TOWN STAFF REPORT RECOMMENDATIONS
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Consider approval of Resolution 24-28 to implement an Enterprise Resource Planning Software System and authorize the Town Manager to execute the contract (Cayce Lay Lamas, Director of Finance)
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STAFF: Cayce Lay Lamas, Director of Finance
BACKGROUND:
The Town of Westlake needs to replace its current enterprise resource planning (ERP) software system, which is roughly twenty (20) years old. The ERP system is a financial software responsible for managing financial all activities, budgeting, reporting, utility billing, and payroll. The Town approved a contract with STW in 2004 to implement the current system. STW was sold to OpenGov, who has decided to sunset the software and stop support. While OpenGov has not provided a formal end-of-life date, it is the prudent approach to replace the outdated software with a modern, robust platform on a time frame dictated by the Town.
The Town adhered to purchasing laws and released a request for proposal (RFP) in February of 2024 to solicit bids from software providers. Five (5) vendors submitted proposals, four (4) of which contained all outlined modules. These four (4) were scheduled for demos with a cross section of staff. From this pool, two (2) were selected as finalists for in-depth demonstrations and discussion on the implementation process. Ultimately, Caselle was the choice by staff to replace STW.
DISCUSSION:
The current ERP software is not meeting the needs of the Town. Many processes are heavily manual, with many basic financial functions occurring outside the software. The excessive work required to perform these functions as the Town continues to grow has created an unsustainable burden on staff and greatly limits the ability to provide timely, accurate service.
Caselle’s software includes all functions currently provided by STW plus a significant number of additional or improved offerings. Integrated or automated functionality planned as part of the implementation of Caselle will replace the following functions performed manually and not available within the current STW environment:
• Timekeeping approvals and integration to payroll
• Accounts payable approvals
• Encumbrance accounting
• Bank reconciliation integration
• Accounts receivable and billing
• Cash receipting
• Cost allocation
• Reporting
• Annual audit processes and support
• Work order management
• GIS integration
All of these functions are currently being performed manually by staff. Implementation of these functions will result in improved consistency, efficiency, and overall financial management.
Additionally, Caselle will enhance or add the following functions:
• Transparency (enhancement)
• Dashboard functionality for users (addition)
• Budget development and monitoring (enhancement)
• Document management (enhancement)
• Utility customer payment portal (enhancement)
• Data validation (enhancement)
• Recruiting (addition)
• Application for users (addition)
Staff is recommending the Caselle solution be hosted; this choice reduces the need for significant technology infrastructure to be purchased and maintained by the Town.
Upon approval of the contract, staff will work with Caselle to schedule the implementation. The project is expected to take 4 to 10 months, with a desired go live date of no later than January 1, 2025. The schedule range is contingent on staffing, Caselle implementation resources, and unforeseen issues in conversion and integration activities. The schedule will be provided once agreed upon and regular updates will be shared with Council throughout the project.
FISCAL IMPACT:
The cost of implementation is expected not to exceed $85,000. The cost breakdown to replace the current ERP software includes:
• $59,665 in one-time implementation costs, which includes $9,000 in training costs for Caselle staff and $15,915 in conversion services
• Up to $10,000 in training costs for Town users
• $15,000 in contingency for unforeseen costs of integration or enhancement
These costs would begin during FY2024 and carryover to FY2025 until the project has concluded. Staff is asking to use fund balance available due to the receipt of one-time revenues to fund the purchase.
The ongoing cost of the software will be approximately $46,000 in annual maintenance costs. The FY2025 budget will include funds for both the first payment for Caselle and the last maintenance payment for STW. The FY2026 will see a reduction of $20,000 when STW is Additional operating costs of $4,000 for staff training, including training for new users, an annual conference, and user group meetings, would be budgeted beginning in FY2026.
STAFF RECOMMENDATION:
Staff recommends approval of the contract with Caselle to replace the current ERP system.
ATTACHMENT(S):
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TOWN COUNCIL ACTION/OPTIONS:
1) Motion to approve
2) Motion to amend with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny