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10-25-2022 Council Work Session W O R K S E S S IO N R IC H F IE L D MU N IC IPAL C E N TE R, B AR TH O LO ME W R O O M O C TO B ER 25, 2022 5:30 P M C all to order 1.F eedback on staff's recommendation to migrate from J D E dwards to a new financial software package that includes Oracle E nterprise Resource P lanning (E RP ) and S prypoint Utility B illing as part of our contract with L ocal Government Information S ystems (L OG IS ). 2.C ommunity Garden P ilot P roposal A djournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA SECTION:Work Session Items AGENDA ITEM #1. STAFF RE P ORT NO. 26 WORK SESSION 10/25/2022 RE P O RT P RE PA RE D B Y: S ack Thongvanh, A ssistant C ity Manager D E PA RTME NT D IRE C TO R RE V IE W: O THE R D E PA RTM E NT RE V IE W: K umud Verma, F inance Manager C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager 10/20/2022 I T E M F O R WO RK S E S S IO N: Feedback on staff's recommendation to migrate from J D Edwards to a new financial software package that includes Oracle Enterprise Resource Planning (E R P) and Sprypoint Utility Billing as part of our contract with Local Government Information Systems (LO G IS). E X E C UT IV E S UM M ARY: Staff recommends extending our contract with L OGI S to provide Enterprise Resource Planning (E RP) and Utility Billing software to the City. The presentation will include a brief history of our current financial system, the process of evaluating a new system and cost breakdown of the L OGI S proposal. The City currently receives a number of I T services from L OGI S, including financial software. The City, as well as 26 other agencies has used J D Edwards, a LOGI S provided software, as their financial management software since J uly 2002. Software and technology have rapidly changed and advanced since 2002. Most providers have switched to cloud- based solutions, utilized A I to automate manual processes, and added more advanced features and capabilities. L OGI S recently evaluated financial management software options to offer to their members. Over the past 18 months, L OGI S worked with its members and partnered with the Government Finance Officers Association’s Research and Consulting Center to refine the requirements, create the RF P, guide the selection process, and assist with pricing negotiations. The 8-member E RP Selection Team chose Oracle Cloud E RP and Sprypoint Cloud Utility Billing software as their preferred choice because of function and cost. Staff participated in extensive demonstrations of the software and are pleased with the significant upgrade in capabilities. The new software will automate many inefficient processes, greatly improve work flows, track data better and provide superior reporting options. The new software also has much more comprehensive Human Resources capabilities. Moving to a new financial management system will require a significant financial and operational investment from the City. The cost share for the City will include annual costs and implementation costs of both Oracle Fusion Cloud E RP and Sprypoint Cloud Utility Billing. The following are estimates and will depend on how many agencies participate. For Richfield: Oracle Fusion Cloud E R P Annual Cost: Current cost of $141,695 to $184,256, an increase of $42,561. I mplementation Cost: $252,555 Sprypoint Cloud Utility Billing Annual Cost: Current cost of $84,830 to $93,171, an increase of $8,341. I mplementation Cost: $109,081 I mportant Considerations: 1. Oracle costs will remain fixed for 2023-2027, followed by a 2% annual increase from 2028-2032. 2. Sprypoint costs will increase 5% annually from 2024-2032. 3. The proposal requires a 10-year commitment and we will need to notify LOGI S by November 15, 2022. A detailed letter from LOGI S has been attached for your consideration. A representative from L OGI S will make a short presentation and will be available for questions. Due to the many operational efficiencies gained by transitioning to the new software and confidence in the extensive evaluation process already taken by L OGI S and its members, staff recommend the Council to consider the proposal outlined in the letter provided by LOGI S dated August 17th, 2022. I f Council is supportive, staff will present a resolution committing to the LOGI S proposal for formal consideration at their November 9, 2022 meeting. D IRE C T I O N NE E D E D: Staff request City Council input on their recommendation to enter into a formal 10-year agreement with LO G IS for E R P and Utility billing software. B AC K G RO UND INF O RM AT I O N: A.H IS TOR IC AL C ON T E X T B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): C.C R IT IC AL T IMIN G IS S U E S: The City will need to provide L OGI S a response by November 15th, 2022. W e would propose a rollout beginning in late 2023 or 2024 for the City of Richfield. D.F IN AN C IAL IMPAC T: Please see attached letter from LOGIS for detailed breakdown. E.L E GAL C ON S ID E R AT ION: ALTE R N AT IV E(S): 1. Continue with the current twenty year-old software which will no longer be supported. 