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Home My WebLink About17.a. Committee Minutes-Administration 01-14-2020 Page 1 of 15 Item 17.a. k�*k CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT February 20, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARY OF THE DISTRICT SUBJECT: JANUARY 14, 2020 -ADMINISTRATION COMMITTEE - CHAIR WILLIAMS AND PRESIDENT MCGILL Attached are minutes of the above Committee meeting. ATTACHMENTS: 1.ADMI N Committee Minutes 01-14-2020 2. Item 3.c. (Handout) ERP Implementation 3. Item 3.c. (Handout) Billing Worksheet 4. Item 3.c. (Handout) Oracle Permits Timeline February 20, 2020 Regular Board Meeting Agenda Packet- Page 112 of 161 Page 2 of 15 Arlai CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9,4553-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: MICHAEL R.MCGILL CENTRAL CONTRA COSTA President SANITARY DISTRICT TAD JPILECKI President Pro Tem ADMINISTRATION COMMITTEE PAUL CAUSEY JAMES A.NEJEDLY DAVID R. WILLIAMS MINUTES PHONE: (925)228-9500 FAX.- (925)372-0192 Tuesday, January 14, 2020 www.centr-alvan.org 8:30 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair David Williams Member Mike McGill Staff.- Roger S. Bailey, General Manager Katie Young, Secretary of the District Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration John Huie, Information Technology Manager Teji O'Malley, Human Resources Manager (left after Item 3.b.) Todd Smithey, Finance Administrator (left after Item 3.b.) Donna Anderson, Assistant to the Secretary of the District 1. Call Meeting to Order Chair Williams called the meeting to order at 8:37 a.m. 2. Public Comments None. 3. Agenda Items a. Receive information on the two vesting options available for retired employee health plans through CalPERS Mr. Bailey noted that the subject matter covered by this item and Item 3.b. came from recent meetings between individual Board Members and February 20, 2020 Regular Board Meeting Agenda Packet- Page 113 of 161 Page 3 of 15 Administration Committee Minutes January 14, 2020 Page 2 representatives of Local One. The Board Members also have begun meeting individually with representatives of the Management Support and Confidential Group (MS/CG) bargaining group. As topics arise from these meetings, they will be brought to the Administration Committee to provide further clarifying information when deemed appropriate. Ms. O'Malley said this first topic relates to the vesting options an agency has when it transitions to Ca/PERS health plans. She reviewed the contents of the memo included with the agenda material, noting that Central San adopted the PEMHCA (Public Employees Medical and Hospital Care Act) minimum during the last labor negotiations and did not choose any vesting option. However, Ca/PERS does allow for agencies to adopt their own schedule, which the District did by continuing the vesting in the District Tiers. Chair Williams asked if there is a sense that a significant number of employees do not understand vesting. Ms. O'Malley said she believes that was true initially but, thanks to holding employee and retiree workshops, there is now a broad understanding that Tier vesting benefits have remained unchanged. Mr. Bailey noted that Ca/PERS prescription coverage, particularly issues involving the use of generic versus non-generic prescriptions, appears to have been somewhat confusing for employees. Ms. O'Malley said that has been the primary issue with the transition to Ca1PERS, involving about 10-15 employees and retirees. Before the transition, if a problem occurred, Human Resources staff could assist the employee/retiree by contacting the provider directly. CaIPERS, however, requires retirees to contact them directly. Given the size of Ca1PERS, that can be a challenge at times. Member