HomeMy WebLinkAbout03.e. Authorizing General Manager to approve a one year extension to the EMTEC Consulting Services LLC agreement and approve amendment to contract not to exceed $700,000 to enhance functionality supporting ERP systemPage 1 of 2
Item 3.e.
DCENTRALSAN
MEETING DATE: OCTOBER 1, 2024
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER AUTHORIZING THE GENERAL MANAGER
TO APPROVE A ONE YEAR EXTENSION TO THE EMTEC CONSULTING
SERVICES LLC (EMTEC) AGREEMENT, AND APPROVE AN AMENDMENT TO
THE CONTRACT WITH EMTEC NOT TO EXCEED $700,000 TO ENHANCE
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
KEVIN MIZUNO, FINANCE MANAGER
PHILIP R. LEIBER, DEPUTYGM-ADMINISTRATION
ISSUE
Board authorization is required for the General Manager to execute a professional consulting services
agreement over $100,000. Board authorization is also required for the General Manager to establish a new
capital project and transfer funds over $200,000.
BACKGROUND
Central San has partnered with Emtec Consulting Services LLC (Emtec) for both the initial Oracle Cloud
Fusion ERP implementation, and with a subsequent board approved consulting agreement on November
19, 2020, in the amount of $400,000 to provide post -go -live support for the ERP. Actual support needs
were higher than anticipated, and as a result, the following amendments were previously authorized:
1. March 2022 for post -go -live ERP support - $350,000
2. September 2022, to implement EPM capital budgeting project - $73,450
3. May 2023 to support several currently process projects (EPM, Treasury, Contracts Management) -
$126,550
4. July 2023 new agreement to approve $612k for ongoing maintenance and enhancements
October 1, 2024 Regular ADM IN Committee Meeting Agenda Packet - Page 80 of 182
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Staff seeks to amend the agreement with Emtec to cover an additional year of maintenance and capital
costs for the ERP software. Authorization is requested to provide up to $700,000 to optimize existing
modules and add functionality. Identified project needs include the pending treasury transition to bring the
banking & investment functions in-house from the County, optimization of the Enterprise Performance
Management (EPM) for capital budgeting, the Redwood Oracle upgrade, integration with upcoming
construction management system, and more.
Emtec's consultants have specific knowledge of the software modules, and the associated configuration
tailored to our business needs. It is important to continue working with them on project enhancements for
business efficiency and cost effectiveness. Bringing a new vendor up to speed would be cost -prohibitive
as it could take six months without any real benefit. Emtec is progressing on several enhancements and
implementing additional modules, such as Procurement contracts and Capital Improvement Project (CI P)
budget management. Additional work includes the following:
• In -House Treasury Cash Management Module
• EPM for Capital Optimization
• Redwood 24 upgrade supporting Procurement and Human Capital Management (HCM)
• Oracle integrations with Construction Management System (ProCore)
The amendment will enable the continued optimization of the Oracle ERP System, used by business units
throughout Central San, and improving financial reporting and tracking capabilities.
ALTERNATIVES/CONSIDERATIONS
The alternative is to not approve the amendment and to reschedule dependent projects to a later date.
This is not recommended given the high priority of the scheduled work projects noted above.
FINANCIAL IMPACTS
No changes to Central San's overall budgets are proposed. Funding for this amendment was included in
the Fiscal Year 2024-25 adopted Capital budget (District Project 100063-IT Development).
COMMITTEE RECOMMENDATION
The Administration Committee, reviewed this item at its October 1, 2024 meeting and recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to approve a one year extension to the Emtec Consulting Services LLC
(Emtec) agreement, and approve an amendment to the contract with Emtec not to exceed $700,000 to enhance
functionality supporting the Enterprise Resource Planning (ERP) system.
Strategic Plan re -In
GOAL ONE: Customer and Community
Strategy 1— Deliver high -quality customer service
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
GOAL SEVEN: Innovation and Agility
Strategy 2 - Implement organization -wide optimization
October 1, 2024 Regular ADM IN Committee Meeting Agenda Packet - Page 81 of 182