HomeMy WebLinkAbout07. Authorize the General Manager to approve a one year extension to the EMTEC Consulting Services LLC (EMTEC) agreement and approved an amendment to the contract not to exceed $700,000 for the Enterprise Resource Plannng (ERP) SystemPage 1 of 3
Item 7.
O��ENTRAL
MEETING DATE: OCTOBER 17, 2024
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: 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
SUBMITTED BY: INITIATING DEPARTMENT:
HEATHER RAMAMURTHY MANAGEMENT ADMINISTRATION DEPARTMENT- IT
ANALYST
REVIEWED BY:
Roger S. Bailey
General Manager
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
have been higher than anticipated, and as a result, the following amendments were previously authorized:
October 17, 2024 Regular Board Meeting Agenda Packet - Page 87 of 209
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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
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 (a new user interface being rolled
out by Oracle), integration with upcoming construction management system (ProCore), 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 inefficient and
costly at this time, 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 (Cl P) budget management. Additional work includes the following:
• In -House Treasury Cash Management Module
• EPM for Capital Optimization
• Oracle "Redwood" (version 24) user interface 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. Emtec was recently
purchased, and is now part of the IT firm "Apps Associates".
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
Board approval.
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.
October 17, 2024 Regular Board Meeting Agenda Packet - Page 88 of 209
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Strategic Plan Tie -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 17, 2024 Regular Board Meeting Agenda Packet - Page 89 of 209