McGill commented that even though the benefits have remained unchanged, in some instances, the benefit level has improved. Ms. O'Malley agreed, stating that several retirees have been particularly pleased with the transition to CalPERS because it has health plans available worldwide. The District will reimburse retirees up to the Kaiser rate no matter where they live, which is a major improvement for retirees. She added that some retirees have achieved cost savings based on their selected plan. COMMITTEE ACTION: Received the information. b. Receive overview of pensionability of elements of compensation Mr. Bailey said that, based on Board Member meetings with the bargaining groups, there appears to have been a misconception that the Board determines which elements of compensation are pensionable. As February 20, 2020 Regular Board Meeting Agenda Packet- Page 114 of 161 Page 4 of 15 Administration Committee Minutes January 14, 2020 Page 3 made clear in Ms. O'Malley's memo included with the agenda material, the Contra Costa County Employees'Retirement Association (CCCERA) makes those decisions, not the Central San Board. Chair Williams noted that within the list of pensionable pay items for legacy employees (those hired before January 1, 2013), there appears to be room for some spiking. Ms. O'Malley agreed. She also noted that there are two pending lawsuits involving spiking items and straddling laws. Both have been fully briefed but have not been docketed so it is unknown when a final decision will be handed down. The bottom line is that things could change in either direction once the lawsuits conclude. Ms. O'Malley also noted that CCCERA can challenge the final average salary (FAS) of an employee if they think the FAS has artificially boosted their pensionable income. Mr. Smithey added that there is no formal appeal process with CCCERA decisions; the courts are the only remedy available to retirees. COMMITTEE ACTION: Received the information. C. Update on Enterprise Resource Planning (ERP) system implementation Mr. Huie said that the current outlook for the ERP system implementation is that the project will be delivered on time and within budget. He distributed three handouts (attached), the first of which gave an overview of the project timeline (except for the Permit module). He noted that the HCM (Human Capital Management, aka core human resources) module is scheduled to go live April 1 this year. On the chart, the CRP acronym means "Conference Room Prototype." The CRP stage is the first "hands on"opportunity to test basic features of the software and it is fairly generic. The CRP2 stage tests fully refined modules, closely resembling the UAT(User Acceptance Testing) stage, including new, more advanced features that need to be tested before going live. Mr. Huie said the new system for time cards is expected to go live on July 1, and Payroll on January 1, 2021. The Core Financial module (general ledger, accounts payable/receivable) is presently viewed as on track to go live on July 1, as is the ProcuremenvInventory module (purchasing and materials) and the Financial Projects module (accounting and capital projects). Mr. Leiber pointed out that the chart of accounts has undergone significant changes during the implementation process. A consultant was engaged to assist and Emtec Consulting Services also contributed. One advantage of the new chart of accounts is that it matches Central San's current February 20, 2020 Regular Board Meeting Agenda Packet- Page 115 of 161 Page 5 of 15 Administration Committee Minutes January 14, 2020 Page 4 organizational structure; the existing chart of accounts was based on prior organizational arrangements. In response to a question from Member McGill, it was noted that if the organizational structure