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11-09-2022 Resolution No. 12024RESOLUTION NO. 12024 RESOLUTION APPROVING A 10-YEAR COMMITMENT FOR THE LOGIS ERP AND UTILITY BILLING SOFTWARE APPLICATIONS WHEREAS, the City of Richfield is a member of the Local Government Information Systems (LOGIS) association; and WHEREAS, the City of Richfield desires to remain in the LOGIS-supported ERP and utility billing software application systems; and WHEREAS, LOGIS has negotiated new long-term contracts with Oracle Corporation and Spypoint Solutions, Inc. to serve the ERP and utility billing needs of its membership; and WHEREAS, in recognition of the substantial investment and operational impact of implementing a new software system, the City of Richfield acknowledges the benefits of ensuring long-term financial and operational certainty; and WHEREAS, each member participant is asked to adopt a 10-year commitment to secure its ERP and utility billing software pricing and support through LOGIS outlined from the August 17, 2022 letter as “Exhibit A”. NOW, THEREFORE, BE IT RESOLVED, by the City of Richfield that this resolution affirms our long-term commitment to the LOGIS ERP and utility billing software applications and associated software support effective January 1, 2023 through December 31, 2032. Adopted by the City Council of the City of Richfield, Minnesota this 9th day of November, 2022. Maria Regan Gonzalez, Mayor ATTEST: Kari Sinning, City Clerk Phone: 763-543-2600 Address: 5750 Duluth Street, Golden Valley, MN 55422-4036 WWW.LOGIS.ORG August 17, 2022 Dear LOGIS Members, Over the past 18 months LOGIS has been working with its membership to research, evaluate, and select a new ERP and Utility Billing software solution to meet your needs. This featured a member- driven process involving 27 agencies who collectively established software functional requirements and participated in software demonstrations. It also included an 8-member ERP Selection Team to guide and oversee the entire process. We also partnered with the Government Finance Officers Association’s Research and Consulting Center to refine the requirements, create the RFP, guide the selection process, and assist on pricing negotiations. We received proposals from the following providers: Advanced Utility Systems Central Square Oracle Fusion Sprypoint Tyler MUNIS Workday After two months of proposal reviews, four weeks of software demonstrations, and several months of follow-up discussions; the Oracle Cloud ERP and Sprypoint Cloud Utility Billing software solutions have been elevated by the ERP Selection Team as the preferred choice – a culmination of over 1,500 collective hours from the membership and LOGIS staff. We recognize that moving to the new systems will require a significant financial and operational investment. To help guide you in this decision, we’ve compiled a list of advantages and value - added outcomes that accompany these changes. This list is presented in Appendix A. Proposed member costs are included in Appendices B (annual) & C (one-time implementation). We understand that this is a major decision that requires careful consideration. However, to secure your pricing, each member organization will need to provide a formal 10-year commitment by November 15, 2022. Please let us know if you have any questions or concerns regarding the selection process, proposed costs, or formal commitment. We look forward to serving your ERP and utility billing needs moving forward. Sincerely, Christopher K. Miller Tonya L. Kusmirek Christopher K. Miller Tonya L. Kusmirek LOGIS Executive Director LOGIS Director of Finance & Administration Exhibit A Phone: 763-543-2600 Address: 5750 Duluth Street, Golden Valley, MN 