COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Rob Sweeney, Interim Administrative Services Director
SUBJECT:Title
Approve Amendment to the Services Agreement with CherryRoad Technologies Inc. for the Purchase, Implementation and Support of additional Modules for the Oracle Fusion Enterprise Resource Planning (ERP) System (Rob Sweeney)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
Amend the Services Agreement with CherryRoad Technologies Inc. for the purchase, implementation and support of additional modules (Projects & Contracts and Benefits, Health & Safety and Discipline & Grievances) for the Oracle Fusion ERP system.
BACKGROUND:
The City currently has a Services Agreement with CherryRoad Technologies Inc. for an ERP system to replace the current Sungard HTE system. Implementation of the ERP system is currently underway and will go live January 1, 2019. This request is to purchase the Health & Safety module and to implement the Benefits, Discipline & Grievances and Projects & Contracts modules.
The cost to purchase and implement Benefits, Health & Safety and Discipline & Grievances is $275,000. The City already purchased the Projects & Contracts software module as part of the original contract, with an expectation to implement in a second phase. City Staff now desires to implement all applications during the initial phase of the project. The City can avoid $145,560 in implementation costs by implementing all modules in the first phase. The incremental cost to implement the Projects & Contracts module totals $154,440.
In summary;
Benefits $183,178
Health & Safety $ 54,356
Discipline & Grievances $ 37,466
Sub Total $275,000
Contract & Projects $154,440
Total $429,440
COMMUNITY IMPACT:
Improved ERP services will allow the City to continue to improve automation, simplify processes and provide more timely and complete financial reporting.
FISCAL IMPACT:
Funds are available in Fiscal Year 2017-18 and are budgeted for in Fiscal Year 2018-19 Project No. IT1502 using General, Irrigation and Drainage District and Wastewater Funds.
ATTACHMENTS:
Amendment to CherryRoad Technologies Inc. Services Agreement
SUGGESTED MOTION:Recommended Action
I move to approve the Amendment to the Services Agreement between Lake Havasu City and CherryRoad Technologies Inc.