Finance Committee - June 26, 2023 Minutes

FINANCE COMMITTEE MEETING MINUTES

Regular Meeting Monday, June 26, 2023

The Regular Meeting of the Finance Committee of the City of Fargo, North Dakota, was held in the Meadowlark Room at City Hall at 10:00 a.m., Monday, June 26, 2023.

The Finance Committee Members present or absent were as follows:

Present: Timothy Mahoney, Dave Piepkorn, Michael Redlinger, Steve Sprague, Tanner Smedshammer, Susan Thompson and Brenda Derrig.

Absent: None.

Others Present: Ron Gronneberg, Jill Minette, Ben Dow, Dan Eberhardt, Doug Durgin, Nicole Crutchfield, Tim Dirks, Nancy Morris, Denise Kolpack, Arlette Preston, Jordan Corneliusen, Wyatt Papenfuss, Jim Hausauer, Troy Hall, Jill Pagel and media member.

Approval of Minutes

Mr. Sprague moved the minutes of the May 22, 2023 Finance Committee meeting be approved as presented. Second by Mr. Piepkorn All Members present voted aye and the motion was declared carried.

Consent Agenda

Sole Source and PBC items Approved:

Eleven requests were approved.

Mr. Redlinger moved to approve, second by Mr. Sprague and all members present voted in favor.

Contract Amendment for Interface Studio, Inc. Approved:

Ms. Crutchfield stated this amendment was a final phase, fully budgeted project.

Ms. Derrig moved to approve, second by Ms. Thompson and all members present voted in favor.

Sales Tax Analysis

Mr. Sprague reviewed the last month sales tax collection for Cass County and the City of Fargo and addressed Committee Member questions.

Regular Agenda

Enterprise Resource Planning Approved:

Mr. Gronneberg started with the history of the City’s current system and stated that in 2021 the City of Fargo emphasized the need to replace its present accounting system. Through an RFP process in 2021, BerryDunn was awarded the contract to facilitate a new Enterprise Resource Planning (ERP) system.

Mr. Gonneberg explained the RFP process and how the City ERP evaluation team has selected Tyler Technology as the preferred vendor. Mr. Gronneberg said the hard part now begins as the costs of changing systems, although necessary, is very expensive. The cost depends on how quickly the City initiates the process. He expects the migration to be 18-24 months, possibly longer, depending on how much City of Fargo staff can dedicate to this project. Mr. Gonneberg explained the attached financial statement projecting the implementation across 2023, 2024 and 2025.
Mayor Mahoney asked about the cost of the new system compared to our current system. Mr. Gronneberg responded that it is hard to calculate with many contributing factors of the two systems that are much different. Mr. Gronneberg also explained the ongoing cost with Tyler Technologies is very competitive, and is projected at roughly half the cost of the competition.
Mr. Piepkorn asked if we have reached out to other agencies that have used the Tyler. Ms. Thompson and Mr. Sprague both commented regarding positive responses received from the reference interviews conducted with other government agencies using Tyler.
Mayor Mahoney asked if this system would meet the needs of Human Resources and Ms. Minette explained that HR will utilize selected modules from the Tyler platform. Ms. Minette also mentioned that HR will continue to use Neogov and BlueConnect and Tyler has the ability to integrate with these HR components that are currently integrated with the current system, Central Square.
Mr. Sprague mentioned the cost of Tyler Technologies, however more than we are currently paying, came in at about half the cost of that of other vendors that submitted proposals.
Ms. Thompson also mentioned that the City of Fargo would like to accept the proposal for timekeeping with UKG to move our Time and Attendance to Dimensions. Ms. Thompson then reviewed the financial statement attached.

The motion before the Finance Committee is to direct appropriate staff and issue a change order to the BerryDunn contract, RFP21029. Also direct appropriate staff to move forward with finalizing the contracts with Tyler Technologies along with UKG and to authorize the funding expenditures.

Ms. Derrig moved to approve, Mr. Redlinger made the second and all members present voted in favor.

Fargo Downtown Library Sunshades Approved:

Mr. Dirks worked with JLG Architects and received two proposals for the replacement of the sun shades at the Main Library. The initial cost was estimated at around
$210,000.00, and Amy’s Windows was the preferred vendor at &122,550.00.

Mayor Mahoney asked if there were funds budgeted for this project and Mr. Dirks stated he had requested the funds from the 402 fund. Mr. Redlinger explained that this was in our planning estimate.

Mr. Redlinger moved to approve, second by Ms. Thompson and all members present voted in favor.

Opioid Abatement Settlement Approved:

Mr. Redlinger spoke to this item in place of Ms. Fleming’s absence. Mr. Redlinger explained this is a housekeeping item to follow up on a discussion from 2022 when Fargo Cass Public Health was directed to create an Opioid Abatement Fund to track the settlements received from litigation with class action lawsuits.

Mr. Redlinger referred to the suggested motion in the memo which states that the outline for the use of the opioid settlement funds will be reported for and be directed towards pharmacy and medical supplies.

The motion before the committee is to adjust the 2023 budget accounts and approve the process moving forward for the transfer and use of the Opioid settlement dollars.

Ms. Thompson moved to approve, second by Mr. Sprague, and all members present voted in favor.

2022 Fire Truck and Minivan Replacement Funding Approved:

Mr. Dow stated this item is a follow up of the 2022 budget for the Replacement funding of a 2022 Fire Pumper truck replacement. In December of 2021, the City Commission approved the plan and authorized staff to proceed with the project. This item was to be funded over a two-year cycle. Fleet Management had a plan in place to lease but no knowledge of when the trucks will come in. With this vehicle being a 18-month build, no lease will be procured. Vehicle Replacement will utilize the 2022

funds along with the 2023 approved funds to cover the cost of this vehicle. Mr. Dow is requesting the funds to be carried forward to 2023 budget, thus completing the vehicle purchase.

Mr. Dow is asking the Finance Committee to direct staff to carry the 2022 encumbered funds (PO225160) for the replacement of a fire pumper truck to budget year 2023.

Mr. Redlinger moved to approve, second by Ms. Derrig and all members present voted in favor.

Mr. Dow explained this item is similar to the Fire Truck situation. The order for minivans, which took place in 2021 with anticipation that they would be delivered in 2022, have been delayed as well. These minivans are now on schedule to be delivered 18 months after these vehicle orders have been placed. Mr. Dow has requested for the funding to be carried forward to 2023 budget, thus completing the 2022 replacement budget and not overdrawing the 2023 replacement budget.

Mr. Dow is asking the Finance Committee to direct staff to carry the 2022 encumbered funds (PO219148) for the replacement of two minivans to budget year 2023.

Mr. Sprague moved to approve, second by Mr. Piepkorn and all members present voted in favor.

Deferment of Special Assessments Approved:

Mr. Eberhardt is requesting a ten-year, interest-bearing deferral for County 20 Storage and Transfer, Inc.

Mr. Eberhardt described a request from Bob Nelson, owner of the company, in reference to the north Fargo area to insure future development of infrastructure. Mr. Nelson has limited future development plans at this time. The City of Fargo has determined that 33rd Street infrastructure should be extended by 600' to support Mr. Nelson's development.

Mr. Piepkorn has asked if this has been done in the past and Ms. Derrig explained it is not common, but we have done so in certain circumstances the past. Ms. Derrig agreed that this situation is needed and would improve the infrastructure for the City.

Mr. Piepkorn moved to approve, second by Mr. Sprague, and all member present voted in favor.

Adjourn
The time at adjournment was 10:26 a.m.