55422-4036 WWW.LOGIS.ORG Appendix A: Advantages & Value-Added Outcomes Member Advantages General  Top-tier software solution with advanced features and capabilities  Cloud-based solutions with on-going enhancements and functionality that will meet member needs as they evolve  Direct software support from highly-trained LOGIS staff  Guaranteed pricing for the next 10 years  More competitive price entry points for prospective member participants Oracle  Enhanced user experience for financial & human resources staff and workflow and employee self-service capabilities for all employees  Improved/added HR functionality over JDE  Potential replacement for third-party HR applications such as NEOGOV, Benefits Connect, etc.  Fully-integrated HR/payroll/general ledger systems (no more double-entry)  Built-in workflow module including accounts payable  Built-in budgeting and financial reporting modules/dashboards  Separate data and configuration environment for each member Sprypoint  Fully-integrated with Oracle general ledger  Fully-integrated meter management function  Built-in mobile field service: Sprypoint  Built-in customer portal/payment solution: Sprypoint  Built-in utility billing workflow module  Potential replacement for third-party electronic payment solutions  State-of-the-art interface/web service capability  Embedded business intelligence reporting platform  Separate data and configuration environment for each member Member Value-Added Outcomes  Volume discount pricing on software solutions  Vendor and LOGIS staff implementation services  Relationship with vendors managed by LOGIS staff  Software evaluation & selection process that featured a collective knowledge-base from 27 member-organizations  Free on-site or remote training for system enhancements and staff on-boarding  Locally-held user group meetings with over two dozen participating local governments Phone: 763-543-2600 Address: 5750 Duluth Street, Golden Valley, MN 55422-4036 WWW.LOGIS.ORG Appendix B: Member Annual Costs Oracle Fusion Cloud ERP Current NEW ERP Cost (estimated) Fin/HR/Pay Oracle LOGIS Total $ Member Cost Cost Cost Cost Change NW Community TV 16,255$ 50,886$ 11,858$ 62,745$ 46,490$ DCC 18,190 50,886 13,270 64,156 45,966 SW TRANSIT 18,555 50,886 13,536 64,423 45,868 MN VALLEY TRANSIT 27,410 50,886 19,996 70,882 43,472 WACONIA 36,860 50,886 26,890 77,776 40,916 RAMSEY 66,855 50,886 48,772 99,658 32,803 NEW HOPE 74,665 50,886 54,470 105,356 30,691 S. ST PAUL 77,655 50,886 56,651 107,537 29,882 AUSTIN 83,350 80,886 60,806 141,692 58,342 CRYSTAL 86,470 80,886 63,082 143,968 57,498 FARMINGTON 88,210 80,886 64,351 145,237 57,027 WHITE BEAR 95,750 80,886 69,852 150,738 54,988 GOLDEN VALLEY 104,680 80,886 76,366 157,253 52,573 SHAKOPEE 129,835 80,886 94,717 175,604 45,769 RICHFIELD 141,695 80,886 103,370 184,256 42,561 EDEN PRAIRIE 138,795 114,636 101,254 215,890 77,095 BROOKLYN CENTER 149,690 114,636 109,202 223,838 74,148 LAKEVILLE 152,785 114,636 111,460 226,096 73,311 APPLE VALLEY 155,120 114,636 113,163 227,800 72,680 COON RAPIDS 167,655 114,636 122,308 236,944 69,289 MINNETONKA 184,490 114,636 134,589 249,226 64,736 ST LOUIS PARK 201,210 114,636 146,787 261,423 60,213 EAGAN 216,965 114,636 158,281 272,917 55,952 MAPLE GROVE 251,770 114,636 183,672 298,308 46,538 2,684,915$ 2,005,020$ 1,958,704$ 3,963,724$ 1,278,809$ Notes:  Current financial, HR, & payroll costs are based on members’ 2023 budget amounts.  Oracle costs includes annual licensing, software enhancements & upgrades, and data hosting. Oracle costs will remain fixed for 2023-2027, followed by a 2% annual increase from 2028-2032.  LOGIS costs include all software support and training. Inflationary-type increases are projected in 2024-2032.  ‘$ change’ column represents the difference between the new ERP system cost and your current cost with JDE + add-ons.  Oracle Fusion ERP system modules are tightly integrated and cannot be priced separately. Oracle pricing includes all system components including financial, HR, payroll, workflow tools, and advanced reporting tools. Phone: 763-543-2600 Address: 5750 Duluth Street, Golden Valley, MN 55422-4036 WWW.LOGIS.ORG Appendix B: Member Annual Costs Sprypoint Cloud Utility Billing Current NEW Utility Billing Cost (estimated) Utility Billing Sprypoint LOGIS Total $ Member Cost Cost Cost Cost Change NEW HOPE 69,640$ 27,824$ 36,689$ 64,513$ (5,127)$ S. ST PAUL 69,710 33,372 36,726 70,098 388 FARMINGTON 51,620 33,580 27,195 60,775 9,155 GOLDEN VALLEY 69,760 35,620 36,752 72,372 2,612 CRYSTAL 69,905 36,888 36,828 73,716 3,811 WHITE BEAR 69,725 37,900 36,734 74,634 4,909 BROOKLYN CENTER 92,049 41,160 48,494 89,654 (2,395) RICHFIELD 84,830 48,480 44,691 93,171 8,341 ST LOUIS PARK 103,505 60,852 54,530 115,382 11,877 APPLE VALLEY 116,240 71,096 61,239 132,335 16,095 MINNETONKA 116,320 74,572 61,281 135,853 19,533 EDEN PRAIRIE 134,395 88,032 70,804 158,836 24,441 EAGAN 132,130 88,312 69,611 157,923 25,793 COON RAPIDS 132,130 90,500 69,611 160,111 27,981 LAKEVILLE 116,320 98,996 61,281 160,277 43,957 MAPLE GROVE 132,130 103,744 69,611 173,355 41,225 WOODBURY 132,130 107,092 69,611 176,703 44,573 1,692,539$ 1,078,020$ 891,687$ 1,969,707$ 277,168$ Notes:  Current utility billing costs are based on members’ 2023 budget amounts.  Sprypoint costs includes annual licensing, software enhancements & upgrades, and data hosting. Sprypoint costs will increase 5% annually from 2024-2032.  LOGIS costs include all software support and training. Inflationary-type increases are projected in 2024-2032.  LOGIS costs include all software support and training.  ‘$ change’ column represents the difference between the new utility billing system cost and your current cost with CIS Infinity (Advanced).  Pricing includes all system components including billing & payments, meter management, and mobile field service. Phone: 763-543-2600 Address: 5750 Duluth Street, Golden Valley, MN 55422-4036 WWW.LOGIS.ORG Appendix C: Member Implementation Costs Oracle Fusion Cloud ERP Impl. Member Cost (est.) NW Community TV 158,885$ DCC 158,885 SW TRANSIT 158,885 MN VALLEY TRANSIT 158,885 WACONIA 158,885 RAMSEY 158,885 NEW HOPE 158,885 S. ST PAUL 158,885 AUSTIN 252,555 CRYSTAL 252,555 FARMINGTON 252,555 WHITE BEAR 252,555 GOLDEN VALLEY 252,555 SHAKOPEE 252,555 RICHFIELD 252,555 EDEN PRAIRIE 357,935 BROOKLYN CENTER 357,935 LAKEVILLE 357,935 APPLE VALLEY 357,935 COON RAPIDS 357,935 MINNETONKA 357,935 ST LOUIS PARK 357,935 EAGAN 357,935 MAPLE GROVE 357,935 6,260,380$ Notes:  Software implementation involves one-time costs that will be pro-rated and paid at various milestones throughout the process.  Implementation services will be conducted jointly by the software provider and LOGIS. Phone: 763-543-2600 Address: 5750 Duluth Street, Golden Valley, MN 55422-4036 WWW.LOGIS.ORG Appendix C: Member Implementation Costs Sprypoint Cloud Utility Billing Impl. Member Cost (est.) NEW HOPE 109,081$ S. ST PAUL 109,081 FARMINGTON 109,081 GOLDEN VALLEY 109,081 CRYSTAL 109,081 WHITE BEAR 109,081 BROOKLYN CENTER 109,081 RICHFIELD 109,081 ST LOUIS PARK 109,081 APPLE VALLEY 156,184 MINNETONKA 156,184 EDEN PRAIRIE 156,184 EAGAN 156,184 COON RAPIDS 156,184 LAKEVILLE 156,184 MAPLE GROVE 156,184 WOODBURY 156,184 2,231,200$ Notes:  Software implementation involves one-time costs that will be pro-rated and paid at various milestones throughout the process.  Implementation services will be conducted jointly by the software provider and LOGIS.