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The main reasons for FY13 overspending were:l. Wastewater Other of 16.3 million - Inflow and Infiltration (III) due to communityrequests for grants and loans being greater than budgeted.2. Water Transmission of 664,000 - mainly due to higher than budgeted spending onUpper Hultman of 1.1 million due to accelerated contractor progress offset by lowerthan projected spending on the Lower Hultman project of 570,000.3. Wastewater Treatment of 606,000 - due to greater than budgeted work on the ClintonAeration Efficiency project, Digester Modifications 1 & 2 Pipe Replacement, and MetalsLab Fume Hood replacement offset by lower award and delay for North Main PumpStation Variable Frequency Drive Construction and project delays such as the Fuel PipeAbandonment and Primary/Secondary Clarifier Rehabilitation due to delayed receipt offinal invoice.The overspending was offset by underspending of 6.5 million in the Combined Sewer Overflow(CSO) program due to the timing of the payments for the Cambridge Sewer Separation project of 6.0 million which was originally budgeted for September but will now occur in November andfor North Dorchester Bay of 409,000 mainly for less than anticipated ConstructionManagement Services on the Tunnel & Facilities. Additional underspending was exhibited inInterception and Pumping due to a net reimbursement for Melrose work of 654,000 and inDistribution and Pumping due to Lynnfield Pipeline of 312,000 due to differing site conditions,Southern Spine Distribution Mains of 286,000 mainly due to pending credit change order onSection 107 Phase 2 Construction, and Valve Replacement Construction 7 of 85,000 due tosummertime water system constraints.Construction Fund BalanceThe construction fund balance was at 192 million as of September 2012. Commercial Paperavailability was at 206 million to fund construction projects.Attachment 1 - Variance Summary September 2012Attachment 2 - Current Expense Variance ExplanationsAttachment 3 - Capital Improvement Program Variance Explanations9

ATTACHMENT 1September 2012Year-to-DatePeriod 3 YTDBudgetEXPENSESWAGES AND SALARIESOVERTIMEFRINGE BENEFITSWORKERS' COMPENSATIONCHEMICALSENERGY AND UTILITI ESMAINTENANCETRAINING AND MEETlNGSPROFESSIONAL SERVICESOTHER MATERIALSOTHER SERVICESTOTAL DIRECT EXPENSES IPeriod 3 YTDActual21,797,683 825,2024,525,228525,0002,883,6504,742,7205,586, 110120,0831,409,238732,9996,125,60749,273,520 1 Period 3 YTDVariance21,238 , 844 839,1024,400,098457,0652,958,0044 , 663,706 1 INSURANCEWATERSHED/PILOTBECo PAYMENTMITIGATIONADDITIONS TO RESERVESRETIREMENT FUNDPOST EMPLOYEE BENEFITSTOTAL INDIRECT EXPENSES 16,873,130L 16,594,507 1 DEBT SERVICEDEBT SERVICE ASSISTANCETOTAL DEBT SERVICE 92,542,541 (87,500)92,455,041 1 92,542,541 (87 , 500)92,455,041 1 TOTAL EXPENSES 158,601,691 1 157,713,254 151 , 78REVENUE & INCOMERATE REVENUEOTHER USER CHARGESOTHER REVENUERATE STABILIZATIONINVESTMENT INCOMETOTAL REVENUE & INCOME524,4696,603 , 294891 , 824391,731349,5828 , 112, 230I - -I 158, 621 , 699- -1.20/0 9123,743,608214,915,886 122.6%23.5%24.10/021.8%29.7 0/020.7%21 . 3%8.70/022.5%14.9%24.3%22.6 0/02,097,87526,413 , 1753 ,741 , 9151,566, 9231,398,32910, 474 , 37623.60/024. 10/023 .4 0/024. 10/025.0 0/077.6%--1.70/0 -45,692,593 136.3 0/0375,248,070I0.0 % 0.0 0/00.0 0/0 375,248,070I24.7%(888,435) 1-0.60/0 635,856,549I24.8 0/0-(342,621) -2.6%1.7%-2.80/0-12.9%2.60/00.9%7.70/0-72.0%-5 . 70/013.3%- 5.7 .5%-1.8 0/0-3 . 7%0.00/00.20/0(30 , 104)(233,493)(16,304)(14,593)-3,423 , 115I(558 , 839)13, 900(125,130)(67 , 935)74,35444 , 095430,383(86,506)(80 , 633)97,716(351,219)(609, 813 }115,871-158,559,064 -3,765,736 494 ,3656 , 369 ,801875 , 520377 , 138349,5828 , 128, 101I62,636 10.0 0/0-0.6 0/045 . 5 0/0 -9.1%0.00/0 24.70/0-607,512,0007,766,6926 , 116, 845---.25 . 0 %25 . 6 0/021 . 8%-14,461,01223.7%635,856,549 124.9 0/0

