Title
Recommendation to Approve Extending the Term for the Use of Remaining Approved Funds for the Tyler Munis Financial and Human Capital Management System Implementation Project through June 2025. (Information Technology 60626070)
Body
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In July 2019, City Council approved the Tyler Munis Financial and Human Capital Management System project, also referred to as an Enterprise Resource Planning (ERP) system with an anticipated implementation timeframe of 30 months. The implementation was delayed due to unforeseen circumstances such as a global pandemic, as well as the replacement of two Finance Directors. Staff is requesting the original 2.5-year projected implementation term be extended to June 2025 to allow for completion and troubleshooting issues identified through the first-year use of the City of Alameda’s (City) financial, payroll, human capital system, as well as for funding of a procurement system that was included as a potential, but unfunded, feature in the original scope of implementation.
BACKGROUND
In August 2019, the City began the implementation of the Tyler Munis Financial and Human Capital Management System to replace the City’s 20-year-old legacy financial and human resources systems, eFinancePlus. It was anticipated that the implementation timeframe would consist of two phases and take approximately 30 months to complete. Phase 1, originally scheduled for completion by July 2020, was the core financial modules such as general ledger, accounting, accounts payable, fixed assets, purchase orders, requisitions, cash management, accounts receivable, and general billing. Phase 2, scheduled for completion in April 2021, consisted of the remaining financial modules for budget, contract management, and project/grant accounting and human capital modules such as payroll, human resources & talent management, and time and attendance.
The implementation effort significantly impacted City staff time in the Human Resources, Information Technology, and Finance Departments, as well as other City staff as staff continued to perform their day-to-day operations along with implementing a new City-wide ERP system. The impact spanned all disciplines from accounting to benefits to data conversion and application interface development.
For the first 2.5 years of the Tyler Munis Contract, funding for the licensing and implementation costs were paid through the implementation budget. During the implementation period, the City was required to run parallel financial systems, operating both eFinancePlus and Tyler Munis. Due to the pandemic and two Finance Directors leaving the City, the implementation was delayed by 15 months for Phase 1 and an additional 14 months for Phase 2. This has exceeded the original 2.5 timeframe for funding.
DISCUSSION
Phase 1, consisting of the core financial modules, went live on October 1, 2021. Phase 2, consisting of the remaining financial modules and human capital modules went live on July 1, 2022. With the extension of the go-live dates, the City continues to pay the licensing fees for the legacy system beyond the original estimated 2.5 years and requests to continue using this system through June 2025, funded by the remaining budget.
Staff also requests authority to use remaining project funds for additional system options to improve operational efficiencies such as the following ERP-related projects:
• Expand the Chart of Accounts in the OpenGov budget development system to add the project ledger for Capital Project Budgeting.
• Purchase and implement an eProcurement solution so staff can manage and automate the complete process for developing and collaborating on all purchasing projects from request to award.
• Conduct a system assessment with a consultant specializing in assessing ERP systems to recommend improvements to the system set-up so it best aligns with the City’s operational needs.
ALTERNATIVES
• Extend the term to utilizing the remaining approved funds for the Financial and Human Capital Management System implementation project through June 2025.
• Direct staff to close out the project, however, this would result in the City continuing with an ERP system that is not optimal or best aligned with the City’s operational needs as well as an inability to continue working with the historical data when needed.
FINANCIAL IMPACT
Of the original project implementation budget of $3,864,781, there is remaining budget of $1,084,768 as of February 2023. Staff is requesting authority to use the remaining project budget through June 2025 and no additional funding is requested.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This action is not a project for the purposes of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 10561(b)(3) as there is no possibility that this action may have a significant effect on the environment.
CLIMATE IMPACTS
The new ERP changes the way the City processes financial, payroll and human resource transactions. Much of the work that is currently printed and maintained in hard copy is now maintained electronically. Additionally, since work can be submitted electronically by departments, the amount of mail transported by car is expected to be reduced substantially.
RECOMMENDATION
Approve extending the term for the use of remaining approved funds for the Tyler Munis Financial and Human Capital Management System Implementation Project through June 2025.
Respectfully submitted,
Margaret O’Brien Director of Finance
Carolyn Hogg, Director of Information Technology
Financial Impact section reviewed,
Margaret O’Brien, Director of Finance
Exhibits:
1. Agreement
2. 7/16/2019 Staff Report