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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/03/2013 - SECOND READING OF ORDINANCE NO. 113, 2013, AUTHORIDATE: September 3, 2013 STAFF: Gerry Paul Lori Clements AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT Second Reading of Ordinance No. 113, 2013, Authorizing the City Manager to Extend the Term of the Agreement Between the City and Kubra Data Transfer for Utilities Electronic Customer Billing Software. EXECUTIVE SUMMARY The purpose of this item is to request a one-year extension of the contract for Fort Collins Utilities’ e-Bill vendor, from October 23, 2013, to October 23, 2014, with the option to extend for additional one year periods not to exceed four additional one-year renewals. This Ordinance, unanimously adopted on First Reading on August 20, 2013, authorizes an extension that will give the Fort Collins Utilities staff time to complete necessary research and development for future e-Bill services, as well as support alignment of customer interface services related to advanced meters and related customer software systems. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - August 20, 2013 (w/o attachments) COPY COPY COPY ATTACHMENT 1 DATE: August 20, 2013 STAFF: Gerry Paul Lori Clements AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 18 SUBJECT First Reading of Ordinance No. 113, 2013, Authorizing the City Manager to Extend the Term of the Agreement Between the City and Kubra Data Transfer for Utilities Electronic Customer Billing Software. EXECUTIVE SUMMARY The purpose of this item is to request a one-year extension of the contract for Fort Collins Utilities’ e-Bill vendor, from October 23, 2013, to October 23, 2014, with the option to extend for additional one year periods not to exceed four additional one-year renewals. This extension will give the Fort Collins Utilities staff time to complete necessary research and development for future e-Bill services, as well as support alignment of customer interface services related to advanced meters and related customer software systems. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In May 2008, Fort Collins Utilities (Utilities) selected Kubra Data Transfer to provide a secure online system for customers to view and pay their utility bills. Through Fort Collins Utilities e-Bill system, Kubra provides customers with secure, seamless access to their utility accounts 24 hours per day, seven days per week. In June 2013, nearly 21,000 Utilities customers paid utility charges via e-Bill, through the Utilities web site, customers’ banks, or financial aggregators, such as Check Free. Approximately 18,500 of those customers subscribed for e-Bill through the Utilities’ web site. Through e-Bill, Utilities uses a sustainable, triple bottom-line approach in its billing operations, by reducing costs to Utilities and customers and decreasing the environmental impact of billing with a paper bill, which includes postage. More recently, Utilities has been focused on implementing the Advanced Meter Fort Collins program. This includes customer-facing systems, such as a web portal, that will provide customers even more visibility to their utility accounts, bills and usage information. The web portal must be integrated with e-Bill, both from a technology and customer service perspective. In June 2013, Utilities determined the contract with the initial web portal service developer would be discontinued, and steps have been taken to arrange for a replacement developer. As a result, the contract extension with Kubra is critical to allowing e-Bill services to continue, as well as to allow Kubra to assume responsibility for timely and seamless integration of account authentication services for the web portal. FINANCIAL / ECONOMIC IMPACTS Funds are included in the 2013 and 2014 budgets to cover expenses related to e-Bill, which is one of the least-cost options for processing customer payments. The web portal project is funded through federal grants for the Advanced Meter Fort Collins project. In a previous change order, Kubra was supporting integration of account authentication only at a third party cost of $37,700. Under this contract extension, Kubra will take full responsibility for account authentication services and integration services with no added third party costs above the $37,700. COPY COPY COPY August 20, 2013 -2- ITEM 18 ENVIRONMENTAL IMPACTS Customers who subscribe for e-Bill no longer receive paper bills. This is a cost-saving measure and prevents printing and mailing of bills as well as bill inserts. ORDINANCE NO. 113, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER TO EXTEND THE TERM OF THE AGREEMENT BETWEEN THE CITY AND KUBRA DATA TRANSFER FOR UTILTIES ELECTRONIC CUSTOMER BILLING SOFTWARE WHEREAS, after a competitive bidding process, the City entered into an Enterprise Services Agreement with Kubra Data Transfer (the “Agreement”) in August, 2008, for the provision of a secure, online system for customers to view and pay utility bills (“e-Bill”); and WHEREAS, the Agreement will expire October 23, 2013, unless the term is extended; and WHEREAS, Fort Collins Utilities is currently developing a web portal to implement the Advanced Meter Fort Collins program (the “Program”), which portal will provide customers greater access to their utility accounts and bills; and WHEREAS, the web portal must be integrated with e-Bill to reach the technology and customer service objectives of the Program; and WHEREAS, the web portal will not have been completed by October, 2013; and WHEREAS, due to the significance of the web portal project, Utilities staff needs sufficient time to research the feasibility of integrating the existing e-Bill services into that project and to determine if a new request for proposals is needed in order to find a service provider to provide on-line bill payment services that will integrate with the final web portal; and WHEREAS, the City and Kubra desire to extend the term of the Agreement for a period of one year, with the option for future extensions as may be required to coordinate web portal implementation; and WHEREAS, Section 8-186(a) of the City Code provides that no contract for services, including renewals, shall be made by the City for a period longer than five (5) years, unless authorized by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, that the City Manager is hereby authorized to execute on behalf of the City a one-year term extension to the Enterprise Services Agreement for a secure online system for customer access and payment of utility bills with Kubra Data Transfer, including the option of up to four additional one-year extensions, in order to coordinate with implementation of the Fort Collins Utilities web portal and Advanced Meter Fort Collins program. Introduced, considered favorably on first reading, and ordered published this 20th day of August, A.D. 2013, and to be presented for final passage on the 3rd day of September, A.D. 2013. Mayor ATTEST: City Clerk Passed and adopted in final reading on the 3rd day of September, A.D. 2013. Mayor ATTEST: City Clerk