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R7C-Execute Contracts Replace Citys Current ERP System And Permits PlusA Resolution Of The Mayor And City Gommission Of The City Of Miami Beach, Florida, Authorizing The City Manager To Finalize Negotiations And Execute Contracts With Tyler Technologies, lnc., For Replacement Of The Gity's Current Enterprise Resource Planning (ERP) And Permitting/Licensing Systems, Munis And EnerGov Respectively; And With EMA, lnc., For A Business Process Review And Project Management Services Related To The ERP System Replacements; For A Tota! Project Amount Not To Exceed $7 COMMISSION ITEM SUMMARY Condensed Title: At the May 28, 2014, City Commission meeting, the City Commission authorized a referral to the Finance and City-Wide Projects Committee (the "Committee") for a discussion on upgrading the City's current enterprise resource planning (ERP) system, known as Eden, as well as a discussion on Permits Plus, the City's system for permitting and licensing. The replacement of these systems are a key part of the Administration's goal of re- engineering core business process to maximize efficiencies and service to constituents, as well as improve internal controls. At its June 20,2014, meeting, the Committee considered the Administrations recommendation that the City replace its ERP system, its system for permitting and licensing, and, prior to implementation of the new systems, conduct a full business process review with the goal of maximizing operational performance, assuring internal controls, and improving service to constituents. The Committee also considered the Administration's recommendation for project management and implementation services to assure a successful implementation of the project. The Committee has endorsed and recommended that the project be considered by the City Commission. The proposed project is comprised of four (4) major project components with the following associated cost estimates: 1. Upgrading the City's current ERP system from Eden to Munis. 2. Upgrading the City's current system for permitting and licensing from Permits Plus to EnerGov. 3.Completing a full business process review (BPR) of all business processes impacted by either Munis or EnerGov, prior to implementation of the new systems. 4. Engaging a dedicated project manager to oversee implementation of the new systems in accordance with the results of the BPR. Additional detail is included in the attached memorandum. To maximize operational performance, assure internal controls, and improve service to constituents, the Administration recommends that the Committee endorse the recommendations for transitioning from Eden ERP to Munis ERP, implementing EnerGov for permitting and licensing, and engaging EMA to assist the City with a review of its business processes, as well as provide implementation services (project management) throughout the project implementation, and authorize the City Manager to negotiate contracts with all respective parties in a grand total amount not to exceed $7,200,000. RECOMMENDATION the Resolution. lntended Outcome Su Strealntine ttre detivery of services through all departments. Strengthen internal controls to achieve more accountability. Data Environmental Scan, etc.: N/A Financia! lnformation: Source of Funds: Amount Account 1 $5,700, 000 Fund 301 - Capital Proiects Not Financed By Bonds* @ *Subielb.ardoror f-Luoo,ooo I ruture fiscal year funding contingent on approved budget rr'"-l appropriations. 'al of sixth budqet amendment for FY201312014. Financial lmpact Summary: Alex Denis, ext. 7490 or Mark Taxis, ext. 6829 July 3O\Tyler Ema ERP AGEf'IDA ITEM R?C# MIAMIBHACH DAYE ?-3o - lq131 g MIAMIBEACH City of Miomi Beoch, lZO0 Conveniion Center Drive, Miomi Beoch, Florido 33 I 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO:Mayor Philip Levine and Mem ity Commission FROM: Jimmy Morales, City Manager *S'sA DATE: July 30, 2014 SUBIECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CIry MANAGER TO FINALIZE NEGOTIATIONS AND EXECUTE CONTRACTS WITH TYLER TECHNOLOGIES, INC., FOR REPLACEMENT OF THE CITY'S CURRENT ENTERPRISE RESOURCE PLANNING (ERp) AND PERMITTTNG/L|CENSING SYSTEMS, MUNIS AND ENERGOV RESPECTIVELY; AND WITH EMA, INC., FOR A BUSINESS PROCESS REVIEW AND PROJECT MANAGEMENT SERVICES RELATED TO THE ERP SYSTEM REPLACEMENTS; FOR A TOTAL PROJECT AMOUNT NOT TO EXCEED $7,2OO,OOO. FUNDING Fund 301 - Capital Projects Not Financed by Bonds (Subject to approval of sixth budget amendment for FY201312014) Future fiscal year funding contingent upon approved budget appropriation. Project Total $7,200,000 BACKGROUND At the May 28, 2014, City Commission meeting, the City Commission authorized a referral to the Finance and City-Wide Projects Committee (the "Committee") for a discussion on upgrading the City's current enterprise resource planning (ERP) system, known as Eden, as well as a discussion on Permits Plus, the City's system for permitting and licensing. The replacement of these systems are a key part of the Administration's goal of re-engineering core business process to maximize efficiencies and service to constituents, as well as improve internal controls. At its June 20, 2014, meeting, the Committee considered the Administrations recommendation that the City replace its ERP system, its system for permitting and licensing, and, prior to implementation of the new systems, conduct a full business process review with the goal of maximizing operational performance, assuring internal controls, and improving service to constituents. The Committee also considered the Administration's recommendation for project management and implementation services to assure a successful implementation of the project. The Committee has endorsed and recommended that the project be considered by the City Commission. $5,700 ) 000 $1,500,000 132 Commission Memorandum - July 30, 2014 Munis, EnerGov, BPR and Project Management Page 2 of 7 The proposed project is comprised of four (4) major project components: 1. Upgrading the City's current ERP system from Eden to Munis. 2. Upgrading the City's current system for permitting and licensing from Permits Plus to EnerGov. 3. Completing a full business process review (BPR) of all business processes impacted by either Munis or Enercov, prior to implementation of the new systems. 4. Engaging a dedicated project manager to oversee implementation of the new systems in accordance with the results of the BPR. 1. UPGRADING THE CITY'S CURRENT ERP SYSTEM FROM EDEN TO MUNIS. The City implemented the Eden ERP System in October,2OO4. At the time, the Eden ERP system integrated and provided necessary functionality across many of the City's core business processes, including finance, budget, procurement and human resources. However, the system is more than 10 years old and is not keeping pace with the current functional requirements of the City. Additionally, Tyler Technologies, who recently acquired Eden, has informed the City that the systems is end of life; and, that it will continue to support the system in its current state, but will no longer dedicate development resources to achieve any significant improvements to its functionality. Given the cross-functional impact and magnitude of an ERP system, it was necessary to complete a high level due diligence before recommending any option to replace the aging Eden ERP system. Therefore, to better understand the functional deficiencies of the Eden ERP being reported by City departments, as well as identifying possible options that the City may consider in addressing the aging Eden ERP system, the Administration engaged EMA to conduct a full gap analysis of functional deficiencies of the system and provide options for moving fonryard. EMA is a multi-national service provider with over 30 years of experience in assisting public agencies with their technological, best practices and strategic planning requirements. EMA has assisted other localjurisdictions in similar projects and has been awarded several large cooperative agreements with federal and state governments, including the State of Florida. EMA has completed the ERP Gap Analysis (the "Report"), which is attached for your perusal (Appendix A). The Report includes many of the specific gaps identified by City departments as barriers to maximizing performance, internal controls and service to constituents, as well as the following three options for addressing the deficiencies: 1. Remain with the Eden ERP, but engage Tyler Technologies to address the functional gaps through City-specific customizations; or 2. Transition from Eden ERP to Munis ERP; or 3. Release a Request for Proposals (RFP) to consider other ERP options. Option 1 (remaining with the Eden ERP) is not recommended since this option would require the City to contract with Tyler Technologies to implement the necessary changes through City-specific system modifications. ln the long run, this option creates a multitude of issues with supporting a system that deviates so significantly from the baseline system. Additionally, at time of implementation, Eden ERP was deployed utilizing past business processes that the Administration is seeking to re-engineer in a continuing effort to streamline and enhance the delivery of services, improve building/development processes, strengthen internal controls, and maximize innovation and performance. 133 Commission Memorandum - July 30, 2014 Munis, EnerGov, BPR and Project Management Page 3 of 7 Option 3 (releasing an RFP) is not recommended due to the City's size and functional requirements and Tyler Technologies' role in the public sector ERP market, possible viable candidates for replacing the system would only include Tyler Technologies and, possibly, one or two other ERP providers. Additionally, an RFP would delay the beginning of upgrading of the current ERP by, at least, I - 12 months, over the expected 36 month period for implementing a new system. The Report recommends that the City proceed with Option 2 - transition from Eden ERP to Munis ERP. This recommendation is primarily based on: the heavily discounted costs proposed by Tyler Technologies; the ability of the Munis ERP to serve the City's needs now and into the foreseeable future; and Tyler's experience in the public sector. The Report notes that significant discounts proposed by Tyler Technologies makes a compelling financial case for the upgrade. Additionally, given Tyler Technologies' client base and Munis' flagship status within the company, the City will benefit from current and emerging technologies and transitioning from Eden ERP to Munis ERP, given that both systems are owned by Tyler Technologies, is expected to minimize potential problems with-data conversion and other implementation tasks. Finally, Tyler Technologies' extensive client public sector base and user community will benefit the City in terms of future product development and opportunities to work with similar public sector agencies on solutions and system upgrades. According to the Report, a transition from Eden ERP to Munis ERP will provide the City with the functionality it requires at discounted pricing without delays from an extended selection process. ln addition to the benefits of Option 2 included in the Report, giye#he when considering Eden ERP's end-of-life status, the Administration has concerns that, as current Eden ERP clients transition to Munis or other ERP systems, the City may be faced with limited enhancements and support to the current Eden system, and anticipates possible impacts on to maintenance costs resulting from a reduced client pool and other functional issues related to the continued use of a system that is end of life. ln response to the City's need for greater functionality, Tyler Technologies has offered to transition the City from the Eden ERP to its flagship ERP, Munis, at a significant cost savings by discounting the complete cost of any module license in the Munis ERP that the City currently owns in the Eden ERP. This amounts to approximately $1,138,150 in license fee discounts, as well as a 50% discount in data conversion costs totaling $63,150, for a total discount of approximately $1,201,300. The costs associated with the Eden to Munis conversion are included in Appendix C. 2. UPGRADING THE CITY'S CURRENT SYSTEM FOR PERMITTING AND LICENSING FROM PERMITS PLUS TO ENERGOV. ln 2010 the Building Department started a project to replace the Permits Plus system, currently in use, with Accela Automation. The project attempted to provide full integration with the permitting, automated approvals workflows, and interface with other City's key applications for financials and customer service. The goal was to have a solution with the highest data accuracy, quality of service, system and user security standards and integration between the department's applications. 134 Commission Memorandum - July 30, 2014 Munis, EnerGov, BPR and Project Management Page 4 of 7 The City experienced significant challenges with the implementation of the Accela product. Many of the issues with the implementation of Accela Automation were related to the City's complex business processes which were not analyzed or refined prior to implementation in order to streamline the burdensome procedures that cause bottlenecks and duplicity of efforts. Other issues were related to the configuration of an intricate fee structure for services, as well as Accela's integration with Eden in the context of Finance and Code Enforcement. Additionally, the implementation of Accela Automation did not incorporate critical Planning processes and left much of that department's functions to be conducted utilizing outdated and ineffective manual processes. The EnerGov option provides out of the box solutions for Building, Planning, and Code Enforcement without the need for significant scripting. Processes such as Plans Review, lnspections, Code Enforcement and Cashiering are all processed within EnerGov. Additionally, Business License (Tax Receipts) is also managed in EnverGov which will facilitate and simplify the issuance and renewal of Business Tax Receipts. The proposed EnerGov package includes a Citizen Access Portal for online BTR submission and renewal, Permit & Plans Submission as well as lnspection Scheduling, Complaint Submission and the ability to check status. EnerGov provides a seamless interface with Munis (Eden's replacement) and the Tyler Cashiering component will provide a continuous interface that will allow for real time cashiering in both Munis and EnerGov. All permit applications and board orders will be associated to its corresponding address supported through Geographic lnformation System (GlS) which creates a historical record of approvals and permits to each parcel. The costs associated with the Permits Plus to EnerGov conversion are included in Appendix C. 3. COMPLETTNG A FULL BUSTNESS PROCESS REVTEW (BPR) OF AtL BUSINESS pRocEssEs TMPACTED BY ETTHER MUNrS OR ENERGOV, PRrOR TO IMPLEMENTATION OF THE NEW SYSTEMS. A critical component of any ERP implementation is the corresponding review, streamlining or other improvements to the organization's business processes. A commonly held viewpoint in the business literature is that ERP implementations alone will not resolve significantly deficient business processes; and, that to do so, ERP implementations must begin with a business process review first. Othenruise, the organization runs the risk of re- implementing deficient, outdated or cumbersome business processes leftover from the prior ERP, incurring significant costs in system customization to accommodate legacy processes, and not achieving the quality improvements intended to be achieved as a result of the implementation of the new system. ln short, streamlining of processes musf occur before any ERP implementation begins for the organization to avoid a continuation of unnecessarily complex or outdated processes. 135 Commission Memorandum - July 30, 2014 Munis, EnerGov, BPR and Project Management Page 5 of 7 Therefore, to assure that the City's business processes reflect the aforementioned goals of streamlining, process improvements, strengthening of internal controls, and maximizing innovation and performance, the Administration is recommending that a full business process review (BPR) of all functional areas of the new systems be completed prior to the commencement of implementation activities. The goal of the BPR process is two-fold: 1) make business operations more efficient and effective; 2) and, more effectively utilize technological investments. ln this manner, the new systems will be aligned with improved processes offering the greatest opportunity to improve the City's business operations. The statement of work for the BPR is included in Appendix B. The associated costs are included in Appendix C. 4. ENGAGING A DEDICATED PROJECT MANAGER TO OVERSEE IMPLEMENTATION OF THE NEW SYSTEMS IN ACCORDANCE WITH THE RESULTS OF THE BPR. The business literature is filled with examples of failed ERP and other lT system implementations. Understanding the complexity of this project and in order to prevent complications, the Administration has sought to understand some of the reasons why many implementations fail. Some of which include: r Lack of ownership and accountability. lf team members do not understand their role and the degree to which they are accountable for the success of the project, it is nearly impossible to be successful.e Poor change management processes. The goal of an ERP implementation, insofar as practical, is to assure that business processes are fitted to the system and not the reverse. lt is understood that there will be some processes that will require system modifications; however, these should be the exception and not the rule. The change management process must be carefully controlled to engage leadership, as necessary, to make decisions between possible costly modifications to the system or enact the necessary changes in business processes to accommodate system design.. Getting bogged down by daily responsibilities. Without dedicated project management empowered by leadership, it is all too easy for stakeholders to get bogged down by daily responsibilities rather than completing implementation tasks. This may result in project delays and escalation of costs.. Lack of communication. Clear communications and understanding between internal and external stakeholders, including project staff, implementation staff, software developers and leadership, is a critical component for successful project implementation. Project communications must also assure that system configuration is considered through a holistic perspective rather than through functional silos.. Underestimating the magnitude of the project. lt is all too often that organizations feel that "we can do it ourselves" and fail to secure the necessary resources to successfully complete major system implementations. The Administration understands the magnitude of a project such as this and wants to assure that the resources necessary for success are allocated from the start. Dedicated project management is necessary for the success of a project of this magnitude. With the above in mind, the Administration is seeking the assistance of an experienced implementation consultant to act in the capacity of owner's representative, to provide project management and avoid potential pitfalls to assure the success of the project. 