Title
Software Reimplementation for Financial Management and Customer Information Systems (B)
Staff recommends transitioning the Financial Management System (FMIS) and Customer Care System (CCS) to the current product version.
Explanation
On August 22, 2005, the City Commission authorized GRU to replace its legacy customer billing system (CBIS) with an SAP customer care system (CCS) by conducting a competitive bidding process. The change was necessary due to the aging and increasingly difficult to maintain legacy system. On November 26, 2007 the City Commission authorized the replacement of the legacy financial management information system (FMIS) began and also resulted in an SAP solution. Today, GRU uses SAP for the CCS and FMIS as a primary means of tracking customer information, billing customers, managing the daily financials and reporting needs. Because of the staggered timeframe of when the two systems were installed, each system operates on different and distinct platforms.
The CCS, implemented in 2007, handles the daily operations necessary to input customer information, provide billing, post customer payments, track meter inventory and track and record utility usage. Since the initial implementation, no major upgrades or enhancements have taken place. The FMIS handles the daily financial activities of the utility including accounting, general ledger, assets, purchasing and inventory control. This system was implemented in 2009 and has not had any major enhancements.
Both systems are critical to managing the day to day operations and financial reporting/tracking requirements for GRU. To maintain service level expectations for our customers, these systems require an upgrade in order for the software systems to remain viable and sustainable.
This is a multi-year, multi-system project and as such, it is imperative to integrate all the required components over the next three years. The total project is estimated to cost $14 million with $6 million budgeted in capital for FY15. Staff will provide the City Commission with an update on the project and request budget approval for $4 million in FYs 16 and 17.
Staff will work directly with the software provider as opposed to a third party implementer for business and technology consulting and training services which will provide GRU staff direct knowledge transfer from SAP. While other software consultants can perform technology consulting services, staff believes it is in the best interest of GRU to obtain these services directly from SAP America, Inc., a specified source for licensed SAP software.
Fiscal Note
Funds for the initial phases of this project are available in the FY 2015 budget and will be requested in FY 16 and 17 budgets, subject to final appropriation of funds.
Recommendation:
The City Commission:
1) hear a presentation from staff on the critical business nature of the SAP Enterprise Management System and the 2-3 year implementation plan to upgrade the system;
2) review the SAP master services software license agreement and proposed scope terms for the CCS assessment and planning project, the FMIS detailed design project and the strategy and technical design for the SAP hardware;
3) authorize the Interim General Manager, or her designee, to execute and deliver such necessary contract amendments to the master services software license agreement with SAP, subject to the approval of the City Attorney as to form and legality;
4) authorize the Interim General Manager, or her designee, to negotiate a contract amendment to the master services software license agreement with SAP as a specified source for FMIS implementation services; and
5) authorize the Interim General Manager, or her designee, to execute such other contracts and/or documents as may be necessary or desirable to proceed with the transaction authorized above, subject to the approval of the City Attorney as to form and legality, and to take such other actions as may be necessary or advisable to proceed with such transaction in accordance with this City Commission authorization not to exceed the authorized $6 million budget.