ACADEMY DISTRICT 20 BOARD AGENDA ITEM

BOE MEETING DATE: January 18, 2018

Subject: Building Fund Update and Approval of Replacement of Enterprise Resource Planning (ERP) System Recommended Action: RESOLVED, that the Academy District 20 Board of Education appropriate funds from the Building Fund, not to exceed $3,786,000 to fund the purchase, design, training, and implementation of an enterprise resource planning system to replace the current system, and BE IT FUTHER RESOLVED that the Academy District 20 Board of Education authorize the Superintendent or designee to negotiate and execute a contract with Workday for software services and with Sierra-Cedar, Inc. for implementation services as recommended by the Director for Building Fund Contracting and Procurement, Chief Information Officer, Deputy Superintendent/Chief Financial Officer, and the Superintendent. Background: Henry Reitwiesner, Executive Director for the Building Fund, will provide an update to the Board of Education regarding Building Fund projects across the district. Mr. Reitwiesner will speak to the attached slides. Additionally, the board is asked to consider the resolution above and is provided the following background for context. Staff will also present summary information and welcome questions and comments from the Board. On Aug. 18, 2016, the Board of Education approved a resolution for placing a bond measure, 3A, on the November 2016 election ballot. On Nov. 8, 2016 district voters passed the bond measure. One project identified as part of the bond measure called for replacing the district's Oracle Enterprise Resource Planning (ERP) system. A new ERP system is part of a districtwide strategy to serve the district’s immediate needs, and support future evolution, innovation, and growth. An ERP system manages critical business processes in departments including Human Resources, Payroll, Benefits, Budget, Finance, and Procurement and provides for employee self-service all within an integrated structure. Some examples of business processes include recruiting and hiring a new employee, issuing a paycheck, administering employee benefits, preparing a budget, procuring goods and services, paying vendors and managing vendor contracts. Academy District 20's existing ERP solution, Oracle eBusiness Suite, was purchased and implemented in 2000 and is approaching the end of support from Oracle. Since 2000, eBusiness Suite has been supplemented with custom applications developed and maintained in-house by the Information Technology department. Looking toward the system's end of life, district leaders recognized the marketplace for enterprise software is moving toward cloud-based solutions and away from software hosted and maintained on-site. A cloud-based approach provides enhanced sustainability and infrastructure capabilities.

Building Fund staff issued a Request for Proposals (RFP) for this project on Sept. 6, 2017, and received 14 responses. Proposals addressed the district's stated goals including:

Improve stewardship of public resources and service to district stakeholders including students, guardians, taxpayers, employees, job candidates and regulatory agencies.

Improve operational efficiency and effectiveness by eliminating manual processes, redundant data collection and reliance on stand-alone systems.

Modernize and standardize business processes to take advantage of best practices. Develop an integrated structure to promote the consistent interpretation and enforcement

of laws, policies and procedures. Supply more accurate and up-to-date information to the district’s decision makers with a

user-friendly system to ensure the best decisions for the district. Establish a long-term partnership with a vendor or vendors that provides a high-value

product, and works with the district as needs and capabilities evolve. The district's RFP evaluation team included three executive sponsors, 12 representatives of functional departments and a Building Fund project manager. The following table lists team members. Name Title Department

Tom Gregory Deputy Superintendent, Chief Financial Officer, Executive Sponsor

Fiscal Services

Dr. David Peak Assistant Superintendent for Human Resources, Executive Sponsor

Human Resources

Shelley Kooser Chief Information Officer, Executive Sponsor Information Technology

Rick Tanski Human Resources Director for Compensation and Benefits

Human Resources

Jackie Malee Compensation Specialist Human Resources

Tracy John Payroll Supervisor Payroll

Cindy Collins Payroll Specialist Payroll

Lavonne LaFleur

Benefits Specialist Benefits

Linda Warhoe Director of Budget and Planning Finance/Budget

Brian Cortez Accounting and Budget Analyst Building Fund

Greg Stephens District Contracts Officer Purchasing and Contracting

Jill Yellico Purchasing Supervisor Purchasing and Contracting

Kevin Cronk Director for IT Application and Data Services Information Technology

Steve Endicott Director for IT Support Services Information Technology

Dave Haehn Database Applications Developer Information Technology

Perry Swanson IT Project Manager Building Fund

Team members scored 10 of the proposals after an initial elimination of four due to excessive price or incomplete response. Most proposals were a joint effort between an ERP software vendor and an implementation consulting company. The selection process included examination of each vendor's technical capabilities and proposed implementation plan. Evaluation team members scored the proposals on 142 metrics and narrowed the field to three finalists. The finalist vendors made in-person, full-day presentations to the evaluation team during the week of December 4, 2017. Following the presentations, the team arrived at a consensus in favor of the joint proposal of the Workday ERP software solution and Sierra-Cedar as the implementation consultant. Rationale/Objective:

Adopting Workday is a strategic decision to invest in a unified, modern platform for managing critical business processes in a cloud based environment.