ATTACHMENT 2Current Expense Variance ExplanationsFY13 BudgetYTDSeptemberTotalMWRAFY13 ActualsYTDSeptemberFY13 YTD Actual vs. FY13 BudgetExplanations% Direct Ex ensesWages & Salaries21,797,68321 3,900Underspending is due to lower headcount and employeeson unpaid leave status. As of September, the averagefilled positions were 1,179, 16 positions less than the1,195 funded positions.Overspending in Field Operations of 21 ,000 and Eng& Construction of 11,000 offset by lower spending atDeer Island of 8,000 and Lab Services of ce5,586,1106,016,493430,383Fringe BenefitsWorker's CompensationC--'Training & MeetingsProfessional 0,633)7.7%--72.0%---U nderspending for Health Insurance of 1 08k andMedicare of 19k mainly due to lower headcou Underspending due to lower payments of 43k and lowerreserves of 25k.Overspending for Soda Ash of 131 k, HydrogenPeroxide of 28k, and Copper Sulfate of 24k offset bylower spending for Nitrazyme of 66k and CarbonDioxide of 23k.Overspending for Electricity of 67k mainly at DeerIsland offset by underspending of 31k for diesel.Maintenance Materials are overspent by 467k offset byunderspending for Services of 36k.Underspending in all divisions related to timing.-5.7%Underspending for Lab & Testing Analysis of 52kmostly due to delayed Harbor Outfall Monitoringinitiatives and Legal services of 23k.13.3%Overspending for Computer Hardware of 95k, Lab &Testing Supplies of 45k, and Work Clothes of 43kmainly due to timing. Offset by lower spending for OtherMaterials of 46k due to timing of gravel purchases atClinton.- -Other Materials732,999830,71597,716- -1 of 3

ATTACHMENT 2Current Expense Variance ExplanationsFY13 BudgetYTDSeptemberTotal MWRAOther ServicesTotal Direct ExpensesIndirect EXl!ensesInsuranceWatershedlPILOTFY13 ActualsYTDSeptemberFY13 YTD Actual vs. FY13 Budget 3 ,2946,369,801(233,493)---HEEC PaymentMitigationAddition to ReservesPension ExpensePost Employee BenefitsTotal Indirect ExpensesDebt Service--Debt ServiceDebt Service AssistanceTotal Debt Service ExpensesTotal ExpensesRevenue & IncomeRate RevenueI---3 .5%891,824875,520(16,304)-1.8%391 .0%0.2%---16,873,13016,594,507(278,623) 49 , )-0.6%I151,878,000I- I2 of 3Underspending for Sludge Pelletization of 299k due tolower quantities and Other Services of 128k mainly dueto the timing of remediation projects in Real Property.Offset by overspending for Membership/Dues of 112kdue to timing.Underspending due to lower payments/claims of 49koffset by higher premiums of 19k.Underspending for lower Watershed Reimbursement dueto an FY 12 overaccrual.Underspending due to lower O&M charges of 24koffset by higher Capacity Charges of 8k.Underspending due to lower mitigation charges.- --1.7%92,542,540151 ,878,000Explanations0.0%At the end of the first quarter, 3.3 million offavorablevariance related to lower than budgeted short-term rateswas transferred to the Defeasance Account.

ATTACHMENT 2Current Expense Variance ExplanationsFY13 BudgetYTDSeptemberTotalMWRAOther User Charges1,998,533Other RevenueRate Stabilization-Investment IncomeTotal RevenueNet Revenue in Excess ofExpensesFY13 ActualsYTDSeptemberIFY13 YTD Actual vs. FY13 Budget% 1,986,906(11,627)-0.6%Underspending mainly due to Deer Island Water usage.45.5%Overspending due to higher Other Revenue of 41 7,000mainly for Federal Emergency Management Agency(FEMA) reimbursement of Tropical Storm Irene costs of 264,000, higher Miscellaneous Revenue of 83,000,and Energy Revenue of 41 ,000.Lower investment income mainly due to lower thanbudgeted short-term interest 626)I908,443IExplanations951,0723 of 3 I

ATTACHMENT 3Capital Improvement Program Variance ExplanationsFY13BudgetYTDSeptemberInterception & Pumping(I&P) 609FY13Actuals YTDSeptember( 139)YTD Actuals vs. BudgetExplanations %( 748)-122.8%t---Treatment 3,716 4,322 60616.3%Residuals 60 0( 60)-100.0%CSO 7,549 1,028( 6,521)-86.4%Other Wastewater 3,021 19,342 16,322540.3%Total Wastewater 14,954 24,554 9,59964.2%Drinking Water QualityImprovementsTransmission 10,554 10,842 2882.7% 3,708 4,372 66417.9%\----Distribution & Pumping 2,237 1,539( 697)-31.2%10f2Underspending for Melrose Sewer reimbursement of 654,000 forprior year's contractual obligations and North System HydraulicSystems of 109,000 due to delays.Overspending for Clinton Aeration Efficiency work of 692,000,Digester Modifications 1&2 of 328,000, and Metals Lab Fume HoodReplacement of 148,00 due to greater contractor progress. Offset byunderspending due to longer than anticipated lead time for specializedequipment for the North Main Pump Station VFD ReplacementConstruction of 602,000 and delays in Fuel Pipe Abandonmentproject of 167,000.Underspending on Cambridge Sewer Separation of 6.0 millionmainly due to timing of payments and North Dorchester Bay of 409,000 mainly for less than anticipated Construction ManagementServices on the Tunnel & Facilities.,Overspending on Inflow and Infiltration (III) due to communityrequests for grants and loans being greater than budgeted.Overspending for Carroll Plant Ultraviolet Disinfection Constructionof 1.5M due to contractor progress. Offset by underspending forSpot Pond Storage Facility of 805,000 primarily due to delayed startof excavation on DesignlBuild contract.Overspending for the Upper Hultman rehabilitation work of 1.1million due to contractor progress and acceleration of the project.Offset by underspending on Lower Hultman rehabilitation work of 570,000 due to timing of work.- -- - - - Underspending on Lynnfield Pipeline of 312,000 due to differing siteconditions; Southern Spine Distribution Mains of 286,000 mainlydue to pending credit change order on Section 107 Phase 2Construction; and Valve Replacement Construction 7 of 85,000 dueto summertime water system constraints. Offset by overspending onWeston Aqueduct Supply Mains of 115,000 mainly for greater thanbudgeted work on Design/Construction AdministrationlResidentInspection for Section 36.

ATTACHMENT 3Capital Improvement Program Variance ExplanationsFY13Budget YTDSeptemberFY13Actuals YTDSeptemberYTD Actuals vs. BudgetExplanations 0/0Other Waterworks 6,108 2,427( 3,682)-60.3%Total Waterworks 22,607 19,180( 3,427)-15.2%Business & OperationsSupportTotalMWRA 1,919 664( 1,255)-65.4% 39,481 44,398 4,91712.5%20f2Underspending on Local Water Pipeline Assistance Program due tocommunity requests for loans being less than budgeted by 1.0M andrepayments being greater than anticipated by 2.7M.Underspending due to MIS related projects of 634,000 due to timingofIT Strategic Plan implementation, Centralized EquipmentPurchases of 408,000 mainly due to timing of vehicle purchases, andAlternative Energy Initiatives of 222,000.-------- -

A'f-.I(AeITV'e: ·11l \n\l'2.STAFF SUMMARYTO:FROM:DATE:SUBJECT:Board of Directors.--? 0Frederick A. Laskey, Executive Director - October 17,2012Sole Source Purchase Order for Professional Services to Implement eProcurementModulesInfor Global Solutions (formerly Lawson Associates, Inc.)COMMITTEE: Administration, Finance, & AuditINFORMATIONX VOTE0YlJU.AMichele S. GillenJanice B. Watts, BuyerRussell J. Murray, MIS DirectorJoseph S. Barrett, Custom Support ManagerPreparer/Titlety'-.-Q Direct. fJ?dltrinistration &,{(.f.'14 (.Financev' d d - -chel C. Madd n.Director, Administration & Finance - --------RECOMMENDATION:To approve the award of a sole source purchase order for professional services to implementthree eProcurement modules (Contract Management, Strategic Sourcing and Supplier OrderManagement), which were previously approved by the Board for procurement in April of 2012as part of the Integrated Financial, Procurement and Human ResourceslPayroll ManagementSystem Maintenance and Support contract, to Infor Global Solutions (formerly LawsonAssociates, Inc.), and to authorize the Executive Director to execute said purchase order contractin an amount not to exceed 276,701.DISCUSSION:On March 24, 1999, the Board of Directors approved Contract 6362 with Lawson Associates(now Infor Global Solutions) to implement an integrated financial and procurement managementsystem. In May 2000, the implementation of a Human Resources/Payroll module was includedas part of the Lawson program. Today this set of application modules represents the corefunctionality for the MWRA in a majority of administrative and financial management areasincluding Human Resources, Payroll, Finance, Procurement, and Materials Management. Inaddition, the Commonwealth of Massachusetts Records Conservation Board has approved thissystem as the "system-of-record" for the associated electronic information further reducing theneed for paper records. The illustration on the next page details the various modules being usedand the programs which interface and are dependent on the Lawson system.

Lawson Dependent SystemsICustomMonitor MBEIWBEparticipation incontracts*CustomApplicationsbeing replaced'CONTRACTSCustomITracks contracts,change orders, bidsand quotes"Path lore LMSSumtotal SystemsTraining registration**Previously retired as a result of enhancements to the Lawson trainingmodule made available through ongoing maintenance upgrades.As part of an effort to reduce the use of customized applications and use more off-the-shelfproducts wherever possible, the MWRA is implementing Lawson's Contracts Management,Strategic Sourcing, and Supplier Order Management modules. These new modules offer morefunctionality and integration with other Lawson modules and will allow us to retire ourcompletely custom Contract Management and Minority and Women Owned Business Enterpriseapplications. As recommended in the MIS 5-Year Strategic Plan, the new modules facilitate themove to the eProcurement process, as shown on the following page, with fully integratedcommercial-off-the-shelf applications which will also support MWRA's paper reduction efforts.2

eProcurement Life Cycle - Functions & App lications Supplier Order Management (SOM) newooCurrent Process: Manual24/7 Access Supplier PortaloOnline Supplier Registration and AccountControl Spend 8.Perfo rman ceAnalysis Hyperion Pillar GLStrategic Sourcing newooAddendums, Awards, etc.)Bid AnalYSIS (evaluation)o AccountsPayable Accounts PayableCurrent Process ' Mostly manualElectronic Bid Management (BidPreparation, Posting. Tracking,Contract ManagementoCurrent Process: 100%Custom ApplicationsoAut omate and Audit ContractProcessesSubcontractor TrackingDeliverable Messaging Ale rtsoooSupply ChainIntegration Materials ManagementMobile Supply Chain Management Highly Integrated withProcurement, StrategicSourcing & SOM AppsRequisitioningPu rchaSingAs indicated in the illustration above, the eProcurement cycle will be completed by replacingmanual and partially automated processes using the Supplier Order Management (SOM) andStrategic Sourcing application modules. The current printing, faxing, mailing and phoneprocesses will be replaced through on-line registration, alerts, and self service. The StrategicSourcing/SOM modules will: Give suppliers around-the-clock access to bid invitation details and the bid submissionprocess through a secure supplier portal;Foster broader supplier participation, potentially improving the quality of responses andstimulate greater competition;Provide an easier, faster means of creating bid requests, sending them to suppliers,analyzing responses, and awarding bids including automatically generating onlinerequests based on requisitions;Eliminate many paper-based request-for-bid components through online notifications,bidding, negotiations, and responses to supplier inquiries; andReduce the need for meetings and phone calls by automating relationship management.In addition, replacing the 100% customized legacy Contract Management and Minority andWomen Business Enterprise applications with a fully integrated and more robust commercial-3

off-the-shelf application will save the MWRA from having to redesign and rebuild the customapplications using newer more modem programming tools. These custom applications utilizeobsolete legacy programming environments which necessitate their replacement regardless. Thisconversion of customized stand-alone applications to a fully integrated system of record wasrecommended as part of the MIS 5-Year Strategic Plan completed earlier this year. Currentpaper intensive and manual processes can be improved with the new application. The ContractManagement Module will: Replace custom applications;Provide secure, centralized access to, and easy audit capabilities of all procurement andnon-procurement contracts - not only contracts but also attachments, such as files andimages accessible by authorized users;Provide alerts for key contract events;Update the vendor master in Lawson Procurement and Financial modules with newsupplier information more timely; andProvide a workflow engine with built-in security controls set up according to eachperson's role and responsibilities that enables internal electronic routing to theappropriate people for review, edits, and comments.Furthelmore, these modules are fu

Lawson Professional Services: Infor Global Solutions @ Printed 011100% Recycled Paper . Meeting of the Administration, Finance and Audit Committee September 12, 2012 4 F(/A(,) . Training Professional Services Harbor Monitoring initiatives and legal expenses. Workers' Compensation payments ( 43,000) and reserves ( 25,000) are trending below .