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CCM 05/27/2014 CITY COUNCIL MEETING CITY OF FRIDLEY MAY 27, 2014 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Saefke Councilmember Varichak Councilmember Bolkcom OTHERS PRESENT: Wally Wysopal, City Manager Darcy Erickson, City Attorney Darin Nelson, Finance Director Dave Mol, HLB Tautges Redpath, Ltd. PRESENTATION: Auditor’s Update by Dave Mol from HLB Tautges Redpath, Ltd. GUESTS: Connor Allen and Trever Schever were in attendance to meet one of the requirements for the Communication Merit Badge for Boy Scouts. The Communication Merit Badge is required to achieve the Eagle Scout level which can be obtained by the age of 18. There were many boys in attendance from Troup 714. Mayor Lund thanked the Boy Scouts and the adults with them for their efforts in helping them achieve this badge. APPROVAL OF MINUTES: City Council Meeting of May 12, 2014. Councilmember Saefke noted on page 5, the last motion on the bottom of the page was seconded by Councilmember Saefke, not Councilmember Bolkcom. Councilmember Barnette noted on page 29, the date of the ‘49ers Day parade is June 26, not June 27. FRIDLEY CITY COUNCIL MEETING OF MAY 27, 2014 PAGE 2 NEW BUSINESS: 1.Resolution in Support of an Application for a Minnesota Lawful Gambling Premises Permit for Fridley Lions at Broadway Bar & Pizza Located at 8298 University Avenue NW (Ward 3) ADOPTED RESOLUTION NO. 2014-39. 2.Resolution in Support of an Application for a Minnesota Lawful Gambling Premises Permit for Fridley American Legion Post 303 at Two Stooges Sports Bar and Grill Located at 7178 University Avenue NE (Ward 3) ADOPTED RESOLUTION NO. 2014-40. 3.Motion to Approve Disbursement of the Twin Cities Gateway Community Grant Funds and Authorize execution of 2014 Member City Marketing Grant Agreement. APPROVED. 4.Claims (1405 (ACH PCard and 163932-164095). APPROVED. 5.Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. APPROVAL OF CONSENT AGENDA: MOTION by Councilmember Barnette to approve the Consent Agenda with the corrections to the minutes and page 29. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF THE AGENDA: MOTION by Councilmember Bolkcom to adopt the Agenda as presented. Seconded by Councilmember Saefke. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM VISITORS: No one from the audience spoke. FRIDLEY CITY COUNCIL MEETING OF MAY 27, 2014 PAGE 3 NEW BUSINESS: 6.Resolution Approving a Contract with Tyler Technologies for an Enterprise Resource Planning (ERP) Solution. Darin Nelson, Finance Director, stated the ERP definition is a suite of integrated applications that a company can use to collect, store, manage and interpret from many business activities (Finance, HR/Payroll, Utility Billing). Discussions began almost two years ago about replacing our current system due to the following:  Age – 25 years old  Lack of functionality & flexibility  Vendor provided enhancements are minimal  Existing AS400 server has reached its capacity and the end of its useful life. AS400s are much more costly than today’s modern servers. Mr. Nelson said RFPs were sent out last summer to 11 software vendors. We received three proposals back, all from reputable vendors that have a presence in the metro and the State of Minnesota. We were quickly able to eliminate one vendor strictly based on price. In addition to our remaining two vendors, staff also inquired with LOGIS, which is a consortium of local governments that provide financial system services. Demos with all three vendors were done last November and December. From that point, further analysis was done to assure that proper comparisons were being made and that modules being proposed were applicable to our operations. LOGIS was eliminated because the price was difficult to substantiate. That left two vendors – Tyler Technologies and Springbrook. Prices from the two vendors were virtually identical, which made staff work hard to determine the right fit for the City. Mr. Nelson said staff visited other cities in the metro that are currently utilizing each system. IGH converted from our current system (HTE) to Tyler Technologies in 2011. Roseville has been a Springbrook client for over a decade. As a final procedure, we required both vendors to physically demonstrate how our utility billing process would function with both systems. After these additional demos and further discussion amongst staff, a decision was made to pursue contract negotiations with Tyler Technologies. Attributes that set Tyler apart included:  Superior on-line training for staff development,  Known ability to handle self-read cards,  Evergreen policy,  More robust budget module allowing for multiple budget scenarios, and a  Forms module that allows for one click letter deployment (e.g. NSF check letter). Mr. Nelson said the good news