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HomeMy WebLinkAbout06. Update on Enterprise Resource Planning (ERP) Softwaretoo Central Contra Costa Sanitary District February 19, 2016 TO: FINANCE COMMITTEE FROM: DAVID M. HEATH, DIRECTOR OF ADMINISTRATION N4 SUBJECT: UPDATE ON ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE In accordance with the Information Technology Master Plan (ITMP) adopted by the Board, Staff has been in the process of performing an evaluation of the District's current ERP system, SunGard Naviline, since spring of last year. The ITMP called for the replacement of the current system but Staff ascertained that SunGard continues to support and develop the system currently deployed by the District and also utilized by the California agencies listed below: Bakersfield, CA Mariposa County, CA Banning, CA Merced, CA Berkeley, CA Modesto, CA Camarillo, CA Needles, CA Central Contra Costa Sanitary District, CA Novato, CA Chino Hills, CA Oakdale, CA Coachella Valley Water District, CA Oceanside, CA Cucamonga Valley Water District, CA Oxnard, CA Davis, CA Palm Desert, CA Dinuba, CA Placer County Water Agency, CA Elk Grove, CA Placerville, CA Encinitas, CA Port Hueneme, CA Folsom, CA Rancho Palos Verdes, CA Foster City, CA Rid ecrest, CA Fresno, CA San Bernardino Municipal Water Dept., CA Galt, CA San Jacinto, CA Healdsbur , CA San Ramon, CA Hercules, CA Santa Margarita Water District, CA Huntington Park, CA Stockton, CA Imperial Beach, CA Sunnyvale, CA Indio, CA Thousand Oaks, CA Indio Water Authority, CA Vallejo, CA Kin sbur , CA Vallejo Sanitation & Flood Control District Lake County, CA West Valley Water District, CA Lake Elsinore, CA Yuba County, CA La Verne, CA Page 2 November 15, 2013 Staff has concluded that the system is currently being underutilized by the District and has identified several opportunities for improvement before making a decision to replace the software at some point in the future. The cost of replacement was estimated to be in excess of $2 million and the improvements being pursued will cost approximately $200,000. The following areas of opportunity have been identified: • The District updated to the current release of SunGard Naviline last fall as the release being utilized was several releases prior and many improvements were added to the system since last updated by the District. Staff has evaluated automated timekeeping and attendance systems by both ADP and Executime and has decided that the latter would be the best and most cost effective fit for the District. We are currently in discussions with both SunGard and Executime regarding implementation of the system in the coming months. • SunGard has developed a Window's based desktop system called Naviline Edge which the District has procured and which will ultimately replace any `green screens' being used by District staff. Staff has ordered and installed latest version of Cognos which is the primary tool used to develop reports from the SunGard Naviline database. Staff is in the process of scheduling a week long training process for District staff users. The latest release is several generations ahead of the current release being utilized by District staff and will make it much easier to develop reports and mine data from the system. Improvements to the Human Resources component of the system are underway including procurement of employee self-service functionality and an Affordable Care Act compliance solution. A number of other areas of improvement have been identified as well, e.g. FMLA tracking, automation of personnel action forms, email notification and staff is working on finalizing a contract with SunGard to aid in automating the processes identified. • In the area of procurement processing staff is contracting with SunGard to assist with implementing electronic implementing electronic work flow whereby electronic attachments and approvals can be utilized. Staff is also exploring acquiring the automated purchase card module of the SunGard system as well. Staff is also evaluating the implementation of the California Uniform Construction Cost Accounting Act to raise the limit of formal bidding for District Projects from $15,000 to $175,000. This will require an examination of how we currently utilize SunGard's project accounting system and may require a change in business practices. Page 3 November 15, 2013 • Relative to disbursements Staff is working on providing electronic fund transfer payments to vendors and for expense reimbursements to employees. Relative to the building permits, some of the areas where opportunities for improvement have been identified include online submittal of permit applications, improved access to permit information for contractors and citizens and the use of mobile technology for performing field inspections. SunGard staff will be on-site working with staff to review the current permit process, provide training to enhance plan review tracking and assist with data base file management and clean-up. • Opportunities for improvement have also been identified in better utilizing the customer billing and information system and staff is contracting with SunGard to assist with improving the system configuration which will include an in-depth review of the current billing process to identify areas for improvement and enhancement. • Staff is also in the process of examining the modifications to the SunGard system, particularly as it relates to project accounting, to enable the District to utilize the encumbrance accounting functionality of the system to provide for better internal controls. Staff believes that the aforementioned improvements will significantly improve District business operations and increase staff productivity. Providing for replacement of the current ERP would require a significant staff time commitment over a two to three year period stretch of time which would preclude staff from pursuing other initiatives identified as priorities by the District Board of Directors presently. Once the current improvements have been implemented staff will be able to better measure the gap between the District's current ERP system and newer products available in the market place. Staff is also planning to issue an RFP in the coming months to engage in business process mapping and reengineering to identify weaknesses and opportunities for improvement and automation in the District's current business processes. The findings and recommendations of this study will provide clarity and direction relative to additional opportunities to streamline and automate business processes and improve the efficiency and productivity of District staff and provide the Board of Directors with the information needed to make fully informed decisions. This will also aid staff in measuring the potential return on investment which could be realized by replacing the current ERP system utilized to its fullest extent. Attached Suvoortinq Document(s): 1. ERP Software Schedule ATTACHMENT 1 UPDATE ON ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE — Feb 10, 2016 1 Sungard upgrade The District updated to the current release of Complete Complete Complete Complete SunGard Naviline last fall as the release being utilized was several releases prior and many improvements were added to the system since last updated by the District. 2 Timekeeping Staff has evaluated automated timekeeping and March 2016 April 2016 Dev Business Per vendor full attendance systems by both ADP and Executime rules implementation and has decided that the latter would be the best 12 months. and most cost effective fit for the District. We are Pilot currently in discussions with both SunGard and Phased in by Executime regarding implementation of the Training department. system in the coming months. Add Fully departments operational April 2017 3 Naviline Edge SunGard has developed a Window's based Complete February Permits First April 2016 desktop system called Naviline Edge which the 2016 District has procured and which will ultimately Add replace any 'green screens' being used by District departments staff. 4 Cognos Report Staff has ordered and installed latest version of Complete January 2016 Training April 2016 with Upgrade Cognos which is the primary tool used to develop ongoing reports from the SunGard Naviline database. Staff Report needs refinements is in the process of scheduling a week long assessment training process for District staff users. The latest release is several generations ahead of the Develop or current release being utilized by District staff and have will make it much easier to develop reports and developed mine data from the system. 5 HR Improvements to the Human Resources February ACA ACA Filed TBD Improvements component of the system are underway including Complete procurement of employee self-service ACA in Others as functionality and an Affordable Care Act progress More items planned compliance solution. A number of other areas of to come improvement have been identified as well, e.g. FMLA tracking, automation of personnel action forms, email notification and staff is working on finalizing a contract with SunGard to aid in automating the processes identified. 6 Procurement In the area of procurement processing staff is February Multiple TBD Improvements contracting with SunGard to assist with items implementing electronic implementing electronic work flow whereby electronic attachments and approvals can be utilized. Staff is also exploring acquiring the automated purchase card module of the SunGard system as well. 7 Uniform Staff is also evaluating the implementation of the July 2016 N/A TBD Construction California Uniform Construction Cost Accounting Cost Accounting Act to raise the limit of formal bidding for District Projects from $15,000 to $175,000. This will require an examination of how we currently utilize SunGard's project accounting system and may require a change in business practices. 8 Disbursements Relative to disbursements Staff is working on Roll into TBD improvements providing electronic fund transfer payments to Purchasing vendors and for expense reimbursements to study? employees. 9 Building Permit Relative to the building permits, some of the February Improvements areas where opportunities for improvement have 2016 been identified include online submittal of permit applications, improved access to permit information for contractors and citizens and the use of mobile technology for performing field inspections. SunGard staff will be on-site working with staff to review the current permit process, provide training to enhance plan review tracking and assist with database file management and clean-up. 10 Customer billing Opportunities for improvement have also been February improvements identified in better utilizing the customer billing 2016 and information system and staff is contracting with SunGard to assist with improving the system configuration which will include an in-depth review of the current billing process to identify areas for improvement and enhancement. 11 Capital Projects Staff is also in the process of examining the February improvements modifications to the SunGard system, particularly 2016 as it relates to capital project accounting, to enable the District to utilize the encumbrance accounting functionality of the system to provide for better internal controls. fim N/A I I TBD N/A I I TBD