November 21, 2006 Item 4F Authorize the City Manager to sign an agreement with Tyler Technologies (MUNIS) for the purchase of a license and maintenance agreement for the Finance, Human Resource Information Management and Utility Billing software applications in the amount of $599,000 plus $136,636 in additional/optional services and equipment

Agenda BackgroundBackground –IT Alignment Study –Software Selection –Functionality & Benefits Software ImplementationSoftware Implementation –Approach –Timeline –Costs Question & AnswerQuestion & Answer

Background - IT Alignment Study Financials/HR/UB Public Service Ops Public Safety Ops Assessment Findings 1.Missing system functionality results in manual or inefficient business processes 2.Technology infrastructure is complicated and lacks critical integration between applications 3.Current applications make reporting and analysis difficult or even impossible in some cases 4.Current foundational applications are based on out of date technology & are hard to use Strategy Recommendations Implement Foundational Software Implement New Systems Expand Existing Systems Implement Immediate Improvements Online PO IT Governance DRC IT Enablement Improved Reporting Online Self Service Online Records The IT Alignment Study, completed in April 2006, identified improvement opportunities in four significant areas Strategy Recommendations and a supporting IT Alignment Roadmap were developed to address the opportunity areas The first major project in the IT Alignment Strategy Roadmap is the implementation of new software to support the Financial, Human Resources and Utility Billing functions performed by the City Note: Projects/initiatives outlined in red are associated with the Financials, HR & Utility Billing software implementation

Background – Software Selection A software selection project was initiated in June 2006 to identify the best software package to support the City’s Financial, HR and Utility Billing functions The selection process is summarized below Over 1500 business requirements were developed and validated by a cross section of City staff An RFP covering the required business functionality was developed and distributed to 13 separate municipal software providers Seven vendors responded After detailed RFP analysis was completed, 2 of the 7 respondents were invited to demonstrate their software Each vendor demonstration took 2 days to complete 1 vendor, Tyler Munis, was the clear overall best fit City staff followed up with reference checks and a site visit City worked with the vendor to draft a contract

Background – Software Selection Each vendor RFP response was evaluated a balanced set of criteria that included cost, vendor viability, product functionality, implementation approach and other technology evaluation criteria (see table below) Each vendor RFP response was evaluated a balanced set of criteria that included cost, vendor viability, product functionality, implementation approach and other technology evaluation criteria (see table below) The two highest scoring vendors across all categories were invited to demonstrate their software The two highest scoring vendors across all categories were invited to demonstrate their software

Background – Software Selection Each vendor who was selected to participate in demonstrations was evaluated for software functionality, technical fit, vendor viability, maintenance/support, cost and implementation approach Each vendor who was selected to participate in demonstrations was evaluated for software functionality, technical fit, vendor viability, maintenance/support, cost and implementation approach The Tyler MUNIS product scored highest in all functional areas as shown in the graph below The Tyler MUNIS product scored highest in all functional areas as shown in the graph below

Background – Software Selection The Tyler Technologies MUNIS product was the final selection based on their high marks across all areas The Tyler Technologies MUNIS product was the final selection based on their high marks across all areas Tyler Technologies, with Headquarters in Dallas, focuses exclusively on solutions for the public sector Tyler Technologies, with Headquarters in Dallas, focuses exclusively on solutions for the public sector Largest company solely dedicated to providing software and IT Services to the public sector Largest company solely dedicated to providing software and IT Services to the public sector Publicly traded on NYSE (TYL); in business for over 40 years Publicly traded on NYSE (TYL); in business for over 40 years Annual revenues over $172 million and employs over 1,325 staff Annual revenues over $172 million and employs over 1,325 staff Serves nearly 4,500 customers; MUNIS is used by over 1,200 customers Serves nearly 4,500 customers; MUNIS is used by over 1,200 customers Local customers include City of Frisco, Mesquite ISD, Irving ISD and McKinney ISD Local customers include City of Frisco, Mesquite ISD, Irving ISD and McKinney ISD MUNIS installs between 60 and 70 new customers annually MUNIS installs between 60 and 70 new customers annually

