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HomeMy WebLinkAboutAgenda_GGAF_05.26.2021Notice of Meeting for the General Gov ernment and F inance Adv isory B oardGeneral Gov ernment and F inance (G G AF ) Adv isory Board Meeting of the City of Georgetown May 26, 2021 at 4:30 P M at Virtual T he C ity o f G eorgetown is c o mmitted to c ompliance with the Americans with Dis ab ilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reasonable as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e contac t the C ity S ecretary's O ffic e, at leas t three (3) d ays p rio r to the s cheduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eo rgeto wn, T X 78626 for ad d itional info rmation; T T Y us ers route thro ugh R elay Texas at 711. C onsiste nt wi th Gove rnor Gre g A bbott’s suspension of vari ous pr ovisions of the O pe n M e eti ngs A c t, effe ctive A ugust 1, 2020 and until further notice , to r educ e the c hanc e of C O V I D -19 tr ansmi ssion, all C i ty of Geor getown A dvisor y B oard me etings will be hel d vir tually. P ubl ic c omme nt will be allowed via te le confe re nc e; no one wil l be allowed to appe ar i n per son. 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S ubmi t wr itte n c omme nts to sharon.par ke r @ge or getown.or g by noon on the date of the me e ting and the R ec ordi ng Se cr etar y will re ad your c omme nts into the r e c or ding duri ng the ite m that is be ing disc usse d. 2. L og onto the me eting at the li nk above and “r ai se your hand” dur i ng the i tem. 3. U se your home/mobile phone to call the toll -fr e e number To join a Zoom mee ting, clic k on the l ink provided and joi n as an atte ndee . You will be asked to enter your name and email addr e ss (this is so we c an ide ntify you whe n you are call e d upon). To spe ak on an ite m, c li ck on the “Raise your H and” option at the bottom of the Zoom me e ti ng webpage onc e that ite m has ope ne d. When you ar e cal le d upon by the R ec ording S ec re tar y, your de vi c e wi ll be re mote ly un-muted by the A dmini str ator and you may spe ak for thr ee mi nutes. P le ase state your name clear l y, and whe n your time is over, your devic e will be mute d again. U se of pr ofani ty, thre atening l anguage, slande rous r e mar ks or thre ats of harm ar e not all owe d and will r e sult i n you be ing imme diate ly r emove d from the mee ti ng. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c o nvene an Exec utive S es s ion for any purp o s e authorized b y the O pen Meetings Ac t, Texas G o vernment C ode 551.) A Disc ussio n o n how this virtual conferenc e will b e c o nducted , to inc lude optio ns fo r pub lic comments and ho w the p ublic may address the C ommis s io n –Tommy G o nzalez, G G AF C hair B C ons id eratio n and possible ac tio n to approve the minutes from the Ap ril 28, 2021 G eneral G o vernment and F inanc e Advis o ry Board Meeting - S haro n P arker, Board Liais o n C R eview any items that b ypassed a G G AF meeting due to timing and went to C o uncil. D A pres entatio n and disc ussion on the C ity’s internal and external audit p ro gram. – Leigh Wallac e, F inanc e Direc tor and Elaine Wilson, Assistant F inanc e Directo r E C ons id eratio n and p o s s ib le ac tion to rec ommend approval of a four (4) year contrac t with Workd ay for S ucc es s P lan Enhanc ed services in an amount no t to exc eed $320,000. – Leigh Wallac e, F inance Direc tor. Page 2 of 92 Adjournment Ce rtificate of Posting I, R obyn Dens mo re, C ity S ec retary for the C ity of G eorgetown, Texas, do hereb y certify that this Notice of Meeting was p o s ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgeto wn, T X 78626, a p lace readily acc es s ib le to the general p ublic as req uired by law, on the _____ day of _________________, 2021, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us hours prec eding the sc heduled time of s aid meeting. __________________________________ R o b yn Dens more, C ity S ecretary Page 3 of 92 City of Georgetown, Texas Government and Finance Advisory Board May 26, 2021 S UB J E C T: C o nsideration and pos s ible actio n to ap p rove the minutes fro m the April 28, 2021 G eneral G o vernment and F inance Ad vis ory Bo ard Meeting - S haron P arker, Bo ard Liaison IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: D escription Type Minutes Backup Material Page 4 of 92 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, April 28, 2021 at 4:30 PM The General Government and Finance Advisory Board met on Wednesday, April 28, 2021 at 4:30 PM via Zoom virtual meeting. Board Members Present: City Staff Present: Tommy Gonzalez, Chair David Morgan, City Manager Kevin Pitts, Vice Chair Laurie Brewer, Assistant City Manager Stu McLennan, Secretary Wayne Reed, Assistant City Manager Robert Witt Mayra Cantu, Assistant to the City Manager Eric Corp Leigh Wallace, Finance Director Elaine Wilson, Assistant Finance Director Ed O’Neal, Services Manager Stan Hohman, Fleet Services Manager John Sullivan, Fire Chief Clay Shell, Assistant Fire Chief Greg Berglund, Assistant IT Director Steven Wicker, IT Supervisor Eric Johnson, Facilities Director Tadd Phillips, Human Resources Director Seth Gipson, PMP Manager Christina Richison, Bus Improvement Manager Mayra Cantu, Assistant to the City Manager Danella Elliott, Board Liaison Sharon Parker, Board Liaison Board Members Absent: Others present: Katy Nero, ADG. Rick Berry, Rodney McManus Regular