09-17-10 BPU RPT 11 - Laserfiche WebLink

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LY A I I M I W I M [e Y 1 1 1 RIVERSIDE PUBLIC UTILITIES Board Memorandum 7ij91 t. r II t I L I T S BOARD OF PUBLIC UTILITIES DATE: September 17, 2010 ITEM NO: 11 SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH AAC UTILITIY PARTNERS, LLC FOR CUSTOMER INFORMATION SYSTEM SELECTION SERVICES ISSUE: Board of Public Utilities approval is requested to enter into a professional services agreementwith AAC Utility Partners, LLC to provide evaluation and selection services for the Customer Information Systems (CIS) replacement project. RECOMMENDATION: That the Board of Public Utilities approve the professional services agreement with AAC Utility Partners, LLC for CIS Selection Consulting Services in an amount not to exceed $249,000, and authorize an additional $21,000 for change orders to that amount, should additional services be identified by staff. BACKGROUND: Riverside Public Utility(RPU) implemented the current CIS(Banner)in October 1999. The process to replace the CIS application started in 1997 with the development of a functional specification, followed by the issuance of a Request for Proposal (RFP) as part of the citywide Y2k system conversions. In 1998, Banner was purchased from Systems and Computer Technology and implemented as an"off the shelf product with minimal modifications. CIS functions as the main data collection application for customer meter usage data, specific customer information data and billing application for residential and commercial rates.Currently,CIS provides billing services for Electric, Water, Refuse and Sewer; generating over $400 million in revenue annually, supporting 400,000 customer contacts, issuing over 180,000 service orders each year,supporting 400 users and producing over 100,000 bills each month. Since implementation, Banner has performed well but lacks the flexibility to meet the future needs without significant costly modifications. Market drivers such as smart grid meter data, customer usage information and controls,customer web based services, business system integrations,as well as complex rate structures require a robust system that will assist the utility in meeting the future demands. On July 15, 2010, the Board approved initial funding for the Banner replacement project. The process of replacing a CIS application is complex and carries a project timeline of 2-3 years. Staff recommends using the same successful process used to procure the Banner system with further refinements to incorporate valuable lessons learned. CIS Selection Phase 1(70-72 months) The initial CIS selection phase consists of identifying current and future functionality requirements,followed by the development and distribution of a comprehensive vendor RFP containing detailed functional and technical requirements (thousands of individual criteria expected), an evaluation of vendor responses and technology requirements, and final CIS application selection with contract negotiations. The Information Technology and Services industry has multiple CIS billing solutions available. The RFP customized to RPU's specific needs will be crucial in identifying the application that is right for RPU's future business needs, and requires the expertise and assistance from a utility industry consultant specialized in CIS selection projects and vendor negotiations. This phase is expected to last 10-12 months.