HomeMy WebLinkAboutAgenda Report - January 17, 2007 E-11AGEMA ITEM Fww I t
&Ilk, CITY OF LWI
MV COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing Renewal of Support Agreement for Electronic
Customer Information Billing System from Alliance Data Systems, of Dallas, TX
($57,750)
MEETING DATE: January 17, 2007
PREPARED BY: Information Systems Manager
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the renewal of
the annual support agreement for Electronic Customer Information
Billing System (SCIS) from Alliance Data Systems, of Dallas, TX, in
the amount of $57,750.
BACKGROUND INFORMATION: On April 15, 1998, the City Council adopted Resolution No. 98-61, in
which it appropriated $996,525.00 for the purchase and
implementation of the Electronic Customer Information Biting
System (ECIS) from Orcom Systems, of Bend, Oregon. The
purchase was made following an exhaustive research and evaluation process in which many software
products were examined.
The ECIS system has since been acquired by Alliance Data Systems, of Dallas, Texas, the system's
current owner and vendor.
The ECIS system is one of two mission -critical computer applications operated by the City, the other
being J.D. Edwards Enterprise Resource Planning software. ECIS is the centerpiece for the City's utility
billing activities. In addition to other critical functionality, ECIS processes all electric and water meter
reads and applies flat rate charges where appropriate. In addition, the system stores important customer
information as well as billing history. The ECIS system has a direct relationship to the City's cash flow.
Any significant interruption in the ECIS system would have an immediate negative impact on the City's
finances, including its ability to render customer bills.
While the City employs three full time programmer -analysts to handle day-to-day system management
activities, the City relies heavy upon the manufacturer to provide ongoing maintenance and support
services for the installed software, for a fee. The annual support charge for the ECIS system is
$57,750.00, payable in two semi-annual payments of $28,875. This support fee was substantially higher
several years ago ($85,000) until the charge was renegotiated by the Information Systems Manager.
Included in the support agreement are periodic software updates and security patches, plus telephone
support for City programmers and technicians, should the need arise.
Staff feels it imperative to continue to have a maintenance and support agreement in force for this
software.
APPROVED:
Blair , City Manager
There are no suitable alternatives to not renewing this support contract. Unlike with many other software
packages, there appear to be no third -party vendors offering support contracts for this system, nor would
that likely be a recommended alternative if there were.
Given the criticality of this software, staff recommends renewing the support agreement with Alliance
Data Systems in the amount of $57,750, payable in two semi-annual payments of $28,875.
FISCAL IMPACT: This item is budgeted.
FUNOINA AVAILABLE: ISD SUBL T SERVICE CONTRACTS - 100411.7335 ($57,750.00)
A ' VV14:: an � -
FW vans, Budget Manager
R. Krueger, Deputy City Manager
Prepared by Steve Mann
RESOLUTION NO. 2007-09
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE REN9WAL OF SUPPORT AGREEMENT FOR ELECTRONIC
CUSTOMER INFORMATION BILLING SYSTEM (ECIS) FROM
ALLIANCE DATA SYSTEMS
WHEREAS, on April 15, 1998, the City Council adopted Resolution No. 98-61 appropriating
$996,525 for the purchase and implementation of the Electronic Customer Information Billing System
(ECIS) from Orcom Systems, of Bend, Oregon; and
WHEREAS, the ECIS system has since been acquired by Alliance Data Systems, of Dallas,
Texas, the system's current owner and vendor; and
WHERES, the ECIS system is one of two mission -critical computer applications operated by the
City and is the centerpiece for the City's utility billing activities; and
WHEREAS, in addition to other critical functionality, ECIS processes all electric and water meter
reads and applies flat rate charges where appropriate and stores important customer information, as well
as biller history; and
WHEREAS, the City relies heavily upon the manufacturer to provide ongoing maintenance and
support services for the installed software for a annual fee of $57,750, payable in two semi-annual
payments of $28,875; and
WHEREAS, staff feels it imperative to continue to have a maintenance and support agreement in
force for this software and also recommends that the City Council authorize the City Manager to approve
subsequent annual renewals of this contract, provided the renewals are routine and not materially
different.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby
authorise the renewal of Support Agreement for ECIS from Alliance Data Systems, of Dallas, Taxes, in
the amount of $57,750, payable in two semi-annual payments of $28,875; and
Dated: January 17, 2007
I hereby certify that Resolution No. 2007-09 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held January 17, 2007 by the following vote:
AYES: COUNCIL MEMBERS - Hitchcock, Katzakian, and Mayor Johnson
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Hansen and Mounce
ABSTAIN: COUNCIL MEMBERS - None
I JOHL
City Clerk