Agenda - Council Work Session - 10/25/2022

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CC Work Session 2. 1. Meeting Date: 10/25/2022 Information Title: Financial Software Replacement / Upgrade Purpose/Background: Around April 2021, Logis was tasked with seeking out a possible replacement for its current financial software as well as its Utility Billing software. The request was driven by its membership of cities and counties. The primary reasons for updating were: the age of the current software solution, lack of integration with HR, and the pricepoint of onboarding onto the Utility Billing side was cost prohibitive despite member interest. Ramsey is not currently a member of the Utility Billing offering, and is currently only considering the Financial Software replacement option in this case. Logis initiated a member -driven search for a new system lasting 20 months. They had eight member -representatives on the ERP Selection Team in addition to senior LOGIS Staff. There were six responses to the RFP and they elevated three solutions for software demos. Each demo took place over a 3-day period. After months of proposal reviews, demos, and follow-up discussions, the Selection Team elevated Oracle Cloud ERP as the preferred choice for the membership. Logis has tentatively negotiated pricing with Oracle on behalf of the 27 interested agencies as of September 2022. In order to lock in pricing, Logis is asking its interested members for a formal commitment to the software change for 10 years. By formalizing member intentions, it allows Logis, on behalf of its members, to secure the best pricing possible. Attached is the ERP Member Letter, which went out to the Logis membership in August of 2022, as well as an FAQ sheet. Timeframe: While Logis is asking for cities and counties interested in the financial software to opt into a 10-year commitment to the new software, members will change to the new software at a time of their choosing within the first 5 years. Logis will be supporting the current system during the transition for all members. Ramsey's preference is to go on-line with the new Oracle Cloud software in 2025. Funding Source: Annual software costs are expensed in the General Fund under the Data Processing Department. Implementation costs could be spread out as milestone payments, but also expensed in the General Fund. Below figures are estimates based on 2023 proposed budgets, as well as the current interest in the financial software replacement. • Current costs of Financial Software - $66,855 • Financial Software - $29,910 • HR/Payroll - $30,445 • Accounts Payable Digital Invoicing (Tungsten) - $4,055 • Hubble and Insight - $2,445 • Current costs of NeoGov-HR Recruiting Software - $3920 • Total Costs of Current Financial/HR Software $70,775 (Increases annually) • New Oracle Software Annual Cost - $99,658 - (includes Finance & HR) which represents a net increase of