201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: AUGUST 23, 2022
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: SECOND AMENDMENT TO THE INFORMATION SYSTEM
AGREEMENT WITH SYSTEMS & SOFTWARE, INC. TO
UPGRADE THE CUSTOMER INFORMATION SYSTEM AND
UPDATE AGREEMENT TERMS
ATTACHMENT (Y/N): YES ITEM # 09
RECOMMENDATION:
That the City Council, by Motion,
1) Approve the Second Amendment to the Information System Agreement (Second Amendment) between Systems & Software, Inc. (S&S) and the City of Anaheim (City) for the upgrade of the Customer Information System (CIS), which includes post-implementation services and updates to software licenses and other agreement terms, in an amount not-to-exceed $1,114,000 plus a 15% contingency for extra work; authorize support and maintenance fees in an annual amount not-to-exceed $311,000 with an annual escalator not-to-exceed 3%; and authorize the Public Utilities General Manager or designee to execute order forms, work orders, and related documents for software licenses, subscriptions, maintenance, and services for CIS improvements in an annual amount not-to-exceed $200,000; 2) Authorize and direct the Public Utilities General Manager or designee, on behalf of the City, to execute the Second Amendment, and any related or associated documents, and take such actions as are necessary or advisable to implement and administer the Information System Agreement as amended; and 3) Authorize de minimis changes to the Second Amendment and related or associated documents that do not substantially change the terms and conditions of the Information System Agreement as amended, as determined by the City Attorney’s Office.
DISCUSSION:
The Public Utilities Board (PUB), at its meeting on July 27, 2022, recommended that City Council approve these actions.
Second Amendment to the Information System Agreement with Systems & Software, Inc. to Upgrade the Customer Information System and Update Agreement Terms
August 23, 2022
The Customer Information System (CIS) is administered by Anaheim Public Utilities (APU) and is utilized by other departments to manage essential utility-related services to residents and businesses of the City, including electricity, water, wastewater, solid waste, street sweeping, and paramedic fees. The CIS serves as the centralized software system that calculates utility bills, tracks customer interactions, collects data, and enables employees to assist customers with their billing questions.
After a competitive procurement process, the City Council approved an agreement with S&S in 2012 to purchase and implement a new CIS to replace an outdated legacy system. The CIS is approaching 10 years, the hardware is aging, and the software is in need of upgrading to the most current version to address reliability and other functional issues with the older version.
The Second Amendment is being proposed to extend the life of the CIS by installing new versions of the software on new servers. The new software has several upgrades that will improve operations, including an easier to use interface that will allow Customer Service Representatives to have faster and more accurate phone interactions with customers; a more efficient billing process; increased capability to configure advanced rates to meet changing customer needs; ability to configure additional payment plan rules for those customers suffering from hardship; customer mailing address validation to reduce returned mail; updated reports and analytics; and improved customer data security. The upgrade is expected to take approximately 18 months to fully implement.
The upgraded CIS includes a new customer website that will provide an improved modern look and feel for customers to sign-up for service, access their accounts, view bills, make payments, set communication preferences, and other self-service capabilities.
The new website will provide access to detailed usage data, so customers can better understand and manage their consumption behavior and see the results of their conservation efforts. The website will be mobile-friendly in order to display properly on cell phones and tablets.
The additional software licenses included in the upgrade will increase the annual maintenance from $277,000 to approximately $311,000. The Second Amendment will reduce the annual maintenance fee escalator from 3.5% to 3%.
The Second Amendment also updates software licenses and other terms as well as provides the option to purchase additional software licenses, subscriptions, maintenance, and services up to $200,000 annually to make future improvements to address customer, utility, and regulatory requirements.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s Fiscal Year 2022/23 restricted Utility Fund budget, and future years are subject to City Council’s approval of budget appropriations.
Second Amendment to the Information System Agreement with Systems & Software, Inc. to Upgrade the Customer Information System and Update Agreement Terms
August 23, 2022
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Second Amendment to the Information System Agreement with Systems & Software, Inc.
2. Original Agreement and First Amendment