HomeMy WebLinkAbout2.C. Utility Billing Software Purchase 4ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session: July 17, 2012
AGENDA ITEM: Utility Billing Software Purchase AGENDA SECTION:
Discussion
PREPARED BY: Jeff May, Finance Director AGENDA NO. 2J>
ATTACHMENTS: 7/9 Utility Commission Packet Item APPROVED BY:
OD
RECOMMENDED ACTION: Direct staff to proceed with purchase of new utility billing
software.
ISSUE
The replacement of outdated utility billing software (originally implemented in 2000).
BACKGROUND
The Finance Department has been reviewing utility billing software packages due to several factors. We
have been experiencing frequent problems with processing our current software due to file size and
manageability in outdated software that has been in place since 2000. For accuracy, efficiency and
financial control, a
tr , we are looking for software that will integrate with our general ledger financial software
to eliminate manual journal entry postings for all utility billing transactions. The Council has also
requested that we seek a software package that includes the ability to provide on -line account access and
payment options for our residents.
Four different software packages were reviewed initially and then narrowed to two vendors, Civic System's
Casselle Clarity (our current utility billing software provider) and Tyler Technologies' Incode (our current
financial software provider). The attached Utility Commission packet information goes into greater detail
about the differences between the two. In summary, staff feels both packages would greatly improve our
operations but are recommending that we purchase the Clarity software (priced at approximately $25,800)
versus the Incode software (priced at approximately $45,300) because of the price difference and the fact
that both packages will provide us with similar results. Also, with Clarity, we will realize greater ongoing
maintenance cost savings. All of the cost information is summarized on the page immediately after the
Utility Commission Executive Summary.
SUMMARY
The Utility Commission voted to recommend the City Council approve the purchase of the Casselle
Clarity Utility Billing software from Civic Systems. Staff would like direction from the City Council to
proceed forward with this purchase.
�� ROSEMC�L��T EXECUTIVE SUMMARY
UTILITY COMMISSION
Utility Commission Meeting: July 9, 2012
AGENDA ITEM: Utility Billing Software Purchase AGENDA SECTION:
New Business
PREPARED BY: Jeff May, Finance Director AGENDA NO. 7.a.
ATTACHMENTS: Spreadsheet showing cost comparison; APPROVED BY:
on-line pa ment partner information
RECOMMENDED ACTION: Motion to recommend the City Council approve the purchase
of Caselle Clarity Utility Billing software from Civic Systems
ISSUE
The Finance Department has been re�iewing utility billing soft�vare packages due to se�-era1 factors. We
have been experiencing frequent problems �vith processing in our current soft�vare due to file size and
manageabilit�� in outdated software that has been in place since 2000. For accuracy, efficiency and
financial control, �ve are looking for soft�vare that�vill integrate�vith our general ledger fmancial software
to eliminate manual journal entr��postings for all utility billing transactions. The Council has also
requested that we seek a software package that includes the abilin• to pro�ride on-line account access and
payment options for our residents.
DISCUSSION
We revie�ved a total of four different Utility Billing software packages. The t�vo software packages that we
ended up choosing bet�veen are Civic Systems's Casselle Clarity and Tyler Technologies' Incode. Because
�ce are currendy using Incode software for our financial suite, choosing their utility billing software�vould
have insured the smoothest integration�vith our general ledger. Ho�ve�-er, the Clarit�� software can
produce CSV files for all transaction entries that can be imported into our financial soft�vare for automatic
loading of journal entries.
Thorough research of both software packages lead to no significant differences in the capabilities of each.
Including the software, conversion and training services, the Incode software is approsimatel�� �45,300.
The Clarity� software, including con�ersion and training,is approximately $25,800, resulting in a nearly
�20,000 savings by choosing Clariry. In addition to the up-front cost savings with Clarity,we will be
charged lo�ver fees for on-line account services provided from the Clariry payment partner as compared to
Incode's hosted application fees. By choosing Clarity, the annual fees will be �840 compared to �3,216
through Incode, resulting in a nearly �2,400 savings per year. The on-line processors for both software
packages generally charge a small convenience fee to residents for the on-line payment options.
The benefits of necv software include:
• It is SQL-based soft�vare that has the potential to integrate�vith other Cin- softtvare packages in
the future, such as GIS, Laserfishe, Cartegraph, and an�� other SQL-based softzvare
• Will provide on-line access for residents for account look-ups and bill pa��ment options
o rlbility to access prior histor�� for the last two years
o Options to pay on-line �vill include one time and recurring payments
o E-Bill presentment option (resident can opt out of paper billings)
• We�vill have the abilit�� to more easily generate reports for data collection (such as obtaining raw
data containing usage information by tiers) and distribution (such as billing statement reprints for
property closings)
• Statement billings can be set up for o�vners of multiple accounts (such as Flint Hills and
management companies o�vning multiple properties)
• All reports generated in the ne�v soft�vare can be sa�-ed as PDF or Excel files
The purchase price of the soft�vare will be split e�enly between the three utility funds. The anticipated
implementation�vould likely occur in early October, depending on the timing of the approval process by-
the LTtility Commission and the City Council, and then getting on the vendor's calendar for the conversion
and training schedule.
SUMMARY
Staff is requesting that the Utility� Commission make a motion to recommend the Cin�Council approve the
purchase of Caselle Clarity Utilin� Billing software from Civic Systems.
2
U/B Software Notes ***Highlighted blue boxes are needed modules, included in total cost
Cost: Civic/Claritv Incode
License Fees $S,S00 $16,281
(Max of 3 concurrent users) (Site License-no user limit)
Additional User Licenses $500 each ------
Implentation/Training $3,600(3 days) $9,680(88 hours)
Conversion Services $5,700(38 hours) $8,086(24 hours+fee)
Splitter(for PDF files direct to cust.Accts) $500 Not Necessary
Hand-Held Meter Read Interface Included Included
Direct Pay Included Included
Tax Certification Included Included
G/L Update Interface Included Not Necessary
Hosted Application (On-line set-up) $700 $800
Service Orders $3,000 Included
Services $1,600
Output Processor(e-stmt billing) Included $3,300
Se rvi ces ------ $880
3rd Party Printing Interface Incl., if use one of existing formats $5,000
Laserfishe Output Interface $3,000 $3,000
Services $1,800
Bar Code Scanners&Software(incl. 2) $150 each �,; $350 each
Estimated Travel Not Provided $5,557
Estimated by City/Civic $1,050
Cash Receipting $3,000 $8,250
Services $600 $1,000
Total Estimated Software and Service Fees: $20,950 $45,284
GIS Integration module(possible addition) $3,000
Services $1,800
Total Including GIS module: $25,750
Support/Recurrent Fees:
U/B License $5,354 $5,913
,._m_ , _ : _ ,
OR With future upgrades included: $8,031 ------
Output Processor(e-stmt billing) Included in monthly fee below $825
Cash Receipting/Cash Collections $750 $2,063
3rd Party Printing Interface Incl., if use one of existing formats $1,250
Laserfishe Output Interface $750 $750
Bar Code Scanners&Software Not quoted $70, probably not necessary
Hosted Application (On-line) $840 annually($70/mo.) $3,216 annually(based on#of accts)
Issues/Notes:
Residents can submit service requests on-line through Incode(but handled now through CarteGraph)
On-Line Training Center available through Incode;web video training available thru Civic
No fees for version upgrades with Incode(but will incur training expenses); "Software for Life"support option
now available thru Civic to include all upgrades(training additional); but will not need for several years
Tax certification letters can be generated as group form letters within both software modules
User groups in MN (St. Cloud?)for Incode; Madison for Civic(possiblility of MN meetings in future)
Both have rate analysis reports
Both can apply statement payments across all applicable accounts and edit individual accts as needed
Account overpayments treated as"Unapplied Credit" in Incode; can be set up the same way in Civic
[Account overpayments currently handled the same as current in Civic-credit balance reallocations needed]
May be charged by Civic for G/L update changes("critical support call") if CSV file needs to be changed (unlikely)
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services far municipalities and utilities.
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