HomeMy WebLinkAbout06.d. Authorize agreement with GFOA for improvements to ERP system, DP 8240 Central Contra Costa Sanitary District 6odo
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Dame: ,July 0, 2017
Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE-
SOURCE PROFESSIONAL CONSULTING AGREEMENT WITH THE
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) WITH
A COST CEILING OF $139,925 FOR IMPROVEMENTS TO THE
DISTRICT'S ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM,
DISTRICT PROJECT 8240
Submitted By: Initiating Dept./Div.:
John Huie - IT Manager Administration
Information Technology
REVIEWED AND RECOMMENDED FOR B DA RD ACTION:
Phil Leiber- Director Finance and Administration
Ann Sasaki - Deputy Genera! Manager
Roger S bailey
General Manager
ISSUE: Board approval is requested to enter into a sole-source agreement with the
Government Finance officers Association (GFOA). Additionally, Board authorization is
required for the General Manager to execute a professional consulting 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 Central San's human resources, procurement, accounting, billing and
related subsystems. Every area of Central San's operations depends upon the ERP as
a foundational technology.
Replacement of the ERP system was identified as a task in the 1T 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
further extend its life. During implementation of these improvements for the Purchasing
& Materials Services 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 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, staff proposes to contract with the GFOA to
engage with Central San staff, analyze and document current business processes, look
Page 1 of 2
POSITION PAPER
Board Meeting Date: July 6, 2017
Subject- AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE-SOURCE
AGREEMENT WITH THE GOVERNMENT FINANCE OFFICERS
ASSOCIATION (GFOA) FOR PROFESSIONAL CONSULTING WITH
A COST CEILING OF $139,925 FOR IMPROVEMENTS TO THE
DISTRICT'S ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM,
DISTRICT PROJECT 8240
for opportunities to optimize those processes, assess organizational readiness and, if
the decision is made to proceed from that point, prepare a Request for Proposal (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 in documenting its
business processes in connection with this undertaking.
ALTERNATIVES/CONSIDERATIONS: Continue using the SunGard ERP system for
Central San's business needs and implement further improvements. While this
alternative offers value, the improvements that staff has been able to make thus
_far 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$139,925. 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 Fiscal Year (FY) 2010-17 Budget and through other
funding offsets in FY 2017-18.
COMMITTEE RECOMMENDATION: The Finance Committee reviewed this subject at
its meeting on June 20, 2017 and recommended approval of the agreement. At that
time, the Committee asked to be provided a list of similar agencies with whom the
GFOA has recently done similar projects (see Attachment 1).
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute
a sole-source professional consulting agreement with the GFOA with a cost ceiling of
$139,925 for improvements to the District's ERP System, District Project 8240.
Attached Supporting Document.
I. List of Agencies with whom the GFOA has recently done similar projects
Page 2 of 2
ATTACHMENT 1
Similar Recent GFOA Projects: .
Cities: Counties:
City of Benicia. Alameda County
City of Berkeley* Los Angeles County
City of Beverly Hills Marin County
City of Burbank;Burbank Water and Monterey County
Power Riverside County
City of Hayward San Bernardino County*
City of Los Angeles San Luis Obispo County
City of Martinez San Mateo County
City of Moreno Valley Santa Clara County
City of Palo Alto Sonoma County
City of Napa Yolo County
City of Rancho Palos Verdes Yuba County
City of Redlands
City of Redondo Beach Special Districts:
City or Richmond AC Transit
City of Roseville* Encina Wastewater District
City of Sacramento First 5 of Los Angeles County
City and County of San Francisco Inland Empire Utilities Agency
City of San Luis Obispo* Los Angeles County Sanitation District*
City of Santa Ana Marin Municipal Water District
City of Santa Monica Metrolink
City of Stockton San Diego Unified Port District
San Joaquin Regional Transit District
Union Sanitary District
Santa Clara Valley Water District
Vallecitos Water District
*Current Projects Vista Irrigation District
Yuba County Water Agency