136 Commission Memorandum - July 30, 2014 Munis, EnerGov, BPR and Project Management Page 6 of 7 As depicted below, the implementation consultant, under the direction of the Project Steering Committee, will manage all implementation activities and tasks, as well as communications between stakeholders, to assure the results of the business practice review and gained process efficiencies are translated into a successful implementation of the ERP investment. The implementation consultant will manage, on a fulltime basis, configuration, testing, system documentation (manuals), training and the creation of performance metrics, as well as assure that only costs related to completed deliverables are incurred by the City. This will assure that departmental subject matter experts (SMEs) are used to the fullest extent necessary, and will avoid the need to reassign staff permanently and backfill with temporary positions, (another option for implementation). Backfilling with temporary positions is an expensive approach that may impede operational effectiveness of many departments with limited staffing resources. The implementation consultant will be the primary liaison between SMEs and Tyler Technologies to assure that configurations are consistent with organizational requirements resulting from the BPR, and that the project remains on schedule and within budget. Additionally, the proposed approach will ensure constant coordination with leadership on project status and change management requirements. Proiect Orqanizational Chart m* f u*.rnaotrr l I cSmmlr:ion- I*--r--- f qtyu.nrq" I [ ,.m:ra, I-r--Fffi\I ::'"*[J3 I l--reeldrsLj+ G@ffiffi mffimffi Given their experience in the public sector, the completed GAP Analysis, current contracts with the State of Florida, as well as the knowledge of the City's requirements gained from the business process review, the Administration is recommending that EMA be engaged to assist with implementation consultant services (project management). The statement of work for the project management services is included in Appendix B. The associated costs are included in Appendix C. 137 Commission Memorandum - July 30, 2014 Munis, EnerGov, BPR and Project Management PageT of7 GONCLUS!ON To maximize operational performance, assure internal controls, and improve service to constituents, the Administration recommends, as endorsed by the Finance and City-Wide Projects Committee, transitioning from Eden ERP to Munis ERP, implementing EnerGov for permitting and licensing, and engaging EMA to assist the City with a review of its business processes, as well as provide implementation services (project management) throughout the project implementation. It is recommended that the licenses and services pursuant to the Munis and EnerGov projects be acquired pursuant to the National Joint Powers Alliance (NJPA) cooperative agreement number 113011-TTl, for technology solutions. ln addition to the discounts available through the NJPA agreement, Tyler has offered the City an additional discount over the NJPA discounted pricing. lt is also recommended that the services of EMA be acquired pursuant to the State of Florida term contract number 973-561-10-1 , for information technology services. RECOMMENDATION The Administration recommends approval of a Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, authorizing the City Manager to finalize negotiations and execute contracts with Tyler Technologies, lnc., for replacement of the City's current enterprise resource planning (ERP) and permitting/licensing systems, Munis and EnerGov respectively; and with Ema, lnc., for a business process review and project management services related to the ERP system replacements; for a total project amount not to exceed $7,200,000. ATTACHMENTS Appendix A - ERP Gap Analysis Report Appendix B - EMA Statement of Work for Business Process Review and Project Management Appendix C - Project Costs and Funding Plan JLM/MT/AD T:\AGENDA\2O14Uuly\Procurement July 3O\Tyler Ema ERP - MEMO.docx 138 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITY. WIDE PROJECTS COMMITTEE, AND APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE CONTRACTS WITH TYLER TECHNOLOGIES, INC., IN CONNECTION WITH THE REPLACEMENT OF THE CITY'S CURRENT ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM, KNOWN AS EDEN, WITH MUNIS ERP; AND THE REPLACEMENT OF THE CITY'S CURRENT PERMITTING/LICENSING SYSTEMS, KNOWN AS PERMITS PLUS, WITH ENERGOV; AND TO FURTHER EXECUTE A CONTRACT WITH EMA, INC. FOR A BUSINESS PROCESS REVIEW, AS WELL AS PROJECT MANAGEMENT SERVICES, RELATED TO THE IMPLEMENTATION OF THE MUNIS ERP AND ENERGOV REPLAGEMENT SYSTEMS; FOR A TOTAL PROJECT AMOUNT NOT TO EXCEED $7,200,000. WHEREAS, the City implemented the Eden Enterprise Resource Planning (ERP) System in October,2004, to provide functionality across many of the City's core business processes, including finance, budget, procurement and human resources; and WHEREAS, the Eden ERP system is more than 10 years old and is not keeping pace with the current functional requirements of the City; and WHEREAS, given the cross-functional impact and magnitude of an ERP system, the Administration engaged EMA, lnc., to conduct a full gap analysis of functional deficiencies of the Eden ERP system in order to ascertain the best course of action; and WHEREAS, the gap analysis completed by EMA recommended that the City move foruvard with a project to replace the Eden ERP system with the Tyler Munis ERP system; and WHEREAS, the Administration ls also recommending the replacement of the City's current system for permitting and licensing, known as Permits Plus, through Accela Automation, with Tyler EnerGov, a permitting and licensing system that interfaces seamlessly with the Tyler Munis ERP system; and WHEREAS, at the May 28, 2014 City Commission meeting, the Mayor and City Commission authorized a referral to the Finance and City-Wide Projects Committee (the "Committee") for a discussion on upgrading the Eden ERP system and the City's system for permitting and licensing; and WHEREAS, the replacement of these systems are a key part of the Administration's goal of re-engineering core business processes to maximize efficiencies and service to constituents, as well as improve internal controls; and WHEREAS, at its June 20, 2014 meeting, the Committee recommended consideration of the Project by the City Commission, based upon the following recommendations from the Administration: 1. the replacement of the City's Eden ERP system with Tyler Munis ERP system; 2. The replacement of the City's permitting and licensing system (Permits Plus) with the Tyler EnerGov; and 3. the engagement of the services of Ema, lnc., in connection with conducting a full business process review, as well as assisting the City with project management and implementation services to assure a successful implementation of the systems; and 139 WHEREAS, the Administration has recommended that the licenses and services required for the Munis ERP and EnerGov projects be acquired pursuant to the National Joint Powers Alliance (NJPA) Cooperative agreement number 113011-TTl, for technology solutions, although Tyler has offered the City an additional discount over the NJPA discounted pricing; and WHEREAS, the Administration has recommended that the services of EMA lnc. be acquired pursuant to the State of Florida term contract number 973-561-10-1, for information technology services. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the Finance and City-Wide Projects Committee, and approve and authorize the Mayor and City Clerk to execute contracts with Tyler Technologies, lnc., in connection with the replacement of the City's current enterprise resource planning (ERP) system, known as Eden, with Munis ERP; and the replacement of the City's current permitting/licensing systems, known as Permits Plus, with Energov; and to further execute a contract with Ema, lnc. for a business process review, as well as project management services, related to the implementation of the Munis ERP and Energov replacement systems; for a total project amount not to exceed $7,200,000. PASSED AND ADOPTED this _ day of 2014. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T:\AGENDA\2014\July\Procurement July 30\Tyler Ema ERP - RESO.doc APPROVED AS TO rONU & LANGUAGE & FOR EXECUTIONfur 140 APPENDIX A d CD -- : City of Miami Beach ERP Gap Analysis & Plannitrg, Permitting, and Licensing Software f9EM^ June 2014 2355 Highway 36 West, Suite 200 Saint Paul, MN 551 13H, 141 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ERP Gap Analysis.... .............. 1-1 Why Eden to Munis? ..............1-2 Planning, Permitting, and Licensing Software.............. ..............1-z Why Permits Plus/Accela Automation to EnerGov? .............. .........1-2 2. ERP GAP ANALYSIS Current State......... ..................2-1 Project Approach.. ...................2-2 Stakeholder lnterviews ...........24 GAP List..... ..........2-s Munis ERP Solution Demonstrations........... ................2-7 Tyler Connect Conference .............. ........2-10 Cross-Functional lnvolvement........... ......2-11 Munis ERP Solution Quote...... ................2-11 Summary.. ............2-12 3. PLANNING, PERMITTING, & LICENSING Current State......... ..................3-1 Energov.... ..............3-1 Tyler Connect Conference .............. ..........3-3 Energov Quote ....34 4. THIRD PARry SOFTWARE Software Demonstrations......... ................4-1 5. SOFTWARE VENDOR MARKETPLACE Software Solution Options..... ...................5-1 ERP Software Vendor Marketplace ..........5-1 CIS Software Vendor Marketplace ............5-7 142 PIanning, Permitting, and Licensing Software Vendor Marketplace ..................5-8 6. RECOMMENDATION ERP Options............. ..............6-1 Option #1: Eden (Not Recommended)..... ....................6-1 Option #2: Munis (Recommended)........... ...................6-1 Option #3: Full Request for Proposal (Not Recommended) ...........6-2 Planning, Permitting, and Licensing Software Recommendation ................6-2 EnerGov (Recommended) ........... .............6-2 Software lmplementation Risks ................6-2 Next Step ...............6-2 143 EXECUTIVE SUMMARY ERP GAP ANALYSIS The City of Miami Beach has outgrown the capabilities of its current Enterprise Resource Planning (ERP) system. This ERP Gap Analysis report captures the findings and analysis specific to the gap between their needs and what their current ERP system (a product named Eden) can provide. This analysis was conducted through a series of interviews with key City of Miami Beach stakeholders. Figure 1.1 is a graphical chart of a summary of the gaps by priority by department. The entire gap analysis is included in Appendix A. Figure 1.1: ERP Gaps by Functional Area ERP Gaps by Functional Area 35 30aa. 6es o- frzo 3rsolt E10a- 5 0 Human Pro@remenl Budget Resoures Ilopartmont rHigh rMedium rlou/ Property Managenent This report will help the City of Miami Beach understand and quantifo the gaps that exist between its ERP future state and its present state. By understanding these gaps, management can create specific action plans to move the organization forward toward its goals and close the gaps identified in the gap analysis report. While there are many ERP software vendors, only a subset of these vendors focus on the public sector. Tyler is a leading ERP software vendor in the public sector. A2012 Gartner study stated that Tyler is exclusively focused on the state and local government market, with more than 98% of its revenue coming from this sectorl. The firm serves a broad cross section of government clients, and the majority of those clients are cities of similar size to City of Miami Beach. Eden was acquired by Tyler, but Tyler's flagship product is Munis. Tyler considers Eden to have reached an "End-of-Life" status. While the software may still be useable, Tyler made the decision several years ago to focus their development resources on Munis. Other public sector entities that ' Gartner lnc. G00227887, The Nofth American Local Government tT Solution Vendor Landscape, 2012 144 also used Eden software have migrated to Munis including the City of Bradenton, FL and Rockingham County, VA. Tyler has provided a quote to the City for the Munis ERP Solution. This quote reflects heavily discounted license costs from Tyler's "Clients for Life" program. Why Eden to Munis? The City has three main options to consider: 1. Eden (Not Recommended). Remain on Eden ERP and request some enhancements that will require development time. These enhancements may never be available as Eden is in "End-of-Life" status and it is not Tyler's focus for development. 2. Tyler Munis (Recommended). We recommend that the City take advantage of Tyler's "Clients for Life" program which offers discounts on Munis license fees and negotiate a contract for the purchase of Munis. 3. Request for Proposal (Not Recommended). Develop and issue a Request for Proposal for an ERP solution that would likely result in a response from one or two vendors in addition to Munis. lt is already clear that, with Tyler's "Clients for Life" discount, the other vendors are very likely to be challenged to compete with Tyle/s proposed pricing for the ERP solution. EMA recommends Option #2 - Tyler Munis. This option provides the City with the desired functionality at a competitive price without the delay of the RFP process. The next step is for the City Manager to utilize the Tyler price quote in Appendix B and negotiate a contract. This contract will include a detailed Statement of Work that outlines the professional services that Tyler will deliver when implementing the Munis solutions. PLANNING, PERMITTING AND LICENSING SOFTWARE The City currently utilizes the Permits Plus application for plan review, permitting, inspection, and many other processes; however, the processes are not fully automated and are paper-intensive. ln 2010, the Watson Rice Report reviewed the Permits Plus system and found that it did not have proper audit controls and security weaknesses. The report directed the City to replace Permits Plus. There were plans to upgrade to Accela Automation and replace Permits Plus, but there have been many challenges over the last two years that have prevented the City from implementing Accela Automation. Why Permits Plus/Accela Automation to EnerGov? City personnel have reviewed the functionality of Accela Automation versus EnerGov and find EnerGov to be a superior product. EnerGoVs functionality includes integrated permitting workflows, electronic plan review capabilities, a G|S-centric design, a citizen portal that provides transparency to citizens to access status of requests or payment, and mobile applications for field personnel. EnerGov has "out-of-the-box" capabilities that Accela Automation does not. Tyler was asked to demonstrate EnerGov and City personnel found that the system meets their requirements, and as such, Tyler has provided a quote for EneGov. EMA, INC. 145 ERP GAP ANALYSIS CURRENT STATE The City of Miami Beach (the City) is a full service local government with more than 25 departments providing municipal services to 90,000+ citizens. The City employs approximately 1,917 full time employees and 246 parttime/seasonal employees on a 2013/14 operating budget of about $450 million. The City of Miami Beach is a destination city that attracts over 10 million tourists a year. The City relies daily on an ERP system to perform administrative business functions such as financial accounting, procurement, human resources, payroll, budget management, asset management, and other tasks. Although the City might be considered a small- to medium-sized city in terms of the number of citizens, it has unique circumstances and needs. The high level of tourism, economic development, and growth requires the city to operate with an ERP software solution that will meet the City's current needs along with the future needs as it grows and evolves. The new ERP solution should improve the citizen's customer experience, enable operational efficiency gains, ensure accountability, and provide transparency. ln June of 2004, the City selected Eden Systems (Eden) for its ERP software solution. Eden was purchased by Tyler Technologies just six months before that in December 2003. Tyler Technologies (Tyler) also has