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<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org
<br />BACKGROUND
<br />In FY 2021-22, the City implemented a new Enterprise Resource Planning (ERP) system — Oracle —
<br />replacing the legacy Accuterm system. As with many ERP implementations, the transition has involved
<br />ongoing stabilization and operational challenges, which were compounded by the COVID-19 pandemic
<br />and staff turnover during and after implementation. The City continues to experience functionality,
<br />usability, and process issues in several operational areas.
<br />GFOA has extensive experience assisting public agencies with ERP implementation and stabilization
<br />efforts, including evaluating system configuration, business processes, governance structures, and
<br />operational workflows to identify opportunities for improvement. As a nonprofit organization focused on
<br />public sector financial management best practices, GFOA provides independent assessment and
<br />implementation support services to jurisdictions facing similar ERP challenges.
<br />On October 14, 2024, the City Council approved an Agreement for Services with Government Finance
<br />Officers Association (GFOA) to conduct an assessment of the City’s Oracle ERP system and provide
<br />recommendations to improve functionality, governance, and operational effectiveness. This contract was
<br />awarded using Section 2.66.2 of Chapter 2, Article VII of the City’s Municipal Code, contracts for highly
<br />specialized professional services due to GFOA’s specialized expertise in public sector ERP assessment,
<br />financial management best practices, Oracle stabilization efforts, and enterprise systems procurement
<br />support. The original agreement established a three-year term beginning November 1, 2024 and expiring
<br />October 31, 2027, with a not-to-exceed amount of $160,000.
<br />On April 27, 2026, the City Council approved Amendment No. 9 to the City’s Agreement for Services with
<br />CherryRoad Technologies, extending Oracle Fusion ERP and HCM cloud services and support through May
<br />31, 2029. As discussed in that staff report, the City continues to evaluate Oracle’s long-term fit, improve
<br />system usability, and assess whether alternative ERP solutions may better meet the City’s operational
<br />needs. The three-year extension was intended to provide continuity of mission-critical financial and
<br />payroll systems while allowing sufficient time for stabilization, evaluation, and long-term planning.
<br />Since beginning the engagement, GFOA has assisted the City with ERP system evaluation, operational
<br />workflow and policy review, governance improvements, and broader Oracle stabilization efforts. The
<br />proposed amendment would extend the GFOA agreement through October 31, 2030 to align with the
<br />City’s broader ERP stabilization and evaluation timeline established through the CherryRoad extension
<br />and increase the agreement amount by $275,000, for a revised total not-to-exceed amount of $435,000.
<br />ANALYSIS
<br />Since initiation of the engagement, GFOA has assisted the City in evaluating Oracle ERP and HCM system
<br />configuration, reviewing operational workflows and policies, identifying governance and process
<br />improvement opportunities, and supporting broader stabilization efforts associated with the City’s
<br />enterprise systems environment. Through this work, GFOA has developed substantial institutional
<br />knowledge regarding the City’s ERP environment, operational challenges, and future enterprise systems
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