Agenda: Tommy Gonzalez Called the meeting to order at 4:30 p.m. A. Discussion on how this virtual conference will be conducted, to include options for public comments and how the public may address the Commission – Tommy Gonzalez, GGAF Chair Tommy Gonzalez, Chair explained how the virtual conference would be conducted. No one signed up for public comment. B. Consideration and possible action to approve the minutes from the March 10, 2021 General Government and Finance Advisory Board Meeting – Sharon Parker, Board Liaison. Page 5 of 92 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, April 28, 2021 at 4:30 PM Discussion: Sharon emailed the list of medical supplies (Items D, E and F) to GGAF members on March 17th.” Sharon emailed the FS#6 and FS#7 vehicle information (Item H) to Stu on April 8th. It answered his questions. Stu forwarded the email to GGAF members on April 23rd.” Motion to approve the minutes with adding that the board would like to add an agenda item to review any items that bypass GGAF and go directly to council if applicable. These items would be for review only. by Stu McLennan , second by Kevin Pitts . Approved 5-0 . C. Election of a Vice chair and Secretary for the General Government and Finance Advisory Board – Tommy Gonzalez, Board Chair Motion to nominate Stu McLennan to Secretary. by Tommy Gonzalez , second by Kevin Pitts . Approved 5-0 . Motion to nominate Kevin Pitts to Vice chair. By Tommy Gonzalez , second by Stu McLennan . Approved 5-0 . D. Review and discuss General Government and Finance board (GGAF purpose and bylaws – Tommy Gonzalez, Board Chair Stu will submit suggestions to board and staff to be discussed at a future meeting. No action needed. E. Review of the City Council’s Boards and Commissions Attendance Policy – Tommy Gonzalez, Board Chair No action needed. F. Discuss dates/times for future General Government and Finance Board (GGAF) meetings – Tommy Gonzalez, Board Chair Discussion: Stu McLennan would like to know when we can go back to meeting in person. David Morgan advised council will be review this at the May 11th council meeting. No action needed. G. Consideration and possible action to recommend approval of the purchase of Stryker Power Load System from Stryker Corporation for a total cost not to exceed $61, 974.28 – Clay Shell, Assistant Fire Chief. Page 6 of 92 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, April 28, 2021 at 4:30 PM This purchase is for two (2) Stryker power load systems that will be installed in two (2) new TRVs by the ambulance manufacturer. A 6-year maintenance agreement will be provided and include annual onsite preventive maintenance inspection and unlimited repairs including parts, labor, and travel with battery coverage. Discussion: Tommy – do we have this system on all TRV’s or is this just for these two? Chief Shell – we currently have two units that have it, two units we already have are on order. Only the reserves will not have them. Motion to recommend to the City Council the approval the purchase of Stryker Power Load System from Stryker Corporation for a total cost not to exceed $61, 974.28 by Stu McLennan , second by Kevin Pitts . Approved 5-0 . H. Consideration and possible action to approve the purchase of two Dodge 4500-Diesel transitional response vehicles (TRV’s) from Mac Haik Dodge Chrysler Jeep through the Buy-Board Contract #570- 18 purchase price not to exceed $5000,000.00 – Clay Shell, Assistant Fire Chief. TRVs (ambulances) are on a 6-year replacement schedule This purchase is a scheduled replacement in our vehicle services plan. The new TRVs would replace two of the current frontline TRVs that have the highest mileage. The TRVs with the highest mileage would then be placed as the reserve/backup units. These reserve/backup units are used as backups when frontline units are down for preventive maintenance and/or repairs; staffed as a peak demand unit; staffed to cover special events. Discussion: Eric Corp – what budget is this coming from? Leigh Wallace – all vehicles are purchased through the fleet fund. Motion to recommend to the City Council the approval the purchase of two Dodge 4500-Diesel transitional response vehicles (TRV’s) from Mac Haik Dodge Chrysler Jeep through the Buy-Board Contract #570-18 purchase price not to exceed $5000,000.00 by Stu McLennan , second by Eric Corp . Approved 5-0 . I. Consideration and possible recommendation of approval to purchase laptops, desktops, and docking stations from Dell Inc. for an amount not to exceed $256,416.90 – Greg Berglund, Assistant Director, Information Technology. Staff recommends the purchase of 63 laptops, 165 desktops, 300 monitors, and accessories. This purchase is planned for FY 2021 as part of the City’s desktop computer strategy implementation. Discussion: Stu McLennan – is the City still tracking with initiating its cloud-based environment in FY22 – Greg – yes. Tommy Gonzales – what happens to the aging equipment. Greg – we destroy the hard drives and donate the computers to goodwill. Steven we are working on a A3 project with a couple of vendors to destroy and refurbish the equipment. Currently there is no value once we remove the hard drives. Page 7 of 92 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, April 28, 2021 at 4:30 PM Motion to recommend to the City Council the approval to purchase laptops, desktops, and docking stations from Dell Inc. for an amount not to exceed $256,416.90 by Eric Corp , second by Kevin