another ERP software called Munis ERP Solution (Munis), which it acquired in 1999. !n2004, the City ERP selection process considered both Eden and Munis functionality and cost and ultimately selected Eden. Several years ago, Tyler made the decision to focus primary development resources on Munis and not Eden. Today, there are stillapproximately 240 customers utilizing Eden Systems; however, since Munis is Tyler's flagship product, emerging technologies and capabilities have been added and will continue to be added to Munis and not Eden. As a result, several Eden customers have migrated to Munis. These include the city of Bradenton, FL and Rockingham County, VA. Tyler recognizes that cities such as the City of Miami Beach have business requirements that are not met with the Eden solution. Tyler operates under a unique approach in the ERP solution market with a program they call "Clients for Life". This program offers clients an option to convert from the product they have outgrown to a product that is more suited to their needs at a heavily discounted price. Clients migrating from Eden to Munis are not required to pay software license fees for modules that they currently have. An Eden to Munis migration requires professional services, hardware, license costs for modules the City does not currently have with Eden, and other costs. The fact that Tyler does not require the City to pay for software license fees creates a discounted price that is difficult if not impossible for other ERP vendors to compete with. 146 PROJECT APPROACH The City engaged EMA to conduct an ERP gap analysis and this report is a culmination of that effort. The project commenced on March 11 , 2014 with a series of functional area stakeholder interviews. From these interviews a gap list by functional area was drafted for the stakeholders to review, confirm, and prioritize. The gap list was then provided to Tyler in preparation for a demonstration of the Munis ERP Solution on April 10-11,2014. During two days of software demonstrations, Tyler addressed the gap list items and demonstrated where Munis had the capability and also identified where it did not (i.e., a modification or enhancement would be required to fulfill the requirement). Additionally, a team of cross-functional representatives from the city attended the Tyler Connect Annual Conference on April 13 -16, 2014 with the specific goal of learning more about Munis capabilities. Tyler also provided demonstrations for the Finance department. These included more in-depth demonstrations of Munis modules such as Tyler Cashiering, Cash Management, and Utility Billing. Several third party software packages have been reviewed and demonstrated as well. These third party software packages include PatternStream for automated publishing, SymPro for debt management, and Skyline Sofhruare for leasing administration. Refer to Section 4 for additional information on third party software. Table 2.1 below describes the project activities. EMA, INC 147 Table 2.1: Project Activities Table On-site interviews conducted 3111114 - 3114114 21 stakeholders representing Management, lnformation Technology, Procurement, Human Resources, Finance, and Budget Focus on current ERP system deficiencies a a a Compiled gap list as captured in stakeholder interviews Stakeholders reviewed and prioritized gap list Final gap list sent to Tyler Technologies on 41212014 Munis ERP Solution Demonstration Tyler provided an Eden ERP to Munis ERP module mapping table Tyler conducted an on-site demonstration of Munis ERP Solution on 4110114 and 4111114 Demonstration specifically addressed gap list Items that require software modifications or interfaces were noted Tyler conducted additional demonstrations for Finance of the Munis Cash Management and Utility Billing modules, Tyler Cashiering on 5122t14 Tyler Connect Conference Team of 14 individuals representing Management, lT, Procurement, Budget, Human Resources, Finance, Planning, Building, and GIS attended the conference Team members attended Munis ERP sessions Attendees further expanded knowledge of Munis ERP Munis ERP Solution Quote Munis ERP Solution initial quote provided on 3131114, 5126114, 6113114; final quote provided onOl17l14 EMA and the City reviewed the initial quote and noted items for correction or addition on 412114 Tyler Technologies provided a revised Munis ERP Solution revised quote that addressed items noted during initial review and during demonstrations Quote reviewed by the City and EMA on 5122114 Conducted on-site Stakeholder review of draft gap analysis report on June 16, 2014 148 Stakeholde r I nterviews EMA conducted stakeholder interviews with 21 staff members representing the following departments: Management, lnformation Technology, Procurement, Human Resources, Finance, and Budget, See Table 2.2 below for a detailed list of stakeholders. The interview questions focused on understanding business processes, process inputs/outputs, reporting requirements, system interfaces, process cycle time, and ERP system deficiencies. Table 2.2: Stakeholder lnterviewee Listing Mark Taxis Mark Taxis Assistont City Mdnager City Manager Project Sponsor Francis Frances Executive Office Associote I Support Ariel Sosa Director lnformation Technology IT SME Nydia Gutierrez, PMP Project Monoger Project Monoqer Alex Denis Director Procurement SME-Lead Maria Estevez Assistont Director SME Sylvia Crespo- Tabak Svlvia Cresoo-Tabak Director Human Resou rces SME-Leod Samantha Hester HR Administrotor SME Sue Radis HR Administrotor I SME lnes Ferreiro HR Speciolist SME Yesenia Alvarez HRTech ll SME Jose del Risco Lo bo r Relotio ns S pecio I i st SME Trish Walker Trish Walker Ch ief Fi no ncio I Office r Finance SME-Leod Georeie Echert Assistont Director SME Allison Williams Chief Accountont SME Ramon Suarez Finance Monager SME Frank Estevez Financiol Anolyst SME Mannv Marouez Revenue Monager SME Juan Rodriguez Treosury Monoger SME John Woodruff John Woodruff Director Budget SME-Leod MichaelHoward Budget Officer SME 149 Gap List The goal of the stakeholder interviews was to capture deficiencies with the current ERP system Eden in order to develop a gap list versus a complete list of functional requirements. lt should be noted that the stakeholders do not want to lose functionality that currently exists in Eden. . The entire gap list is included in Appendix A. ln total, 159 items were identified. Table 2.3 lists the number of gaps by department. Every department is experiencing limitations with Eden. The Finance Department is most experienced with Eden as many of their staff were with the City during the Eden installation. Consequently, the Finance staff reported more involvement with the selection and implementation of Eden. Other department stakeholders reported they were either not with the City at that time or had little involvement in the implementation. lnterviews with stakeholders from every department revealed specific gaps. These were captured in draft form and then returned to the stakeholders for review and clarification. Additionally, each department was asked to prioritize the gaps as high, medium, and low. Figure 2.1 is a graphical chart of the functional area gaps by priority. Table 2.3: Gaps by Department EMA, INC 150 ERP Gaps by Functional Area 35 30o CLO.Eo.r o- fr20 3rsotl E10fz 5 0 Finance Human Resources r High Procurement Budget Department r Medium r Low Property Management Figure 2.1: Graph of ERP Gaps by Functional Area The Finance Department identified the greatest number of gaps; the department identified 62 total gaps, comprised of 33 high, 19 medium, and l0lowgaps. The Finance Departmentgaps are further broken down by areas within that department. Table 2.4 lists the Finance gaps by area. Table 2.4: Finance Gaps by Area General Ledger 11 4 2 17 Utility Billing 12 2 2 16 Accounts Payable 6 4 10 Project Accounting 4 2 6 Accounts Receivable & Misc. Billinq 5 5 Cashiering 3 1 4 SpecialAssessments & Licensino 2 2 Fixed Asset Accounting 2 2 Total 33 19 10 62 151 The Human Resources Department identified the second greatest number of gaps; the department identified 47 total gapscomprised of 27 high,12 medium, and S lowgaps. The Human Resources Department gaps are further broken down by areas within that department. Table 2.5 lists the Human Resource gaps by area. Table 2.5: Human Resources Gaps by Area Compensation & Payroll 13 2 3 18 Recruitment & Position Control 7 2 3 12 Training 5 2 7 Labor Relations 2 2 1 5 Benefits & Leave 4 4 Other 1 1 Total 27 12 8 47 Munis ERP Solution Demonstration The prioritized gap list was provided to Tyler prior to the on-site Munis demonstration. The demonstration was conducted in two full-day sessions. Tyler began by providing a high level overview that included Dashboards, General Navigation, Self Service, Workflow, Document Management, and Reporting. The City's ERP business processes are performed utilizing Eden modules and a separate third party cashiering system called Core Cashiering. Some of the Eden modules have a comparable module in Munis and, in some cases, Tyler has a separate comparable Tyler software module. Tyler provided a mapping of the Eden modules to the Munis modules. Table 2.6 contains that mapping. EMA, INC. 152 Description - Existinq Eden Confiouration Descrinlion - TvlerlMunis Core Cashierino Reolace Wth Tvler Cashierino - Reolace with SA|U Cost Administration - DD/EM Suooort NiA GUAP/PG Munis Accountinq/GUBudoeVAP LaserFiche lnterface Suooort TBD - Replace with Tvler TCM SE - Replace with SA/i/ Cost State Packaoe Suooort N/A - lncluded with Munis GASB Suooort Upqrade to Tvler CAFR Statement Builder Accounts Receivable Munis Accounts Receivable & General Billinq Module lnterface Suooort (Real Time lnterface -Querv)N/A - Applies to Core Cashierinq Product Human Resources Munis HR Manaoement lnterface Suooort (Real Time lnterface - Uodate)N/A - Applied to Core Product Contract Manaoement Munis Contract Manaoement Special Assessment Munis Utility Billinq with Assessments lncluded Fixed Assets Munis Fixed Assets Parcel Manaoer Munis Central Prooertv Tyler Payments - Hostinq Fee N/A Advanced Budoetino Munis Accounti no/GUBudoeUAP Aoolicant Trackino Munis Aoolicant Trackino Licensino EnerGov - for Business Licensino Position Budoetino Munis Pavroll Proiect Accountino Munis Proiects & Grants Tvler Outout Processino N/A Emolovee Trainino Munis Payroll Utilitv Billino Munis Utilitv Billino CIS Handhelds Munis UB lnterface Payroll Munis Payroll with Employee Self Service Requisitions Munis Purchasino lnventory Munis lnventorv Bid & Quote Munis Bid Manaoement Accounts Pavable Suooort Web Munis - eProcurement Accounts Receivable Support Web Munis Citizen Self Service Applicant Trackinq Supoort Web Munis Aoolicant Trackino Bid & Quote Support Web Munis -eProcurement Human Resources Support Web Munis Pavroll with Emolovee Self Service Licensinq Support Web Munis Citizen Self Service Special Assessment Support Web Munis Citizen Self Service Emplovee Trainino Support Web Munis Pavroll Emolovee Self Service Utilitv Billinq Support Web Munis Citizen Self Service Table 2.6: Mapping of Eden Modules to Munis Modules The on-site demonstration of Munis took place on April 10-11,2014. EMA was on-site for the demonstration session. John White, the Tyler representative leading the demonstration, took care to EMA, rNC. 2-8 153 review each gap item. The session was well attended by the City's personnel. Representatives from every department attended, the session allowed time for question and answer, and there was good participation. Table 2.7 lists the staff represented in the Munis demonstration sessions by department. Table 2.7: Munis Demonstration Aftendees Glester Edwards Linda Blanco Kathie Brooks Allison Williams Benjamin Nussbaum Frank Estevez Georgie Echert Ginette Luxama Jimmy McMillion Juan Rodriguez Lidia Cristobal Manny Marquez Ramon Suarez Raul Soria Rubylle Liberty Sara Patino Scott Wagner Tonda Shaw Tracey Hejl Trish Walker lnes Ferreiro Samantha Hester Sylvia Crespo-Tabak Yasenia Alvarez Nydia Gutierrez Georgette Daniels John Woodruff Judy Hoanshelt Mike Howard Tameka Stewart Steven Greene Alex Denis Maria Estevez RaquelAieta Sandra Rico Shirley Thomas Steven Williams Yolanda Centado-Seiglie @ Bldg Bldg cMo Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance Finance HR HR HR HR IT OBPI OBPI OBPI OBPI OBPI Planning Procurement Procurement Procurement Procurement Procurement Procurement Procurement 154 Lourdes Rodriquez Sue Radig Natasha Diaz Lynne Powers John \Mite Todd Cloutier Tim Vickers Purchasing Risk Benefits TCED EMA Tyler Tyler Tyler After the demonstration session the gap list was updated to note if the item was demonstrated fully, partially, or could not be demonstrated. ltems that could not be demonstrated were noted as requiring a modification or an enhancement to fulfill that requirement. Tyler Connect Conference Tyler holds an annual users conference that the City, as an Eden user, has attended in the past. This year the City sent 14 representatives and asked them to attend Munis classes so they could more fully understand the software's capabilities. Additionally, the users conference allows attendees to connect with public sector peers utilizing Munis as well as Tyler staff that support Munis. Attendees included representatives from Management, lT, Procurement, Budget, Human Resources, Finance, Planning, Building, and GlS. ln addition to Munis ERP sessions, attendees were able to learn more about Tyler products such as Tyler Cashiering. Table 2.9 lists Tyler conference attendees. Mark Taxis Ariel Sosa Nydia Gutierrez Alex Denis Maria Estevez MichaelHoward Tameka Ofto-Stewart Samantha Hester Katherine Gonzalez Ramon Suarez Frank Estevez Carmen Sanchez Linda Blanco Keary Cunningham Prior to the conference, EMA provided a list of educational sessions applicable to the City. The team reviewed the session list and planned their time accordingly during the conference. The insights gained during the conference were valuable and strengthened the team's knowledge of Munis capabilities. Table 2.9: Tyler Connect Conference Attendees Executive IT Procurement Budget Human Resources Finance Planning - EnerGov Building - EnerGov GIS EMA, INC 2-10 155 Cross'Fu nctional lnvolvement The ERP Gap Analysis process included strong cross-functional involvement at the City. Over the course of the last few months, from stakeholder interviews through software demonstrations, the City experienced strong participation from every department in each step. Getting people involved and making sure their voices are heard are important steps in ensuring long-term engagement with the ERP project. Often times Finance and lT departments take the lead role in a city's ERP selection and implementation. While these departments certainly have key roles in the project, they cannot specify system requirements for other functional areas. At the City of Miami Beach, all stakeholders understand how the system will improve the operations of their area. Munis ERP Solution Quote Tyler provided the City with an initial quote for the Munis ERP Solution on March 31,2014. EMA and the City reviewed the initial quote with Tyler on April 2, 2014 and it was noted that the quote should be revised after the demonstration. Tyler Technologies provided a revised quote that addressed items noted during initial review and during demonstration. Table 2.10 summarizes the Munis quote. Appendix B contains the full Tyler quote. The quote reflects Tyler's "Client for Life" discount on licensing for the City's existing Eden modules. EMA, INC 156 Table 2.10: Munis Quote tunb Quote Software License Munis Software License Less: License Discount* Total Munis Software License Professional Services Munis Services Munis lmplenentation Cost Munis Data Conrcrsion Cost Less: Data Conrersion Discount Other Services 3rd Party lnterface Testing Assistance AP/PR Check Recon lmport AP Positiw Pay Erport Format 25% of Dedicated Project Manager (12 Months) 50o/o ol Dedicated Project Manager (12 Months) Dedicated Full 'Time Project Mlanager (12 Months) End User Training - Muttiple Sessions Estimated Trarel Erpenses E{ended Analysi9Funclional Lead Training lnplernentation Day lnstall Fee - t,lew Serrer lnstall-WlN Munis Admin & Security P-Card lmport Format WO Encumbrances Potential SW Modificaitons Bucket & lnterfaces - TBD if llleeded Project Planning Services PR Positirc Pay Eport Format Munis -Tyler Forns Library Total Professional Services Small Hardware Munis Small Hardware - Scanners, Printers Tota! Hardware Cost * - Purchased ftom Munb Total lmplementation Cost SUMMARY $ 1,511,600 $ (1,138,150) $ 373,450 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 478,225 126,300 (63,150) 17,625 1,000 3,000 90,000 144,000 249,000 210,298 sz,its 12,000 8,225 7,500 124,300 3,000 16,200 $ 1,/40,398 $ 41,800 $ 41,800 $1,895,648 The City has identified the current gaps with its ERP solution Eden. Tyler has demonstrated that its Munis sofhryare provides a strong solution for the City's ERP requirements. EMA, INC.2-12 157 Table 2.10: Munis Quote lUlunb Quote Software License Munis Software License Less: License Discount* Total Munis Software License Professiona! Services Munis Services Munis lmplernentation Cost Munis Data Conrcrsion Cost Less: Data Conversion Discount Other Services 3rd Party lnterface Testing Assistance AP/PR Check Recon lmport AP Positive Pay Export Format 25% ol Dedicated Project Manager (12 Montrs) 50o/o ol Dedicated Project Manager (12 Months) Dedicabd Full Time Project Manager (12 Months) End User Training - Multiple Sessions Estimated Travel Expenses Efended Analysis/Functional Lead Training lnplenentation Day lnstall Fee - ilew Sener lnstall-WlN Munis Admin & Security P-Card lmport Format WO Encumbrances Potential SW ttlodificaitons Bucket & lnErfaces - TBD if l.leeded Project Planning Services PR Positiw Pay Eport