Label
DPU032525AMENDSAPAPPLICATIONMAINTENANCESUPPORT
Utility Administration
Cindy Geronimo
Revised
Title
Amending Ordinance 29-25 for the purpose of increasing the Department of Public Utilities’ annual expenditure for AMS consulting; 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.
Ordinance 029-25 was approved by Toledo City Council authorizing a two-year extension and expenditures of $428,500 annually for the DPU portion of the AMS contract. However, there are additional resources needed which were not included in the original ordinance and resulted in the costs for DPU to increase by $111,900 in year one of the extension and $20,225 in year two. Therefore, Ordinance 029-25 is being amended to provide additional funding as needed.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Section 3 of Ordinance 29-25, which reads as follows
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.
is repealed.
SECTION 2. That a new Section 3 of Ordinance 29-25 is enacted to read as follows
SECTION 3. That subject to annual appropriation the annual expenditure not to exceed $540,400 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 3. 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: March 25, 2025, as an emergency measure: yeas 11, nays 0.
Attest:
Julie A. Gibbons Carrie Hartman
Clerk of Council President of Council
Approved: March 26, 2025
Wade Kapszukiewicz
Mayor