That the City Council authorize the City Manager to execute a Project Change in the amount of $57,600 to the existing agreement with Tyler Technologies, Inc. for additional implementation services to support Phase II of the Enterprise Resource Planning (ERP) system for the Human Resources and Payroll modules.

On March 6, 2023, the City Council approved an agreement with Tyler Technologies, Inc. for the licensing, implementation, maintenance, and hosting of a new Enterprise Resource Planning (ERP) system, as well as a professional services agreement with Glass Box Technology, Inc. to assist with implementation services. The ERP system implementation was designed to be completed in multiple phases, including financial management modules (accounting, general ledger, cashiering, payroll, etc.) and Human Resources/Payroll functionality. The implementation of an updated contemporary ERP system was necessary to replace the City’s legacy financial system, improve operational efficiency, enhance internal controls, and support growing financial and reporting requirements. Phase I of the ERP implementation, which included the City's core financial modules, has been substantially completed. The City is now preparing to complete Phase II, which includes Human Resources Management (HRM) and Payroll functionality.

As the City progresses into Phase II of the ERP implementation, additional implementation services are being requested to successfully complete the Human Resources and Payroll modules.

The proposed change to the project will include:

The change order reflects the level of effort required to ensure a successful implementation of HR and Payroll modules.

Approval of this recommended project change will help ensure that the ERP system is fully implemented across all functional areas in the City, including the seamless integration of Human Resources and Payroll into a single system, while providing staff with necessary training and support to effectively utilize the system and minimizing risks associated with an incomplete or delayed implementation.

The total cost of the proposed project change is $57,600, prior to potential offsets, which includes additional implementation services and project management support.

Funding for this change order is available through savings generated from the Glass Box Technology implementation agreement. In reviewing the project's progress, staff anticipates utilizing fewer consulting hours from Glass Box than originally budgeted and, instead, is requiring more implementation services directly from Tyler Technologies. The cost savings under the Glass Box agreement are sufficient to fund the proposed project change costs for Tyler Technologies and the project has sufficient budget available in the Information Technology Replacement Fund; therefore, no additional appropriation is being requested at this time.

Objective A: Closely monitor revenues, expenditures, and fiscal trends to ensure the City’s long-term fiscal stability 

Objective D: Identify and evaluate options to upgrade the City’s financial management system.