Format Munis -Tyler Forms Library Total Professional Services Small Hardware Munis Small Hardware - Scanners, Printers Total Hardware Cost * - Purchased ftom Munb Total Implementation Cost SUMMARY $ 1,511,600 $ (1,138,150) $ 373,450 $ 478,225 $ 126,300 $ (63,150) $ 17,625 $ 1,000 $ 3,000 $ 90,000 $ 12t4,000 $ 249,000 $- $ 210,298 $- $ 52,875 $ 12,000 $ 8,225 $ 7,500 $ 124,300 $- $ 3,000 $ 16,200 $ 1,/40,398 $ 41,800 $ 41,800 $1,895,548 The City has identified the current gaps with its ERP solution Eden. Tyler has demonstrated that its Munis software provides a strong solution for the City's ERP requirements. EMA, INC.2-13 158 PLANNING, PERMITTING, & LICENSING CURRENT STATE As a municipality, the City requires workflow management and transparency for a variety of building and business functions. These functions include planning and zoning, building permits and inspections, code enforcement, fire permits and inspections, and business tax receipts (licensing). lt is also vital that citizens are provided with access to the status of their permits and requests to provide transparency to the public. Currently, the City is experiencing a high degree of building growth which creates more demand and work for the permitting, plan review, and licensing functions. Additionally, the licensing process is in large part managed through manual workflows today. The Ci$'s licensing entails an annual notification to businesses that their license renewal is due along with payment for license fees and any outstanding city invoices and liens. lf a business does not renew or pay their fees, field enforcement personnel are then required to physically visit the location to determine if the business is still in existence, has changed hands, or just simply has not paid. While the Building Department may be the main owner of these permitting and associated processes, there are other departments that are involved including: Planning, Public Works, Fire, Code Compliance, City Clerks, Parking, Finance, Sanitation, and the Special Events Division of the Tourism and Cultural Development Department. The Building Department is currently utilizing the Permits Plus application for plan review, permitting, inspection, and many other processes. However, the processes are not fully automated and are paper intensive. For a city with such high economic growth, the inefficient process aggravates citizens, builders, and developers. ln 2010, the Watson Rice Report, reviewed Permits Plus and found that it did not have proper audit controls and security weaknesses and directed the City to implement a system with proper audit and security controls. There were plans to upgrade to Accela Automation and replace Permits Plus, but there have been many challenges over the last two years that have prevented the city from implementing Accela Automation. ENERGOV City personnel have reviewed the functionali$ of Accela Automation versus EnerGov and find EnerGov to be a superior product. EnerGov's functionality includes integrated permitting workflows, electronic plan review capabilities, a G|S-centric design, a citizen portal that provides transparency to citizens to access to review status of requests or payment, and mobile applications for field personnel. EnerGov has "out-of-the-box" capabilities that Accela Automation does not. Specifically, City personnel noted that EnerGov offers the following "out-of-the-box" capabilities: 159 o Workflow that is inclusive of the planning process thereby allowing important information captured in the planning process to flow through to the permitting and other processes o lntegrated cross-functional workflows to enable notifications and tasks to be sent to code enforcement and other field personnel . Ability to handle fee calculations. . Cross-functional visibility to allow a single field visit to accomplish multiple tasks o Mobile application designed for mobile and tablet devices to allow field personnel to manage caseloads, inspections, code enforcement, and the plan review process remotely o GIS map sources that allow users to have a comprehensive view of an area or parcel. This comprehensive view includes individual assets, code violations easements, and other applicable information. Tyler was asked to demonstrate EnerGov and City personnel found that the system meets their requirements and as such Tyler has provided a quote for EnerGov. Table 3.1 describes the EnerGov project activities. The demonstration of EnerGov was conducted on attended by city personnel as well. Table 3.2 demonstration sessions by department. 2014. This demonstration was well staff represented in the EnerGov May 7, lists the Table 3.1: Project Activities Table Tyler conducted a demonstration of EnerGov on 512114 Tyler Connect Conference Team of 14 individuals representing Management, lT, Procurement, Budget, Human Resources, Finance, Planning, Building, and GIS attended the conference Building and Planning team members attended EnerGov sessions Attendees further expanded knowledge of EnerGov Table 3.2: EnerGov Demonstration Attendees Brad Mosher Glester Edwards Linda Blanco Cynthia Neves George Castell Heman Cardeno Manny Villar Rafael Granapo Robert Santos-Alborna Lynne Powers Georgie Echert Trish Walker Brdg Bldg Bldg City ClerUS. Master Oflice Code Code Compliance Code Code Code EMA Finance Finance 160 Tyler Connect Conference Planning and Building department attendees were able to learn more about Tyler products such as EnerGov Planning, Permitting, and Licensing Solutions at the Tyler Connect Conference on April 13- 16, 2014. The insights gained during the conference were valuable and strengthened the team's knowledge of EnerGov capabilities. Table 3.3 lists Tyler Planning and Building department conference attendees. Elena Tellez Jorge Waulio Juan Meizosa MrgilFemandez Betty Mui Laurent Yamen Nydia Gutierrez Carmen Sanchez Michael Belush Rogello Madan Steven Williams Carey Osbourne DemarWoodson GabrielForthne Adriana Centro Keary Cunningham Rhonda McPherson Natasha Diaz Raul Gonzalez Matt Kesler Tim Vickers Fire Fire Fire IT IT IT Planning Planning Planning Planning PublicWorks Public Woks /Engineering/Road Public Works /Engineering Public Works /GlS PublicWorks /GlS Public Works/Sanitation TCED TCED Tyler Tyler Carmen Sanchez Linda Blanco Table 3.3: Tyler Connect Conference Attendees Planning - EnerGov Building - EnerGov EMA. INC 161 EnerGov Quote Tyler Technologies provided a revised quote that addressed items noted during initial review and during demonstrations. Table 3.4 summarizes the EnerGov quote. Appendix B contains the full Tyler quote. Table 3.4: EnerGov Quote EnerGov Quote Software License EnerGov Software License Less: Discount Total EnerGov Software License Professional Services Ener@v Professional Services EnerC;ov Esti mated Trawl Total Professiona! Services Cost Total lmplernentataon Cost $ 1,244,955 $ (239,545) $ 1,005,410 $ 859,100 $ 54,400 $ 913,500 $ 1,918,910 162 THIRD PARTY SOFTWARE During the gap analysis review, stakeholders identified requirements for functionality that are not typically included in an ERP software package; therefore, ancillary third party software has been identified, and while not part of the ERP software, their installation and configuration should be managed as part of the implementation project. These ancillary third party software requirements include the following: o Automated Publishing - The City's Budget Department requires the ability to rapidly compile and publish materials from various sources including spreadsheets, PDF documents, word files, XML, and other formats. This functionality is critical to streamlining the production of the annual budget book. Tyler recommends PatternStream for this function and the City budget personnel have experience with PatternStream. . Debt Management - The City's Finance Department requires a tool to manage debt service, redemptions, service providers, compliance, and reporting for debt or bonds. Tyler referred SymPro Debt Manager for this function as it is utilized by some of their other clients and offers an open architecture that integrates with Munis. o Real Estate The City's Real Estate Department requires a comprehensive lease administration, tenant, propefi, and facilities database. Tyler referred Skyline Software for this function as it is known as a software package that meets requirements of other municipalities with similar realestate management requirements and those municipalities are satisfied with it. SOFTWARE DEMONSTRATIONS The Budget Department has experience with PatternStream and attended a demonstration of the software. Budget Department management considers the software critical for production of the annual budget book and believe it should reduce the annual budget book production time from three months to one month as well as greatly improve the look and feel of the document. PatternStream will also effectively overcome current reporting shortcomings of the City's performance management sofhruare Active Strategy. The Finance Department attended the SymPro debt management software demonstration on May 23,2014 and found the functionality to meet its requirements. The software is relatively low cost, provides needed functionality, and integrates with Munis. The Finance and Real Estate Departments attended the Skyline real estate management software demonstration on June 12, 2014 and found the functionality to meet their requirements. The software is relatively low cost and provides needed functionality. Table 4.1 reflects the third party sofhrare quote. 163 Table 4.1: Third Party Quote Thild,Party Quote Software Licenses PatternStream Software License SymPro Debt Management License Sky li ne Softvnre ( Property ManagemenULeasi ng) Esti rnate TotalThird Party Software License Cost Professional Services PafiernSfeam Services SymPro lmplementation/Conrcrsion Services Skyline Softvuare Services Total Professiona! Services Cost Total Cost Yellow highlights reflect estimates or areas where quotes are impending $ $ $ 75,528 35,000 10,000 120,528 13,900 13,900 134,428 EMA, INC 164 SOFTWARE VENDOR MARKETPLACE SOFTWARE SOLUTION OPTIONS The City has a number of options in the public sector ERP software vendor marketplace. Additionally, since ERP systems are modular, the City has the option to select a separate stand- alone software package for some functions such as a Customer lnformation System (ClS)/Utility Billing system. This section of the report provides the city with information on the ERP vendor marketplace. Also, per the CFO's request, there is a section regarding the C|S/Utility Billing marketplace. This information is based on EMA's experience and knowledge of the sofhruare vendors most often serving the public sector. The marketplace and sofhruare vendor capabilities are always changing as companies continue development efforts, vendors are acquired by competing vendors, and other influences. There are other software vendors in the ERP and CIS market and vendors with solutions for individual ERP functions; therefore, this information is intended as an overview of the landscape versus all options available to the City. ERP Software Vendor Marketplace The ERP software market includes hundreds of vendors; however, vendors tend to differentiate themselves on the basis of industry-specific business functionalities and essentially focus on a vertical market. One of these vertical markets is government or public sector. ERP vendors who focus on the public sector do this not only with specific functionality, but they also employ application consultants, trainers, and other staff with public sector business process knowledge. ERP vendors focused on the public sector can be categorized into Tiers, as seen in Figure 5-1. Tier 1 vendor packages are the most expensive and rely on third party system integrators for implementation. Tier 2 vendor packages are less costly and are generally implemented by the vendor themselves. Lastly, Tier 3 vendor packages are least costly but generally do not have as many capabilities and options. ffindonaly known ERP wndors wih 3d party s!,sbfir fegrabrs dealirq wih larger mr*dpdslflDlic sedor entities wih a Total Coddotrnerhip wer 5 years of >$10M aLsrr r€S known ERPverdors wih medium lo small sedorenlities wih a d Ornership over 5 years of bqrsed on small secb6nt[es wih a Tohl orer 5 years of <-$3M Figure 5-1: CIS Vendor Tiers 165 Figure 5-2 categorizes some of the more well-known ERP vendors focused on the public sector into the tiers. tyler @oRru@ !lr,raubrid.sror",.,..$rr,tuNrs workdoy$fftcAm' P[lnnoprise rCogsdale l,fpringbrook Figure 5-2: ERP Vendors Categorized in Tiers Tier 1 ERP Vendors Tier 1 vendors provide ERP software that is able to scale and serve billion-dollar enterprises that have multiple facilities or may be international. These systems are well equipped to support global operations of large enterprises to meet requirements such as multi-locations, multi- currency, multi-languages, and complex compliance issues. Tier 1 ERP vendors are internationally known and generally require the client to engage a third party system integrator. These third pafi system integrators tend to focus on or specialize in vertical markets or the larger consulting firms have specialized groups within their company that focus on the public sector. Some of the third party system integrators that specialize in public sector implementations of Tier 1 software packages include: Accenture, Deloitte Consulting, lBM, OptimalSolutions, and Ciber. EMA, INC 166 Figure 5.3 provides more detail on the Tier 1 vendors' strengths and weaknesses. ln general, a strength is that these software packages are feature-rich with many "out-ofthe-box" features and processes. These systems are very customizable to meet the entity's needs. These vendors generally market themselves through Value Added Resellers (VARs) that sell the software and act as a third party system integrator. A weakness or drawback of these Tier 1 vendors is their high cost to implement, Total Cost of Ownership (TCO), and longer implementation times. Vendor Strengths Waaknasses Platform Cloud / SeaS Optlons Tler {,1 .rr .*anlhr r.r . afrufuJritlmd ; hrrtrrcrr,r. ::. ibtyoubofdre.bor, .riltdrrdpocrlos. ',: ,,,'1,', Frwcr intcrfae options or partnerc thrn Orude/ SAP/ MS. Cen bc lcss dstomizebl6. Smrll numberof public sector impbmcntetions, Erponsivo. Rrquirose 3d partyto dcploy. Oreclc / SQL Server/ IBM D82 Yes 1 .. flo&lEyulth hltsdrornd rfrE.r.. ' Srhrdrnr.rmbrrof VAnrpwldrrrblllty no trortvfth rtronj ffryLm.llbr. Dorrnot hrvoutility billin3; Pryroll/HR ie not wcll euitrd for union complcxitirs. Rcquires r 3d party to dcy'oy. Windows Client/Scrvcr Yes 1 frpdrd*dbu ofh*mgrttonr ttrrryfro&h-elnra t0Io$mizrbb. CustomizeHe options elsomean h is .xp€n3iveto buy, to customizc, andto rupport. Rcquircsa 3d partyto dcploy. Oracle Yes 1 flrol| Pryroll/HR fur.doni . CwtomizaHeoptions .bom.an it is rxponrivcto buy, to orstomirc, and to tupport.. Roquiresr3dpartyto doplov. Oraclc / SQL Scrvcr Yes t ',,!qrdr$oyrdbrrr cf }rphnentrtionr. lkyf,odbb-rlmoc IS*orfinrizrbh. . Priwtrc.ctorfocus- notvcryfocuscd on municipelor public saclor.. Raquiregr3dpertyto dcploy. SAP Web Application Server Yes L EMA. INC Figure *3: Tier 1 ERP Vendors 167 Tier 2 ERP Vendors fier 2 vendors provide ERP software at a lower TCO and their primary target market is mid-size public sector entities. These vendors utilize their own application consultants for implementation services and do not generally rely on third party system integrators to configure the system. The Tier 2 vendors listed below in Figure 5.4 are established vendors in the public sector ERP software market. ln general, a strength of these vendors is that their software packages are designed to meet unique public sector requirements without extensive customizations. Another strength is that since these vendors are focused primarily on the public sector their implementation teams have a strong understanding of public sector business processes for mid- size entities. ln summary, these Tier 2 vendors have a lower cost to implement and Total Cost of Ownership (TCO) than Tier 1 vendors but still have strong functionality. It should be noted that the average five year TCO for Tier 2 ERP systems is between $3M and $10M. The City's quote from Tyler for Munis has a five year TCO of $3.8, which is at the bottom of the range while still delivering the City's desired functionality. This low cost is due to Tyler's unique "Clients for Life" discount program. EMA, INC 168 Vrndor Sbrngthr Woknou Plrtform Cloud/SuS TLr '.;.:. tylef ";i"nllur.rrs llN*rwrd.!i!ire',,.s brrdl Supports muhiple productswhich spreads development and support resources thin. Longdeployment windows. Success ofthe proiect is nery depcndent on the who PM is. .NET/SQL Server Yes 2 offtyH|Stg poft! rfs.trh . lmplementation challenges-many failed implementations.. weakutilitybilling.. Strongpresencein Midwest states. Microsoft browser- based Yes 2 SUI{GARD lFsr3rl: - -ffimarWrpnt {E?s,:.ii,. f,,:.:Q$offiocuson ERP. i*- ,{qe*offeriq, uti.r..l@ofi rt'ron,has i" Sodplchariry ard 1,'.;. 