were to change, there should be enough flexibility in the system for accommodations. Member McGill also asked if utilizing a different chart of accounts will make year-over-year comparisons difficult. Mr. Leiber acknowledged that such changes do make comparisons somewhat more challenging but that they can still be done through mapping. Regarding expense accounts, Mr. Leiber said they are now more clearly described. Mr. Huie added that staff will be able to sort the expenditures database in ways it never could previously and provide more granular reports. Mr. Leiber noted one example of this has been consulting costs. Currently, such costs are captured in numerous accounts across multiple divisions, making it very difficult to know if all have been located. The new system will make capturing those costs much easier. Mr. Huie then briefly reviewed the handouts showing (1) invoices billed to date and (2) the Oracle Permits Project (permit counter) Timeline. Regarding the invoices, he said the billings are milestone based so no payment is made until staff has signed off. All payments are being made to the implementer, Emtec, with whom staff has been very pleased. Mr. Huie said Emtec has been conservative regarding billing and both teams have enjoyed a good working relationship. In response to a question from Member McGill, it was noted that the 10% retention will not be released to Emtec until the very end of the project. Mr. Huie said Oracle, not Emtec, will be the implementer of the Permit Counter module because it is a brand-new Oracle product. Staff has been able to provide input to Oracle during the very early stages, and Oracle product developers have been receptive. That module is expected to go live in August of this year. Mr. Huie said the entire ERP project is proceeding as planned and is expected to be concluded in 2021. Staff noted that substantial work remains but thus far, the project is viewed as "on track". Member McGill requested that the Committee receive brief quarterly updates until the project concludes. COMMITTEE ACTION: Received the update. 4. Announcements a. Mr. Bailey said he is scheduled to meet with the Martinez City Manager soon. February 20, 2020 Regular Board Meeting Agenda Packet- Page 116 of 161 Page 6 of 15 Administration Committee Minutes January 14, 2020 Page 5 b. Member McGill said he recently attended the Bay Area Clean Water Agencies (BACW4) annual meeting and was impressed by how far the organization has come and the issues with which they are dealing. COMMITTEE ACTION: Received the announcements. 5. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list and provided input to staff. 6. Future Scheduled Meetings Tuesday, February 18, 2020 at 8:30 a.m. Tuesday, March 3, 2020 at 8:30 a.m. Tuesday, April 14, 2020 at 8:30 a.m. 7. Adjournment — at 9:42 a.m. February 20, 2020 Regular Board Meeting Agenda Packet- Page 117 of 161 Attachment 2 Item 3.c. (Handout) Attachment 1 GLOBAL ERP IMPLEMENTATION 2019 2020 2021 f oil GLOBAL DESIGN I I I 1 I 1 Global Design I I I I I I Chart of Account/Ledger Design •• • 1 I I I 1 HCM 9/23-HCM Launch I I 1 1 Core HCM LCRP1 cRPz PAT I 1 HCM OnBoarding LRP1 LCRP2 �LJAT MIi ' 1 HCM Workforce Safety I I I LRP-1 HCM Benefits CRP! HCM Goals&Performance I ---® 4 HCM Learning 11/1-Absence&T&L Launch I WCRP�'C z uAT HCM Absence Mgmt an RPz uAT HCM Time&Labor JCRP1 CRP2 UAT PAYROLL 1 I I Payroll kCRPI !CRP2 IUAT FINANCIALS 10/7-Fin/Projects/Proc/inv Launch Core Financials ERP1 EIRPz uAT ma I Procurement/Inventory ICRP1 CRP2 SAT Financial Projects 1;CRP1 [CRP2 JUAT BUDGETING PBCS(Budgeting) j' `� (*J Fiscal Year Start February 20, 2020 Regular Board Meeting Agenda Packet- Page 118 of 161 CORE HCM IMPLEMENTATION September October November December January February March April [PREPARE Project Infrastructure Build Curren Status Project Kick-off�I♦ 1 DISCOVER 1 1 _ Requirement Workshops • {DESIGN 1 1 Design-ADolication Design-RICE �� I =NSTRUCT I I Configure AoDlication �� 1 RICE-Workflows •' • I RICE-Data Conversion RICE-Reports I PrototvDe "• • I CRP1&Issue Resolution CRP2&Issue Resolution Go-Live Absence&,Time_*Labor 1 Decision VALIDATE 1 UAT&Issue Resolution mar Cutover Go/No-go Decision 1 Migrate Configuration I "•' • 1 Prod Data Migration 1 ' _Execute Deployment 1 I LIVE Post Go-Live Support I Post Production Support February 20, 2020 Regular Board Meeting Agenda Packet- Page 119 of 161 ERP FINANCIALS IMPLEMENTATION October November December January February March April May June r■iy AUW P1iE1rARE Current Status t 1 Project Infrastructure Build I DISCOVER Project Kick-offMM I I � I Requirement Workshops I DESIGN I Design-AoDlication • I I I Design-RICE ■ I I I I C�ONSTRUCi I I Configure Application •®"''' I I RICE-Integrations ■ • I RICE-Data Conversion I I RICE-Reoorts DEVELOPMENT I PrototvDe •�. •-� I I 1 CRP1&Issue Resolution CRP2&Issue Resolution I � 1'•�1 I 1 VALIDATE I Go-Live t 1 I UAT&Issue Resolution Cutover Go/No-eo Decision I Concurrent with Time& , DEPLOY Labor and Absences _- LIVE Mierate Configuration ''•■ • Production Data Migration I Concurrent with Time& ''•■ ■' • Execute Deployment I Labor and Absences ■ • [Post Go-Live Support Post Production Support I February 20, 2020 Regular Board Meeting Agenda Packet- Page 120 of 161 TIME&LABOR+ABSENCES IMPLEMENTATION October November December January February March April May June Iruty Aug" urreMIJ,ni tatus ®®®M®MM®®®®M®M®®MM=®=® �RPPARE I I Project Infrastructure Build �� I Project Kick-off I I 1 DISCOVER � I Requirement Workshops • I I I _DESIGN � Design-Application • !♦ I I I Design-RICE 1 rrCONSTRUCT I I Configure Apolication � r• I RICE-Data Conversion I I RICE-Reoorts •' •' . I CRP1&Issue Resolution I ��''•�I CRP2&Issue Resolution I I VALIDATE I Concurrent with Go-Live UAT&Issue Resolution i ERP CRP �t•�,�•�! Cutover Go/No-go Decision I I D PL Y I Concurrent with I ERP UAT LIVE Migrate Configuration I 11311'•r • Production Data Migration I "• •' • Execute Deployment Post Go-Live Support I Post Production Support I February 20, 2020 Regular Board Meeting Agenda Packet- Page 121 of 161 Attachment 3 Item 3.c. (Handout) Attachment 2 Central Contra Costa Sanitary District Billing Worksheet Invoices Billed to Date: Invoice NumberInvoice Invoice Date Net Invoice Amount Tota! Invoice Retainage 9155323 9/09/19 $105,950 $11,772 $ 117,722 9155724 11/06/19 $105,950 $11,772 $ 117,722 9155924 12/06/19 $52,975 $5,886 $ 58,861 9155925 12/06/19 $52,975 $5,886 $ 58,861 9155929 12/06/19 $52,975 $5p8861 $ 58,861 $ 370,825 $ 41,202 $ 412,027 February 20, 2020 Regular Board Meeting Agenda Packet- Page 122 of 161 Central Contra Costa Sanitary District Billing Worksheet Total Total Not Total Billing Retainage Invoice SUMMARY $ 41,202 $ 370,825 $ 412,027 q Milestone Modules Estimated sign+ Milestone Retainage Invoice Cumulative Cumulative Cumulative off Amount Amount Amount Retainage Net Billing Total Billing Project Planning Kick Off P1, Global 1 Global Design Planning Complete Design 9/06/19 $ 117,722 $ 11,772 $ 105,950 $ 11,772 $ 105,950 $ 117,722 Planning Activities P2-P5 Core 2 HCM/Onboarding Core HCM 9/30/19 $117,722 $11,772 $105,950 $23,544 $211,900 $235,444 Global Design Complete/Discovery 3 Activities DI1-DI4 Core HCM/Onboarding Core HCM 11/20/19 $58,861 $5,886 $52,975 $29,430 $264,875 $294,305 Design Activities DE1-DE4 Core 4 HCM/Onboarding Core HCM 11/20/19 $58,861 $5,886 $52,975 $35,316 $317,850 $353,166 Construction Activities CR1-CR7 Core HCM/Onboarding, Planning Activities 131- 7 P5 ERP Core HCM 11/20/19 $58,861 $5,8861 $52,975 $41,202 $370,825 $412,027 Construction Activities CR8-CR9 Core HCM/Onboarding, Discovery Activities DI1 Core HCM, 6 D14 ERP ERP 12/23/2019 $117,722 $11,772 $105,950 Validate Activities V1-V4 Core 7 HCM/Onboarding Core HCM 12/10/2019 $58,861 $5,886 .$52,975 Deploy Activities DP1-DP6 Core HCM/Onboarding,Design Activities DE1- Core HCM, 8 DE4 ERP ERP 4/1/2020 $58,861 $5,886 $52,975 OTL, 9 Planning Activities P1-P5 OTL Absences 12/20/19 $58,861 $5,886 $52,975 10a ERP,Goals $235,444 $23,544 $211,900 February 20, 2020 Regular Board Meeting Agenda Packet- Page 123 of 161 Deploy Activities DP7-DP8, Planning Activities P1-P5 Performance and Goals, Discovery Activities DI1-DI4/Design Activities DE1-DE4 OTL,Construction 10b Activities CRI-CR7 ERP ERP,Goals $117,722 $11,772 $105,950 Discovery Activities D11-D14/Design Activities DE1-DE4 Performance and 11 Goals Goals $58,861 $5,886 $52,975 Construction Activities CR1-CR9 Performance and Goals,Construction 12 Activities CRI-CR7 OTL Goals,OTL $58,861 $5,886 $52,975 Validate Activities V1-V4 Performance and Goals,Construction Activities CR8 OTL,Construction Activities CR8 ERP, Deployment Activities DPI-DP6 13 Performance and Goals ERP,Goals $117,722 $11,772 $105,950 Deployment Activities DP7-DP8 Performance and Goals, Benefits Goals, Activities P1-P5,Validate Activities V1-V4 Benefits, 14 OTL,Validate Activities V1-V4 ERP ERP,OTL $117,722 $11,772 $105,950 Planning Activities Pl-P5 Payroll, Discovery Activities D11-D14/Design Payroll, 15 Activities DE1-DE4 Benefits Benefits $58,861 $5,886 $52,975 Discovery Activities D11-D14 Payroll, Payroll, 16 Construction Activities CR1-CR8 Benefits Benefits $117,722 $11,772 $105,950 Deploy Activities DP1-DP6 OTL/ERP, Design Activities DE1-DE4 Payroll, Payroll, 17 Validate Activities 1-4 Benefits Benefits $188,355 $18,836 $169,519 Deploy Activities DP1-DP6 Benefits, Benefits, 18 Planning Activities P1-P5 PBCS PBCS $58,861 $5,886 $52,975 Deploy Activities DP7-DP8 ERP/OTL/Benefits,Construction Activities CR1-CR7 Payroll,Planning Activities P1-P5 Benefits, Absence Mgt,Discovery Activities D11-D14 Payroll,Abse 19 PBCS nce $176,583 $17,658 $158,925 Discovery Activities Dll-DI4/Design Activities DEI-DE4 Absence Mgt,Design 20 Activities DEI-DE4 PBCS Absences $58,861 $5,886 $52,975 February 20, 2020 Regular Board Meeting Agenda Packet- Page 124 of 161 Construction Activities CR1-CR7 Absence Mgt,Construction Activities CR8 Payroll„ Absences,Pa 21 Construction Activities CR1-CR7 PBCS yroll,PBCS $117,722 $11,772 $105,950 Construction Activities CR8 Absence Mgt, Absences, 22 Construction Activities CR8 PBCS PBCS $58,861 $5,886 $52,975 Validate Activities Vi-V4 Payroll,Validate Activities V1-V4 Absence Mgt,Validate Payroll, 23 Activities V1-V4 PBCS Absences $58,861 $5,886 $52,975 Deploy Activities DPI-DP6 Payroll,Deploy Activities DPI-DP6 Absence Mgt,Deploy Payroll, 24 Activities DP1-DP6 PBCS Absences $58,861 $5,886 $52,975 Construction Activities Planning Activities P1-P4 Workforce, Discovery Activities D11- D14 Workforce, Design Activities DE1-DE4 Workforce,Construction Activities CR1- CR8 Workforce,Validate Activities V1-V4 Workforce, Deploy Activities DP1-DP6 25 Workforce Workforce $58,861 $5,886 $52,975 Payroll, Deploy Activities DP7-DP8 Workforce, 26 Payroll/Workforce/Absence Mgt Absences $47,089 $4,709 $42,380 February 20, 2020 Regular Board Meeting Agenda Packet- Page 125 of 161 Attachment 4 Item 3.c. (Handout) Attachment 3 oracle Permits ProjectTimeline Month s Month 2 Month 3 Month y Month 5 Month 6 Month 7 Month 8 Month g Month so Month= Oct Nov Dec Jan Feb Mar Apr May June July Aug REFINE 1�� • Project Management Sprint 3 Sprint 4 4�11 Sprint 5 Final . .. . . Training Integration .. .Conversion Current Go Live Status February 20, 2020 Regular Board Meeting Agenda Packet- Page 126 of 161