SR-502-001-02 (2)
EPWM:CP:GB:IC:UBS
Council Meeting : November 8, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute a
Contract with Harris Computer Systems for Utility Billing Software
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Harris Computer Systems for utility billing software in the amount of
$392,860 plus a 10% contingency of $39,286.
Background
The City of Santa Monica provides its residents and businesses with municipal services
(water, water conservation, sewer, refuse pickup, recycled water, fire inspection, and other
services) which require the establishment of customer accounts for billing purposes. The
City uses software that provides a billing system, service order system, inventory
management system, deposit tracking system, and accounts receivable system which
establishes customer accounts for municipal services, maintains service and consumption
records, calculates City charges and fees, produces a single bi-monthly municipal services
bill, and provides information to customers.
The current billing software has been in place since 1986 and has been updated regularly
but does not conform to the City?s current database standards. The computer which runs
this system is obsolete and is no longer supported by the manufacturer.
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Discussion
The needs of the customer base and increasing industry complexity require consideration
of a new system. Many customers desire options such as viewing account information
over the web, paying on-line, receiving a single bill for multiple properties, or receiving bills
via e-mail. More stringent requirements for sewer discharge and water consumption also
require increasingly comprehensive record keeping and reporting capabilities. The current
billing system cannot accommodate these changes. New software will accommodate the
on-line services customers desire, and allow more timely response to industry
requirements.
An RFP that identified functional requirements for a new utility billing system was posted to
the City?s website on February 24, 2005. Public notice of the RFP was published in the Los
Angeles Times on February 24 and 25, 2005. A mandatory pre-bid conference was held
on March 31, 2005, to further explain the City?s requirements for the software.
Nine companies submitted proposals by the April 14, 2005, due date. In May and June
2005, a review committee including staff from the Water Resources, Environmental
Programs, Finance, and Information Systems divisions reviewed vendor proposals. The
committee considered the ability of the vendor to meet the project specifications as stated
in the RFP, the technical environment in which the system would operate, and bidder?s
references. The committee selected Harris Computer Systems, Hansen Technologies,
Inc., and Advanced Utility Systems for product demonstrations.
The demonstrations offered staff the opportunity to more fully understand each proposed
system. After significant discussion, review of functionality and assessment of how well the
system could meet the City?s business requirements, site visits were made to see
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Advanced Utility Systems and Harris Computer Systems products at work in a live
operating environment and to talk with clients who are actually using the products.
Throughout the process, the team members contacted peers, associates, and company
references to gather information about the products and the companies. On August 10,
2005, the team met to review and evaluate all relevant information gathered to date and
selected Harris Computer Systems as the best overall choice for the City.
The contract price for the Harris System is $392,860 plus a 10% contingency of $39,286.
This price includes software, hardware, and professional services necessary to install,
implement and provide training. The requested approval is:
Harris Contract392,860
$
Contingency 39,286
Total Requested $432,146
Installation of the billing system will take six to nine months to complete.
Budget/Financial Impact
Funds in the amount of $432,146 are available in the following accounts:
C250785.589000 (Utility Billing Software) $216,073
C310785.589000 (Utility Billing Software) $216,073
Total Available $432,146
The contract price includes one year of software and hardware maintenance ($27,245).
For the next five years, annual software maintenance costs are guaranteed by the contract
to be fixed at $27,245 and budgeted in the operating budgets for each fund.
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Recommendation
This report recommends that the City Council authorize the City Manager to negotiate and
(Reference Contract No. 8525 (CCS))
execute a contract with Harris Computer Systems
for utility billing software in the amount of $392,860 plus a 10% contingency of $39,286.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Gil Borboa, P.E. Water Resources Manager
Ivo Chewtoh, Systems Analyst ? Water Resources
Jean Higbee, Water Resources Business Supervisor
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