5.5. SR 01-07-2008 - Laserfiche WebLink

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.^~/ Elk REQUEST FOR ACTION ._,..-. River To Item Number Ci Council 5.5. Agenda Section Meeting Date Prepared by Administration anua 7, 2008 Tim Simon, Finance Director Item Description Reviewed by Authorization to Enter Into a Contract With Tyler Technologies Lori ohnson, Ci Administrator for New Financial Software Reviewed by Action Requested Upon review by the City Attorney, authorization to enter into a contract with Tyler Technologies for new financial software. Background/Discussion The City of Elk River currently uses Tyler Technologies Fund Balance software, which is a division of Tyler Technologies for financial & payroll software. The City has used Fund Balance software for over 10 years. The finance department has been researching for a number of years the best alternatives for a financial system upgrade. The consensus among the finance department was to upgrade to Incode financial software, a division within Tyler Technologies. Incode is viewed as software for medium size cities and Fund Balance is viewed as smaller cities software. The department feels that upgrading to Incode will provide the best alternative to the growing demands for financial solutions. The finance department reviewed switching to a new software company, but the costs far exceeded the benefits in comparison to switching to Incode. The transition and data conversion will be minimal since Tyler Technologies supports both the Fund Balance and Incode financial software. Currently it is anticipated that implementation would not take place until July or August 2008. Currently over 50 Minnesota cities, such as Hopkins, Hastings, and Cottage Grove use Incode software. The new software will include core financials, payroll applications, accounts receivable, cash collections, project accounting, document imaging, special assessments and many other financial applications. Over the long-term, other city departments will be able to add additional applications as needed. I confirmed with the City's auditors that this purchase falls within the services section of the legal compliance guide, which means that the software would not have to be competitively bid as being greater than $50,000. Financial Impact The purchase has been budgeted in the 2008 capital outlay reserve fund in the amount of $70,000. $40,000 was designated in the capital outlay reserve fund a few years ago in anticipation of a financial system upgrade. The City is receiving a 20 percent discount since we use Tyler Technologies currently. The estimated cost including training is $69,879, we are working with the vendor to review all the estimate hours for implementation, which if reduced would reduce the overall cost. S:\Council\Tun\Financial Software.doc