Department of Information Technology
Enterprise Resource Planning
(ERP)
Finance Committee
November 25, 2013
Agenda
Department of Information Technology
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What is ERP?
Objectives & Benefits
The Current State
Tyler Munis ERP
Implementation Timeline
Project Oversight
Measurable Success Factors
Staffing
Budget
Council Recommendations
Questions
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What is ERP?
Department of Information Technology
• ERP = Enterprise Resource Planning
> Software system that can seamlessly integrate all information
and processes flowing through an organization
> Enables widespread data sharing from a single information
repository to improve information accuracy and availability
> Drives business transformation and change management efforts
> Most medium/large organizations use ERP systems. Popular
software vendors include: SAP, Oracle, JDEdwards, Peoplesoft,
Sage/MAS, Microsoft.
> Common functions of ERP systems: finance and accounting,
human resources management, budgeting, payroll, cashiering,
project tracking, procurement, invoicing and inventory.
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Objectives & Benefits
Department of Information Technology
• Fully integrate finance, human resources, budget and
payroll functions
• Provide enterprise-wide reporting and decision
support in real-time through a single information
repository
• Streamline or eliminate inefficient, redundant and
manual processes that increase potential of errors
and inaccurate information
• Align financial and human resources operations to
industry best practices
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Objectives & Benefits
Department of Information Technology
continued…
• Establish a core system that can be reused to
automate all financial operational processes
• Enable city staff to become more efficient, productive,
and responsive to the needs of the constituents
• Incorporate modern technology and new functionality
to eliminate paper based processes and a
springboard to provide new online constituent
services
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The Current State
Department of Information Technology
• Information Technology Strategic Plan (2011)
> Recommendation: Implement an integrated ERP system
• ERP Assessment Report (2012) by SoftResources, LLC
> Widespread manual process and aging systems prevent the City from
keeping up with industry best practices
> Extensive use of stand-alone systems that are not integrated resulting in
process duplication and staff time consumed by reconciling information
between systems
> Fewer staff to complete workload as a result of economic downturn
> Institutional process knowledge is poorly documented and long-term
employees are reaching retirement age
> PeopleSoft Financials version 8.4 is no longer supported by Oracle
> Recommendation: Implement a new ERP system
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Tyler Munis ERP
Department of Information Technology
• Tyler Munis ERP system recommended through
competitive solicitation process and due diligence
• Tyler Technologies, Inc.
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Founded: 1966 (NYSE: TYL)
Provides software exclusively for the public sector
Employees over 2,500 employees
11,000 Customers Worldwide
30+ California cities using Tyler Munis ERP
 Customers include Beverly Hills, Chino, Culver City, Santa Barbara
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Implementation Timeline
Department of Information Technology
Project Schedule
FY 2014
FY 2015
FY 2016
FY 2017
Total
Phase I
Financial Modules
18 Months
Phase II
Human Resources /
Payroll
12 Months
Phase III
Business License &
Cashiering
6 months
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Project Oversight
Department of Information Technology
Attachment B
Executive Steering Committee
ACM, Finance, HR, DoIT
Project
Management
ERP PM, DoIT PMO
Project Steering
Committee
Dept Managers
Project Core
Team
City Staff
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Subject Matter
Experts
IT, Vendors
Measurable Success Factors
Department of Information Technology
• Developed by Project Steering Committee and
Project Core Team
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Reduce time to complete month-end and year-end closing
Increase availability and accuracy of data
Reduce the number of stand-alone systems
Eliminate workflow redundancy and streamline work
processes allowing City staff to focus on more important tasks
> Update and document all financial processes and procedures
> Ability to manage and report CIP budget information from
integrated financial system
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Staffing
Department of Information Technology
• Addition of six new at-will limited-term full-time
equivalent (FTE) positions to support project
implementation
> ERP Project Manager – Responsible for overall
management and delivery of the entire project
> ERP Business System Analysts – Responsible for
configuring the new system with new processes and data
workflows
> City Temporary Workers (CTW) – Backfill for existing staff
assigned to the project. Flexible positions to hire interns, City
retirees and other professional staff on a rotating basis
> All new positions tied to project duration and funding
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Budget
Department of Information Technology
Project Budget
FY 2014
FY 2015
FY 2016
FY 2017
Total
Software (Tyler Contract)
$667,398
$1,493,218
$825,820
$0
$2,986,435
Hardware
$127,000
$20,000
$15,000
$5,000
$167,000
Professional Services
(System Integration and
Change Management)
$38,651
$77,394
$101,160
$19,881
$237,085
Temporary City Staff Support
$535,936
$668,286
$652,792
$328,189
$2,185,203
Project Contingencies
$18,715
$273,521
$273,521
$273,520
$839,277
$626,590
$6,415,000
Annual Fiscal Impact
$1,387,699 $2,532,419 $1,868,293
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Council Recommendations
Department of Information Technology
1. Find that the proposed contract is exempt from the California Environmental Quality Act
(“CEQA”) pursuant to State CEQA Guidelines Section 15061(b)(3);
2. Authorize the City Manager to enter into a three-year contract with Tyler Technologies, Inc. to
furnish and deliver software, hardware, and services for an Enterprise Resource Planning
System in an amount not to exceed $3,434,400 which includes the base contract amount and
ten percent for contingencies. Competitive bidding is not required pursuant to City Charter
Article X Section 1002(F), Contracts for professional or unique services;
3. Amend the Fiscal Year 2014 Capital Improvement Program (CIP) Budget to increase the total
estimated cost for the Enterprise Resource Planning System (ERP) Project, 71149, by
$3,415,000 to $6,415,000;
4. Authorize the addition of six new at-will limited-term full-time equivalent (FTE) positions to the
Department of Information Technology FY2014 Operating Budget funded by the ERP Project,
71149 in the Project Management Fund (301), increasing the department total FTE count from
63.50 to 69.50, and authorize staff to make necessary adjustments to the budget; and
5. Establish the title and salary control rate of $115,000 for the ERP Project Manager and the
title and salary control rate of $95,000 for the ERP Business Systems Analyst as unclassified
(at-will) positions in the Non-Represented Management Salary Resolution.
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Questions
Department of Information Technology
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ERP Project Funding Sources
Department of Information Technology
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ERP Project Funding Sources
Department of Information Technology
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Cost Allocation Methodology
Department of Information Technology
• Itemization of all ERP costs - $6.415 million
(inc 15% contingency)
• Development of cost allocation groups
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FY 2014 Budget
FY 2014 Budgeted FTEs
FY 2013 Cash Balance
FY 2013 Number of Purchase Orders
FY 2013 Fixed Assets Totals
# of FY 2013 Grant Revenue
FY 2013 Accounts Receivable
FY 2013 Number of Purchasing Cards
• Calculation and allocation based on groups and Fund
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Cost Allocation Methodology
Department of Information Technology
• Adjustment of allocation based on special
circumstances
• Identification of legal restrictions of allocation
• Identification of Funds with insufficient resources to
pay allocation
• General Fund will advance Funds with insufficient
resources and establish a receivable for repayment
later
• General Fund provides initial funding in FY 2014
• Remaining allocation requirement begin in FY 2015
through FY 2017
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Request for Proposals Overview
Department of Information Technology
• RFP Posted on City Website (September 18, 2012)
• Seven Proposals Received (October 30, 2012)
• On-site Demonstrations (March-April 2013)
> Top four proposers conducted demos over three days each
• Due Diligence of Tyler Munis (May-August 2013)
> Ten municipal customer references surveyed
> Conference call with City of Chino, CA
> On-site visit to Culver City, CA
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Change Management Process
Department of Information Technology
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