is the cost is under the initial budget estimate. We have $250,000 budgeted with MIS Internal Service Fund for the replacement of the current financial system. Estimated startup costs billed by Tyler are estimated to be $192,494 (note change from agenda). In addition, we need to purchase two system servers at a cost of approximately $20,000. These servers will be purchased off the State contract. Due to the unknown nature of the conversion and the fluidity of the implementation process, a 10% contingency is also FRIDLEY CITY COUNCIL MEETING OF MAY 27, 2014 PAGE 4 requested. The contingency would allow the implementation process to keep moving at an efficient pace. The 10% contingency would be calculated off the estimated total for software, professional services, and travel of $188,994 (actual contingency is now 8%) An 8% contingency or $15,399 would bring the potential contract amount to $207,893, which would be a “not to exceed amount.” Tyler Tech requires change orders for any changes, so any changes or additional services would be initiated by City staff and not driven by the vendor. The contingency would allow staff to approve change orders for additional services if accumulated changes are within the not to exceed amount. Mr. Nelson said implementation is expected to begin this summer. Substantial system clean up and preparation will be required in order to assure the conversion goes smoothly. Conversion will be done in phases due to the limited staff availability. Financials, HR/Payroll will be done in the first phase, and Utility Billing completed in the second phase. Staff recommends approving the attached resolution approving a contract with Tyler Technologies to furnish, deliver, install and implement the products and services listed in the investment summary included in your agenda packet with a “not to exceed amount” of $207,893. Councilmember Saefke asked if the meter cards are compatible with the new software. Mr. Nelson replied yes. It will interface with the current reading system. Councilmember Bolkcom asked if the new system would have the ability for staff to look up their payroll rather than print paper copies of paystubs. Mr. Nelson answered yes. The employee self-service module was purchased to go in that direction and make it easy for employees. Councilmember Bolkcom asked how much online training or classes will be needed for staff. Mr. Nelson replied they will bring in staff for live training sessions here. Accounting staff will be super users of the system and will train other departments. There is also web training available. Councilmember Bolkcom asked if the system would be down during transition. Mr. Nelson replied there will probably be some down times, but the current system will be there. When staff is comfortable with the new system, they will transition to the new system. Councilmember Bolkcom asked if there would be any changes if someone wants to look at their bills. Mr. Nelson replied it is a little early to talk about that. Staff will get the system converted first, evaluate the system, and then they can convert the Tyler system for on-line utility bill lookup. A separate third-party vendor, Apex, currently provides that service. FRIDLEY CITY COUNCIL MEETING OF MAY 27, 2014 PAGE 5 Attorney Erickson said she reviewed the contract and made some modifications that were specific to Minnesota. MOTION by Councilmember Varichak to adopt Resolution No. 2014-41. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 7.Informal Status Reports. Mayor Lund announced Fridley ‘49er Days would be held June 27 through 29. The parade will be held on June 26. Councilmember Barnette reminded people of the all school reunion Saturday night at Medtronic. Class 1959 through the present. This was a good event last year. Darin Nelson, Finance Director, said staff met with a consultant to rebrand the liquor stores. There is a link on the website and people can fill out a survey to help staff learn more about the customers. The survey is open until May 31. Currently, there are close to 400 responses. There was also a nice article in the Star Tribune. There are nice changes coming to the liquor store. Councilmember Bolkcom asked why it is important for the liquor store to make profit. Mr. Nelson replied the proceeds go to support the operations of the City of Fridley which results in a reduction to property taxes. Mayor Lund said he will be speaking at the new Northern Stacks (the old BAE Site) ground breaking ceremony this Thursday. It is exciting to have site be developed. It is the largest development this year as well as the largest, most difficult project in the history of Fridley. The ceremony is from 2 to 4 p.m. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:01 P.M. Respectfully Submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor