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CC - Item 8D - Award of Bid for a Finance/HR Hardware and Software SystemROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: DECEMBER 14, 2010 SUBJECT: AWARD OF BID FOR A FINANCEIHR HARDWARE AND SOFTWARE SYSTEM SUMMARY At the August 24, 2010 City Council meeting staff received approval to request proposals for replacement finance and human resources software. As explained at that meeting, the City's current software is inadequate for City purposes due to age and functionality. Requests for proposal (RFP) were sent and five vendors responded with proposals, they are: 1. Information Development Consultants (IDC) (current provider) 2. New World Systems 3. Springbrook Software 4. Sunguard BiTech 5. Tyler Technologies — Incode (Incode) The vendors were subjected to several levels of evaluation including: a) an initial screening of the company profile, b) responses to functionality questions included in the RFP, c) product demonstrations, d) determination of the company's financial strength and e) reference checking. Staff Recommendation Staff recommends that the City Council award the contract for finance /human resource hardware and software to Tyler Technologies - Incode and authorize the City Attorney to negotiate final approval of the contract language. It is also recommended that the City enter into a five year lease /purchase agreement with Bank of the West to pay for the hardware and software and authorize the City Manager to execute all required documents to effectuate the above actions. APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER: �� City Council Meeting December 14, 2010 Page 2 of 4 ANALYSIS Selection of financial software for the City is a Ior technical capability is a top priority. The foll component to selecting the best software partner Effective disaster recovery capabilities, (3) A strc financial strength. The vendor evaluation process the best combination of these factors at a fair oric( In September, vendors were sent RFPs and we questions about their company profile and the The list of qualified vendors was reduced to a m the company profiles with weighted averages (s and Sunguard BiTech, with the lowest scores companies, New World Systems, Springbrook present full day demonstrations of their software notice, Springbrook Software withdrew their pro Incode to compete for the City's business. N vendors on the following criteria: Company Profile Weighted Average Comp highest score was used to rank the two comps weighted average score of 467 versus 408 for Function Comparison chart (exhibit B). This cF (Appendix B). It provides a means for the ve software can perform specific tasks required by tl explain how and when their software will perform t so at the time the proposal was submitted; for FUT /2Q11, meaning: a specific task or function 2011. For this report the answers are presenter narrative column, the narrative is used by finan responses. The Function Comparison does not I is a tool for staff to review whether or not the so the City. It is also useful in developing probing qL their demonstrations. How these questions w deciding which software vendor to chose. By the both company's functionality will be reasonably eq -term partnership. Therefore, strong wing qualifications are also a key or the City: (1) Customer service, (2) ig California presence, (4) Company is focused on finding the vendor with given three weeks to respond to 341 tctional capabilities of their software. e manageable number (3) by scoring exhibit A). The two companies, IDC ?re eliminated. The remaining three oftware and Incode were invited to staff at City Hall. With just 24 hours sal leaving New World Systems and t, staff evaluated the two remaining in (exhibit A). With this review the Incode had the highest score with a World Systems. fors to report whether or not their City. It also allows the vendors to ose tasks if the software does not do stance, a response code might be ill be available in the 2nd quarter of in a comparative table but without a staff to further evaluate proposer id itself to quantifiable scoring but it Mare performs the tasks required by stions for staff to ask the vendors at -e answered played a key role in 'ne of full implementation, July 2011, Software demonstrations. These gave all linterested City staff members the opportunity to see the look and feel of the two software products. Staff considered the software demonstrations for usefulness, ease of use and appearance; both demonstrations were well received by City staff. City Council Meeting December 14, 2010 Page 3 of 4 Training and Implementation. Another important factor to consider is the number of training and implementation hours (the more the better) being proposed. New World Systems proposed 500 hours and Incode proposed 580. Incode also provides six months of on -line training at no cost to the City. User Support. Customer support is critically important to the success of the new system. New World Systems standard hours for telephone support are from 5:00 a.m. to 5:00 p.m. (PST) Monday through Friday as well as web based support. Incode has live telephone support from 6:00 a.m. to 5:00 p.m. (PST) Monday through Friday, e-mail support as well as web -chat. Reference checking revealed an 86% favorable satisfaction rating for customer support among current Incode users. Disaster Recovery Method. An important feature of any software company is its disaster recovery plan. Based on the response in the RFP Tyler Technologies has a superior disaster recovery method in place. Every 24 hours Incode data is transmitted by internet to Tyler Technologies storage servers. If the City's servers go down, for any reason, Tyler Technologies can host the City's data processing remotely until the servers are back on -line. California Presence. Another criterion is for numerous cities in the State to be using the same software as Rosemead. The advantage of that is that a vendor with a large California customer base can more easily justify spending significant amounts of research time and money on solutions to problems and needs unique to California customers, whereas a vendor with few California customers might not be as willing to devote scarce company resources to a small California customer base. For instance, Incode program developers have already started creating a new salary and benefit report that the California State Controller requires all local agencies to file each year. New World Systems has 17 clients in the State and Tyler Technologies has 258. Financial Strength. Selection of a software partner is a very long -term commitment, perhaps a decade or more. Therefore, it is important to verify a company's financial strength for the long -haul. Both companies have strong balance sheets with significant cash reserves. Tyler Technologies is debt free and New World Systems has very little long -term debt. New World Systems has been in business for 29 years and Tyler Technologies, Incode's parent company, has been in business for 48 years. FINANCIAL REVIEW For professional services, like software, price is usually not the sole deciding factor for choosing a software provider. Many other factors, such as those previously described, usually have a higher priority than price alone but because the two companies are so evenly matched, price has become an important element in selecting the best software solution for the City. The following table illustrates price comparisons for New World Systems and Incode:/ City Council Meeting December 14, 2010 Page 4 of 4 Licenses /training /implementation Hardware Total initial cost Five year annual maintenance New World Systems $296,000 38,899 Purchase Financing. As reported at the Augi recommending purchasing this system with a le Incode has referred the City to a third party fin Inc., that works with Tyler Technologies; staff has of the West, the City's primary bank. The Dive effective interest rate of 5.325% and the rate frc 4.10 %. Therefore, total savings from financing thi PUBLIC NOTICE PROCESS This item has been noticed through the regular Submitted by: Steve Brisco Director of Finance Exhibit A: Company Profile Weighted Average Comparison Exhibit B: Function Comparison Exhibit C: User Reference Survey Exhibit D. Financing Terms Incode $244,600 25.525 OCT, 9:1'1'�-1frrlil 24, 2010 Council Meeting, staff is ;e- purchase financing arrangement. king company, Diversified Lenders, Iso sought a financing bid from Bank ified Lenders, Inc. proposal has an Bank of the West is approximately .Igh Bank of the West is $12,237. a notification process. sl q C E 0 a U u E ec u ev 5 w � Z o � V U m i u L C C W E E 0 V m 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C � S_ IN C_ h O O O O O O O O O O O O O O O Y O N N N P M M O P O O M O O L � CL i ' G J. y O O L` y O Q M M M M M N M vl Vi M N x 0 r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 z - M try N' M O M M M C M Q M M M O O O ue e` c c O O O O O O O O O O O O O O O U (.1 N N M M m v - o - G " E v - _ "2 1 n E c E E E a = E o° y V m E 'c a �' ° s f a v v c o S �' ?.` '- m m m `n E E= E c F E E' V _� n o o n v o o c c C S' C_ j E 30 G 6 6 Q 6 G Q 6 G o ¢ G 6 G a G ¢ m 6 A o. E 0 m C.J E w u q z ` u L C S E 0 0 c c c o 0 o O O o 0 0 m i C I 9 'S M eel y M M O r1 M t1 M h ( S C O C O O O O O O O C O s` < m� c f O_ ? N eT V V V O M V N1 t1 e r o c o o c o c 0 0 0 'fi I N N i L 2 — `o O th M Q t'1 r'1 M C M nl r, [7 O O O O O O O O O O O O N C � N C i ° C M tit N V1 Nt Nt N1 N1 M f^. `S 0 0 0 0 0 o O CD O o In P y \ N N V M N N O C1 N N M r, N1 �.i e v, o - n- E v - c v o _ Q t V y O v i EP 5 G V Y tF'i .G C E d '- E �, = o G• �. ° V G" U .c a u L Z- 0 2 v ,c` s o V E c .O s c -- L G� � 4 V v p Ll G �- �` ° a� V > N N �• N F C w H C r d .E a 2 c c° ❑- c. o. a° x ❑ .. 5 3' c° c S c c c 5 .. 3 ry n IT 0 O A C E m U E Yu Y x C Y V < O 9 V � Y V O i c c E U P N Q N 0 0 N O O 0 h T O c 0 C 0 E E C G E E Iv h C c .I 0 0 0 0 0 0 0 0 0 o c x � i w i C � N N M m N M M N M f. Y O O O O O O O O Oq O O O a` < Q w$ C C J. Y O M M M Q N V Q Q N Q O c` w c c o 0 0 0 0 0 0 0 0 0 Q Z N N M M M M Q N M M 3 ? Y Z O O O O O O O O O O O O < Q C C 0 0 0 0 0 0 0 0 0 0 0 P POD N N O — U M M M < M M M Vl M n v O 6 E a O L r 6 U C v 6 = DL y' N of Y k! zg ,o a 9 N r > o > _ ? E i v c� E g_ 73 L '> n s' N m cE2 Q D P O N N N N P N Q N 0 0 N O O 0 h T O c 0 C 0 E E C G E E Iv h C c .I m m 0 n v 9 m m FUNCTION COMPARISON EXHIBIT B Appendix B. Vendor And System Requirements This section includes the Vendor, technical, and functional requirements to be evaluated in this RFP. The Requirements Section will become Section 3 of your RFP response. This is not a comprehensive list of all of the City's requirements, but includes the key requirements that will be used to evaluate the RFPs and will be included as part of the signed contracts. Responses to each line item should be concise and straightforward. The City expects Vendors to respond in a factual manner, clearly identifying software that is folly released, in testing, or slated for future release for each functional requirement. Vendors must provide a rating for every item. If the requirement does not pertain to the proposal being submitted, enter "N /A ". If a submitted RFP includes blank responses the document may be considered in violation and rejected. Use the following rating system to complete the RFP and evaluate the requirements and include a brief description of how the software supports the stated requirement. Definition of Response Response Code Unqualified Yes — Meets the requirement Y Requirement is satisfied by utilizing the report writer RW Requirement may be satisfied by a user modification (screen designer, user defined field) UM Requirement can only be satisfied by a programming modification — please include an estimate of cost for each identified PM Feature will be provided in a future release (provide date) FUT No — Does not meet the requirement DN Other — Please Explain OTH Requirements Of All Modules New World Systems Tyler Incode I. Availability of complete on -line help function and system documentation that may be printed when desired Y Y 2. Provision for data back -up and disaster recovery Y Y 3. Ability to maintain historical financial data on -line for any user determined number of years Y Y 4. Ability to facilitate archival of historical data OTH Y 5. Ability of multiple -users to work in the same module simultaneously Y Y 6. Ability to drill down from reports, queries, or screens from summary to transactional detail Y Y 7. Ability to receive debit /credit card payments and meets PCI (Payment Card Industry) requirements Y Y 8. Ability to interface with the City's existing