Background – Functionality & Benefits General Ledger General Ledger Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable Project Accounting Project Accounting Budgeting Billing Service Orders Service Orders Meter Reads Meter Reads Fixed Assets Fixed Assets Time & Attendance Time & Attendance Payroll Applicant Tracking Applicant Tracking Procurement Cash Management Cash Management Financial Human Resources Utility Billing Reporting & BI Reporting & BI Workflow & Imaging Workflow & Imaging GIS Integration GIS Integration Property & Customer Master Property & Customer Master Self Service Self Service MUNIS Integrated Software Base Function Shared Services Legend The Tyler MUNIS product is an integrated solution and therefore significantly addresses a key finding from the IT Alignment Strategy that the City’s existing applications lack critical integration points

Background – Functionality & Benefits Strategy RecommendationBenefits Realized Implement Foundational Software Financials / HR/ Utility Billing Improved Financial Management Windows interface easy to use Integrated data model without duplicate data Financial transactions tied to budget Greatly enhanced functionality (AP, AR, GL, UB) Workflow enabled (e.g. PO approval process) Single customer/parcel view; integrated data model Document management & GIS integration Expand Existing Systems Online Self Service Employee Self Service Web based benefits registration, W4, address updates Web based access to pay stubs Web enabled entry of time and expenses Online application for open positions Citizen & Vendor Self Service Utility bill inquiry PO inquiry Complaint tracking Implement New Systems Improved Reporting Operational Reporting Strong Query by Example within application Crystal Report interface with security Strong GASB-34 Reporting Module Business Intelligence/Scorecarding Adhoc analytical reporting Dashboards and scorecards Link strategy, initiative and measurement Incorporate other data sources (e.g. Crimes) Implementation of Tyler MUNIS will significantly address three of the four recommendations from the IT Alignment Strategy project

Implementation - Timeline Notes The first phase of each project is the Project Planning Phase. During this phase, MUNIS will coordinate with the City and MAXIMUS detailed interviews to finalize the final project plan. The Finance and Procurement implementation will begin in mid-December and will move into production in October The Utility Billing implementation will begin shortly after the financial system and will also move into production in October 2007 The HR and Payroll systems implementation will begin in May and go live on January 1, 2008.

Implementation - Costs Cost CategoryCost Application Software & Installation $ 599 K Hardware and System Software$ 90 K Implementation Services $ 295 K Data Conversion Services $ 295 K* Additional/Optional Items $ 136 K** Total $ 1,410 K One time implementation costs = $1,410K (see table below) Ongoing yearly software maintenance = $67K Ongoing yearly disaster recovery service = $14K One Time Costs Notes: *This is a not to exceed amount and may not all be necessary **Optional items include additional software modules and cash station hardware which may not be purchased, but whose price has been guaranteed for 18 months; Travel and Expenses are an additional cost and may not reach the budgeted amount; City has agreed to pay the cost of a performance bond

IT Alignment Study Implementation Phase II - Strategic Initiative Fund Budget Technology Infrastructure Technology Infrastructure — $925,000Purchase of the Finance, Utility Billing and Human Resource Management foundational software; — $90,000 Purchase of hardware for the above software applications; — $350,000Implementation management for the above software applications; — $310,000Data conversion associated with the above software applications; The total budget for the technology infrastructure proposal phase II is $1,675,000.

IT Alignment Study Implementation Cost v. Benefits Summary Annual savings in labor hours 17,657 Annual savings in labor hours 17,657 Annual savings in fte 7 Annual savings in fte 7 Labor re-allocation $ 215,643 Labor re-allocation $ 215,643 Cost avoidance $ 82,000 Cost avoidance $ 82,000 Total expense savings $297,643 Total expense savings $297,643 Total implementation costs $1,410,000 Total implementation costs $1,410,000 Implementation recovery 4.7 years Implementation recovery 4.7 years

Item 4F Questions Contact Jim C. Blagg