6lri&sncinb. of . Verydelayedin offeringnewversion - 5 years into development.. Very small number of ONESolution implementations .. Docsnothaveutility billing. Partofaverylarge company. Not focused on ERP. .Nfi Yes 2 *Jfii, obicctdata t bl€t *pto t}. . Offlineoperational capabilhies.. Financialsoftware system is less mature than HR system.. TheWorkdaysoftware is not nearly as broad asother ERP software suhes; will require Workday customers to pursue a muhi-vendor lT. lntegration Cloud Yes 2 Figure 5-4: Tier 2 ERP Vendors EMA. INC 169 Tier 3 ERP Vendors Tier 3 vendors provide ERP software generally at an even lower TCO, but their primary target market is mid-size to small public sector entities. These vendors also utilize their own application consultants for implementation services. The Tier 3 vendors listed below in Figure 5.5 are established vendors in the public sector ERP software market. ln general, a strength of these vendors is that their implementations are shorter, but this is in part due to their smaller-sized customer base. A weakness is that the software is not as capable and does not offer as many options across all modules. ln summary, these Tier 3 vendors may lack functionality that the City requires. Figure 5-5: Tier 3 ERP Vendors Vrndor Stnrn3ttr Wrrknerrlr Phtform Cloud/SrrS Thr ffiffiffiiiiot".r ffiffifiafrh ffiittcntttt"tta.tp#+nrrauvnoth ff*il*rurtg!rudEty il,;shc& rQdyopnroximate[ 1,,:.:aUtistrfiEdon$ YVlndorrs ClbntlServer No 3EIS&A lotrw^t Microsoft BnamicsGP/ SQLScruer Yes 3r Cogsdale iii"i a-:glrrttcdbyHani3 *lSdr hac 25 differert grr *&tiso rdEirclopmeat and 3qBPOrt resources are spttidthin.. vcryfcw implementations.. lffimoduleb not Oracle/sQt Server Yes 3 Iltllnn6pli5s (t!p,'irr gt'rrook . Westcoast3upport hours.. HR firnctionsarenot al (trbustas some ERP3.. tltilitybilling functionalityis averaSB. .NET Yes 3 EMA, INC 170 CIS Software Vendor Marketplace There are dozens of CIS vendors in the marketplace. Similar to ERP system vendors, CIS vendors can be categorized into 3 Tiers. Also like ERP packages, Tier 1 CIS products are the most expensive with costs declining at Tier 2 and then again at Tier 3. Tier 1 CIS firms are nationally known and typically deal with larger utilities. Tier 2 includes regional or less well known nationalfirms who work with utilities of less than 100,000 accounts. Tier 3 is typically comprised of small ERPs with CIS modules. Nationally knorn CIS firms dealing wih larger utilities Regional or less nell known national fi rms typically dealirg with utilities of <100,000 accounb SmdlERPs with CIS module Figure *6: CIS Vendor Tiers Figure 5-7 categorizes some of the more well-known CIS vendors into the tiers. 3ri7fl ORACL€'{I HANSEN I I TECHtrOLOGIES UTILTNES ,it i!il. :'Cogsdale rts '.$ tylgr, !{x*,rya4{},sr'rts Figure 5-7: CIS Vendors Categorized in Tiers l.?.y,l r : :: t$ mn*F,',f[' r nrfole- HANSENS '.$n,tuNrs !|$Innoprise *y 3vrtme --eSdtrrr 171 Tier 1 vendor products are the most expensive and rely on third party system integrators for implementation. Tier 2 CIS vendors are less costly and are generally implemented by the vendor themselves. Lastly, Tier 3 vendor packages are least costly but generally are not as capable. Tier 1 CIS products represent the most flexibility, "out-of-the-box" functionality, and ability to interface with partners. Tier 2 products are fairly flexible and functional and will interface with most partners but are less expensive than Tier 1 products. Tier 3 CIS products will be markedly less flexible and functional than Tier 1 and Tier 2 CIS products and less costly. Both Tier 1 and Tier 3 CIS products are often applications or modules within ERP systems, although not always. A number of Tier 2 CIS products are considered best-of-breed. ln other words, although they may integrate with some products, their primary functionality is utility billing and they are not developed as part of an ERP system or suite of software. Best-of-breed products often require more interfaces, but they are designed with this is mind and their utility billing functionali$ is often more developed than that of ERP utility billing modules. Planning, Permitting and Licensing Software Vendor Marketplace Municipalities have traditionally relied on a combination of stand-alone databases or systems along with manual processes to manage their planning, permitting, and licensing. As municipalities strive to more effectively manage workflow and provide improved public transparency, software vendors are developing and delivering products to meet these needs. Therefore, there are many software vendors in the planning, permitting, and licensing software vendor market but not all are full-service providers. EnerGov is a full-service provider of planning, permitting, and licensing, software for local and state governments. As such, EnerGov is experiencing fast growth and has over 5,000 licensed users in the government sector. The product is comprised of Permitting, lnspections, Licensing, Code Enforcement, Planning/Zoning, Mobile, and Online modules. Other providers are expanding their software functionality to meet this full-service requirement. Specifically, Accela has upgraded the Permits Plus software (a client-server system) to Accela Automation (a new web-based system). The City utilizes Permits Plus today and was planning to implement Accela Automation. Although Accela Automation delivers services via the web and automates critical tasks associated with permitting and licensing, many of the City's requirements require modifications. Some of these can be accomplished within the existing software framework; still, other needs are beyond what can be accomplished with either one of the Accela software solutions. There are other sofhruare vendors that provide planning, permitting, and licensing solutions for local government, including HdL Permits, lworq.net, CRW Trakit, Permit Soft, and CAA-File Maker. EMA, INC 172 Table 5.1 shows a listing of some other vendors that provide permitting and license software along with their applicable software name. City personnel have evaluated the software vendor offerings for permitting, planning, and licensing. Through software demonstrations and information gathered at the Tyler Connect Conference, City personnel find EnerGov to be a premier provider that meets the City's critical planning, permitting, and licensing needs that are lacking/limited in other software offerings. Table 5.1 : Permifting and License Software Vendor Listing Tempo 12.5 lnforl0 Public Sector Enterprise Microsoft CRM 2011 Siebel 8.2.2, Oracle Policy Automation 10.3, Oracle E- Business Suite 12.1 CRM 7.0, SAP ERP 6.0 EhP4 Tempest 71500, Vadim 1 .38.00, Diamond 9.00.0131 , WorkTech 6.0, Pacific Alliance 3.06 ONESolution CDR, NaviLine, Plus Series EMA, INC 173 REGOMMENDATION ERP OPTIONS The ERP system is a mission critical application for the City. lt is a vital system enabling the City to perform administrative business functions such as financial accounting, procurement, human resources, payroll, budget management, asset management, and other tasks. The cunent ERP system gaps must be addressed. The City has three options for addressing these gaps that should ultimately improve the constituent's customer experience, enable operational efficiency gains, ensure accountability, and provide transparency. Each of these options is described below. Option #1: Eden (Not Recommended) The City remains on Eden for their ERP softvvare solution and requests that Tyler add the required system functionality through a series of formal system enhancement requests. Tyler would review and scope these requests and provide quotes and implementation timelines for the City to review and approve. ln some cases, the desired functionality may not be available, or it may take months or years for Tyler to provide this functionality. Tyler considers Eden to have reached an "End-of-Life" status. While the softryare may still be useable, Tyler made the decision several years ago to focus their development resources on Munis. Since Tyler is largely focusing their development resources on Munis, it is likely that some of the desired functionality may not be available or have a long development window. Option #2: Munis (Recommended) Take advantage of Tyler's "Clients for Life" program which offers discounts on Munis license fees and, working with Tyler's quote, negotiate a contract for the purchase of Munis. Tyler has demonstrated that the Munis solution will provide the majori$ of the functional requirements. Some requirements listed in the gap analysis are noted by Tyler as requiring a modification and the quote assumes professional service hours for those modifications. Tyler considers Eden to have reached an "End-of-Life" status. While the software may still be useable, Tyler made the decision several years ago to focus their development resources on Munis. Other public sector entities who have used Eden software have migrated to Munis including the City of Bradenton, FL and Rockingham County, VA. Tyler has provided a quote to the City for the Munis ERP Solution. This quote reflects heavily discounted license costs from Tyle/s "Clients for Life" program. It should be noted that the average five year TCO for fier 2 ERP systems is between $3M and $10M. The City's quote from Tyler for Munis has a five year TCO of $3.8, which is at the bottom of the range while still delivering the City's desired full functionality. This low cost is due to Tyler's unique "Clients for Life" discount program. 174 Option #3: Full Request for Proposa! (Not Recommended) The City conducts a formal selection process in which it further refines functional and technical requirements, writes and issues an RFP, assesses the vendor proposals, develops vendor demonstration scripts, conducts scripted vendor demonstrations, and selects a vendor or vendors that meet the City's requirements. This selection process would add an additional I - 12 months to the solution delivery timeline and add additional costs. As described in this report, there are a number of vendor solutions available to the City; however, given the City's size and requirements, it is likely that the viable RFP respondents would be Tyler and one or two other vendors. Tyler's heavily discounted licensing would allow them to compete very favorably against the other vendors. The disadvantage is that it extends solution delivery by 9-12 months and it is highly possible that Tyler would provide the most compelling proposal and the City would select Tyler anyway. PLANNING, PERMITTING, AND LICENSING SOFTWARE RECOMMENDATION EnerGov (Recommended) City personnel have reviewed the functionality of Accela Automation versus EnerGov and find EnerGov to be a superior product. EnerGov's functionality includes integrated permitting workflows, electronic plan review capabilities, a G|S-centric design, a citizen portal that provides transparency to citizens to access status of requests or payment, and mobile applications for field personnel. Tyler was asked to demonstrate EnerGov and City personnel found that the system meets their requirements and as such Tyler has provided a quote for EnerGov. The recommendation is to move fonruard with negotiating a contract with Tyler for the purchase of EnerGov. SOFTWARE IMPLEMENTATION RISKS The City should be aware that software implementations are a significant endeavor. lt is anticipated that this effort will take at least three years followed by a six month stabilization period for each major module. Any system implementation has risks. These risks can include lack of organizational commitment to the project, lack of alignment on project goals, unclear system requirements, lack of user commitment to the project for activities such as testing, and lack of commitment to the project schedule. The City will be required to manage risks that threaten to delay or jeopardize the implementation of the ERP system in order to reap the benefits of the recommendation. NEXT STEP lf the Commission approves recommendation for Munis and EnerGov, the next step is for the City Manager to utilize the Tyler price quote contained herein and negotiate a contract. This contract will include a detailed Statement of Work that outlines the professional services that Tyler will deliver when implementing the Munis / EnerGov solutions. EMA, INC 175 APPENDI)( B STANDARD FORM OF AGREEMENT BETWEEN CITY OF MIAMI BEACH AND EMA, INC. FOR PROFESSIONAL SERVICES THIS IS AN AGREEMENT effective as of ("Effective Date") between CITY OF MIAMI BEACH FLORIDA ("Client") and ("EMA").EMA,Inc. dAla EMA of Minnesota, Inc. Client intends to contract for assistance in BUSINESS PROCESS ANALYSIS AND PROJECT MANAGEMENT FOR CITY OF MIAMI BEACH ENTERPRISE RESOURCE PLANNING SYSTEM ("ERI,,'; PROJECT ("Project"). Client and EMA agree as follows: ARTICLE 1 - SERVICES OF EMA 1.01 Scope A. EMA shall provide, or cause to be provided, the services set forth herein and in Exhibit A ("Services"). ARTICLE 2 - CLIENT'S RESPONSIBILITIES 2.01 General A. Client shall have the responsibilities set forth herein and in Exhibit B. B. Client shall pay EMA as set forth in Exhibit C. C. Client shall be responsible for, and EMA may rely upon, the accuracy and completeness of all requirements, programs, instructions, reports, data, and other information furnished by Client to EMA pursuant to this Agreement. EMA may use such requirements, programs, insffuctions, reports, data, and information in performing or furnishing services under this Agreement. ARTICLE 3 SERVICES SCHEDULE FOR RENDERING 3.01 Commencement A. EMA shall begin rendering the Services as of the Effective Date of the Agreement. 3.02 Time for Completion A. EMA shall complete the Services within a reasonable time. Specific periods of time for rendering specific Services are set forth, or specific dates by which Services are to be completed, are provided in Exhibit A. B. If, through no fault of EMA, such periods of time or dates are changed, or the orderly and continuous progress of EMA's Services is impaired, or EMA's Services are delayed or suspended, then the time for completion of EMA's Services, and the rates and amounts of EMA's compensation, shall be adjusted equitably. C. If Client authorizes changes in the scope, extent, or character of the Project, then the time for completion of EMA's Services, and the rates and amounts of EMA's compensation, shall be adjusted equitably. D. Client shall make decisions and carry out its other responsibilities under this Agreement in a timely manner so as not to delay EMA's performance of the Services. ARTICLE 4 - INVOICES AND PAYMENTS 4.01 Invoices A. Preparation and Submittal of Invoices. EMA shall prepare invoices in accordance with its standard invoicing practices and the terms of Exhibit C. EMA shall submit its invoices to Client on a monthly basis. Invoices are due and payable within 30 days of receipt. 4.02 Payments A. Failure to Pay. If Client fails to make any payment due EMA for Services and expenses within 30 days after receipt of EMA's invoice, then EMA may, after giving seven days written notice to Client, suspend performance of the Services under this Agreement, until Page I of 7 Standard Form of Agreement Between Client and EMA for Professional Services Revised 12109109 176 Client has paid in full all amounts due for Services, expenses, and other related charges. B. Disputed Invoices. lf Client contests an invoice, Client may withhold only that portion so contested, and must pay the undisputed portion. C. Legislative Actions. If after the Effective Date of the Agreement any governmental entity takes a legislative action that imposes taxes, fees, or charges on EMA's services or compensation under this Agreement, then EMA may invoice such new taxes, fees, or charges as a Reimbursable Expense to which a factor of 1.0 shall be applied. Client shall pay such invoiced new taxes, fees, and charges. Such payment shall be in addition to the compensation to which EMA is entitled under the terms of Exhibit C. ARTICLE 5 - NOT USED ARTICLE 6 - GENERAL CONSIDERATIONS 6.01 Standards of Performance A. The standard ofcare for all professional services performed or fumished by EMA under this Agreement will be the care and skill ordinarily used by members of the subject profession in the State of Florida. EMA makes no warranties, express or implied, under this Agreement or otherwise, in connection with EMA's Services. B. Client shall not be responsible for discovering deficiencies in the technical accuracy of EMA's Services. EMA shall correct any such deficiencies in technical accuracy without additional compensation, except to the extent such corrective action is directly attributable to deficiencies in Client-furnished information pursuant to paragraph 2.0 l(c) hereof. C. EMA may employ such Consultants as EMA deems necessary to assist in the performance or furnishing of the Services, subject to Client's prior written approval, which shall not be unreasonably withheld, conditioned, or delayed. D. EMA and Client shall comply with applicable Laws and Regulations and Client-mandated standards that Client has provided to EMA in writing. This Agreement is based on these requirements as of its Effective Date. Changes to these requirements after the Effective Date of this Agreement may be the basis for modifications to Client's responsibilities, or to EMA's Scope of Services, times of perfornance, and compensation. F. EMA shall not be responsible for the acts or omissions of any conffactor, subcontractor, or supplier, or ofany oftheir agents or employees or ofany other persons (except EMA's own employees and its Consultants) at the Site or otherwise furnishing or performing any Work; or for any decision made by Client without consultation and advice of EMA. 6.02 Design without Construction Phase Services NOT USED 6.03 Use of Documents A. All Documents are instruments of service in respect to this Project, and EMA shall retain an ownership and property interest therein (including the copyright and the right of reuse at the discretion of the EMA) whether or not the Project is completed. Client shall not rely in any way on any Document unless it is in printed form, signed or sealed by the EMA or one of its Consultants. B. A party may rely that data or information set forth on paper (also known as hard copies) that the party receives from the other party by mail, hand delivery, or facsimile, are the items that the other party intended to send. Files in electronic media format of text, data, graphics, or other types that are furnished by one party to the other are furnished only for convenience, not reliance by the receiving party. Any