Workday positions the district for future growth and sustainability because administrative support will require less maintenance than that of competing solutions.

The evaluation team views Workday as a long-term solution that will satisfy district business needs into the foreseeable future.

Workday enhances productivity and decision-making by improving end-user access to accurate and real-time data.

Workday's implementation plan facilitates adoption of best practices. District leaders anticipate realizing significant efficiencies in every business department.

Workday's software-as-a-service model reduces the maintenance burden on the district. Following implementation, the business disruption from a future Workday upgrade would be minimal compared to the disruption required to upgrade other products.

Cost/Benefit Analysis: Evaluation team members concluded Workday provides the most complete solution and

the best value for the district's investment. Adopting Workday will enable the district to retire a number of custom and third-party

applications that manage functions such as recruiting, custom reporting, benefits enrollment, employee self-service and position control, to name a few

An ERP conversion and implementation would be required when Oracle eBusiness Suite reaches end of life in 2021. Implementing and licensing a new version of Oracle would cost at least as much as the proposed Workday solution while not providing the same user experience.

The district's current ERP support model requires significant resources. Workday's architecture gives the district flexibility to deploy its information technology resources to arenas that more directly support teaching and student achievement.

Workday's licensing and upgrade models create predictable costs that can be funded from the operating budget thereby avoiding future costs associated with mandatory or preferred software upgrades.

Alternatives:

The district could retain its existing ERP system along with the licensing costs and internal support structure. That solution would only remain possible until 2021, at which point an upgrade and a new implementation would be required at substantial cost.

Staff could re-start the procurement process and evaluate a different set of proposals. Submitted by: Perry Swanson, Building Fund IT Project Manager; Kris Garnhart, Director for Building Fund Procurement and Contracting; Shelley Kooser, Chief Information Officer; Tom Gregory, Deputy Superintendent/CFO; and Mark Hatchell, Superintendent. Date: January 11, 2018

D20 Building Fund

Project Updates

Winter 2017-18

January 18, 2018

LEGACY PEAK ELEMENTARY and

CENTER for MODERN LEARNING

New Construction at Wolf Ranch

Site

Plan

Progress at Wolf Ranch Site

Funds ExpendedConstruction

Completed

Scheduled

to Open

Legacy Peak ES

and 17-acre site

$8.23M of $26.71M

(30.8%)59.0%

as of 12/15/17July 2018

Center for

Modern Learning

$1.03M of $6.29M

(16.4%)

14.0%as of 12/15/17 October 2018

Off-Site

Development

$1.36M of $5.96M

(22.8%)55.0%

as of 12/15/17July 2018

CHINOOK TRAIL MIDDLE SCHOOL

New Construction

Site & Landscape Plan

Floor Plans

Lower Level

Upper Level

SCHOOL IN THE WOODS

Remodels & Additions / New Construction

Site Plan

Floor Plan

MAJOR REMODELS & ADDITIONS

Summer 2018

Air Academy High SchoolRemodel Building B & Library, Facilities Audit & Fairness Formula

LKA Partners

Douglass Valley Elementary Air Conditioning, Facilities Audit, Secured Entry & Fairness Formula

Schendt Engineering | Hall Architects

Liberty High School20 CR Addition, Auditorium, CTE, Expand Commons, FA & FF projects

Eidos Architects

Timberview Middle SchoolSecured Entry, Facilities Audit & Fairness Formula

Eidos Architects

Pine Creek High School10 Classroom Addition & Fairness Formula, including Gym

CRP Architects

Proposed options

Discovery Canyon Campus10 Classroom Addition, Expanded Parking & Fairness Formula

FBT Architects

Proposed options

5th floor

4th floor

The

Classical

Academy

Interior of the AuditoriumInterior of the Gymnasium

UPCOMING PROJECTS

Winter 2018 and Beyond

• Elementary controlled entrances (ten summer 2018)

• Larger projects: AAHS, DVES, LHS & TMS, PCHS, DCC.

Fairness Formula• Flooring

• Furniture replacement and fixtures

• Gym remodels

• Exterior improvements (artificial turf)

Remodels & Additions

Technology Infrastructure

Facilities Audit

The Classical Academy (TCA)• North Campus – Remodel and Additions

• Camera replacement upgrade

• Enterprise Resource Planning

• Document scanning

• Learning Management System

• Site improvements: ADA access and site drainage• Electrical and fire alarm upgrades• Boiler replacement

Thank you!

Please see www.asd20.org/bond for more information about the Bond.

If you have any questions about Bond projects, you can reach Henry Reitwiesner, the Executive Director for the Building Fund, at:

Phone: 719-234-1561

Email: henry.reitwiesner@asd20.org