HomeMy WebLinkAbout3.b. Enterprise Resource Planning (ERP) Upgrade
EXECUTIVE SUMMARY
City Council Regular Meeting: October 4, 2022
AGENDA ITEM: Enterprise Resource Planning (ERP)
Upgrade
AGENDA SECTION:
Discussion
PREPARED BY: Teah Malecha, Finance Director AGENDA NO. 3.b.
ATTACHMENTS: None APPROVED BY: LJM
RECOMMENDED ACTION: Discuss LOGIS ERP option and provide staff with direction
BACKGROUND
The City has been utilizing Tyler Technologies Incode for roughly 20 years for general ledger, accounts
payable, and payroll functions, and Civic Systems Clarity for utility billing for 10 years. As we have
expanded as a city, the functionality has remained limited and requires an inefficient amount of staff time.
We continue to do many tasks manually in Finance. Until roughly a year ago, staff was hand-stamping
signatures on checks through accounts payable. Payroll stubs are still printed and distributed to staff.
Laserfiche has added numerous forms to help ease the paper processes, but in some cases, it has created
more staff time rather than saving time. The current annual costs are roughly $30,000 for Incode and
Clarity with the utility billing expenses split between water, sewer, and storm water funds.
Because of these issues, for many years staff has mentioned to Council the long-term need for a change.
The City has the option to conduct a Request for Proposal (RFP) for a new ERP solution or choose to
utilize Local Government Information Systems (LOGIS) which offers an ERP solution through a Joint
Powers Agreement (JPA) that currently includes 27 participating agencies. Some of the current
participating LOGIS members include: DCC, Ramsey County, South St. Paul, Austin, Farmington, Golden
Valley, Shakopee, Eden Prairie, Lakeville, and Apple Valley. Rosemount utilizes LOGIS for police and fire
records along with some network assistance.
LOGIS has been utilizing JD Edwards for financial software and Advanced Utility Systems CIS for utility
billing and recently completed an RFP to bring in a modern application at the request of the current
LOGIS members. The LOGIS RFP began in December 2020 and concluded in August 2022 with a
culmination of over 1,500 collective hours from the LOGIS membership and LOGIS staff. The RFP was
guided by the Government Finance Officers Association (GFOA) using governmental best practices
associated with software selection. The participating agencies established the functionality requirements
and participated in software demonstrations. Proposals were received from Advanced Utility Systems,
Central Square, Oracle Fusion, SpryPoint, Tyler Technologies MUNIS, and Workday. After evaluation and
price negotiation, LOGIS is proceeding with Oracle Fusion for financial software and SpryPoint for utility
billing with a 10-year contract.
The Oracle pricing includes all system components including financial, HR, payroll, workflow tools, and
advanced reporting tools. The costs were split by small, medium, and large organization for annual costs
and implementation. The SpryPoint pricing includes all utility system components including billing and
payments, meter management, and mobile field service. It includes the software costs for Oracle and
2
SpryPoint along with LOGIS costs which include all software support and training. The annual cost for
Oracle is fixed for 2023-2027 followed by a two percent annual increase from 2028-2032. The annual cost
for SpryPoint will increase five percent annually from 2024-2032.
Annual Costs
General Fund Water Sewer
Storm
Water Total Cost
Oracle 116,914.50 12,990.50 12,990.50 12,990.50 155,886.00
SpryPoint - 31,565.33 31,565.33 31,565.33 94,696.00
The implementation costs will be paid at various milestones throughout the project or can be paid at one-
time. The implementation costs are direct vendor costs.
One-Time Implementation Costs
General Fund Water Sewer
Storm
Water Total Cost
Oracle 189,416.25 21,046.25 21,046.25 21,046.25 252,555.00
SpryPoint - 36,360.33 36,360.33 36,360.33 109,081.00
There is currently $210,000 in an assigned fund for City-wide software that can be utilized for the
expenses. Costs assigned to the different utilities would be built into the rate models. LOGIS anticipates
implementation for all agencies to take roughly three years. At this time, we anticipate Rosemount would
begin implementation in 2024. Costs would not be incurred until that time.
Both products are cloud-based and would reduce the server storage space, disaster recovery costs,
virtualization license costs, and IT management needed. There have also been integration difficulties with
Incode and Laserfiche that require both vendors and our IT staff for any changes made. The programming
used by the current version of Incode is obsolete and will require an upgrade to a newer version of Incode
if we continue to use the software, which is estimated to be a six-figure cost.
LOGIS offers on-demand local technology support for Minnesota cities, counties, and other public
organizations. They have dedicated support staff along with network services and continual research and
development. They anticipate that 90 percent of the support tickets received will be able to be resolved in-
house before needing to involve the vendor. With the same software being used across numerous agencies,
staff is able to have a network to reach out to for best practices and procedures. LOGIS also hosts user
group meetings for the LOGIS members, which is a level of peer support we have never had. LOGIS
builds and maintains the interfacing between programs ensuring that everything flows smoothly.
LOGIS also offers other software including a special assessments module. We currently maintain all
special assessments manually through Excel spreadsheets with 21 active assessment rolls for 1,208 active
parcels. This requires an estimated Finance department time of 423 hours per year. The Special
Assessment System (SA) is a LOGIS program that provides automated management and support for many
of the tasks that are currently done manually, including calculating interest and repayment schedules,
reporting, and certification. Finance receives a vast number of requests regarding special assessments on
properties, typically by title companies. There is a web hosting feature available with the SA system that
provides a link on our webpage for people to search an address or property identification number for
outstanding special assessments without having to call the City. This program could also be utilized by
Engineering for assessment administration. The annual cost is $20,450 and will free up a vast amount of
the finance department time to dedicate to other tasks.
3
Lastly, the current building permit software has been in use for roughly 25 years. The capabilities of the
program are limited and unable to expand to our future needs. Staff would like to implement a solution
that allows flexible reporting, an external customer portal, and a code enforcement module, along with
other items. Once a new ERP is in place, staff will further research the building permit program options.
As Rosemount continues to grow, it is critical that our internal systems integrate to provide the most
efficient support both internally and externally.
LOGIS has requested a formal commitment from each agency by November 15th to guarantee the contract
pricing. Expenses would not be incurred until implementation begins. The contract pricing runs through
2032 for Oracle and SpryPoint.
RECOMMENDATION
Staff requests the City Council to provide direction on proceeding with an ERP solution.