Discussion and possible action to approve a budget amendment in the amount of $1,632,000 for replacing current Enterprise Resource Planning information technology systems with Workday cloud services for fiscal year 2025.

In 2023, the City of Peoria approved funding to replace PeopleSoft with a new Enterprise Resource Planning (ERP) system to achieve significant improvements in functionality and integration with other City systems, and vastly reduce existing manual processes across City Departments. The use of PeopleSoft and ADP are prompting HR and Finance to acquire additional systems to address functionality that is currently lacking or maintain elaborate, time-consuming manual processes. A study was conducted by GFOA and resulted in a gap analysis and several recommendations for a Finance system replacement. City management then decided to also migrate HR and Payroll into the new system to improve interoperability.

A request for proposals was issued in April, resulting in seventeen responses. The Selection Committee consisted of members from Finance, Human Resources and Information Technology, who chose Workday as the product and Avaap as the implementor. The plan is to convert the Finance functionality to Workday by November 1, 2025, followed by HR and Payroll six months later.

In achieving this migration, the City will be eliminating the use of PeopleSoft, Bonfire, most of the ADP functionality, as well as other smaller peripheral systems, and avoid the acquisition of additional components for Leave and Safety functionality. Also avoided will be the mandatory upgrade of certain ADP components. Project activities include Organizational Change Management, system configuration, automation of business processes, data migration, creation of required reports and dashboards, training, and numerous integrations with other City systems.

The original budget allocated to the PeopleSoft replacement was $2,000,000 for the implementation and $500,000 annually for the software licenses. The actual investment required in fiscal year 2025 is $4,132,000 for a one-time implementation cost and for the annual licenses. The elimination of recurring costs of applications being replaced will offset most of the new license after the completion of the project.