CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 13 Section Name: {{section.name}} Account Number: 10-2011 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: April 07, 2025
SUBJECT:
Enterprise Resource Planning Support Service - Agreement RECOMMENDATION:
Approve a new Statement of Work to the master services agreement with Collaborative Solutions, LLC for Enterprise Resource Planning Support Service (ERP) post-production support services in the amount of $242,000 and authorize the City Manager to approve the Statement of Work in substantially the form presented.
BACKGROUND:
In February 2022, the City Council awarded a contract to Collaborative Solutions, LLC in the amount of $2,527,160 as part of the enterprise resource planning (ERP) system replacement project. Collaborative Solutions, LLC is now known as Cognizant. Following the approval of the original agreement, the City Council has approved several change orders for implementation services as part of the Cognizant master services agreement. This was due to delays with the testing stage, staff and consultant turnover, time needed to address the complex human resources and payroll calculations needed for City and San Mateo Consolidated Fire employees, and the Project re-planning activities. The City Council approved the last implementation change order for Cognizant, Change Order No. 8, at the January 21, 2025, City Council meeting which brought the total contract with Cognizant to $4,739,292.
The Workday ERP supports the City’s core administrative functions of Human Capital Management (HCM), Payroll, and Core Financials. The ERP implementation has occurred in phases. Phase 1 covered Core Financials, began in March 2022, and went live on November 1, 2022. Phase 2 began in October 2022 and covers HCM and Payroll. The Plan, Architect, Configure, Test, and Deployment Stages of Phase 2 have now been completed, and the City and San Mateo Consolidated Fire went live on March 16, 2024.
At this time, City staff recommends adding a new Statement of Work to the contract with Cognizant to provide post- production support (Lean-On Support Services). With the deployment stage of Workday complete, the implementation support phase will come to an end on April 11, 2025. A new Statement of Work with Cognizant will allow the City to access the resources of the Cognizant consultants on an hourly basis to help troubleshoot and fix any post-production issues with HCM, Payroll and Core Financials. This allows City staff to have direct access to support from the same consultants that helped configure the system. The contract also allows for continued knowledge transfer on Workday functionality to City staff with the goal of reducing the City’s reliance on Cognizant’s support services. The master services agreement with Cognizant allows for this new Statement of Work which will cost $242,000 over two years and will bring the overall Cognizant contract to $4,981,292.
BUDGET IMPACT:
There is no fiscal impact to adding this new Statement of Work. The Finance Department budgeted for the first year of Workday post-production support in their FY 24-25 operating budget. The cost for the second year of the contract will be
CITY OF SAN MATEO
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included in the FY 25-26 operating budget for the Finance Department.
ENVIRONMENTAL DETERMINATION:
The Collaborative Solutions new Statement of Work is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Statement of Work - Workday Lean-On Support Services
STAFF CONTACT
Abby Veeser, Deputy Director of Finance
[email protected]
(650) 522-7102