HomeMy WebLinkAboutAgenda Report - June 18, 2008 E-10AGENDA ITEM E401)
CITY OF LODI
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
($62,456.62)
MEETING DATE: June 18,2008
PREPARED B Y 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 (ECIS) from Alliance Data Systems, of Dallas, TX, in
the amount of $ 62,456.62.
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 Billing
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 heavily 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
$62,456.62, payable in two semi-annual payments of $31,228.31. This support fee was substantially
higher several years ago (previously $85,000) until the charge was renegotiated.
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 Ktag!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 $ 62,456.62, payable in two semi-annual payments of $31,228.31.
FISCAL IMPACT:
This item is budgeted.
FUNDING AVAILABLE:
ISD SUB T ERVICE CONTRACTS -100411.7335
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Budget Manager
�Oes R. Krueger, Deputy City Manager
Prepared by Steve Mann
RESOLUTION NO. 2008-111
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING RENEWAL OF SUPPORT AGREEMENT
FOR ELECTRONIC CUSTOMER INFORMATION
BILLING SYSTEM
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the renewal of the annual support agreement for Electronic Customer
Information Billing System from Alliance Data Systems, of Dallas, TX, in the amount of $
62,456.62, payable in two semi-annual payments of $31,228.31.
Dated: June 18,2008
I hereby certify that Resolution No. 2008-111 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held June 18, 2008, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian,
and Mayor Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS— None
4NDeputy
IFER . PERRIN
CityClerk
2008-111