Pitts . Approved 5-0 . J. Consideration and possible action to recommend to authorize the City Manager to execute Design, Contract with Architectural Design Group / ADG Inc of Dallas, Texas for the Design of the Public Safety Operations and Training Center Firing Range in an amount not to exceed $91,649.00 – Eric Johnson, Facilities Director This project is to update the original design of the Police Firing Range for subsequent construction. The original Firing Range design was completed with the design of the Public Safety Training and Operations Building but was not included in the construction of the facility. The contract includes updating existing plans and specifications to current International Building Code 2015 and current ADA standards, bidding assistance, and construction phase services. Since ADG designed the original PSOTC, including the Firing Range design, we anticipate a streamlined design process, allowing us to bid out the project on a shorter timeline. Discussion: Stu - Should the specs be to the 2018 IBC Standards or 2015 Standards? Eric we are currently using 2015 IBC Standards. Stu - What has changed in the original design and to bring into compliance, when was the design? Eric – I believe it was in 2016, there are new standards we have to meet now, a large portion of this design is the construction process contract administration and the bid process. $25,000 of this is a contingency in case anything comes up in the review process. Katy Nero with ADG – we started design in 2013 and continued through 2015. The plans were done in IBC 2013 so they must be updated to IBC Standards 2015 A big part of this is the targetry vendor that the PD will need. Motion to recommend to the City Council to authorize the City Manager to execute Design, Contract with Architectural Design Group / ADG Inc of Dallas, Texas for the Design of the Public Safety Operations and Training Center Firing Range in an amount not to exceed $91,649.00 by Stu McLennan , second by Kevin Pitts . Approved 5-0 . K. Consideration and possible action to authorize the City Manager to execute Design Contract with CDS Muery of San Antonio, Texas for the Design of the Fuel Station Renovation for an amount not to exceed $61,087.50 – Eric Johnson, Facilities Director This project is to design the replacement of the existing fuel island, originally constructed in the late 1980s. The upgrade will include new pumps, tanks, canopy, and emergency generation to keep the island functioning during emergency operations. Discussion: Tommy – what does DEF mean? Eric this is an additive for Diesel. Stan – the diesel trucks must have this additive for emission requirements. Right now, we are filling this up out of 2 ½ gallon Page 8 of 92 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, April 28, 2021 at 4:30 PM cans from the warehouse. Stu – Does the CDS environmental consultant need to coordinate the UST removal process with TCEQ? Eric – yes that is correct about ¾ of the way through the design. Does the CDS work with TCEQ during the removal. Eric – yes, that will be coordinated during the design process. Motion to recommend to the City Council to authorize the City Manager to execute Design, Contract with CDS Muery of San Antonio, Texas for the Design of the Fuel Station Renovation for an amount not to exceed $61,087.50 by Kevin Pitts , second by Eric Corp . Approved 5-0 . L. Presentation and discussion regarding public dashboards – Set Gipson, PMP Manager Discussion: Eric – what are you using internally? – Seth – we are using power BI. Tommy – what is your timeline and goal? – Seth- we are finalizing our metrics and visualizations. Timeline is to launch by early summer. Goal – help continues improvements also give the public opportunities to see behind the scenes and how the City is continually working to improve the City services they provide. Robert – how many employees are involved? Seth – about 80 that are heavily involved. How we share the data all departments are involved. Eric – think the approach is good, glad all the employees have access. Will be interesting to see what the public uses. Tommy – I think education will go a long way. Seems user friendly. Stu – Dashboards are helpful if they provide correct information, in a timely manner, in focused areas, in a way that facilitates the situational awareness of the target audience. Pull - What does the public want to know? Push - What does the public need to know to help the City “tell our story”?” David – getting peoples different prospective, evaluating hits we get on the website. The ultimate driver why we are doing this is to use quality data to drive delivery and continues improvement. No action needed. Meeting adjourned at 5:47 pm. __________________________________ ____________ Tommy Gonzalez Date Board Chair ___ _______________________________ ____________ Stu McLennan Date Board Secretary __________________________________ ____________ Sharon Parker Date Board Liaison Page 9 of 92 City of Georgetown, Texas Government and Finance Advisory Board May 26, 2021 S UB J E C T: A p res entation and dis c us sion on the C ity’s internal and external audit program. – Leigh Wallac e, F inanc e Directo r and Elaine Wils o n, As s is tant F inanc e Direc tor IT E M S UMMARY: Under the guid anc e of the C ity’s F is cal and Budgetary P olic ies , the C ity co nduc ts internal and external audits to monito r ac tivity, tes t controls, and id entify continuous improvement o f