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SR - AGR-6390 - UTILITY BILLING SOFTWARE UPGRADE AND MAINTENANCE1. SUBJECT Approve a Consulting Services Agreement and Five -Year Maintenance Agreement with N. Harris Computer Corporation (Harris). 2. SUMMARY Authorize an agreement with Harris to upgrade the current Public Utility Billing Software (PUBS) to Northstar 6.4. 10 for a total cost of $124,202, which includes a 10% contingency for unexpected costs. The new software will replace a 12 -year old system as well as provide a new automation platform. Staff also recommends approving a five -year maintenance agreement from April 1, 2017 through March 31, 2022 in the total amount of $450,610. The cost for the first year of maintenance is $75,097. The total project cost for the first year is $199,299, and the total financial commitment over the five -year period is $574,812. 3. RECOMMENDED ACTION Approve the consulting services agreement for the upgrade and the five -year maintenance agreement and authorize the Mayor and the City Clerk to execute on behalf of the City. 4. FISCAL IMPACT Funds are currently budgeted and available in the following account numbers: 220.1222.56510.20242 Sanitation - CIP -UB Software Upgrade $62,101 600.1222.56510.20242 Water - CIP -UB Software Upgrade $62,101 600.1222.51700.00000 Contractual Services $75,097 $199,299 5. STRATEGIC PLAN GOAL(S) 2 a. Expend financial resources responsibly; 2 b. Effectively manage and develop City assets. 6. DISCUSSION and BACKGROUND Over the last 12 years the City has contracted with Harris for all utility billing applications through their PUBS application. They have provided a quality utility billing software program that has met the needs of our customers and City staff. As of January 2012, Harris discontinued any further enhancements for PUBS. They are forging all of their efforts into their flagship program of Northstar 6.4.10. In addition, the server language of PUBS, Linux, is discontinuing support as of January 2017. Therefore, staff has been assessing options to replace the PUBS application. After extensive research, staff narrowed its focus on two options: Northstar and Eden. The City currently uses Eden, a product from Tyler Technologies, as its Enterprise Resource Planning (ERP) and financial management system. Staff researched the utility billing module in Eden in an effort to use the same software city wide. It was determined the ERP system would not be able to provide the same level of service that our current provider does, such as pay by phone, mobile service work orders, and Kiosk integration. The new software provided by Harris, Northstar, will have a new look and feel, but the core processes are still the same. This will make the transition from PUBS to Northstar much easier. Included in the upgrade is Harris' Automation Platform which will assist in streamlining daily processes. It is designed to run daily processes such as posting payments or uploading reads. It can also perform tasks based on a criteria of events; for instance, creating a refund after an account is closed and sending the information to Accounts Payable for processing. This will reduce the amount of manual labor involved and will ensure more accuracy with the data and processes. The Automation Platform will assist in freeing up resources that will enable staff to provide better customer service and increase productivity. In addition, the updated version of the report writer is embedded in the program. This will provide more ease in querying the data and creating reports. The proposed upgrade will include going to a new server with Structured Query Language (SQL), which is a widely used language for software. Many other software platforms throughout the City are SQL- based, which will allow us to leverage our SQL Enterprise licensing, saving on database maintenance costs. Finally, Harris has partner companies that are integrated with the software to provide extra services. We currently have a website, a kiosk, and a phone system that provides our customers options to pay or view their utility bill. Harris also has a work order system for our field crew to electronically create and complete work orders for services rendered including meter leaks or change -outs, water audits, turn-on, and turn-off requests. The cost of $124,202 for the upgrade includes professional services from Harris to assess staff s current use of PUBS and how to maximize the features of Northstar, migration of data from PUBS to Northstar, training, and quality - control testing and verification to ensure that data was migrated correctly. Also included in the costs is a 10% contingency in order to cover any unforeseen circumstances. ITEM 2 09/13/16 The five -year maintenance agreement will replace the City's current maintenance agreement with Harris. In year one of the new agreement, maintenance costs will be $5,225 less than the current maintenance agreement. Harris is including the first year subscription for the Automation Platform at no cost. In years two through five, maintenance costs will increase approximately 1.5% per year, and the annual subscription cost of $15,225 (also subject to a 1.5% annual increase) will be added for the Automation Platform. A summary of the costs is presented below: Description Cost FY 2016 -17 Costs Professional Services for Upgrade $ 124,202 Maintenance (4/1/17 to 3/31/18) 75,097 Automation Platform (4/1/17 to 3/31/18) 0 Total FY 2016 -17 Costs $ 199,299 Future Year Costs Maintenance (4/1/18 to 3/31/19) $ 76,223 Automation Platform (4/1/18 to 3/31/19) 15,225 Maintenance (4/1/19 to 3/31/20) 77,367 Automation Platform (4/1/19 to 3/31/20) 15,453 Maintenance (4/1/20 to 3/31/21) 78,914 Automation Platform (4/1/20 to 3/31 /21) 15,762 Maintenance (4/1/21 to 3/31/22) 80,492 Automation Platform (4/1/21 to 3/31/22) 16,077 Total Future Year Costs $ 375,513 Total Project Costs $ 574,812 7. ATTACHMENTS Exhibit A — Consulting Services Agreement Exhibit B — Maintenance Agreement ITEM 3 09/13/16 CITY COUNCIL MINUTES SEPTEMBER 13, 2016 3. CONSENT CALENDAR (Continued) 3.7 A four -year agreement with Granite Masters, Inc. for cleaning and maintenance of the Veterans Memorial stonework in an amount not to exceed $37,400. (A2100.0; Agr -6389) ACTION: Approved agreement with Granite Masters, Inc. and authorized the Mayor and the City Clerk to execute on behalf of the City. 3.8 License Agreement between the City of Orange and County of Orange for use of the east -end Police Substation Facility. (A2100.0; Agr- 5807.A) ACTION: Authorized the Mayor and the City Clerk to execute the license agreement between the City of Orange and the County of Orange. 3.9 Consulting Services Agreement and five -year Maintenance Agreement with N. Harris Computer Corporation (Harris). (A2100.0; Agr -6390, 4345.C) NOTE: Mayor pro tem Murphy abstained due to a potential conflict with his employment. ACTION: Approved the consulting services agreement with N. Harris Computer Corporation for the upgrade and the five -year maintenance agreement and authorized the Mayor and the City Clerk to execute on behalf of the City. APPROPRIATIONS 3.10 Appropriation of funds received from Rancho Santiago Community College District (Santa Ana College) for Fire Department training hours. (C2500.H)) ACTION: 1) Accepted into the City's revenue budget a $15,689.04 payment from Rancho Santiago Community College District, into revenue account 100.3023.48210.20234 — (Expense Reimbursement Santa Ana College); and 2) Authorized the appropriation of $15,689.04 into expenditure account 100.3023.51840.20234 — (Local- Training Santa Ana College). 3.11 Request to Accept and Appropriate into the City's Revenue Budget a $14,350 Donation from the Orange Public Library Foundation (OPLF). (C2500.I) ACTION: 1) Accepted into the City's revenue budget a $14,350 donation into revenue Account No. 100.2001.48390.19322 (Library Foundation Donations); and 2) Authorized the appropriation of $14,350 into expenditure Account No. 100.2001.53301.19322 (Book Budget — OPLF). PAGE 4