conclusion or information obtained or derived from such electronic files will be at the user's sole risk. If there is a discrepancy between the electronic files and the hard copies, the hard copies govern. C. Because data stored in electronic media format can deteriorate or be modified inadvertently or otherwise without authorization of the data's creator, the party receiving electronic f,rles agrees that it will perform acceptance tests or procedures within 60 days, after which the receiving party shall be deemed to have accepted the data thus transferred. Any transmittal enors detected within the 60-day acceptance period will be corrected by the party delivering the electronic files. D. When transferring documents in electronic media format, the transferring parly makes no representations as to long term compatibility, usability, or readability of such documents resulting from the use of software application packages, operating systems, or computer hardware differing from those used by the documents' creator. E. Client may make and retain copies of Documents for information and reference in connection with use on the Project by Client. EMA grants Client a license to use the Documents on the Project, extensions of the Project, and other projects of Client, subject to the following limitations: (l) Client acknowledges that such Documents are not intended or represented to be suitable for use on the Project unless completed by EMA, or for use or reuse by Client or others on extensions of the Project or on any other project without written verification or adaptation by EMA; (2) any such use or reuse, or any modification of the Documents, without written verification, completion, or adaptation by EMA, as Page 2 of 1 Standard Form ofAgreement Between Client and ENIA for Professional Services Revised 12109109 177 appropriate for the specific purpose intended, will be at Client's sole risk and without liability or legal exposure to EMA or to EMA's Consultants; (3) such limited license to Client shall not create any rights in third parties. F. If EMA at Client's request verifies or adapts the Documents for extensions of the Project or for any other project, then Client shall compensate EMA at rates or in an amount to be agreed upon by Client and EMA. 6.04 Insurance A. EMA shall procure and maintain insurance as set forth in Exhibit D, "Insurance." EMA shall cause Client to be listed as an additional insured on any applicable general liability insurance policy carried by EMA. B. EMA shall each deliver to Client certificates of insurance evidencing the coverages indicated in Exhibit D. Such certificates shall be furnished prior to commencement of EMA's Services and at renewals thereafter during the life of the Agreement. C. At any time, Client may request that EMA or its Consultants, at Client's sole expense, provide additional insurance coverage, increased limits, or revised deductibles that are more protective than those specified in Exhibit D. If so requested by Client, and if commercially available, EMA shall obtain and shall require its Consultants to obtain such additional insurance coverage, different limits, or revised deductibles for such periods of time as requested by Client, and Exhibit D will be supplemented to incorporate these requirements. 6.05 Suspension and Termination A. Suspension. By Client: Client may suspend the Project upon 30 days written notice to EMA. By EMA: If EMA's services are substantially delayed through no fault of EMA, EMA may, after giving 30 days written notice to Client, suspend Services under this Agreement. B. Termination. The obligation to provide further Services under this Agreement may be terminated: l. For cause, a. By either party upon 30 days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof. b. By EMA: 1) upon 30 days written notice if EMA's Services for the Project or the Project, are suspended for more than 90 days, through no fault of EMA.. 2) EMA shall have no liability to Client on account of such termination. c. Notwithstanding the foregoing, this Agreement will not terminate under paragraph 6.05.B.1.a if the party receiving such notice begins, within seven days of receipt of such notice, to correct its substantial failure to perform and proceeds diligently to cure such failure within no more than 30 days of receipt thereof; provided, however, that if and to the extent such substantial failure cannot be reasonably cured within such 30 day period, and if such party has diligently attempted to cure the same and thereafter continues diligently to cure the same, then the cure period provided for herein shall extend up to, but in no case more than, 60 days after the date of receipt of the notice. 2. For convenience, a. By Client, effective upon EMA's receipt of written notice from Client. b. Except for Payments UPon Termination as specified in paragraph 6.05.D.1. Client shall have no liability to EMA on account of such termination. C. Effective Date of Termination. The terminating party under paragraph 6.05.8 may set the effective date of termination at a time up to 30 days later than otherwise provided to allow EMA to demobilize personnel and equipment from the Site, to complete tasks whose value would otherwise be lost, to prepare notes as to the status of completed and uncompleted tasks, and to assemble Project materials in orderly files. D. Payments Upon Termination. l. In the event of any termination under paragraph 6.05, except a termination for cause by the City pursuant to paragraph 6.05.8.1.a, EMA will be entitled to invoice Client and to receive fulI payment for all Services performed or furnished and all Reimbursable Expenses incurred through the effective date of termination. Upon making such payment, Client shall have no further liability to EMA on account of such termination, and shall have the limited right to the use of Documents, at Client's sole risk, subject to the provisions of paragraph 6.03.E. 2. In the event of termination by Client for convenience or by EMA for cause, EMA shall be entitled, in addition to invoicing for those items identified in paragraph 6.05.D.1, to invoice Client and to payment of a reasonable amount for Services and expenses directly attributable to termination, both before and after the effective date of termination, such as reassignment of personnel, costs of Page 3 of 7 Standard Form ofAgreement Between Client and EMA for Professional Services Revised 12/09109 178 terminating contracts with EMA's Consultants, and other related close-out costs, using methods and rates for Additional Services as set forth in Exhibit C. 6.06 Controlling Law A. This Agreement is to be governed by the law of the state in which the Project is located. 6.07 Successors, Assigns, and Beneficiaries A. Client and EMA each is hereby bound and the partners, successors, executors, administrators and legal representatives of Client and EMA (and to the extent permitted by paragraph 6.07.B the assigns of Client and EMA) are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators and legal representatives (and said assigns) ofsuch other party, in respect ofall covenants, agreements, and obligations of this Agreement. B. Neither Client nor EMA may assign, sublet, or ffansfer any rights under or interest (including, but without limitation, moneys that are due or may become due) in this Agreement without the written consent of the other, except to the extent that any assignment, subletting, or transfer is mandated or restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. C. Unless expressly provided otherwise in this Agreement: l. Nothing in this Agreement shall be construed to create, impose, or give rise to any duty owed by Client or EMA to any Contractor, Contractor's subcontractor, supplier, other individual or entity, or to any surety for or employee of any of them. 2. All duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of Client and EMA and not for the benefit ofany other party. 6.08 DisputeResolution A. Client and EMA agree to negotiate all disputes between them in good faith for a period of 30 days from the date of notice prior to invoking the procedures of Exhibit E or other provisions of this Agreement, or exercising their rights under law. B. If the parties fail to resolve a dispute through negotiation under paragraph 6.08.4, then either or both may invoke the procedures of Exhibit E. If Exhibit E is not included, or if no dispute resolution method is specified in Exhibit E, then the parties may exercise their rights under law. 6.09 Environmental Condition of Site NOT USED 6.10 Indemnification and Mutual Waiver A. Indemnification by EMA. EMA shall indemnify and hold harmless Client, and Client's officers, directors, partners, agents, consultants, and employees from and against any and all claims, costs, losses, and damages (including but not limited to all fees and charges of Consultants, architects, attorneys, and other professionals, and all court, arbitration, or other dispute resolution costs) arising out of or relating to the Project, provided that any such claim, cost, loss, or damage is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property (other than the Work itselfl, including the loss of use resulting therefrom, but only to the extent caused by any negligent act or omission of EMA or EMA's officers, directors, partners, employees, or Consultants. B. Indemnification by Client. To the fullest extent permitted by Florida law, and subject to the limitations on Client's liability pursuant to Section 76F.28, Florida Statutes, as same may be amended from time to time, Client shall indemnifu and hold harmless EMA, EMA's officers, directors, partners, agents, employees, and Consultants from and against any and all claims, costs, losses, and damages (including but not limited to all fees and charges ofConsultants, architects, attorneys, and other professionals, and all court, arbitration, or other dispute resolution costs) arising out of or relating to the Project, provided that any such claim, cost, loss, or damage is attributable to bodily injury, sickness, disease, or death or to injury to or destruction of tangible property (other than the Work itself), including the loss of use resulting therefrom, but only to the extent caused by any negligent act or omission of Client or Client's officers, directors, parlners, agents, consultants, or employees. C. Environmental Indemnification. In addition to the indemnity provided under paragraph 6.10.B of this Agreement, and to the extent permitted by law, Client shall indemniff and hold harmless EMA and its officers, directors, partners, agents, employees, and Consultants from and against any and all claims, costs, losses, and damages (including but not limited to all fees and charges of Consultants, architects, attorneys and other professionals, and all court, arbitration, or other dispute resolution costs) caused by, arising out of, relating to, or resulting from a Constituent of Concern at, on, or under the Site, provided that (D any such claim, cost, loss, or damage is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property (other than the Work itself), including the loss of use resulting therefrom; provided however, that nothing in this paragraph shall obligate Client to indemnify any individual or entity from and against the consequences of that individual's or entity's own negligence or omission. D. Mutuql ll'aiver. Client and EMA waive against each other, and the other's employees, officers, directors, agents, insurers, partners, and consultants, ary and all Page 4 of 1 Standard Form of Agreement Between Client and EMA for Professional Services Revised l2l09/O9 179 claims for or entitlement to special, incidental, indirect, or consequential damages arising out of, resulting ftom, or in any way related to the Project. 6.1I MiscellaneousProvisions A. I,,lotices. Any notice required under this Agreement will be in writing, addressed to the appropriate party at its address on the signature page and given personally, by facsimile, by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date ofreceipt. B. Survival. All express representations, waivers, indemnifications, and limitations of liability included in this Agreement will survive its completion or termination for any reason. C. Severability. Any provision or part of the Agreement held to be void or unenforceable under any Laws or Regulations shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon Client and EMA, who agree that the Agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. D. Waiver. A party's non-enforcement of any provision shall not constitute a waiver of that provision. nor shall it affect the enforceability ofthat provision or of the remainder of this Agreement. E. Accrual of Claims. To the fullest extent permitted by law, all causes of action arising under this Agreement shall be deemed to have accrued, and all statutory periods of limitation shall commence, no later than the date of Substantial Completion. ARTICLE 7 - DEFINITIONS 7.01 Defined Terms A. Wherever used in this Agreement (including the Exhibits hereto) terms (including the singular and plural forms) printed with initial capital letters have the meanings indicated in the text above or in the exhibits; in the following provisions: l. Additional Services--The services to be performed for or fumished to Client by EMA in accordance with Exhibit A, Part 2, of this Agreement. 2. Basic Semices--The services to be performed for or furnished to Client by EMA in accordance with Exhibit A, Part l, of this Agreement. 3. Constituent of Concern--Any substance, product, waste, or other material of any nature whatsoever (including, but not limited to, Asbestos, Petroleum, Radioactive Material, and PCBs) which is or becomes listed, regulated, or addressed pursuant to [a] the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. $$9601 et seq. ("CERCLA"); tb] the Hazardous Materials Transportation Act, 49 U.S.C. $$1801 et seq.; [c] the Resource Conservation and Recovery Act, 42 U.S.C. 556901 et seq. ("RCRA"); [d] the Toxic Substances Control Act, l5 U.S.C. $52601 et seq.; [e] the Clean Water Act, 33 U.S.C. 5$1251 et seq.; [f] the Clean Air Ac| 42 U.S.C. $$7401 et seq.; and [g] any other federal, state, or local statute, law, rule, regulation, ordinance, resolution, code, order, or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic, or dangerous waste, substance, or material. 4. Consultants--Individuals or entities having a contract with EMA to furnish services with respect to this Project as EMA's independent professional associates, consultants, subcontractors, or vendors. 5. Documents--Data, reports, drawings, specifications, record drawings, software, and other deliverables, whether in printed or electronic media format, provided or furnished in appropriate phases by EMA to Client pursuant to this Agreement. 6. Lqws and Regulations; La1,vs or Regulations--Any and all applicable laws, rules, regulations, ordinances, codes, and orders of any and all governmental bodies, agencies, authorities, and courts having j urisdiction. 7. Reimbursable Expenses--The expenses incurred directly by EMA in connection with the performing or furnishing of Basic and Additional Services for the Project. ARTICLE 8 . PROVISIONS EXHIBITS AND SPECIAL 8.01 Exhibits Included A. Exhibit A, "EMA',s Services," consisting of pages. B. Exhibit B, "Client's Responsibilities," consisting of_ pages. C. Exhibit C, "Payments to EMA for Services and Reimbursable Expenses," consisting of _ pages. D. Exhibit D, "Insurance," consisting of I pages. E. Exhibit E, "Dispute Resolution," consisting of I pages. 