proc es s es . T his p res entation is an up d ate o n what the C ity has done in the p as t two years , c o ntinues to do, and will do with the aud it work p lan fo r 2021 – 2023. F IN AN C IAL IMPAC T: T he bud get fo r the annual external audit is in the Jo int S ervices F und , Ac co unting C o s t C enter. T here is a recurring $75,000 fo r ris k and aud it related ac tivities in the Joint S ervic es F und , F inance Adminis tratio n C o s t center, and a recurring $25,000 for temp o rary p ers o nnel in Acc o unting. S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: D escription Type Pres entation Pres entation Three year Audit work plan Backup Material Page 10 of 92 AUDIT PROGRAM: Internal and External General Government and Finance May 26, 2021 Page 11 of 92 POLICY AND REGULATIONS •Fiscal and Budgetary Policy •Controls on Director, City Manager, and Council authority •Regularly recurring cost of service rate and fee studies •Written procedures, department audits, transaction reviews, fraud awareness •Charter Article IV (mirrored in Fiscal Policies) •Controls on Council authority •Independent external auditor and reporting •State Law Local Government Code Chapter 103 •Annual external audit required, presented/filed publicly, must include retirement program information •Professional Standards: Generally Accepted Auditing Standards; Generally Accepted Governmental Auditing Standards Page 12 of 92 Current Resources •$75,000 annual appropriation in Finance to hire firms specializing in various auditing and financial services •$25,000 temporary personnel budget in Accounting for special projects Page 13 of 92 Standard audits and programming •Payroll transactions •Travel and expense card transactions •Cash drawer / collections / petty cash •Maintain anonymous fraud reporting hotline and require annual employee training on recognizing and reporting fraud •Warehouse inventory accuracy •Required annual training on active grants •Annual external audit of citywide accounts •Continual improvement of processes and internal controls Page 14 of 92 Two -year look back on special projects •UMAX / Customer Care –2017 -2018 •Cash receipt review and UMAX process mapping •Workday ERP implementation –2018 -2020 •Comprehensive update of cross functional system access and controls •Risk Assessment –2018 –2020 •Citywide identification and prioritization of risks •Update on mitigation strategies implemented •Gartner study utilities / IT –2020 •Customer information and meter systems review and recommendations •State sales tax audit –2020 •Utility self-retained sales tax audit by State Comptroller •HIPAA Audit –2020 •Compliance of policies, procedures, and cybersecurity Page 15 of 92 Business Value and Continuous Improvements •All travel audited up front –reduces clean up after the fact •Electric developer contributions collected up front, improved cash flow •UMAX –reporting, business process and user access issues mitigated •Gartner study –utility vision/strategy alignment, short-and long-term improvements to customer service and system management •Workday -reporting, business process and user access issues in prior system mitigated •Risk Assessment –high priorities like IT and Purchased Power mitigations adopted •Utility Sales Tax Audit –improved process for verifying sales tax exemptions Page 16 of 92 In Progress / Coming Soon •Utility Connection Process Improvement Project–2020 •Large scale review of current utility fee assessments, workorder management system and large water meter installations to identify inefficiencies and impacts to revenue collections •Utility bill collections agency contract –2021 •Optimize collections of 90+ day past due bills for Water, Electric, Stormwater, Garbage •Water Impact Fee reconciliation –2021 •In parallel with water rate study, improve tracking of collected fees and application of balances Page 17 of 92 In Progress / Coming Soon Continued •Cost Allocation Study for internal service funds –2021 •Consultant review of allocation methodologies for shared services in General and Joint Services Funds, rebuild of model •Review and make recommendations on IT, Fleet and Facilities models •Cable franchise fee •Last audited in 2014 •Ensure prior issues on computation of advertising revenue remain resolved; comprehensive review for any other issues Page 18 of 92 AUDIT WORK PLAN BY TYPE (2021-2023) Compliance Audits •Franchise fee payment compliance –review franchise agreements for compliance and accuracy of financial transactions, statements, and reports. •Review of hotel/motels room tax -verify the accuracy of occupancy tax payments made to the city. •Sales Tax Audit •Mileage and travel audit Internal Controls •Airport revenue –review revenue internal controls and compliance with City policies and procedures. •Municipal Court revenue •Citywide fee collection – review fee revenue across departments for process compliance and accuracy of financial transactions, statements, and reports. •Payroll audits •Cash drawer audits •P-Card Audits •Inventory of warehouse •Citywide Asset Inventory Performance/Other Projects •Cost allocation study – assessment and review of the allocated costs for internally shared services •Impact fee analysis •Increasing fraud training compliance Required Audits •External audit as part of year end •Grant single audit Page 19 of 92 2021 Plan Audit/Project Of Completed Internal/External Frequency Cost Allocation Study External Every 5 Years Impact Fee Analysis