HomeMy WebLinkAbout07. Authorize the General Manager to approve a two-year agreement with Emtec Consulting Services LLC (Emtec) for $612,000 for maintenance services and for enhanced functionality supporting the Enterprise Resource Planning (ERP) systemDCENTRALSAN
MEETING DATE: JULY20, 2023
BOARD OF DIRECTORS
POSITION PAPER
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Item 7.
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO APPROVE A TWO-YEAR
AGREEMENT WITH EMTEC CONSULTING SERVICES LLC (EMTEC) FOR
$612,000 FOR MAINTENANCE SERVICES AND FOR ENHANCED
FUNCTIONALITY SUPPORTING THE ENTERPRISE RESOURCE
PLANNING (ERP) SYSTEM
SUBMITTED BY: INITIATING DEPARTMENT:
HEATHER RAMAMURTHY MANAGEMENT ADMINISTRATION DEPARTMENT- IT
ANALYST
REVIEWED BY: DENNIS CHEBOTAREV, PROJECT MANAGER / BUSINESS ANALYST
CHARLES MALLORY, INFORMATION TECHNOLOGY MANAGER
PHILIP LEI BER, DEPUTY GENERAL MANAGER, ADMINISTRATION
Roger S. Bailey
General Manager
ISSUE
Board of Directors approval is requested for the General Manager to execute a professional consulting
services agreement over $100,000 and for the General Manager to establish a new capital project and
transfer funds over $200,000.
BACKGROUND
Central San entered into a Board -approved consulting agreement with Emtec on November 19, 2020, in
the amount of $400,000 to provide post -implementation support for Oracle Fusion ERP. Actual support
needs were higher than anticipated, and as a result, the following amendments were authorized:
March 2022: Post -implementation ERP support increase - $350,000
September 2022: Implementation of Enterprise Performance Management (EPM) capital
July 20, 2023 Regular Board Meeting Agenda Packet - Page 42 of 112
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budgeting project - $73,450
• May 2023: Support on several projects currently in process - $126,550
Staff seeks a new sole source contract agreement with Emtec covering ERP Maintenance and Capital
costs for the Oracle Fusion ERP software to replace the existing contract, which expires in December
2023. Authorization is requested to provide up to $612,000 for ongoing maintenance, optimizing existing
modules, and adding new functionality. Emtec is progressing on several enhancements and implementing
additional modules, such as the Capital Improvement Project (Cl P) budget management module.
Additional work is anticipated for the following:
• Financials: General Ledger, Accounts Payable, Accounts Receivable, Project Accounting, Contract,
Fixed Assets, Expenses, Procurement, and Inventory & Costing
• Human Capital Management (HCM): Payroll, Benefits, Core HCM, Enterprise Scheduler (ESS),
Time & Labor, Absences, Recruitment, Goals & Performance, Work Safety
• EPM Budget Management
• Integrations with Cityworks
• Continued improvement and optimization of the implemented Oracle Fusion ERP system
Work in the Financials area will include any revisions needed as a result of the pending Treasury transition
to bring the treasury functions in-house from the County.
ALTERNATIVES/CONSIDERATIONS
Central San could forgo the plan to approve a new contract with Emtec. This is not the recommended
alternative, as Emtec's consultants have specific knowledge of the software modules and the associated
configuration tailored to our business needs. Procuring alternative support for the ERP by engaging with a
new vendor, will require significant time and costs as it could take months to learn our business processes.
Other vendors are possible, but it is most efficient to use the vendor that implemented the system.
The need for managed services is expected to taper off towards the end of this contract as the ERP post -
implementation becomes more stabilized. Staff will be able to take on additional support activities as they
learn more about the Oracle Cloud ERP product, receive additional training, and as the count of service
tickets continues declining.
FINANCIAL IMPACTS
No changes to Central San's overall budgets are proposed. Funding for this contract was included in the Fiscal
Year (FY) 2023-24 adopted budget. The requested $312,000 for Managed Services funding is available within
the Capital budget for FY 2023-24 and the CIP. The $300,000 of requested funding for ongoing maintenance
and support will be addressed within the O&M budget. The funding allocation between Operations and
Maintenance (O&M) and Capital is based on the estimated split of the work between routine/maintenance and
work which is adding substantially new or enhanced functionality.
COMMITTEE RECOMMENDATION
The Administration Committee reviewed this matter at its July 11, 2023 meeting and recommended
approval.
RECOMMENDED BOARD ACTION
Authorize the General Manager to approve a two-year agreement with Emtec Consulting Services LLC
(Emtec) for $612,000 for maintenance services and for enhanced functionality supporting the Enterprise
Resource Planning (ERP) system.
July 20, 2023 Regular Board Meeting Agenda Packet - Page 43 of 112
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Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
GOAL SEVEN: Innovation and Agility
Strategy 1 - Leverage data analytics to become a more efficient utility
July 20, 2023 Regular Board Meeting Agenda Packet - Page 44 of 112