TO: Mayor and Members of City Council
THRU: Jeffery Yates, Assistant City Manager
FROM: Dwayne Campbell, Chief Information Officer
Birgit Sexton, Assistant Budget and Evaluation Director
DATE: December 12, 2022
RE:
Title
Adoption of Budget Ordinance Amendment 2023-8 and Capital Project Ordinance Amendments 2023-15, 2023-16, 2023-17, and 2023-18 to Appropriate Additional Funding for Human Capital Management Module of the Enterprise Resource System Project
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V: Financially Sound City Providing Exemplary City Services
Executive Summary:
Council is asked to adopt Budget Ordinance Amendment (BOA) 2023-8 and Capital Project Ordinance Amendments (CPOAs) 2023-15, 2023-16, 2023-17, and 2023-18 to appropriate $610,000 of additional funding for the Human Capital Management Module of the Enterprise Resource System Project. The sources of funding for CPOA 2023-18 ($610,000) are transfers from capital projects that received FY2023 General Fund appropriations and were replaced with ARPA funding: CPOA 2023-15 Parking Lot Maintenance $55,000; CPOA 2023-16 Direct Fiber Connection $80,000, CPOA 2023-17 Internet Domain $175,000, and BOA 2023-8 to re-appropriate Municipal Agreement funding $300,000 due to project schedule change.
The change order of $610,850 reflects mutually agreed upon adjustments to numerous Rollout 1 HCM project schedules, dates, assumptions, and arrangement for the payment of services.
Background:
Effective with the fiscal year 2019 budget Council approved to replace the City's
27-year-old ERP System with a new state of the art ERP system. The City selected an Oracle system solution using SCI as the integrator. ERP is the software that standardizes, streamlines, and integrates business processes across finance, human resources, procurement, distribution, and other functions. The current ERP System was implemented in 1995. We have become more reliant on the use of 3rd party applications to meet the business demands of the organization and can easily comply with changing state and federal laws. In addition, the timing of this project is relevant as support for the existing JDE world v.9.4 version concludes in 2024.
The new ERP will provide a new integrated software solution designed around improved business practices and workflow processes; and will include new hardware platform and vendor provided implementation, integration, and training services. It will provide major advances in efficiency, transparency, controls, and significantly improve decision-making information used by management and elected officials.
Issues/Analysis:
This change order reflects these mutually agreed upon adjustments to Rollout 1 HCM project schedules, dates, assumptions, and arrangement for the payment of services.
With the approval of this Change Order, the fixed fee payment arrangement for the Sierra-Cedar Rollout 1 - HCM services will be switched to a Time and Material arrangement. The estimated end date for the HCM Time and Material services will be August 31, 2023.
With the approval of this Change Order, the following Rollout 1 - HCM deliverables will be approved and paid:
o Rollout 1, Payment Deliverable #19, End User Training Materials (for HCM)
With the approval of this Change Order, the following Rollout 1 - HCM deliverables will be removed from the payment table:
o Rollout 1, Payment Deliverable #20, Production Support (HCM)
Rollout 1 - HCM Cloud schedule, date, and assumption changes:
o HCM Cloud UAT / Parallel Testing will re-start in March 2023.
§ Kronos Dimensions will provide the agreed to dataset for time and absences for the 2 payroll parallel tests scoped out for the payroll tests, starting in March 2023.
o HCM Cloud Production Cutover will be planned to occur in mid-June 2023.
o HCM Cloud Production Go-Live will be planned for late June / early July 2023.
§ The first payroll in HCM Cloud will be the first payroll paid in July 2023.
o HCM Cloud production support is planned for 5 weeks beyond the Go-Live date.
The following assumptions will be included into the upcoming 2023 payroll tests:
• 2 payrolls will be run in 2023 prior to the production cutover and the tests are planned to start in March 2023.
• The 2 payrolls to be run as part of the payroll parallel test will be the 2023 JD Edward 5th and 6th pay periods.
o Pay Period #5 - Pay Period end on February 26, 2023, Check date on March 3, 2023.
o Pay Period #6 - Pay Period end on March 12, 2023, Check data on March 17, 2023.
• In addition to the payroll processing, the following test scenarios will be executed in one or both pay period payroll tests:
o Payroll Integrations to Prudential, NCUI, Orbit, ADP, and Truist.
o Payroll Check writer report.
o Test Payroll Costing Report output based on configuration.
o Test Payroll to PPM integration using Kronos Dimensions Timecard data with Project related data.
o Payroll Costing Report output based on configuration.
o Testing of ORBIT.
o Testing of FSLA.
The City will have its key project team members dedicate at a minimum of 50% (with a target of 75%) of their work week to project activities (testing, training) until the Rollout 1 HCM Cloud go-live dates.
o For the City HR and Benefits team members, they will be committed during the months of November and December 2022 to continue testing, retesting and knowledge transfer activities.
o The City Payroll team members will start their re-involvement with the testing cycles starting in February 2023.
Rollout 3 of the agreement is expected to start in August / September of 2023 as mutually agreed, approximately 6 weeks after the HCM Cloud go-live date.
Budget Impact:
There is no impact to the General Fund as the $610,000 funding was included in the adopted FY2023 General Fund budget.
Options:
1. Adopt BOA 2023-8, CPOAs 2023-15, 2023-16, 2023-17, and 2023-18 and authorize the City Manager to execute the change order with Sierra Cedar.
2. Do not adopt BOA 2023-8, CPOAs 2023-15, 2023-16, 2023-17, and 2023-18 or authorize the City Manager to execute the change order with Sierra Cedar and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt BOA 2023-8, CPOAs 2023-15, 2023-16, 2023-17, and 2023-18 and authorizes the City Manager to execute the change order with Sierra Cedar.
Attachments:
• Budget Ordinance Amendment 2023-8
• Capital Project Ordinance Amendment 2023-15 (Parking Lot Resurfacing Project)
• Capital Project Ordinance Amendment 2023-16 (Direct Fiber Connection Project)
• Capital Project Ordinance Amendment 2023-17 (Internet Domain Project)
• Capital Project Ordinance Amendment 2023-18 (ERP Project)