External One Time Franchise Fees External Annual Rotation of Franchises Items in addition to standard programming listed on slide 3 Page 20 of 92 2022 Plan Audit/Project Of Completed Internal/External Frequency Citywide Fee Collection External Annual Rotation of Type of Fees Sales Tax (RFI/RFP)External Monthly GASB -87 Implementation (Required) Internal One Time Items in addition to standard programming listed on slide 3 Page 21 of 92 2023 Plan Audit/Project Of Completed Internal/External Frequency Hotel/Motel External Every five years Citywide Asset Inventory External One Time Items in addition to standard programming listed on slide 3 Page 22 of 92 Summary •Trend –concentration of activities around software implementations and utility processes •Business Value Realized –processes that improve accuracy and cash flow •Forward Looking Plan – •Maintain annual activities for controls (cash, payroll, etc.) •Rotate programming for revenue optimization (franchise fees, hotel tax, other fees) •One -time special projects (new GASB compliance) Page 23 of 92 Feedback and Next Steps •Board feedback on the 3 year-plan •Resource needs •Maintain annual funding $75K for specialized consultants knowledgeable in each revenue / expense type •Accounting and Finance Administration staffing requests to maintain existing service levels and allow capacity for special audit projects •Temporary personnel budget may need increase in FY2023 for citywide Asset Inventory Project •Support implementation of recommendations from audit projects •Implement the plan, provide annual update Page 24 of 92 2021-2023 CITY OF GEORGETOWN | FINANCE AND ACCOUNTING Audit Work Plan INTERNAL AND EXTERNAL Page 25 of 92 Audit Work Plan 2021-2023 Compliance Audits • Franchise fee payment compliance – review franchise agreements for compliance and accuracy of financial transactions, statements, and reports. • Review of hotel/motels room tax - verify the accuracy of occupancy tax payments made to the city. • Sales Tax Audit – review whether to contract out sales tax receipt data reporting, forecasting, and auditing • Mileage and travel audit Internal Controls • Citywide fee collection – review fee revenue across departments for process compliance and accuracy of financial transactions, statements, and reports. • Payroll audits • Cash drawer audits • P-Card Audits • Inventory of warehouse • Citywide Asset Inventory Performance/Other Projects • Cost allocation study – assessment and review of the allocated costs for internally shared services. • Water impact fee analysis – reconciliation of collected fees and review of tracking process • Maintain fraud training compliance Required Audits/Projects • External audit as part of fiscal year end • Grant single audit • GASB-87 implementation for leases Page 26 of 92 Audit Work Plan 2021-2023 Year to be Started Audit/Project Internal/External Owner Frequency 2021 Cost Allocation Study External Nathan Every 5 Years 2021 Impact Fee Analysis External Leigh One Time 2021 Franchise Fees External Elaine Annual Rotation of Franchise Type 2021 Cash Drawers Internal Cindy Annual 2021 Payroll Internal Cindy Annual 2021 Warehouse Inventory Internal Ed/Leah Annual 2021 Fraud Compliance Training Internal Leigh Annual 2021 Grant Single Audit External Elaine Annual 2021 External Year End Audit External Elaine Annual 2022 GASB-87 Implementation (Leases) Internal Elaine One Time 2022 Sales Tax External Nathan Monthly 2022 Citywide Fee Collection External Nathan Annual Rotation of Type of Fees 2022 Mileage and Travel Internal Laci Quarterly 2022 P-Cards Internal Laci Quarterly 2022 T-Cards Internal Laci Quarterly 2023 Citywide Asset Inventory Internal Elaine One Time 2023 Hotel/Motel External Cresta Every 5 years Page 27 of 92 Page 28 of 92 City of Georgetown, Texas Government and Finance Advisory Board May 26, 2021 S UB J E C T: C o nsideration and pos s ible actio n to recommend ap p ro val o f a fo ur (4) year c o ntract with Wo rkday for S uc cess P lan Enhanced s ervic es in an amount not to exceed $320,000. – Leigh Wallace, F inanc e Direc to r. IT E M S UMMARY: S inc e 2018, the C ity’s Human R esources, F inanc e and Info rmation Techno lo gy Departments have b een s electing and imp lementing a new Enterprise R es ource P lanning software s ys tem. T he C ity selec ted Workd ay fo r its s uperior cloud environment, s c alab ility as the organizatio n gro wn, and end-us er friendlines s . T he C ity went live on HR /P ayro ll func tions in S eptemb er of 2019, live on c o re financ ials in Ap ril of 2020, and live on Ad ap tive for b udget planning in January o f 2021. During the original c o ntracting proc es s in 2018, the C ity nego tiated for s oftware s upport services called G old C usto mer S uc ces s, and training s ervic es c alled Learn o n Demand and Ad o p tion Kit. T hes e services as s ign a C ustomer S uc cess Manager to ad vo c ate for the C ity with Workday, provid e sup p o rt to C ity s taffing with planning fo r semi-annual releases of new func tionality, provide o ffic e hours with Wo rkday C o nsultants for c omplex ques tions , p ro vide s elf-s ervice video training of func tionality, training templates fo r job aid s , and other s ervic es to enhance the C ity’s effec tiveness with Wo rkday. In to tal, these s ervic es cost about $120,000 p er year. T he original c o ntracts provid e for the ability opt out o f these s ervic es go ing into F is c al Year 2022. In the p as t few mo nths , the