Label
DPU012825SAPAPPLICATIONMAINTENANCESUPPORT
Utility Administration/ICT
Cindy Geronimo/Anne Bennett/Lisa Miller
Revised
Title
Authorizing the Mayor to extend the existing SAP Application Maintenance Support (AMS) contract for both the Finance ERP and Department of Public Utilities S4HANA SAP systems for a period not to exceed two years with an option to renew for an additional two years; authorizing an annual expenditure not to exceed $180,000 from the General Fund for ERP AMS services; authorizing an annual expenditure not to exceed $428,500 from the Utility Administration Fund for DPU S4HANA AMS services; waiving the competitive bidding requirements of TMC Chapter 187; declaring an emergency.
Body
SUMMARY & BACKGROUND:
Throughout 2024 DPU implemented several new systems related to SAP utility billing. At the same time, Finance continues to leverage SAP for core financial systems. Support services for these systems are consolidated through the current vendor, Deloitte Consulting LLP.
Maintaining all SAP Financial systems with one vendor allows for efficient use of resources across both departments and ensures consistent application security, maintenance and development.
Continuing to partner with Deloitte allows the city to save on transition costs, training time, and loss of efficiency during ramp up of onboarding a new vendor. In addition, Deloitte has committed to maintaining existing service rates while the city has seen significant increase in technology related labor rates throughout the industry. Maintaining this low of a rate allows the city to invest in systems development to further improve processes within DPU and Finance.
The professional services include break-fix, enhancement and optimization, strategic planning, business process review, application related basis support and system administration, upgrade assistance, and ABAP programming on both SAP systems.
Additionally, Deloitte is the vendor who performed the systems integration of the DPU S4HANA billing system. It is to the city’s benefit to retain Deloitte for AMS services as they will be responsible for ensuring that the DPU and Finance daily processes and systems work as intended.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to enter into an extension of the SAP Application Maintenance Support (AMS) contract for both the Finance ERP and DPU S4HANA systems with Deloitte Consulting LLP for a period not to exceed two years with an option to renew for an additional two years upon terms and conditions acceptable to the Director of Law, Director of Public Utilities, the Director of Finance and the Director of Information Technology.
SECTION 2. That subject to annual appropriation the annual expenditure not to exceed $180,000 for the Finance ERP system AMS contract in Section 1 is authorized from the General Fund Account Code 1001-14700-110ERP1STDSTD.
SECTION 3. That subject to annual appropriation the annual expenditure not to exceed $428,500 for the DPU S4HANA system AMS contract in Section 1 is authorized from the Utility Administration Fund Account Codes 6078-31000-4000524STDSTD and 6078-31000-4000527STDSTD.
SECTION 4. That this Council finds and determines it is in the best interest of the city to waive the competitive procurement requirements of Toledo Municipal Code Chapter 187 to ensure uninterrupted specialized knowledge-based services provided by Deloitte Consulting, LLP and maintain competitive service rates.
SECTION 5. That the Director of Finance is authorized to draw their warrant or warrants against the Account Codes above in amounts not to exceed those authorized above for the purposes authorized in Section 1 upon presentation of proper voucher or vouchers.
SECTION 6. That this Ordinance is declared to be an emergency measure and shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that same is necessary for the immediate preservation of the public peace, health, safety, and property and for the further reason that this Ordinance must be immediately effective in order to facilitate financial integrity and record maintenance at the City of Toledo.
Vote on emergency clause: yeas 11, nays 0.
Passed: January 28, 2025, as an emergency measure: yeas 11, nays 0.
Attest:
Julie A. Gibbons Carrie Hartman
Clerk of Council President of Council
Approved: January 28, 2025
Wade Kapszukiewicz
Mayor