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HomeMy WebLinkAbout05.a.5) Information Technology Master Plan (ITMP) Update, including update on improvements to Enterprise Resource Planning (ERP) software Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 21, 2016 Subject: INFORMATION TECHNOLOGY MASTER PLAN (ITMP) UPDATE Submitted By. Initiating Dept./Div.: David Heath Administration Director of Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION: ..,i u Roger S.Baiiay General Manager ISSUE: The Board accepted the District ITMP on December 18, 2014. Staff has been focusing on carrying out the recommendations of the ITMP and is providing an update on progress made to date. BACKGROUND: Staff presented an update on Enterprise Resource Planning (ERP) software to the Finance Committee on February 19th at the request of President Pilecki and the agenda item provided at that meeting is attached. The Committee requested the presentation be provided to the full Board and staff thought it would be informative to the Board to receive an update on progress made relative to implementing the District ITMP adopted by the Board in late 2014 in addition to progress achieved relative to ERP. ALTERNATIVES/CONSIDERATIONS: None FINANCIAL IMPACTS: The District Capital Improvement Program adopted by the Board provides the resources necessary to address the ITMP initiatives.. COMMITTEE RECOMMENDATION: The Finance Committee received an update on ERP software improvements on February 19, 2016 and recommended that it be presented to the full Board. RECOMMENDED BOARD ACTION: None at this time. A professional services contract with the District ERP software vendor SunGard to assist with ERP improvements will be forthcoming for Board consideration and approval. Attached Supporting Documents: 1. Finance Committee agenda item dated February 19, 2016. 2. PowerPoint Presentation Page 1 of 1 ATTACHMENT 1 Central Contra Costa Sanitary District February 19, 2016 TO: FINANCE COMMITTEE FROM: DAVID M. HEATH, DIRECTOR OF ADMINISTRATION 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 Count , 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 C:IUsersldandersonl4ppDataV-ocaAMicrosoftlWindowslTemporary Internet FileslContent OutlookVMWUMU1Finance Committee Memo re ERP.doc Page 3 November 15, 2013 SunGard's project accounting system and may require a change in business practices. • 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. C:IUsersldandersont4ppDatalLocallMicrosoMWindowslTemporary/ntemet FileslContent Outlook11M9F5ZMU1Finance Committee Memo re ERP,doc