C ity p ro ject team evaluated the effec tiveness o f these s ervic es fo r the value paid and fo und a mix of s o me s ervices b eing very useful and o thers less useful. T he C ity engaged Wo rkday for o ther opportunities for s upport. As G old C us tomer S uc cess s ervic es are no longer s o ld to new clients, Workd ay p res ented the S ucc es s P lan Enhanc ed S ervices. S uc cess P lan Enhanced p ro vides a c o mb ination of new and similar s ervic es as G o ld , fo r a red uc ed pric e o f $80,000 per year. T he p lan inc ludes the releas e planning s ervic es , the Learn o n Demand videos, and Ad o p tion Kit tools . It rep laces O ffic e Hours c ons ulting limited to 20 hours p er entire multi-year contrac t term, with As k An Expert that allows up to three new cons ulting “as ks” p er week. T he projec t team interviewed another Workd ay client alread y partic ipating in Enhanced S uc c es s and that c lient particularly recommend ed inc reas ed value in the As k An Expert s ervice. T he new servic e provid es on-d emand res o lutio n to ques tions , and inc ludes tenant ac c es s for mo re prec is e tro ubles hooting. T he C ity b elieves thes e services will be mo re effec tive and a better value at lower c o s t. Wo rkd ay is allowing the C ity to s witch services earlier than o ur contrac t term date for no ad d itional c o s t this fis c al year. F IN AN C IAL IMPAC T: Total annual c os t is not to exceed $80,000 per year fo r four (4) years , fo r a to tal amo unt o f $320,000. T he annual b udget is available in the I T F und s oftware contrac ts. S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Page 29 of 92 D escription Type Pres entation Pres entation Order form for Succes s Plan Enhanced Backup Material Workday Mas ter Services Agreement Backup Material Page 30 of 92 Workday Project Update and Enhanced Support Review Page 31 of 92 Agenda •Workday Project status update •Big picture wins •Big picture challenges •Review previous support model •Review forward looking support model •Potential action on Success Plan Enhanced services Page 32 of 92 Overall Project Status •Project has been in progress for four years •HR/Payroll Go Live September 2019 •Core Financials Go Live April 2020 •Adaptive budget planning Go Live January 2021 •Have realized significant business value after implementation •Has been highly successful with normal “clean-up” occurring after large system implementation •On budget, on time, and on scope Page 33 of 92 Project Timeline 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 Needs Assessment / Vendor Selection / Vendor Contracting Phase 1: Human Resources / Payroll Phase 2: Financials / Procurement Phase 3: Planning / Budgeting We are here! Page 34 of 92 Per Workday “Workday considers Georgetown one of its most successful customers because you had a very smooth implementation that required extensive collaboration between departments, executed with a small staff, and went live during a pandemic” … Jill Christensen, Workday Customer Success Manager “We are so impressed by your execution on the entire project”…Will Greer, Workday Vice-President for Government Page 35 of 92 •Functional Outcomes: •Replace 25 yr. old legacy system that was no longer capable of serving Georgetown •Cloud accessibility •Top security standards •Adapt to industry standard processes built in Workday •System that stays current with updates •Business Value Outcomes: •Add basic functionality needed by a modern organization •Accessible data and information for decisions •Allow users to innovate and improve •Key processes in one system •Supportable by City staff •Scalable for organizational growth •System stays up to date Scope: What did we achieve? 60 out of 80 Needs Assessment objectives have been met (75%) Page 36 of 92 •Then •Legacy software did not allow for the modification of business processes that were designed in the1980s. •Could not implement improved processes or adapt existing business processes as the City grew and changed at a rapid pace. •Users forced to work “around” the static system and create work products in risky, unmanaged “spreadsheet farms” that are frequently lost or become obsolete. •Now •Finance and HR worked to match City business processes to industry standard practices in Workday. •Business processes can be modified as the City changes and grows. •Vastly improved functionality allows users to avoid creating key work products in individual spreadsheets or other tools. Then & Now: Business processes Page 37 of 92 •Then •Users could not create custom reports in the system. •Data could not be accessed. Excessive time working in spreadsheets. Excessive risk. •Users could only access from a City computer. Limited ability to use emergency response and modern user expectations. •Now •We can create variations of reports and dashboards. •City is currently learning, adapting and fine -tuning to eliminate spreadsheets (reports, processes). •System identifies error and enforces compliance with business and data integrity. •Workday can be accessed from anywhere. Workers can use from home. Then & Now: Access and accuracy Page 38 of 92 •Then •City did not continuously invest in staff training and upgrades •Incode was completely static and could not be modified, driving use of shadow systems to meet organizational requirements. •Users could not leverage Incode to efficiently solve new problems. •Vendor did not add significant new functionality. •Now •As new requirements arise, Workday provides modern functionality to build new capabilities in system. •Automate new processes within system. •Major updates every 6 months; minor updates continuously •“Brainstorms” and other Workday Community activities allow customers to ask Workday for improvements and new functions. Then & Now: Continuous improvement Page 39 of 92 •Significant reduction in time spent on payroll •Moved from Pay Current to Pay Arrears and more transparent pay slips •Eliminated numerous paper forms •Open enrollment process has been greatly streamlined •Absence tracking completely automated •Numerous reports available that were previously done in Excel •Information on performance and personnel immediately available to supervisory staff •Fully automated approval flows for purchases •Converted travel and expense to two card streams while maintaining same number of total cards •Have real-time data because everything done inside one system Big Picture Wins: Page 40 of 92 •Accessible anywhere with an internet connection: •Work processes continued throughout COVID pandemic and throughout Winter Storm Uri •Employees can use the system from home •Some data and workflow approvals provided in Mobile Device format •Event Worktags: •Easy to set up method of coding all timekeeping and expenses related to an event •Easy reporting of all expense types to provide as back-up for grant reimbursement •Eliminates manual tracking More Wins Page 41 of 92 •Testing is not the real world, many processes need refinement now that they are in use •Transparency of all steps leads to questioning of all steps •Consistent workflow of processes presents challenges for 40 different lines of business •Some reports need to be further streamlined and automated •Change management ongoing: •Learning curve on new General Ledger structure •Mindset shift on 3-way match of purchases •System can’t support certain unique work schedules (to be addressed by Workday in future release) •Configuration and testing of new requirements strains staff workload (example –federal requirement for esick and efmla for COVID) Big Picture Challenges: Page 42 of 92 Support Models Page 43 of 92 Three full-time positions filled: •IT Business Systems Analyst •HR Business Systems Analyst •Financials ERP Administrator •Security, tenant management, integrations, release management, help tickets, load and validate data, write and modify reports, business process changes During the Project: City Page 44 of 92 During the Project: 3rd Party •City negotiated for 30 days of post-implementation support at each Go Live •City negotiated for additional 30 days of support at the first calendar year-end and first fiscal-year end •After the September 2019 Go Live of HR/Payroll, the City contracted a part- time independent consultant for business process assistance with recruiting and performance, payroll items, and reports •After the April 2020 Go Live of Financials, the City contracted with Accenture for assistance with advanced business process configurations, and an independent contractor for complex report writing assistance Page 45 of 92 During the Project: Workday •Gold Customer Success •Assigned Customer Success Manager provides access to additional resources to escalate/solve tough problems •Connections to other public sector users; upcoming Workday events/trainings customized to our needs •Project module reading, training, connections •Match exception business process connections when no response on Community Portal •Reviewing FLSA rules for firefighters for consistent legal application •Post -Go Live review workshops: lessons learned, goal development and roadmap planning •Product Influence Invitations: payroll posting detail, provided input to developers and solution was delivered in next release update •Office Hours: payroll and absence changes for COVID federal rules; security administration questions Page 46 of 92 Recommendations Page 47 of 92 Why Ongoing Support? •The project is never really over •Competitive market for Workday skills •Insurance for turnover on City staff •Contracted services an overall savings compared to a fully independent model •Peer customers note a gradual reduction over time with maturity New releases to update current functionality Roadmap and adopt more functionality Achieve business value Page 48 of 92 Ongoing Support Recommendations Recommendations are within current IT/Joint Services budgets, no additional funds needed •Continue 3 full-time positions and investing in their development •Maintain access to 3rd party support experts •Up to $175K per year total for all 3 functional streams •Switch Workday Support from Gold Customer Success to Success Plan •$80,000 per year Page 49 of 92 3rd party support •Request for Proposal currently posted for system wide support •Expect to bring potential awards back in July 2021 •Up to $175K per year total for all 3 functional streams •Example uses: •Scope, design, configuration and testing assistance for new functionality such as charging labor to capital projects for the Electric Fund •Staffing assistance: executing Open Enrollment if Benefits Lead were vacant •Adaptive integration is broken and our team can’t figure out how to fix it Page 50 of 92 Workday Success Plan Enhanced •Current products contracted for $120,000 per year •Enhanced product negotiated for $80,000 per year -$160K savings over 4 yrs. •Positive reference check with a public sector client •Services: •Assigned Customer Success