server and workstation platforms Y OTH 9. Ability to provide customer support services to City staff 7:00a.m. to 6:00p.m. Pacific Standard Time, Monday through Thursday. Y Y Page 1 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 10. Availability of a user friendly data dictionary that is used across within a functional area all applications DN Y 11. Ability to import and export data for user controlled manipulation in formats compatible with Microsoft Office Y Y 12. Utilization of MS SQL; or ODBC compliant databases; no proprietary databases I Y Y 13. Ability to have unlimited user defined fields that can be accessed through queries and reports I Y Y 14. Ability to directly link to external documents such as spreadsHeets and word processing documents I Y Y 15. Encrypted database both in transit and at rest Y OTH 16. Real time, not batch processing Y Y 17. Ability to calculate interest and late fees for billing Y Y 18. Auditing capabilities that provide a history of who has accessed, created, or modified each data entry item I Y Y 19. Availability of role based security where users can be assigned to multiple roles of security access. I Y Y 20. Ability to identify unauthorized access to data classified as sensitive (i.e. containing Social Security, bank account, or driver license numbers) Y Y 21. Ability to conduct searches, and generate reports at all levels of the account structure by fiscal year, month, calendar years, date ranges or any user defined criteria I Y Y 22. Ability to save queries and make saved query available to other users RW Y 23. Availability of report writer (propriety or licenses for a program such as Crystal Reports) I RW RW 24. Ability to generate and save custom reports from queries or system- generated data I RW RW 25. Ability to customize templates for common reports Y RW 26. Ability to create mailing labels RW RW 27. Ability to select report criteria via drop downs, queries, or pick lists RW RW 29. Ability to directly E -mail a report Y RW 30. Ability to view reports on -line Y Y 31. Ability to print to non - proprietary forms and labels Y Y 32. Utilization a Graphical User Interface for all modules Y Y Page 2 FUNCTION COMPARISON EXHIBIT B 1. General Ledger The General Ledger is considered to be the core or foundation upon which all other modules are built. New World Structure and Accounting Principles Systems Tyler Incode 1. Flexible chart of accounts that is highly adaptable to the needs of the City and allows the user control over the structure. Please describe your chart of accounts structure and adaptability Y Y 2. Availability of multi -level hierarchical account structure that will allow for reporting of financial numbers on an individual basis as well as on a multi -level aggregate basis Y Y 3. Accommodates General Accounting Standards Board (GASB) requirements Y Y 4. Affords various views of the General Ledger (fund, department, project, account, etc.) Y Y 5. Built -in- software safeguards insure General Ledger accounts are always in balance and subsidiary ledgers total to control accounts Y Y 6. System verifies that each transaction being posted has a posting date acceptable to the appropriate fiscal calendar Y Y 7. System handles bank statement reconciliations Y Y 8. A subsidiary ledger can be maintained for any General Ledger account Y Y 9. System supports both accrual and modified accrual bases of accounting Y Y I O.Year -end closing of accounts and generation of balance forwards and encumbrance forward is an automatic process Y Y 11. Supports unlimited number of funds Y Y 12. Allows at least 13 periods per year with open periods DN Y 13. Ability to lock the previous year after year -end closure to avoid inadvertent changes Y Y 14. Ability to view history of who has accessed, created, or modified each data entry item Y Y 15. Automatic journal entry reversals FUT Y 16. Automatic year -end closing without loss otdetaiI Y Y 17. Availability of a mass maintenance feature that allows mass changes to the data fields in the chart of accounts such as the account posting status, or the creation of appropriate accounts when a new organizational unit is added Y Y 18. Ability to account for grant reporting on either a year -to -date or grant -to -date basis Y Y 19. End -of- month receipts can be posted after the last day of the month using an over -ride Y 20. Rules for year -end closing of accounts can be defined differently for different types of accounts Y OTH 21. System handles both encumbrance and pre- encumbrance (at time of requisitioning) accounting Y Y Page 3 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 22. System handles automatic posting of off - settingjournal entries for recording Y Y transactions such as "due from other funds ", "due to other funds ", "operating transfers in" and "operating transfers out" Y Y 23. Business rules can be individualized to control the validation of the chart of account values (e.g. which expense categories can be charged to which projects) Y Y 24. System validates that every user executing a transaction has the appropriate Y Y approval authority for that action I Y Y 25. Availability of on -line maintenance and control of tables for definition of the chart of accounts I Y Y 26. Availability of extensive on -line query from high -level summary to source documents I RW Y 27. System accepts journal entries from Excel or files imported from other applications I Y Y 28. System verifies that each transaction being posted balances within each fund and qualifies as an acceptable entry for the particular source document and type of Y Y account I Y Y 2. Budget Preparation The City desires a budget module that is integrated to core financial modules. This should include multi -year budgeting. The module should include: the ability to generate baseline budgets based on prior year budget less one- time expenditures and adjusted for inflation, ability to track changes, generate overhead calculations, what -if scenarios, and other forecasting methods. As with most California municipalities, the budget preparation is the focal point of financial planning and authorization for the delivery of municipal services. The City prepares the budget at a detail (object) level, with presentation to City Council and public at varying levels of detail. I. Ability to generate an annual and biennial budget j Y Y 2. Ability to create either global or range changes under a variety of methods such as percentages, fixed amounts, and by a user defined formula I Y Y 3. Ability to support multiple budget versions (i.e. original, amend6d, City Manager approved, adopted, etc.) I Y Y 4. Ability to directly link to spreadsheet and /or word processing documents Y Y 5. Ability to accommodate a user - defined budget worksheets and budget proposal reports with two or more years of budget history and actual expenditures, projected current year and an unlimited number of projected future periods I Y RW 6. Adopted budget numbers should easily be rolled into the General Ledger or project ledger when directed by the user I Y Y 7. Budget amendments approved after the adoption of the budget should be tracked separately by the system in a budget adjustments file I Y Y 8. Availability to create free -form text notes at the line item level for any scenario that can be printed with the budget worksheets at the users discretion Y Y Page 4 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 9. Ability for multiple departments to prepare their budget information Y Y simultaneously Y Y 10. Integration with Payroll / Human Resource module to support salary simulation Y Y and benefit budgeting for annual budgeting or during contract negotiations.. Y FUT /2011 11. Ability to have both export and import capabilities from Excel and Word Y RW 12 Ability to access all objects (both revenues, expenditures and projects) currently Y Y used by the financial system, during budget formulation Y Y 3. Accounts Payable Departments currently prepare and approve payment requests. Finance processes the payment requests and warrants are issued for payment. Invoices are presented to City Council twice a month for authorization of payment. When approved, warrants are mailed to Vendors. I. Ability to track aging items and other exceptions Y Y 2. Supports one -time vendor override payments. Allow for simplified temporary vendors directly from transaction input process Y FUT /2010 3. Accommodates recurring invoice processing Y Y 4. Supports electronic funds transfer Y Y 5. Ability to access vendor history by vendor name, vendor number, invoice date, check date, and account codes Y Y 6. Supports laser check printing Y Y 7. Automatically transfers issued warrants to an outstanding warrant register and allow users to process cleared warrants, including the ability to generate outstanding warrant register Y Y 8. Identifies duplicate invoice processing and blocks with ability to override Y Y 9. Accommodates multiple invoices per warrant Y Y 9a. Accomodates individual warrants per invoice for a vendor. Y Y 10. Ability to use laser check/warrant printing Y Y 11. Supports 1099 reporting requirements. 1099 management to the invoice line item level; not just the vendor or the invoice Y Y 12. Integrates with other systems such as: General Ledger Fixed Assets Purchasing Cash receipting (refunds) Project Accounting Y Y Y Y Y Y Y Y Y Y 13. Provides check reconciliation system Y Y 14. Ability to generate payment approval list for City Council approval Y Y 15. Ability to make electronic payment to vendors (ACH, wire, debit) Y Y 16. Facilitates sales and use tax tracking and reporting Y Y 17. Generates warrant batch reports allowing users to view reports on -line or by printing Y Y Page 5 FUNCTION EXHIBIT B New World Svstems Tvler Incode 18. Vendor name, address, goods ordered and received and unit prices can be automatically retrieved based on purchase order number I Y Y 19. Ability to process the payment of freight and miscellaneous charges even if they are not on the purchase order Y Y 20.Encumbrances are automatically released upon posting of an invoice, allowing for full or partial liquidation I Y Y 21. Ability to distribute invoice to multiple expense accounts Y Y 22. Ability to expense individual line items on purchase order to different expense codes I Y Y 23. Ability to process invoices for payment without a purchase order Y Y 24. Ability to automatically calculate payment due date to take advantage of available discounts I Y Y 25. Provides easy voiding of checks by authorized personnel ( Y Y 26. Capability to track vendors requiring W -9 (Tax Payer ID #) and to produce labels for those identified I RW Y 27. Supports processing of user defined voucher templates including regular, one- time, recurring, employee expense, debit/credit memos, etc I Y Y 28. Supports automated two -way matching of purchase order andl invoice Y Y 29. Supports automated three -way matching of purchase order, receipt and invoice I Y Y 30. Vendor history on -line with query and search capabilities Y Y 31. Ability to post manual checks ( Y Y 4. Purchasing Primarily, the City uses a de- centralized purchasing system. Small purchases can be made with a credit card. For all other purchases, requests for goods and services are generated by the various departments and submitted to Finance. Once the requisition is reviewed and approved by Finance a purchase order is manually prepared and mailed to the Vendor. Funds are not currently encumbered for purchase orders. The City wants to update business practices in this area. 1. Purchase requisitions can be entered online by any authorized user Y Y 2. System allows authorized user to terminate and complete purchase orders V Y 3. Purchase order cannot be terminated without further authorization once a purchase order has been issued I Y Y 4. Each requisitioned item is automatically compared at time of entry to single or multiple budget accounts I Y V 5. System can encumber a single item to multiple accounts by actual amounts and percentages I Y Y 6. System uses customizable forms for purchase orders I Y Y 7. Change Orders can be processed against an existing purchase order Y Y 8. All open purchase orders can be queried online by vendor, buyer, fund, account, program and purchase order number I Y Y Page 6 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 9. User can define specific search criteria and limits while performing on -line inquiry Y Y 10. Items received and the recording of goods returned to the vendor can be tracked Y Y 11. Items to be capitalized can be designated with an immediate update to fixed assets Y Y 12. Accounts payable is automatically updated with the receipt of goods Y Y 13. A tolerance for receipt of goods against a purchase order can be specified Y Y 14. An online list of vendors is available Y Y 15. System uses the same vendor master file and terms structures as accounts payable Y Y 16. System provides complete online and hard copy reporting of purchase orders issued and goods received Y Y 17. System can automatically calculate discounts and payment schedules based on user defined rules Y Y 18. System provides for pre- encumbrance process Y Y 19. Requisitions may be electronically routed for prior approval before they are processed Y Y 20. Purchase orders can have multiple ship to addresses Y Y 21. System supports user defined purchase order templates including regular, one- time, blanket, release, contract amendments and quotes Y OTB 5. Accounts Receivable The City currently operates a centralized accounts receivable system. General accounts receivable billings are directed to the Finance Department. Upon receipt, City invoices are manually prepared and appropriate data is entered into the General ledger. The City wants to update its business practices in this area. I. Provides for either centralized or decentralized input of accounts receivable data, recording payments and printing of receipts Y Y 2. Provides for an interface with cash receipting to allow cashiers to query and /or post invoices Y Y 3. Supports a single centralized AR Master record for all receivables Y Y 4. Full integration with: General Ledger, Cash Receipting and Accounts Payable Project Accounting modules Y Y Y Y Y Y Y Y Y Y 5. Ability to generate invoices without a third party printing software or use of word processing system Y Y 6. Ability to integrate with an electronic cash drawer system Y Y 7. Ability to handle an unlimited number of fees and rates Y Y 8. Ability to have individual late fee codes associate with a rate Y Y Page 7 FUNCTION EXHIBIT B New World Systems Tyler Incode 9.Ability to have individual verbiage notices printed on invoices that can be customized and changed as needed Y Y 10. Ability to cancel invoices Y Y 11. Ability to age accounts in 30, 60, 90 and 120 day increments and produce aging reports I Y Y 12. Ability to process credit card payments Y Y 13. Ability to input a payment plan that is tracked by the system DN Y 14. Ability to write -off accounts deemed uncollectible by user Y Y 15. Ability to post payments and adjustments to accounts that were written off Y OTH 16. Ability to produce an electronic file of accounts that are being1sent to a 3rd party collection agency I Y RW 17. Ability to reprint individual bills in the same format as the original Y Y 18. Ability to print corrected bills I Y Y 19. Ability to import electronic payment files from other financiall institutions Y Y 20. Ability to produce refund checks from accounts receivable through accounts payable Y Y 21. Ability to print statements in zip code order DN Y 22. Ability to produce delinquent bills and any number of user defined follow -up bills I I Y Y 6. Cash Receipting The City currently has only one centralized cash receipting site although cash is received in several departments and transactional detail is posted to subsidiary ledger software (Recreation — Class, Building Permits and Business Licensing — HdL). Summary revenue from these sub - systems is then manually posted to the current cash receipts program. City revenues are received as currency, checks, credit card transactions or electronic funds transfers. The software should support: 1. Ability to handle unlimited number of accounts or transaction codes Y Y 2. Ability to post to more than one account code per receipt I Y Y 3. Ability to distribute appropriate information to Accounts Receivable, General Ledger and Project Accounting Y Y 4. Provides a daily deposit report for cash /checks/ electronic deposits and credit cards for each cashier, same information should be accessible any time during the day I Y Y 5. Provide options to accept cash. check or debit/credit card for one transaction Y Y 6. Supports multiple electronic cash drawers and provides cash oue balancing each operator procedures for I Y Y 7. Provide security and reporting for each defined cashier { Y Y P. Availability to print a cash receipt on demand { Y Y 9. Availability to track all payments including voided receipts Y Y 10. Allow more than one user in cash receipts at one time { Y Y Page 8 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 11. Complete integration with: General Ledger, Accounts Receivable, Accounts Payable, Project Accounting Y Y 12. Ability to view reports on -line Y Y 13. Availability of a drop -down list look -up to assist cashier in determining appropriate revenue code to use Y Y 14. Ability for cashier to collect payments that are not pre - billed in any system (TOT, copy charges, state payments) Y Y 7. Payroll /Human Resources The City currently pays wages through a centralized payroll office. Payroll time keeping is decentralized with varied methods of overtime calculations, pay types, leave types, and benefit options. 1. Supports direct deposit capabilities to include preparing an ACH file for transmission to any central repository bank Y Y 2. Prepares employee earnings /check stub for each employee, including employees on direct deposit, showing all hours, earnings, deductions and all year to date totals with the requirement of printing leave balances Y Y 3. Provides an audit trail of on -line file maintenance to critical fields with operator ID, workstation ID, date /time, and old /new data. It will also track changes, date of change, and old and new rate Y Y 4. Provides for multiple methods of calculating overtime pay such as time- and -a- half and premium pay. These calculations are user - defined and maintained Y Y 5. Provides for non -cash pay adjustments such as car used for personal use, taxable per diem, and spousal insurance Y Y 6. Capability of splitting payroll in General Ledger months Y Y 7. Accommodates work cycles used in determining hours worked in accordance with Federal Labor Standards Act Y Y 8. Permits entry of information concerning multiple types of leave. Accrual of leave amounts should be automatic and should not require input during the time entry process Y Y 9. Provides rollover and accrual abilities at year -end for deductions, benefits, balances. and history balances Y Y 10. Automatically generates liability accruals to be posted to the General Ledger along with liability payments and accrual relief entries Y FUT /2011 11. Ability to designate if a deduction code is global, union level, group level, or employee specific for purposes of ongoing maintenance of deduction codes Y Y 12. Ability to assign accounts payable vendors to each deduction code with flexible parameters for definition of due dates 1' Y 13. System must have the ability to provide global control of what deductions are included in each payroll process Y Y 14. Ability to establish limits for deductions and employer taxes. The deduction should stop when a specified limit for the employee is reached Y Y Page 9 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 15. Ability to withhold garnishments I Y Y 16. System must provide the ability for the user to change withholding types and number of dependants at the menu level I Y Y 17. Provides an unlimited number of hourly /salary rates and expense distributions for each employee I Y Y 18. Ability to maintain multiple sick and vacation codes Y Y 19. Ability to enter hours worked, vacation, and sick time taken, along with General Ledger distribution with defaults for each Y Y 20. Provides for complete security and restrictions to access Y Y 21. Automatically calculates gross pay from multiple user- defined'components such as base pay, educational incentive pay, shift differential, etc. I Y Y 22. Capability to automatically distribute an employee's base pay, overtime, leave pay, employer retirement contribution, and other employee cost based on a predefined percentage to multiple funds, departments or line items within the General Ledger Y Y 23. Provides the ability to distribute the City's share of benefits across multiple funds and departments in the same percentages that an employee's pay is distributed Y Y 24. Ability to define pay types including acting, %- based, flat rate,lovertime, etc Y Y 25. Ability to support employees in multiple job assignments I Y Y 26. Ability to produce an hourly or salaried payroll or a combination thereof Y Y 27. Ability to produce a supplemental payroll Y Y 28. Ability to void or reverse checks and auto -pays on -line Y Y 29. Maintain prior years' detail and totals for a user - specific period of time Y Y 30. Allows for an extra withholding tax deduction in any amount at the option of the employee I Y Y 31. Ability to compute shift and overtime premium on exception pay Y Y 32. Provides capability for time to be entered for an employee who works temporarily in a higher pay class or position I Y Y 33. Ability to adjust pay for "differential" hours worked at a different rate than the employee's normal rate I Y Y 34. Allows the preparation of paychecks at any time during the pay period for terminated employees, back pay, and special allowances I Y Y 35. Ability for each employee to designate unlimited bank/savings'accounts for direct deposit I Y Y 36. Permits the input of car allowances and other such income used to automatically calculate the imputed income for each employee I Y Y 37. Provides the capability to edit and verify the labor distribution prior to the actual payroll check production ( Y Y 38. Ability to facilitate time entry at any point or points during the pay period, including daily if desired I I Y Y Page 10 FUNCTION COMPARISON EXHIBIT B New World Systems Tvler Incode 39. Allows time entry on an exception basis. Provides the ability to establish base payrolls and process time record data for exception pay employees on an interim, weekly, bi- weekly, or any user - defined combination thereof Y Y 40. Allows the user to override the default labor distribution to specify multiple accounts for distribution during the time entry process Y Y 41. Ability to withhold IRS tax levies Y Y 42. Ability to calculate and track City -paid benefits Y Y 43. Ability to generate deduction calculations on any user defined cycle (first pay period, second pay period, monthly, etc.) Y Y 44. Ability to accrue sick and vacation time and an unlimited number of other user - defined leave categories for each employee based on user - defined tables with leave category, length of service, and /orjob classification Y Y 45. Each leave category will be tracked on an annual, fiscal, or employee anniversary basis Y Y 46. Ability to limit accrual of leave time and comp time to the maximum allowed Y Y 47. Ability to cash out comp time; sick leave time and holiday pay -offs Y Y 48. Ability to validate availability of ]cave at time of payroll input V Y 49. System will not allow leave time to go negative, but may be overridden when necessary. Y Y 50. Ability to expense payroll to multiple funds Y Y 51. Ability for the user to select the tax treatment of earning categories for various tax calculations Y Y 52. Capability to reconstruct a previously posted payroll register, along with related payroll check registers and deduction registers Y Y 53. Prepares W2's as required including the capability to prepare electronic files for transmission of Federal withholding and social security deductions. File format must meet Federal requirements Y Y 54. Ability to run W2's for prior year after payrolls for current calendar year have been posted Y Y 55. Ability to accurately track workers compensation and other fringe codes for each employee, including tracking employees that change positions resulting in different codes for various ranges of dates during the year V V 56. Ability to support state Employment Development Department electronic filing V Y 57. Ability to print check numbers on a computer - generated check register Y Y 58. Ability to prepare monthly, quarterly, and year -end reports as required for Workers Compensation, insurance, tax withholding, and FICA, etc. Y Y 59. Provides for appropriate tax liability reports Y Y 60. Provides exception reports that show large changes in gross Y Y 61. Creates both payroll and General Ledger distribution data from same input Y Y 62. Ability to import/export all reports and inquiry to Excel Y Y Page 11 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 63. Availability of Leave Balance /Usage Report to provide a listing of accumulated leave and leave taken so that beginning balance, leave taken, and current balance are reported. Reports should be able to be run on both a summary and detailed basis based on a variety of selection