million as follows:
$ 599,000 — purchase of Tyler MUNIS Finance, Human
Resource and Utility Billing software packages
$ 90,000 — purchase of hardware
$ 295,000 — implementation assistance /management
$ 295,000 —data conversion
36,000 — optional items
Total Implementation
Costs — $1,410,000
t
Implementation - Costs
• One time implementation costs = $1,410K (see table below)
• Ongoing yearly software maintenance =
$67K
• Ongoing yearly disaster recovery service
= $14K
One Time Costs
Cost Category
Cost
Application Software &Installation
$ 599 K
Hardware and System Software
$ 90 K
Implementation Services
$ 295 K
Data Conversion Services
$ 295 K*
Additional /Optional Items
$ 136 K **
Total
$ 1,410 K
Notes:
* This is a not to exceed amount and may not all be necessary
** Optional items include additional software modules and cash station hardware which may not be purchased,
but
whose price has been guaranteed for 18 months, Travel and Expenses are an additional cost and
maynot reach
the budgeted amount, City has agreed to pay the cost of a performance bond
The City has negotiated a fee of $599,000 plus $50,636 in additional services and
equipment. This amount does not include travel or the expense of a performance bond
estimated to be approximately $86,000.
The implementation costs for the software applications purchased under this agreement are
$1.410 million as follows:
$ 599,000 — purchase of Tyler MUNIS Finance, Human
Resource and Utility Billing software packages
$ 90,000 — purchase of hardware
$ 295,000 — implementation assistance /management
$ 295,000 —data conversion
36,000 — optional items
Total Implementation
Costs — $1,410,000
IT Alignment Study
f
Implementation Phase II -
Strategic Initiative Fund Budget
Technology Infrastructure
$925,000 Purchase of the Finance, Utility Billing and
Human Resource Management foundational
software;
$90,000 Purchase of hardware for the above software
applications;
$350,000 Implementation management for the above
software applications;
$310,000 Data conversion associated with the above
software applications;
The total budget for the technology infrastructure proposal phase
II is $1,675,000.
2
Implementation of this phase (Phase II) of the IT Alignment Study was budgeted in
the Strategic Initiative Fund for FY2007 as follows:
$925,000 — purchase of software
$ 90,000 — purchase of hardware
$350,000 —implementation assistance /management
$310,000 — data conversion
IT Alignment Study
f
Implementation
Cost v. Benefits
Summary
Annual savings in labor hours 17,657
Annual savings in fte 7
Labor re- allocation $ 215,643
Cost avoidance $ 82,000
�i '' ■ Total expense savings $297,643
w 6 Total implementation costs $1,410,000
. Implementation recovery 4.7 years
Cost v. Benefits
Summary
Annual savings in labor hours
17,657
Annual savings in fte
7
Labor re- allocation
$ 215,643
Cost avoidance
$ 82,000
Total cost savings
$ 297,643
Return on investment
4.5 years
M . Uthla
Item 4F
Questions
Contact Jim C. Blagg
817.748.8601