Manager •Ask an Expert access 3 times per week –including tenant access •Roadmap planning and prioritizing assistance •Learn on Demand videos for City staff •Adoption Kit materials access with each new release Page 51 of 92 Summary and Next steps •To maximize our return on investment, we must continually adopt system updates and take advantage of new features •Overall approved budget for Workday subscriptions and support stays the same –no increases needed for support •Seeking approval today for new contract for Workday Success Plan Enhanced at $80K per year for 4 years •City can switch June 1 instead of waiting until October •New “Ask an Expert” service may supplement need for some 3rd party support •Bring results of 3rd party support RFP back for award recommendations this summer Page 52 of 92 QUESTIONS? Page 53 of 92 00250592.0-Confidential ©2021 Workday (v21.1) Page 1 of 2 Order Form (Add-On) - 00250592.0 ORDER FORM # 00250592.0 TO MASTER SUBSCRIPTION AGREEMENT (“MSA”) Customer Name City of Georgetown Workday Entity Name Workday, Inc. MSA Effective Date October 9, 2018 Order Effective Date The later of the dates of the parties’ signatures below Order Term June 14, 2021 through October 13, 2025 Currency USD Total Subscription Fee 341,599 Less Credit for Unearned LOD/AK fees from OF 149188 (8,373) Less Credit for Prepaid Unearned from OF 154699 (13,226) Net Subscription Fees Due 320,000 Effective as of June 14, 2021, this Order Form supersedes and terminates Order Form 154699 between the parties dated October 9, 2018. Payment # Payment Due Date Payment Amount 1 Due October 13, 2021 in accordance with the MSA, invoiced upon Order Effective Date 80,000 2 Due October 13, 2022 80,000 3 Due October 13, 2023 80,000 4 Due October 13, 2024 80,000 Total Payment Amount 320,000 Subscription Rights Table SKU Service Pricing Metric Subscription Rights WSP Workday Success Plans % of Subscription Fees Plan Tier: Enhanced Workday Success Plans Additional Terms. Workday Success Plans is described in and subject to the Workday Success Plans Program Terms site (https://www.workday.com/content/dam/web/en-us/documents/legal/workday- success-plans-program-terms.pdf) and subject to the terms of the Workday Customer Experience Program Addendum (https://www.workday.com/en-us/legal/contract-terms-and-conditions/index/exhibits.html). In the event of a conflict between the terms of this Order Form and the terms of either of the Workday Success Plans Program Terms or the Workday Customer Experience Program Addendum, the terms of this Order Form shall control. The Pricing Metric in the table above for Workday Success Plans is based on the annual average Subscription Fees during the Order Term. If Customer purchases additional SKU(s) during the Order Term, a n additional fee equal to 10% Subscription Fees of the new SKU(s) will be added for Workday Success Plan to the new Order Form. The Workday Success Plan fees assessed on this Order Form, in the amount of 320,000, represent fees associated to Customer’s previously purchased SKU(s) in addition to any new SKU(s) purchased under this Order Form. 1. Customer’s fees for Workday Success Plans have been calculated at an amount below the minimum annual fee of 90,000. In the event Customer purchases additional Workday Success Plan-eligible SKUs, the incremental Workday Success Plan fees will be calculated at the difference between the annual fee of 80,000 and 10% of Customer’s new annual Subscription Fees. 2. The parties previously executed an Order Form for Adoption Kits (AK) and/or Learn-on-Demand (LOD) (the “Prior Order Form”), which remains in full force and effect without any option for renewal, until the end of the Page 54 of 92 00250592.0-Confidential ©2021 Workday (v21.1) Page 2 of 2 Order Form (Add-On) - 00250592.0 Order Term set forth therein. For clarity, this Order Form does not duplicate the rights or obligations of either party under the Prior Order Form. In the event of a conflict between the terms of the Prior Order Form and this Order Form, the terms of this Order Form shall prevail. Billing, In Care of Contact Name Leigh Wallace – Finance Director Street Address City/Town, State/Region/Province, Zip/Post Code Country 808 Martin Luther King Jr St. Georgetown, TX 78626 United States Phone/Fax # (512) 930-3677 Email (required) leigh.wallace@georgetown.org 3. At time of Renewal, Workday Success Plan fees will always be calculated at the same percentage rate (10%), described in the Success Plans Additional Terms above, of all eligible Renewal Subscription Fees (or minimum annual fee stated in section 1. above, the greater of the fees prevails), and is incremental to the Base Subscription Fees in associated Order Form(s) #149187. For the avoidance of doubt, at the time of Renewal (October 13, 2025), minimum annual fee for WSP is 90,000. This Order Form is only valid and binding when executed by both parties and is subject to the additional terms in the above-referenced MSA, Order Form(s) #149187 or related renewal Order Form in effect (“Underlying Order Forms”), and the Addendums and Exhibits referenced above. Capitalized terms not defined herein shall have the same meaning as the Underlying Order Forms. All remittance advice and invoice inquiries shall be directed to Accounts.Receivable@workday.com. IN WITNESS WHEREOF, this Order Form is entered into as of the Order Effective Date. City of Georgetown Workday, Inc. 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