criteria I Y Y 64. Availability of a Payroll Calculation Report to proof payroll data prior to printing payroll checks I Y Y 65. Availability of various retirement reports that meet the reporthig requirements for Federal & state agencies, California Public Employees RetiremIent System (CalPERS), deferred compensation companies, and retirement plans in lieu of social security G Y Y 66. Automatic calculation of retroactive pay related to delayed union contract settlements or delayed merit pay adjustments relative to employee anniversary dates i Y FUT /2011 67. Full integration with: General Ledger, Budgeting, Project Accounting, Accounts Payable, Human Resources I Y Y 68. Ability to automatically calculate retroactive pay related to delayed union contract settlements or delayed merit pay adjustments relative to employee anniversary dates I Y FUT /2011 69. Automatic user notification of employee anniversary dates . I Y RW 70. Automatic calculation of the of accrued liability for comp time sick leave, vacation and any other accrued time balances Y Y 71. Decentralized timekeeping and hours entry on a user defined time sheet Y Y 72. Availability of web or network based time sheets that compile information into main payroll module I Y Y 73. Ability to maintain premium and deduction amounts on a before /after tax basis for multiple benefits plans I Y Y 74. Ability to accommodate sets of benefit options linked to an employee group Y FUT /2011 75. Ability to provide tracking of death for employees, retirees, or'dependents Y Y 76. Ability to provide for mass updates of employee plan designations Y FUT /2011 77. Ability to update benefits individually and as a group online I Y Y 78. Ability to track current benefit elections for retirees and spouse Y Y 79. Ability to meet the recordkeeping requirements of the Family Medical Leave FUT /3Q11 FUT /4Q10 Act i 80. Ability to stop accruing leave when contracted maximums are reached Y Y 81. Ability to have multiple accrual maximums for different classes of employees Y Y 82. Ability to determine the coverage for deduction amount for an employee using the parameters stored in the benefit plan tables I _ Y OTH 83. Ability to validate that the employee is eligible for the plan selected Y DN 84. Ability to support pre- and post- tax payroll deductions ( Y Y 85. Ability for group life insurance amounts and costs to be recalculated for all employees at any time during the year based on changed I Y DN salary coverage and /or plan cost parameters Y Y 86. Ability to support cafeteria benefits both taxable and exempt Y Y Page 12 FUNCTION COMPARISON EXHIBIT B New World Systems Tyler Incode 87. Ability to track imputed income for life insurance or personal car usage Y Y 88. Ability to have benefit premiums formula- driven, established from salary, set amount, with or without coverage limits and based on client - defined eligibility Y DN 89. Ability to provide security that is definable at multiple authority levels Y Y 90. Ability for the definition of business rules that allow logic, processes, or calculations to be user - defined Y Y 91. Ability to handle an unlimited number of employees including but not limited to inactive, active, and terminated Y Y 92. Ability to comply with state and Federal laws related to government entities Y Y 93. Ability to set user - defined fast data entry with coding reduction techniques Y Y 94. Ability to perform mass change updates Y Y 95. Ability to track bilingual speaking and writing language skills Y Y 96. Ability for an employee to notate whether their home address should be confidential Y DN 97. Automatic assignment of a numeric employee number Y Y 98. Ability to define ethnicity categories Y OTH 99. Ability to track the length of time an employee has filled a position Y Y 100. Ability to track and report on driver's license expirations and provide notice to an employee and supervisor when an update is needed Y RW 101. Ability to track and report on driver's license suspensions with associated reason Y OTH 102. Ability to keep history on property assigned to the employee Y Y 103. Ability to report on an encumbered position and easily identify when a position is eliminated Y OTH 104. Ability to track employee movement between positions within the organization and keep a permanent record of this information within the system Y Y 105. Ability to provide a field for holding miscellaneous textual data of any length on any personnel - related screen. Y Y 106. Ability to record reasons for termination Y Y 107. Ability to track and record volunteers Y Y 108. Ability to ensure that only budgeted positions can be filled Y Y 109. Ability to automatically calculate new annual salary for budgeting and pay calculations based upon changes to pay tables, etc. Y FUT /2011 110. Ability to accommodate split funded positions Y Y 111. Ability to conduct salary simulations including but not limited to step driven, flat dollar or percentage increases and calculate related budget impacts Y DN 112. Ability to analyze any number of salary simulation scenarios without affecting budget until finalizing Y FUT /2011 113. Ability to capture history on status changes, position changes, name changes, salary changes, location changes, payroll changes, benefit changes, supervisor changes, and organizational changes Y Y 114. Ability to indefinitely view terminated employee information for reference check information Y Y Page 13 FUNCTION COMPARISON EXHIBIT B New World Svstems Tvler Incode 115. Ability to provide for multiple salary schedules Y Y 116. Ability to accommodate salary table linked to job /position class Y Y 117. Ability to accommodate positions assigned in hierarchical structure and relationships I Y Y 118. Ability to budget positions for partial years (3,-6, 9 months of by hours) Y FUT /2011 119. Ability to set default for budgeting vacant position at user specified grade & step I Y FUT /2011 120. Ability to generate appropriate EEO reports Y Y 121. Ability to track reclassification of positions DN Y defined information I Y Y 122. Ability to track deleted positions Y Y 123. Ability to do analysis with positions, individually by department and across the City as a whole I Y RW 124. Ability to provide position control tracking of filled and vacant positions Y Y 125. Ability to have one employee more than one position Y Y 126. Ability to track