2. I ndependently research, implement a RFP process, evaluate and transition to new financial software. Both of these alternatives would require extensive amount of resources that is currently very limited due to general operations and the very tight labor market. Going through LOGI S, the City also benefits from the economy of scale and the flexibility to make sure the integration process is refined and any problems are corrected before we decide to change over to the new system. P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: Sack Thongvanh, Assistant City Manager Kumud Verma, Finance Manager AT TAC H ME N T S: D escription Type L OG IS L etter C over Memo 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 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. AGENDA SECTION:Work Session Items AGENDA ITEM #2. STAFF RE P ORT NO. 27 WORK SESSION 10/25/2022 RE P O RT P RE PA RE D B Y: Rachel L indholm, S ustainability S pecialist D E PA RTME NT D IRE C TO R RE V IE W: A my Markle, Recreation S ervices D irector 10/18/2022 O THE R D E PA RTM E NT RE V IE W: C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager 10/19/2022 I T E M F O R WO RK S E S S IO N: Community Garden Pilot Proposal E X E C UT IV E S UM M ARY: There is a need to bring community gardens back to Richfield. Recreation, Sustainability, and Public W orks staff have collaborated on a proposal to have one small to medium sized garden in Veterans Park. This would increase food access and provide needed green-space for residents that don't have space to garden. Gardening is also an important cultural and mental health related activity for many of Richfield's residents. Since the previous work session, staff conducted multiple open houses and received feedback from several residents. The project is now focusing on one pilot site in the city. D IRE C T I O N NE E D E D: Staff are looking for a recommendation to proceed with the project and any comments councilmembers might have. B AC K G RO UND INF O RM AT I O N: A.H IS TOR IC AL C ON T E X T Having community garden space has been an annual request from many residents. Richfield historically had a large community garden with hundreds of plots on MA C land along HW Y 62. The large garden had persistent issues that were challenging, and the city did not have the legal jurisdiction to correct the problems. The old garden program ended in 2017 due to road construction and access. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): Climate Action Plan- Section 5 Parks Master Plan Comprehensive Plan C.C R IT IC AL T IMIN G IS S U E S: Staff would like to move forward with this project to ensure there is enough time to prep the area before the ground freezes and make sure everything is ready to open the garden next year. D.F IN AN C IAL IMPAC T: The materials necessary for the garden have been itemized in the attached presentation and the funds will come out of existing park maintenance funds. E.L E GAL C ON S ID E R AT ION: None ALTE R N AT IV E(S): Council could advise staff to not move forward with the pilot project and provide alternative direction. P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: AT TAC H ME N T S: D escription Type C ommunity Gardens P P T P resentation Community Garden Pilot Project Work Session Why Invest in Community Gardens? •The need is clear and requested by the community •High density housing usually doesn’t have much or any greenspace to garden •Cultural activity •CAP objective •Rising food costs •Positive health and environmental impacts Different model proposed A small/medium size community garden with approximately 30 plots, including raised/table beds that allow for accessible plots Financial Impact •Already budgeted out of existing park maintenance funds •Main materials: Water tank, spigot and other tank materials, raised accessible table beds, compost bins, community board, garden signs, crushed limestone for area around accessible gardens, misc. tools and supplies, top soil, marketing Sign-up Process •Residents only - one plot per household •Bilingual availability (Ellen at Community Center can take registration) •Preference given to those that live in high density housing •Accessible garden plots •Get sticker that goes on plot stake Location Criteria Established –Parking –Water –Enough space –Lighting/Sun –Soil –Accessibility –Neighborhood Proposed Garden Site Soil Tests •UMN did tests on soil samples from Vets Park and a potential amendment supply from Fort Snelling •UMN provided further clarifying info on results –Existing soil and amendment material have higher PH Timeline •On-site engagement with residents (late summer/early fall) •Prep site as much as possible (fall) •Planning and order materials (fall/winter) •Till/installation (late April 2023) •Gardens open Mother’s Day weekend 2023 Open Houses •One at City Hall (9/20) and one on-site (10/4) •15 attendees •Feedback taken via email, phone calls, and comment cards Community Feedback •Table beds, plot sizes, pollinators •Multiple residents who live in multi-unit housing came to express interest and asked when/how they could register •3 against the location, 5+ for it/no concerns about the location –Nobody against community gardens “I was surprised to learn at the gathering that of the three parks slated to host community gardens, Vets (in my opinion, the least appropriate of the three) is the only one to remain, and it will serve as a pilot. The other parks mentioned would have been more conducive to be "community" gardens, as they are in actual residential communities. It was repeated a number of times that "nothing is written in stone" and "nothing is finalized". But apparently, the choice of using Vets Park over other possible park locations is finalized and plans are moving forward.” “I saw this is coming and we're really excited. https://cms9files.revize.com/richfieldmn/06-28- 2022%20Council%20Work%20Session.pdf I'm not sure what the sign-up process is or when it is available. Can you please fill me in on how that process works? I'm sure the gardens will be popular, and it makes sense to give priority to residents that live in high density housing. Can households share a plot to give more a chance to participate?” What would the site look like? Questions or feedback?