HomeMy WebLinkAbout05. Review draft Position Paper to authorize the General Manager to execute a sole-source Professional Consulting Services Agreement with the Government Finance Officers Association with a cost ceiling of $139,925 for improvements to the District’s Enter 5m
Central Contra Costa Sanitary District
BOARD OF DIRECTORS
c)
POSITION PAPER ...........................
Board Meeting Date: JULY 612017
Subject: ADOPT RESOLUTION MAKING FINDINGS AND AUTHORIZING THE
GENERAL MANAGER TO EXECUTE A SOLE-SOURCE AGREEMENT
WITH THE GOVERNMENT FINANCE OFFICERS ASSOCIATION FOR
PROFESSIONAL CONSULTING SERVICES FOR IMPROVEMENTS TO
THE DISTRICT ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM,
DISTRICT PROJECT 8240
Submitted By: Initiating Dept./Div.:
John Huie, IT Manager Administration
Information Technology
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Phil Leiber, Director of Finance & Administration
Ann Sasaki, Deputy General Manager Kent Alm Roger S. Bailey
District Counsel General Manager
ISSUE: Board approval is requested to enter into a sole-source agreement with the
Government Finance Officers Association. Board authorization is also required for the
General Manager to execute an agreement in an amount greater than $100,000.
BACKGROUND: The SunGard HTE Enterprise Resource Planning (ERP) system has
been used by Central San since 1993. This system manages the business data and
processes for the District Human Resources, Procurement, Accounting, Billing and
related subsystems. Every area of District operations depends upon the ERP as a
foundational technology.
Replacement of the ERP system was identified as a task in the IT Master Plan
presented to the Board on January 29, 2015. However, upon further investigation it
was decided to implement targeted improvements to the current SunGard system to
extend the life further. During implementation of these improvements for the
Purchasing Division it was found that staff repeatedly ran into limitations of the system
that proved to be frustrating and disappointing. Because of this, staff has decided to
suspend the targeted improvements to the system and to revisit the possibility of
replacing the SunGard ERP sooner rather than later.
Replacing an ERP system requires extensive planning and must be carefully
considered to ensure that Central San has adequate staff resources, business
readiness, change management and executive and board level support to ensure a
high likelihood of successful implementation.
In order to assess business readiness, Central San will be contracting with the
Government Finance Officers Association (GFOA) to engage with District staff, analyze
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POSITION PAPER
Board Meeting Date: August 41 2010
Subject: ADOPT RESOLUTION MAKING FINDINGS AND AUTHORIZING THE
GENERAL MANAGER TO EXECUTE A SOLE-SOURCE AGREEMENT
WITH THE GOVERNMENT FINANCE OFFICERS ASSOCIATION FOR
PROFESSIONAL CONSULTING SERVICES FOR IMPROVEMENTS To
THE DISTRICT ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM,
DISTRICT PROJECT 8240
and document current business processes, look for areas to optimize those processes,
assess organizational readiness and, if the decision is made to proceed from that point,
FOA will prepare an RFP and assist with RFP response evaluations, vendor selection
and preparation for implementation. GFOA was selected for this work, as they are a
not-for-profit entity with a division that has extensive experience in assisting public
agencies with ERP replacement projects. GFOA has an established framework for
helping agencies evaluate their ERP needs and successfully manage the process of
documentation requirements, develop an RFP for vendors, and identify other readiness
factors for such a complex project. GFOA will also be assisting Central San document
business processes in connection with this undertaking.
ALTERNATIVESICONSIDERATIONS: The alternative is to continue using the
SunGard ERP system for District business needs and to implement further
improvements. This does have value but the improvements that staff has been able to
make have been incremental rather than transformative. staff also considered and
evaluated other firms that could assist with this evaluation process but determined that
GFOA had a unique combination of independence, experience and cost effectiveness
in this phase of the ERP replacement evaluation process.
FINANCIAL IMPACTS: The agreement will have a cost ceiling of $189,928. The
exploratory nature of the work requires that it be classified as operations and
maintenance rather than as a capital project. The work will be funded through the
favorable budget variance in the FY 2015-17 budget, and through other funding offsets
in FY 2017-18.
COMMITTEE RECOMMENDATION: The Finance committee reviewed this subject at
its meeting on June 29, 2017, and recommended adoption of the proposed resolution
and approval of the agreement.
RECOMMENDED BOARD ACTION: Adopt a resolution that:
Authorizes the General Manager to execute a sole-source Professional
Consulting Services Agreement with the Government Finance officers
Association, with a cost ceiling of $189,928 for improvements to the District's
ERP system.
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