funding source(s) to the position Y Y 8. Fixed Assets 1. Ability to bar code assets for control and physical inventory purposes Y Y 2. Ability to track an unlimited number of capitalized and non - capitalized fixed assets I Y Y 3. Ability to record detail property records for all fixed assets including identification codes, commodity classification, asset categories, acquisition data, supplier information, maintenance data, make, model, and serial number, disposition data, and asset useful life, maintenance schedule, acquisition method, and other user defined information I Y Y 4. Ability to store complete calculation data, including purchase, replacement, disposal, renewal, book, and other user - defined attributes I Y Y 5. Ability to calculate and maintain depreciation data in accordance with Generally Acceptable Accounting Principles methods (GAAP) I Y Y 6. General Ledger transactions are automatically generated for depreciation and usage allowances and for asset disposal I Y Y 7. Reports of capitalized and non - capitalized fixed assets are available by user - defined asset types I Y RW 8. Ability to integrate with the General Ledger, purchasing, accounts payable and Project Accounting applications I Y Y 9. An audit trail (including time and user identification) is maintained automatically reflecting all activities on all accounts I Y Y 10. Ability for.fixed assets to be automatically updated through purchase order system I I Y Y 11. Ability to assign fixed assets to one or more funds, users, and /6r locations I DN Y Page 14 FUNCTION COMPARISON EXHIBIT B 13. Project Accounting The City has the need to track and separate revenues and expenditures for a variety of municipal projects including grant and construction Project Accounting. Projects may be construction, program grants, cost centers or other related tasks. New World Systems Tyler Incode I. Ability to maintain independent hierarchies to support reporting across funds, cost centers, object code, project, grant, or task Y Y 2. Integration with payroll supporting both direct and indirect cost allocation by employee Y Y 3. Integration with General Ledger, accounts payable and purchasing modules Y Y 4. Integration with the GL at the transaction level such that accounts in both systems remain in balance at all times Y Y 5. Historical reporting for any number of user defined years of prior financial data Y Y 6. Allows the user to define project numbers and integrate part of the account number structure Y Y 7. Ability to capture financial data on either a life -to -date basis or fiscal year basis Y Y Page 15 City of Rosemead User Reference Survey EXHIBIT C Ranking: 1 through 5 1: Very dissatisfied 5: Very satisfyed * Had problems with Tyler project manager. Project manager subsequently left the company. Went smooth with new project manager. ** Respondent hired after software purchased; no opinion. �e a� e 1. Please rate your overall satisfaction with Tyler customer service? 5 4 4 2. Please rate your overall satisfaction with the installation process? 4.5 5 1* 3. Does Tyler resolve problems in a timely manner? 4 4 4 4. Does the product meet your expectations? 4 5 4 5. Did the company keep their promises? 5 5 ** Ranking: 1 through 5 1: Very dissatisfied 5: Very satisfyed * Had problems with Tyler project manager. Project manager subsequently left the company. Went smooth with new project manager. ** Respondent hired after software purchased; no opinion. EX141BIT D BANK �ifH:WEST December 2, 2010 City of Rosemead Steve Brisco Finance Director 8838 Valley Blvd Rosemead, CA. 91770 Dear Steve: Bank of the West (BOTW) is pleased to present the following confidential Equipment Lease Proposal, subject to credit approval, for your consideration: LESSOR: Bank of the West LESSEE,: City of Rosemead EQUIPMENT: Software DELIVERY DATE: December 31, 2010 EQUIPMENT COST: $270.125.00 LEASE TYPE: Bank - Qualified Municipal Lease LEASE TERM: 60 months LEASE RENTAL PAYMENT: Lessee will be required to make monthly payments of $4,969.98 for 60 months. The first payment is due at Lease inception, equal to a Rental Factor of .0183989 %, multiplied by the Equipment Cost. Based on BOTW's current cost of funds, the interest rate is approximately 4.10% (fixed for the term). ADJUSTMENTS TO LEASE RENTAL PAYMENTS: The Lease Rental Payments stated above reflect BOTW's cost of funds as of December 2, 2010 and will be adjusted at time of funding to reflect any changes in the cost of funds. Upon Lease Commencement, the Lease Rental Payments will be fixed for the term of the Lease. TAX BENEFITS: This transaction will be considered a lease intended for security. Lessor will not claim any depreciation deductions. EXHIBIT D NET LEASE: This will be a net lease transactidn. Lessee, at its own expense, will provide insurance, maintain the Equipment, and pay all fees, property tares, and other expenses of a similar nature. Lessee will also indemnify the Lessor against all liability with respect to the Equipment and the entire risk of loss. INSURANCE: Lessee shall maintain adequatl insurance coverage on the Equipment, which must be satisfactory in la form and amount to Lessor, including public liability insurance for property damage and personal injury and physical damage coverage for the full insurable value of the Equipment naming Lessor as loss payee andl additional insured. COSTS AND EXPENSES: DOCUMENTS: NON - BINDING PROPOSAL: A documentation fee of $250. 00 per lease schedule will be due at closing. Prior to funding, Lessee shall execute all documents reasonably required by Lessor. The type, form, conteits, sufficiency and due execution of all documents must be satisfactory to counsel for Lessor. The foregoing is a proposal Bank of the West. Any court be terminated in the event of condition of Lessee or the Gu or misleading in regards to Guarantor. We appreciate the opportunity to be of financial serviced copy of this proposal. Should you have questions, cal Nigro at (323) 727 -3702. Sincerely, Bank ofthe West Lanni Gates Vice President my and is subject to final approval by Itment offered by lessor thereafter may material adverse change in the financial -antor or if information provided is false he financial condition of Lessee or the your organization. Please return a signed Lanni Gates at (925) 843 -3897 or Frank Agreed to: City of Rosemead By Title: Date: