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Home My WebLink About6.o. Utility Billing Software Purchase 4 ROSEMOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Regular Meeting: August 6, 2012 AGENDA ITEM: Utility Billing Software Purchase AGENDA SECTION: Consent PREPARED BY: Jeff May, Finance Director AGENDA NO. O. ATTACHMENTS: Spreadsheet showing cost comparison; APPROVED BY: Civic Systems software proposal RECOMMENDED ACTION: Motion to authorize the Finance Director to enter into an agreement with Civic Systems, LLC for the purchase of new utility billing software. ISSUE The Finance Department has been reviewing utility billing software packages due to several factors. We have been experiencing frequent problems with processing in our current software due to file size and manageability in outdated software that has been in place since 2000.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, 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. BACKGROUND We reviewed a total of four different utility billing software packages. The two software packages that we ended up choosing between are Civic Systems' Caselle Clarity (our current utility billing software provider) and Tyler Technologies' Incode (our current financial software provider). Thorough research of both software packages lead to no significant differences in the capabilities of each. Civic Systems has included a guarantee in their proposal that electronic journal entry files will be able to be created to ensure a successful interface with our current financial software through a file import process. Including the software, conversion and training services, the Incode software is approximately $45,300. The Clarity software, including conversion and training, is approximately $25,800, resulting in a nearly $20,000 savings by choosing Clarity. The total amount spent may be slightly higher, contingent upon whether the final conversion and training costs come in within the estimates provided in the proposal. In addition to the up -front cost savings with Clarity, we will be charged lower fees for on -line account services provided from the Clarity 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 new software include: • It is SQL -based software that has the potential to integrate with other City software packages in the future, such as GIS, Laserfishe, Cartegraph, and any other SQL -based software • Will provide on -line access for residents for account look -ups and bill payment options o Ability to access prior history for the last two years o Options to pay on -line will include one time and recurring payments o E -Bill presentment option (resident can opt out of paper billings) • We will have the ability 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 owners of multiple accounts (such as Flint Hills and management companies owning multiple properties) • All reports generated in the new software can be saved as PDF or Excel files The purchase price of the software will be split evenly between the three utility funds. The anticipated implementation would likely occur in early to mid October. SUMMARY Staff is requesting that the City Council make a motion to authorize the Finance Director to enter into an agreement with Civic Systems, LLC for the purchase of Caselle Clarity utility billing software. 2 U/B Software Notes ** *Highlighted blue boxes are needed modules, included in total cost Cost: Civic /Claritv Incode License Fees $5,500 $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 Services $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:I $20,950 1 $45,284 GIS Integration module (possible addition) $3,000 Services $1,800 Total Including GIS module:I $25,750 Support /Recurrent Fees: U/B License $5,354 $5,913 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) Computer Software and Conversion Services Proposal City of Rosemount Prepared by Civic Systems, LLC ( )CIV1C Systems STRONG SOFTWARE, STRONG COMMUNITY A SUBSIDIARY OF BAKER TILLY VIRCHOW KRAUSE, LLP Civic Systems, LLC Ten Terrace Court P.O. Box 7398 Madison, WI 53707 -7398 Phone: 888.241.1517 Fax: 608.249.1050 mlaesch@civicsystems.com www.civicsystems.com June 22, 2012 Clarity Upgrade Proposal Software Purchase Agreement Civic Systems, LLC City of Rosemount Ten Terrace Court 2875 145 Street W P.O. Box 7398 Rosemount, MN 55068 Madison, WI 53707 -7398 You agree to purchase the software and services detailed below and Civic Systems, LLC agrees to provide them subject contract to the terms and conditions stated on the Software Distribution Agreement. The information provided in this proposal is valid for 90 days. INVESTMENT SUMMARY License Fees $ 11,500 (Existing Customer Discount) ( 5,500) Training 3,600 Conversion 5,700 Sub -total 15,300 Add Options Selected Amount * TOTAL INVESTMENT, INCLUDING OPTIONS $ [Customer completes] SIGNATURE AGREEMENT The signatures below indicate each party's acceptance of this agreement. CITY OF ROSEMOUNT Signature: Title: Date: CIVIC SYSTEMS, LLC Signature: Title: Date: Clarity Upgrade Proposal Y p9 p Software Purchase Agreement LICENSE FEES License Fees based on a maximum of three (3) concurrent users. 50% Total Regular Upgrade License Fee Clarity Upctrade Modules Price Discount Investment Utility Billing $ 11,000 $ (5,500) $ 5,500 Direct Pay Included Included Included Splitter 500 500 Electronic Read Interface Included Included Included Utility Tax Cert Free Free Free Totals $ 11,500 $ (5,500) $ 6,000 *Please make us aware of any custom programming that has been written as pricing adjustments may be needed. Annual Support - Will stay the same as it is now with the upgrade to Clarity. CONVERSION Conversion costs estimated at 38 hours @ $150 per hour. Total estimated cost $ 5,700. TRAINING Classroom # of Days Trainees Investment Clarity Training 3 Up to 4 $ 3,600 Totals 3 $ 3,600 * Does not include travel expenses. * Party General Ledger Guarantee Civic Systems will work with the City of Rosemount to import a journal entry from the Clarity Utility Billing into Incode's General Ledger prior to the project starting. Civic Systems guarantees the 3rd Party General Ledger interface will properly update to the General Ledger or Civic Systems will refund the City of Rosemount all license fees. Hardware Specifications HARDWARE REQUIREMENTS Important! Using servers, workstations, or servers and workstations that do NOT meet the specified network system requirements may result in unsatisfactory performance and response times. Network Server Operating System Microsoft® Windows 2003 Server Network Server Equipment • Intel® Xeon® Quad -Core Processor 2.0 Ghz or higher • 4 GB of available RAM • 30 GB available disk space for Caselle Clarity applications (180 MB) and data • Color SVGA .28 Monitor • 1 GB Ethernet Network Card • 1 GB Ethernet Switch • DVDRW Drive All hardware must be Microsoft® certified (request printed certification documents). Celeron and Sempron processors are NOT recommended. Database Server Equipment and Operating System • Use the Recommended Network Server. For better performance, increase memory on network server or, use a separate Database Server (same specifications as the Network Server). • Networks with more than ten workstations may require faster processors and /or more memory than the recommended. Database Software Microsoft® SQL Server 2005 Standard or Enterprise Edition. Network Server and Database Server Power Protection True On -Line UPS, 600 Voltamps minimum with UPS Monitoring card, cable, and software. Workstation Computer • Intel® CoreTM 2 Duo (or higher) • 2 GB of available RAM • 30 GB available disk space for Caselle Clarity applications (180 MB) and data • Color SVGA .28 Monitor • DVDRW Drive Celeron and Sempron processors are NOT recommended. Workstation Operating System Microsoft® Windows XP Professional or Windows VistaTM Workstation Power Protection Combination On -Line conditioner and surge protector. Backup System Network quality system to backup fileserver hard drive on one tape and provide tape read after write verification. Data File Transfer DVDRW Drive Printer HP Laser Printer or Canon Copiers with PCL or Postscript fonts Receipt Printer Ithaca Series 150 Printers Internet Access • DSL, ISDN, or T1 Explanation: Caselle® Applications require Internet access to download program updates. Using an Internet connection that is slower than 256 Kbps will take significantly longer to download data. Email Email that is compatible with Microsoft® Windows. Network Installer Microsoft® or Novell® Authorized and Certified. 4