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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 DRC IT Enablement are based on out of date technology & hard to New systems •Improved Reportin are use Note: Projects /initiatives outlined in red are associated with the Financials, HR & Utility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% C O. ` y J C � A �e ye � 5 ee � ;C 0 0 aSCP e e` c C c e Q e v Qaoe 0 aeT a y. Qa ap ` e pe ` fie y. ? heC 0 C Qca c � Q eee e\ � `aa oa � cP , e act y� Q c J. vee C Qa° e a � G P eeC 0 5 lees 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