Enterprise Resource Program Update and Decision Point M.L. Norton – General Manager – Centralia City Light August 11, 2015

Background EDEN Financial and Accounting system purchased/upgraded in 2002; INCODE Customer Information system purchased in 2005; the two major legs of the present Enterprise Resource Program (ERP) solution. Tyler indicated in a letter to its customers on June 6, 2013 that it is “no longer actively selling EDEN into the market”. In addition, Tyler does not plan to invest in a re-write of the software and will not change or update the software in the future. Decision made in 2013 to pursue a replacement of Eden/Incode with one overall solution for the City, if possible. Beginning in late 2013 and continuing into late 2014, with the aid of an ERP consultant, demonstrations and research were conducted to come up with a preferred solution. August 11, 2015 Enterprise Resource Program2

Summary I – November 2014 NISC supports electric utility solutions including: GIS, mobile mapping, staking, customer information, inventory, purchase orders, and work orders. Springbrook supports City fund accounting, payroll, accounts payable, licensing, and HR requirements. The mobile mapping product from NISC will enhance line crew safety. NISC will provide an improved staking interface with inventory and work orders. This will provide an enhanced ability to track capital projects and customer line extensions. NISC will provide a user-friendly, enhanced Customer Information System package including a wider deployment of customer pre-pay. Both NISC (City Light) and Springbrook (City Finance) are expected to greatly improve employee efficiency and work satisfaction. November 25, 2014 Enterprise Resource Program3

Summary II – August 2015 March 10-11, 2015 – City Light, Public Works, NISC and Springbrook personnel developed a chart of responsibilities for each of the two programs. Following that meeting around the April-May timeframe, Public Works re- examined their use of Lucity and decided that Lucity could meet their needs better than either NISC or Springbrook. Public Works decided to stay with Lucity. City Light had considered the use of Lucity, but it did not adequately meet the needs of an electric utility. During this process City Light pursued an interim mobile mapping solution and succeeded in providing the line crews a temporary mobile solution. It supplied important data about the distribution and transmission systems, all of the construction specifications and could be used to correct the data. August 11, 2015 Enterprise Resource Program4

Summary II – August 2015 (cont’d) This meant that there would need to be ERP solutions from three separate companies; two new ones (NISC and Springbrook) and one existing (Lucity) operating at the City at the same time. The prices of the implementation of NISC and Springbrook were provided in June 2015 and each amounted to approximately $300,000; or approximately $600,000 total. Throughout the investigation and research into this ERP solution change, it was always strongly recommended by the ERP consultant that the implementation of the new financial solution must be done first, ahead of the full NISC implementation by City Light. August 11, 2015 Enterprise Resource Program5

Summary II – August 2015 (cont’d) City Finance has decided to pursue implementation of the Springbrook solution in City Light has decided to implement parts of the NISC solution to support City Finance at a cost expected to be approximately $200,000, carried over from the 2015 Budget. If the decision is made not to use City General fund reserves to pay for the implementation of Springbrook and thus not to hire an FTE/consultant to support this implementation, then City Light will revise its draft 2016 Budget and include implementation of NISC, linking it to Eden. It is likely that the unused portion of the remaining $300, Budget item will be carried over to meet the majority of this requirement. August 11, 2015 Enterprise Resource Program6