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    15.    
City Council Regular
Meeting Date: 12/12/2017  

SUBJECT:
ENTERPRISE RESOURCE PLANNING (ERP) PROJECT MANAGEMENT SERVICES
RECOMMENDATION:
  1. Authorize execution of an agreement ending February 29, 2020, with one, one-year renewal option with SDI Presence, LLC (SDI) to provide ERP Project Management Services in an amount not to exceed $220,000.
     
  2. Authorize the City Manager to terminate the existing agreement with NexLevel Information Technology, Inc.
BACKGROUND/ANALYSIS:
On September 8, 2015, the City Council approved Agreement No. A2015-191 with NexLevel to provide support in the selection of an ERP system in the amount of $55,000.  Amendment No. 1 was approved by the City Manager on June 2, 2016, in the amount of $4,000 to amend the scope of work to include ERP contract negotiation services. Amendment No. 2 was approved by the City Council on December 13, 2016, in the amount of $341,000 for project management of the implementation of the ERP system.  On November 1, 2017, NexLevel was acquired by SDI.  NexLevel will operate as a division of SDI and continue with their current client engagements with no exception and with no interruption of services.

The ERP project management services began in January 2017.  Expenses through December 31, 2017, are anticipated to amount to $121,000; therefore, the proposed agreement with SDI is for the remaining contract amount of $220,000.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.; “CEQA”) and CEQA regulations (14 California Code Regulations §§15000, et seq.) because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a “project” that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
 
FISCAL IMPACT:
There is sufficient funding in the Information Technology capital budget to cover the fiscal year 2017-18 cost of the SDI agreement.  The Information Technology capital budget is funded through charges to various City funds including the General Fund.  The General Fund is responsible for approximately 56% of the fiscal year 2017-18 Information Technology adopted budget.  Future costs will be budgeted for in the appropriate fiscal year. 
REVIEWED BY OTHERS:
None.
Attachments
Agreement

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