8.02 Total Agreement A. This Agreement (consisting of pages I to _ inclusive, together with the exhibits identified above) constitutes the entire agreement between Client and EMA and supersedes all prior written or oral understandings. This Agreement may only be amended, supplemented, Page 5 of 7 Standard Form of Agreement Between Client and EMA for Professional Services Revised 12109109 180 modified, or canceled by a duly executed written services to be performed or furnished by EMAand amendment to this Agreement. responsibilities of Client under this Agreement. Such E.03 Designated Representatives individuals shall have authority to hansmit instructions' recelve information, and render decisions relative to the A. With the execution of this Agreement, EMA Projectonbehalfofeachrespectiveparty. and Client shall designate specific individuals to act as EMA's and Client's representatives with respect to the Page 6 of 7 Standard Form ofAgreement Between Client and EMA for Professional Services Revised 12109/09 181 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the Effective Date of which is indicated on page 1. Client:EMA: Address for giving notices:Address for giving notices: Designated Representative (see paragraph 8.03.A): Designated Representative (see paragraph 8.03.A): By: Title: Date Signed: Title: Phone Number: Facsimile Number: E-MailAddress: By: Title: Date Signed: Title: Phone Number: Facsimile Number: E-Mail Address: Pagel of1 Standard Form ofAgreement Between Client and EilIA for Professional Services Revised 12109109 182 EXHIBIT A This is EXHIBIT A, consisting of 9 pages, referred to in and part of the Agreement between Client and EMA for Professional Services dated Scope ofServices SCOPE OF WORK The following scope of work is broken into two distinct tracts. Tract 1 is depicted by the Project Management Box and is focused on managing the Business Process Analysis (BPA) activities (Tract 2), System lmplementation activities, and coordination with Tyler to assure BPA results and subsequent business process efficiencies are translated into a successful implementation of the ERP investment. Tracl2 is depicted by the four remaining boxes. This tract is focused on performing the business process analysis work in each of the work groups identified. The BPA work is performed at two levels: Review of the Operational Objectives and Mission of each work group. For example, within the Building Department, potentially shifting focus from "Code Enforcement" to "Developer, Contractor, and Citizen support" Evaluation and Optimization of Current and Planned Work Practices - This is performance of the "Eliminate, Reduce, Shift, Redesign Analysis" of the work practices outlined below. Tract 1 - Project Management Task 1.1 - Program/Project Management Support of the ERP lmplementation ERP system implementation will be conducted by the ERP vendor. EMA will provide management oversight to ensure user and technical requirements are fulfilled during the implementation process. EMA will act in the capacity of the owner's representative and the City's main point of contact throughout the implementation process. Page I of9 Pages (Exhibit A - EMA's Services) Standard Form of Agreement Between Client and EMA for Professional Services Revised l0/05/04 ERP Proiect Manag6m6nt ::P!Y': c-Y:"r cl",oi.!i*"dpe- - -- rul"nig* ivre.tont,rct Lrmrt customrzatronuuog€r uonlror Software purchase tu1odel Facili6te Organrrztron Changes Data Conversign :::_11iY:^^^-^-. Fa(ilrrate P.aclce Changes tulanage Etlicrency Oppo(unrires Trarnrng Desrgncnange rdanagemenr t.r.,nt*lilil1[ffi inlP.ove e ffir renr-! and eftarirveiess rmprcve elffrenay and efrecl,vefrESs nprrre et'iciency and elteiiiv:ness lmcrcvE efir:ienty and efletlrveness 183 EMA will provide an ERP project manager who will initially work onsite with the project manager and team to finalize a detailed project plan. This project plan will nail down all project objectives, tasks, deliverables, milestones, and budgets based on BPA and streamlined business processes. EMA's project manager will also: . Conduct regular project review meeting with Miami Beach to review the progress of this project and to discuss any outstanding issues and potential problems. A standard agenda will be developed for the progress meetings, and will include the following topics: identification of work performed last period, work to be completed next period, critical action item status, and responsible parties to complete actions. Budget or schedule problems will also be identified and corrective actions noted. EMA will upload an agenda, updated schedule, and revised action items log to the project SharePoint site in advance of the meeting. Meeting minutes for each meeting will be uploaded for review within three working days of the meeting. . Provide Quality Assurance/Quality Control (OA/OC), including the review of all project deliverables and status to ensure that all of the appropriate project diligence has been taken. . Lead in coordinating City implementation team and vendor activities. . Develop communication and coordination protocols for the project. . Oversee communication and coordination of the project. . Meet with Miami Beach leadership to resolve project issues. . Work with the Miami Beach Project Manager to identify a format and schedule for progress reports that best meets the needs of the project. EMA will provide these reports in the desired format and with the desired frequency. . Assure participation of Miami Beach staff. Our work with clients throughout North America confirms that change to high performance operations (process optimization) will be realized only by involving management and staff throughout the project. By involving employees, they learn what industry best practices are and the importance of maximizing productivity. By involving managers, they learn the business management practices of high performance organizations and new approaches to developing and maximizing the productivity of a highly-skilled and motivated work force. Everyone will also develop teamwork behaviors and be introduced to new ways of thinking and interacting. . Meet with the vendor to ensure an understanding of Miami Beach's direction and to discuss and plan objectives, requirements (as defined in Tract 2 below), responsibilities, performance, and review of business process analyses, reporting requirements, deliverable review procedures, and project schedule. Page 2 of9 Pages (Exhibit A - EMA's Services) Standard Form ofAgreement Between Client and EMA for Professional Services Revised 10/05/04 184 . Review and get approval of vendor submittals and monthly progress reports. The progress reports shall describe significant accomplishments, issues and/or problems which have potential effect on schedule or costs, and plans for the upcoming week. They should be sufficiently detailed to assure that directions being pursued are in compliance with established and/or projected goals. . Coordinate and oversee vendor training. . Work with Miami Beach project team to approve vendor final work product (configured system). All planned and agreed upon milestones and deliverables must be fully met and approved by the Project Team and as defined in the project plan. o Review and approve payment application. . EMA's project manager will be the point person to manage the ERP vendor activities, deliverables and schedule while establishing a foundation for the ongoing partnership between the vendor and the organization. Effective project management involves communication both upward and downward within the organization in order to understand the business concerns, gain acceptance of the pending changes and gain project buy-in and support for the team's activities. The vendor-appointed project manager is the point person to act as a liaison between the organization and the vendor. This individual is responsible for coordinating vendor resources, managing the vendor deliverables and handling support requests as they are identified. ln addition, the vendor-supplied project manager or a member of the vendor's team should be expected to provide guidance to the organization on how to best leverage the vendor product by sharing best practices, processes and experiences. From a project manager perspective, vendor management best practices may include: 1. Maintain a detailed, written audit trail of all discussions and agreements. 2. When documenting vendor tasks, the operative phrase is "the vendor shall." 3. Get a written commitment on vendor team members, escalation, etc. 4. Roles and responsibilities are clearly written and agreed to. 5. Rules of engagement should include onsite attendance requirements. 6. lmplementation strategies are mutually agreed upon. 7. Reserve the right to review vendor designs and request changes. 8. Project plans are submitted in advance for approval. 9. Test plans are submitted in advance for approval. 10. Specify documentation required from the vendor, including media and format. 1 1. Specify support and maintenance to be provided. 12. Prearrange change control processes and pricing to address scope creep. 13. Any training provided by the vendor must be preapproved. To ensure a successful venture, all parties need to establish a clear understanding of each other's roles and open lines of communication. They also need to work to develop an environment of mutual trust. Open access provides the pathway to a successful relationship; an open exchange of information throughout the project will facilitate quick resolution when issues do arise. Page3of9Pages (Exhibit A - EMA's Services) Standard Form ofAgreement Between Client and EMA for Professional Services Revised 10/05/04 185 Task 1.2 - Assist with User Acceptance Testing EMA will develop user acceptance test scripts to test the configuration of the ERP system to ensure compliance with configuration specifications. User acceptance testing will be used to verify the testing activities have been completed and have validated the design of the ERP system. We will develop User Acceptance Test Scripts, perform User Acceptance Testing Oversight and maintain a Defect Log Template Task 1.3 - ERP lnterface Design EMA will provide the user requirements for the integration of the ERP system with other City systems. Based on the requirements, EMA will oversee design of the interfaces for the selected ERP solution and manage system integration activities performed by the vendor. EMA will assist with integration testing to assure the configured functionality works correctly. EMA has the expertise to design and program the interface but they are not included in this scope of work. Tract 2 - Business Process Analysis The following tasks will be repeated for each of the four major work groups (Building/EnerGov, Finance, HR, and Billing) understanding that there are sub groups within each (e.9., budget, procurement) for which the tasks may be required independently. The costs for these will not be uniform. The first work group to be addressed will require a significantly larger effort than the remaining three. The large effort is due to the fact that we are laying out the road map for the entire project. Specific effort completed in the first workgroup that will not need to be repeated includes: . Development of the working templates, which include SWIM lane diagrams that are used to visually represent the various business processes and sub-processes and the associated data - forms for resolving changes to business processes communications media requirements templates for vendor coordination training materials - vendor sign off . lntegration requirements are primarily defined during the first workgroup . Developing the team structure and rules for participation and sign off o Building organizational momentum for the change process . Building an approach to identify and change "sacred cows" . Formalizing Project Management activities as defined in Tract 1 . Knowledge transfer to the project team on project execution and developing common language Page 4 of9 Pages (Exhibit A - EMA's Services) Standard Form ofAgreement Between Client and ENIA for Professional Services Revised 10/05/04 186 Based on the Phase 1 work Miami Beach should undertake the EnerGov workgroup first since there are significant issues that will be addressed with this effort. This work group also has the most points of interaction with other City Departments and technologies Task 2.1 - Review and Analysis of Existing Operational Objectives and Mission for Each Work Group The purpose of this task is to understand Miami Beach's overall strategic objective and compare them to the way the four work groups are currently working. lf there is misalignment this project is an opportunity to evaluate the options for making changes. This task will also allow the work groups to define key performance indicators to measure the progress against City wide objectives. The City Project Manager will work with the EMA Project Manager to identify stakeholders who have insight into the strategic objectives of the City. EMA will meet with this group to determine if there are approaches to the work groups operations they would like to have evaluated and changed to better support strategic objectives. As an example, the City may wish to improve customer service in a significant way. This may require business process to be changed to expand business hours, provide more transparency, or have more self-service options. After the meeting, EMA will conduct a half-day workshop with the City project team and work group leadership in which the strategic perspectives are presented and discussed. Consideration of stakeholders and their business needs will be discussed to determine what if any changes to work group objectives and mission should be made. Any objective that lS identified will be used in the BPA process. Task 2.2 - Review and Analysis of Existing Practices within ldentified Work Groups The purpose of this task is to understand Miami Beach's business needs, customers' needs, and the needs of key stakeholders. Additionally, this task will develop alignment through agreement on business, technical, and other drivers and how to measure success. By "drivers," we mean those pressures that are causing Miami Beach to consider investing in analysis and/or improvement to business processes. The Miami Beach Project Manager will work with the EMA Project Manager to identify stakeholders who have significant needs related to this project. A workshop will be conducted with these stakeholders, supplemented by a few one-on-one interviews. Additionally EMA will review manual processes or Excel spreadsheets to determine what functionality these systems are providing and what data is stored in these systems. After the interviews, EMA will conduct a half-day workshop with the Miami Beach project team in which the stakeholders' perspectives are presented and discussed, and then converted to high level project requirements. Page 5 of9 Pages (Exhibit A - EMA's Services) Standard Form ofAgreement Between Client and EMA for Professional Services Revised 10/05/04 187 Careful consideration of stakeholders and their business needs can reveal important functionality that isn't obvious in the current business processes and systems. Stakeholders can also identify where business processes cross organizational boundaries. These points of exchange are often an opportunity for work process automation or integration. Task 2.3 - Development of Process Diagrams that will present the lnitial Definition of the Various Business Processes During the workshops and interviews identified above EMA will capture the information required to develop initial business process diagrams. These diagrams will then be developed in Microsoft Visio. They will depict a high level picture of the business processes and objectives within Miami Beach. These process diagrams will be presented to Miami Beach staff for review and comment. Task 2.4 - Development of Work Flow Diagrams that Describe how and when Work within the Work Groups is Accomplished For this task we will add the initial work flow diagrams to the process diagrams. Each work group, when there is cross department work flow, will be depicted on its own row. This approach serves several purposes. First it relates all work flow activities back to a specific business process. This will highlight any work that is being performed that does not directly relate to a specific business process. Second, it will show all touch points (areas where information is passed) between specific groups. lt is important to understand these since one of the best ways to improve practices is to limit the number of touch points as much as possible while still meeting the business needs of Miami Beach. Touch points are also usually prime targets for leveraging technology, whether it be on a single system such as ERP or between multiple systems - ERP and CityWorks, GlS, and 311, for Page 6 of9 Pages (Exhibit A - EMA's Services) Standard Form of Agreement Between Client and EMA for Professional Services Revised l0/05/04 188 example. Task 2.5 - Development of Data Flow Diagrams that show the Relationships between the Business Processes, the Dataflow, and the Data For this task we will add the initial data flows to the business/work flow diagrams. By adding data flow diagrams to the existing diagrams Miami Beach will be able to see how data is used within work flows. This data can then be analyzed to determine not only what data is critical, what adds little or no value, and what data is missing, but also what data should be called out to use for specific performance measures and exception reports. By capturing data from the previous three tasks on an integrated flow diagram Miami Beach will be able to quickly identify areas for process improvement, identify opportunities to provide new services, and clearly communicate specific system requirements to the ERP project implementation team. The next three activities will be conducted in parallel. We will use the process analysis diagrams developed in the previous steps as the baseline for these activities. EMA staff will review the diagrams and identify areas of possible improvement through either changes to the process or the application of technology. We will then conduct a series of workshops with Miami Beach staff to review the possible changes and document other changes identified by Miami Beach staff. At this stage, we will also utilize an iterative process where we look at the business processes to determine if various steps can be: . Eliminafed, often steps are added over time to address issues that have become unnecessary . Reduced, again many steps can often be reduced in frequency . Shifted, when steps are analyzed it may be determined that different people are performing similar or the same tasks. These can often be consolidated and assigned to a single person. . Redesigned, New technology offers opportunities to automate tasks Task 2.6 - Development of Proposed Process Diagrams that will present Optimized Business Processes or Activities Based on !ndustry Best Practices Page 7 of9 Pages (Exhibit A - EMA's Services) Standard Form ofAgreement Between Client and EMA for Professional Services Revised l0/05/04 189 At EMA we have conducted over 400 business process analysis projects for our clients in municipal government. Through this work we have identified many best practice strategies. We will apply these in this step. The proposed processes will be in the same format as those listed in the previous activities. These will be submitted to Miami Beach for review and comment. Task 2.7 - Development of Proposed Work Flow Diagrams that Describe Optimized Work FIows EMA will work with Miami Beach staff to identify ways to streamline work flows by looking at the business processes, the touch points between different work groups (internal Miami Beach and external), and the application of specific technologies or technology integrations. Optimized work flows will be presented and discussed with Miami Beach staff. Miami Beach will find that some of the improved work flows can be