Title
Staff Report for a City of San Leandro City Council Resolution to Approve a Consulting Services Agreement with Berry Dunn for an amount not to exceed $372,000 for Enterprise Resource Planning Software Upgrade Support and Implementation Services
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution for a Consulting Services Agreement (“CSA”) with Berry Dunn McNeil & Parker, LLC (Berry Dunn) for consulting and project management services related to the City’s enterprise resource planning software upgrade project. The agreement covers three project phases with a total not to exceed amount of $372,000.
BACKGROUND
The City currently utilizes Eden software from Tyler Technologies to manage its financial and human resources activities. Enterprise resource planning refers to software that organizations use to manage day-to-day activities such as accounting, general ledger, budgeting, procurement, payroll, and human resources. Eden is a core system for the Finance and Human Resources functions and is used by all City departments. The Eden software has been used by the City for over 20 years.
In a decades long period of rapid computer and technological change (every 18 to 24 months, computer processing speed doubles), after 20-years Eden software is now limited in its functionality. The system lacks standard features such as browser-based (online) access, user-friendly reporting functions, and features such as project accounting, integration with other financial payment systems, and public dashboards. As such, staff recommends upgrading to a new enterprise resource planning software. This upgrade is consistent with the recommendations of the Community Advisory Budget Task Force.
Analysis
After reviewing options for enterprise resource planning software, staff has concluded that upgrading from Eden software to Tyler Technology’s leading system, Munis, is in the City’s best interest. Munis is designed specifically for the public sector and integrates financial, procurement, human resources, payroll, and revenue collection. In addition, the software features online dashboards, extensive reporting functions, and project accounting. Further, Tyler has developed an upgrade route for Eden customers, which will simplify data conversion.
At the same time, the enterprise resource planning software upgrade is a significant undertaking, primarily impacting Finance, Human Resources, and Information Technology functions. Given the scope and complexity of the project and the inherent risks, staff recommends retaining consulting support in the areas of advisory services, project management, and liaison between Tyler and City departments. Staff has identified three distinct phases of work for Berry Dunn with the project:
• Phase 1 - Needs Assessment
• Phase 2 - Tyler Technology Sole-Source Contract Negotiations
• Phase 3 - Implementation and Support
In September 2021, staff issued a request for proposals to qualified consultants providing these services. Four firms responded, including: Berry Dunn, SoftResources, SDI, and ThirdWave. Given its deep expertise and experience with Tyler Munis, particularly Eden to Munis conversions, its strong references, and competitive pricing proposal staff recommends awarding the contract to Berry Dunn.
The total value of the agreement between the City and Berry Dunn is $372,000. This amount covers all three phases and is specified in the following estimates:
• Planning: $5,200
• Phase 1: $26,200
• Phase 2: $38,400
o Travel for Phase 1 and 2: $7,000
• Phase 3: $295,200
• Grand Total: $372,000
Planning and Phases 1 and 2 will be completed prior to the conversion to Tyler Munis; Phase 3 will occur in parallel and in support of the Munis upgrade project and is expected to last for the duration of the conversion, through completion of the implementation and launch of the Munis software.
While this total amount of the agreement is based on the cost proposal provided by Berry Dunn during the RFP process, the City reserves the right to negotiate payment based on the proposed hourly rate of $205. Any amounts exceeding $372,000 will require a formal amendment signed by the parties and City Council approval.
Committee Review and Actions
• This upgrade is consistent with the recommendations of the Community Advisory Budget Task Force.
Legal Analysis
• The City Attorney’s office reviewed and approved the Consulting Services Agreement between the City and Berry Dunn.
Fiscal Impacts
• The CSA is for an amount not to exceed $372,000. This amount will be funded by the ERP Capital Improvement Budget.
Budget Authority
This Information Systems Fund project has sufficient funding programmed into the Fiscal Year 2021-22 budget for this enterprise replacement as appropriated into account 688-13-133.
PREPARED BY: Tony Batalla, Chief Technology Officer; Emily Hung, Human Resources Manager; Karen Chang, Asst. Finance Director; Susan Hsieh, Finance Director; Janelle Cameron, Assistant City Manager