implemented immediately while others will be dependent on the implementation of the ERP. Task 2.8 - Development of Proposed Data Flow Diagrams that Reflect and Support the Optimized Business Processes The data flow diagrams will be updated to reflect the new business processes and work flows developed above. EMA will also make recommendations of specific data elements that should be used in reports, as stand-alone performance measures or should be included in calculated performance measures. A good example of performance measure is the development of indices. lndices can be defined that assign a relative level of effectiveness or efficiency to a City process. These can be used with Miami Beach's continuous improvement process to measure improvement Once the business process diagrams are updated, they can be used to quickly communicate with the ERP vendor how the system needs to be configured. These will also serve as operating procedures and training material. Task 2.9 - Development of Business Process Requirements A proven approach for successfully implementing new technology is to clearly define the needs and then work with the selected vendor to tailor their solution to these needs. For this task EMA will analyze and synthesize the work to date, and discuss the specifications in a working session with the Miami Beach project team and the ERP vendor. ln the course of reviewing and discussing these functional requirements, EMA will capture - and supplement - reviewers' perspectives on how Miami Beach optimized business processes may change as a result of implementing the new system. EMA will work with the Miami Beach Project Manager to identify a format and schedule for progress reports that best meets the needs of the project. EMA will provide these reports in the desired format and with the desired frequency. PageSof9Pages (Exhibit A - EMA's Services) Standard Form of Agreement Between Client and EMA for Professional Services Revised 10/05/04 190 Deliverables Progressive Deliverables Development Manages Risk and Provides Basis for lnformed Decisions We create deliverables in an incremental fashion. While the specifics vary by task, general we will first collect information (through interviews, walk-throughs, workshops, etc.). The information collection will be followed by an analysis conducted by the Miami Beach / EMA The results of this analysis will be presented in draft form (typically to the Miami and other key staff as appropriate) for review, discussion, and feedback. Finally, updated to reflect the discussion. step team. Beach project team the draft will be This incremental approach keeps the team well informed and focused on the deliverables. lt ensures that there are no surprises. Present project plans and procedures to Miami Beach project team for review and approval in a project kick-off meeting and provide narrative and/or documentation of said kick-off meeting. Project Kick-off Meeting and Documentation Produce and submit status reports to the designated project manager and Miami Beach project team monthly. Workshops and Customer lnterviews and Documentation Conduct workshops and interviews with Miami Beach work groups and staff as needed to identify and define existing business processes and provide narrative and/or documentation of said workshops and interviews. lnitial Version of Existing Process Diagrams Develop and deliver initial version of process diagrams that reflect the various business processes and activities. Develop and deliver initial version of work flow diagramslnitial Version of Existing Work Flow Diagrams Revise draft proposed business work flow diagrams. Based on the Eliminate, Reduce, Shift, Redesign process with additional workshops and interviews as needed Draft Proposed Work Flow Diagrams Develop final version of proposed business work flow diagrams for submission to Miami Beach project manager and project team Follow-up Workshops and Customer lnterviews Documentation Conduct follow-up workshops and customer interviews as needed to present, review, and modify draft version of business process models and provide narrative and/or documentation of said workshops and interviews Revise draft proposed business process models with additional workshops Page 9 of9 Pages (Exhibit A - EMA's Services) Standard Form of Agreement Between Client and EMA for Professional Services Revised l0/05/04 191 and interviews as needed Develop final version of proposed business process models for submission to Miami Beach project manager and project team Schedule and conduct review meeting with project team to hand off all project related deliverables Final Review Meeting with Project Team and Documentation Documented UATS designed to assure desired functionality is implemented correctly User Acceptance Test Scripts (UATS) User Acceptance Testing Oversight Sign off sheets after completion of UATS Defect Log Template Updated log of system issues discovered during system implementation and testing Page l0 of9 Pages (Exhibit A - EMA's Services) Standard Form of Agreement Between Client and EMA for Professional Services Revised l0/05/04 192 EXHIBIT B This is EXHIBIT B, consisting of I pages, referred to in and part of the Agreement Lretween Client and EMA for Professional Services dated Article 2 of the Agreement is amended and supplemented to include the following agreement of the parties. 82.01 In addition to other responsibilities of Client as set forth in this Agreement, Client shall at its expense: A. Provide EMA with all criteria and full information as to Client's requirements for the Project, including design objectives and constraints, space, capacity and performance requirements, flexibility, and expandability, and any budgetary limitations; and furnish copies of all design and construction standards which Client will require to be included in the drawings and specifications; and furnish copies of Client's standard forms, conditions, and related documents to EMA. B. Furnish to EMA any other available information pertinent to the Project including reports and data relative to previous designs, or investigation at or adjacent to the Site. C. Following EMA's assessment of initially-available Project information and data and upon EMA's request, furnish or otherwise make available such additional Project related information and data as is reasonably required to enable EMA to complete its Basic and Additional Services. D. Give prompt written notice to EMA whenever Client observes or otherwise becomes aware of the presence at the Site of any Constituent of Concem, or of any other development that affects the scope or time of performance of EMA's services, or any defect or nonconformance in EMA's services, the Work, or in the performance of any Contractor. E. Authorize EMA to provide Additional Services as set forth in Part 2 of Exhibit A of the Agreement as required. F. Arrange for safe access to and make all provisions for EMA to enter upon public and private property as required for EMA to perform services under the Agreement. G. Examine all alternate solutions, studies, reports, sketches, drawings, specifications, proposals, and other documents presented by EMA (including obtaining advice of an attorney, insurance counselor, and other advisors or consultants as Client deems appropriate with respect to such examination) and render in writing timely decisions pertaining thereto. H. Provide reviews, approvals, and permits fiom all governmental authorities having jurisdiction to approve all phases of the Project designed or specified by EMA and such reviews, approvals, and consents fiom others as may be necessary for completion of each phase of the Project. I. Provide, as required for the Project: 1. Accounting, bond and financial advisory, independent cost estimating, and insurance counseling services. 2. Legal services with regard to issues pertaining to the Project as Client requires, Contractor raises, or EMA reasonably requests. J. Advise EMA of the identity and scope of services of any independent consultants employed by Client to perform or furnish services in regard to the Project, including, but not limited to, cost estimating, project peer review, value CONSULTANTing, and constructibility review. K. Attend job related meetings. L. Provide EMA with the findings and reports generated by the entities providing services to Client pursuant to this paragraph. Page I ofl Pages Exhibit B -- Client's Responsibilities Standard Form of Agreement Between Client and EMA for Professional Services Revised 12/09109 193 EXHIBIT C This is EXHIBIT C, consisting of 2 pages, referred to in and part of the Agreement between Client and EMA for Professional Services dated Payments to EMA for Services and Reimbursable Expenses Article 2 of the Agreement is amended and supplemented to include the following agreement of the parties: ARTICLE 2 -- -{lient's Responsibilities C2.01 Compensation For Basic Services A. Client shall pay EMA for Basic Services set forth in Exhibit A, as follows: l. An amount equal to the cumulative hours charged to the Project by each class of EMA's employees times Hourly Rates for each applicable employee for all Services performed on the Project, plus Reimbursable Expenses and EMA's Consultants'charges, if any. 2. EMA's Reimbursable Expenses Schedule and Hourly Rates are attached to this Exhibit C as Appendix l. 3. Total compensation for Services under paragraph C2.01 is estimated to be $1.995.000 based on the following assumed distribution of compensation: a. Project Management $1.050.000 b. Energov BPA S 675.000 c. Human Resources BPA $ 95.000 d. Finance BPA $ 45.000 e. Billing BPA S 130.000 f. Contract Negotiation Assistance $ 130.000 g. Reimbursable Expenses $ 300.000 4. EMA may alter the distribution of compensation between individual phases of the work noted herein to be consistent with Services actually rendered, but shall not exceed the total estimated compensation amount unless approved in writing by Client. 5. Amounts billed for EMA's Services under paragraph C2.01 will be based on the cumulative hours charged to the Project during the billing period by each of EMA's employees times Hourly Rates for each applicable employee, plus Reimbursable Expenses and EMA's Consultant's charges. 6. Hourly Rates will be adjusted upwards by 3% annually (as of April lst) to reflect equitable changes in the compensation payable to EMA. C2.02 Compensation For Reimbursable Expenses A. Client shall pay EMA for all Reimbursable Expenses at cost. Amounts payable to EMA for Reimbursable Expenses will be travel and other Project-related expenses actually incurred by EMA. Page I of2 Pages Exhibit C - Basic Services - Standard Hourly Rates Method of Payment Standard Form of Agreement Between Client and EMA for Professional Services Revised 12109109 194 C2.03 Other Provisions Concerning Payment A. Whenever EMA is entitled to compensation for the charges of EMA's Consultants, those charges shall be the amounts billed by EMA's Consultants to EMA times a factor of 1.25. B. Estimated Compensation Amounts l. EMA's estimate of the amounts that will become payable for specified Services are only estimates for planning pu{poses, are not binding on the parties, and are not the minimum or maximum amounts payable to EMA under the Agreement. 2. When estimated compensation amounts have been stated herein and it subsequently becomes apparent to EMA that a compensation amount thus estimated will be exceeded, EMA shall give Client written notice thereof. Promptly thereafter Client and EMA shall review the matter of Services remaining to be performed and compensation for such Services. Client shall either agree to such compensation exceeding said estimated amount or Client and EMA shall agree to a reduction in the remaining Services to be rendered by EMA, so that total compensation for such Services will not exceed said estimated amount when such Services are completed. If EMA exceeds the estimated amount before Client and EMA have agreed to an increase in the compensation due EMA or a reduction in the remaining Services, EMA shall be paid for all Services rendered hereunder. C. To the extent necessary to verifu EMA's charges and upon Client's timely request, EMA shall make copies of such records available to Client at cost. Page2of2Pages Exhibit C - Basic Services - Standard Hourly Rates Method of Payment Standard Form of Agreement Between Client and EMA for Professional Services Revised 12/09/09 195 This is EXHIBIT D, consisting of I pages, referred to in and part of the Agreement between Client and EMA for Professional Services dated Insurance Paragraph 6.05 of the Agreement is amended and supplemented to include the following agreement of the parties. D6.05 Insurance A. The limits of liability for the insurance required by paragraph 6.04.A and 6.04.8 of the Agreement are as follows: l. By EMA: a. Workers'Compensation: Statutory b. Employer's Liability -- l) Each Accident: $1,000,000 2) Disease, Policy Limit: S1,000,000 3) Disease, Each Employee: $1,000,000 c. General Liability -- 1) Each Occurrence (Bodily Injury and Property Damage): $1,000,000 2) GeneralAggregate: $2,000,000 d. Excess or Umbrella Liability -- l) Each Occurrence: $5,000,000 2) GeneralAggregate: S5,000,000 e. Automobile Liability -l) Combined Single Limit (Bodily Injury and Property Damage): Each Accident S1,000,000 f. Professional Liability - l) Each Claim Made S3,000,000 2) Annual Aggregate $3,000,000 Page I ofl Pages f,xhibit D - Insurance Standard Form of Agreement Between Client and EMA for Professional Services Revised 12/09109 196 This is EXHIBIT E, consisting of 1 page, referred to in and part of the Agreement between Client and EMA for Professional Services dated Dispute Resolution Paragraph 6.09 of the Agreement is amended and supplemented to include the following agreement of the parties: [NOTE: Select one of the two altematives provided] E6.09 DisputeResolution A. Mediation. Client and EMA agree that they shall first submit any and all unsettled claims, counterclaims, disputes, and other matters in question between them arising out of or relating to this Agreement or the breach thereof ("Disputes") to mediation by the American Arbitration Association following the Construction Mediation Rules. If such mediation is unsuccessful in resolving a Dispute, then (a) the parties may mutually agree to a dispute resolution of their choice, or (b) either party may seek to have the Dispute resolved by a court of competent jurisdiction. Pagelof lPages (Exhibit E - Dispute Resolution) Standard Form ofAgreement Between Client and EMA for Professional Services Revised 12/09109 197 APPENDI)( C EMA & Tyler Correlation between Project Timeline and Cash Flow as of 0712412014 CMB Funds DUE PRIOR to October 1,2015 EMA $1,146,013.00 & Tyler $2,732,864.00 $ 3,878, 877 (CMB need to add your current Eden maintenance billto this amount) $ 2,645.626CMB Funds DUE AFTER October 1,2015 EMA $ 849,001.00 &Tyler $ 1,796,625 Tyler Correlation between Project Timeline and Cash Flow as of 0712412014 Assumption: Tyler contract is signed August 2014 Disclaimer: Estimates are based on services delivery sep r. -ran 15 v., 15 sep 15 'a^ t6 .Ma' 16 s.p'16 ,.;,t contract signed Financials Suite PayrolllHR Suite Utility Biuing & Misc Mon9/r/44 Mon9/1/14 Mon 11/3/14 Thu 1Ol1,/15 F.i 1,/2/Ls F.i 4/a/a6 Fri Lo/2/as Mon ao/3/a6 arc.ao/Al76 M6dla/6/17 e{a r---,-_- i J A.1 Overall High Level Project Gantt Chart: The Exact Start and Finish Dates to be negotiated with the City upon further discussion. CMB Funds DUE PRIOR to October 1. 2015 = $2,732,864.00 (CMB need to add your current Eden maintenance billto this amount) Typically unless they negotiate something else, soft\uare license fees for all the new software is due 100o/o 30 days after the execution of the contract (October 2014). For cash flow purposes this is how it will be or whatever is worked out. Services: $1,294,004 For Services assume EnerGov would start Jan 2015 this is a 15 mo implementation; for cash flow purposes may take 75o/o of $859,1 00 and $54,400 for 2015 and 25o/o for each in 2016. Software: $ 1,3 Software Cost Munis $ 373,450.00 EnerGov $ 1,005,410.00 Total $ 1,378,860.00 EMA. lNC. - VMason 198 Service Cost EnerGov Professional Services $ 859,100 @.75% = $ 644,325 EnerGov Est Travel $ 54,400 @71o/o = $40,900 Munis Service: Total Tyler Services : $1,480,398.00 Total of 3'd Party Hardware, Software and Services $41,800.00 $1,480,398.00 $ +t,800.00 Total $1 ,522,198 @ 40o/o = $ 608,879 Total $ 1,294,004 Maintenancez CMB should have current bill Tyler proposes that CMB pay the prorated Eden maintenance (they should have that recent bill). Referencing the above revised timeline, the contract sign is 09101114. Thus, CMB would pay their normal Eden maintenance thru August2014 and start new Munis maintenance on Sept 2015. Other: $60,000 OSDBA (used right away) $30,000 Munis Disaster Recovery (starts 6 months after contract sign) $30,000 Tota!= $60,000 CMB Funds DUE AFTER October 1. 2015 = $ 1,796,625 Maintenance: $ 647, 631.00 Munis $ 398,632.00 EnerGov $ 248,990.00 Total= $647,631.00 Other: $ 7,300.00 Payroll Tax Table Updates $ 1,000.00 CAFR $ 6,300.00 Total = g 7,300.00 Services: $ 1,294,004.00 Service Cost EnerGov Professional Services $ 214,775 EnerGov Est Travel $ 1s,600 Munis Services: Total Tyler Services : $1,480,398.00 Total of 3'd Party Hardware, Software and Services $41,800.00 Since this is a 3 year proiect subtract 40% $1,480,398.00 $ 41,800.00 Total $1 ,522,198 @60% = $913,319.00 Tota!$ 1.141.694 EMA, lNC. -VMason 7D412O14 199 EMA Correlation between Project Timeline and Cash Flow as of 07124120'14 CMB Funds DUE PRIOR October 1,20'15 = $1,'t46,013.00 CMB Funds DUE AFTER October 1, 2015 = $ 849,001.00 Labor E&nses :.. pre 10/2015 $955,010.81 $191,002.16 $1,146,012.97 post10/2015 $707,501.19 $141,500.24 $849,001.43 $1,995,014.40 EMA. lNC. - VMason 712412014 200