HomeMy WebLinkAboutMemo - Read Before Packet - 6/2/2020 - Memorandum From Lisa Rosintoski Re: June 2 Council Meeting Agenda Item #15 - Appropriating Prior Year Reserves In The Light And Power Fund, The Water Fund, The Wastewater Fund, And The Stormwater FundUtilities
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M E M O R A N D U M
DATE: June 2, 2020
TO: Mayor Troxell and Councilmembers
FROM: Lisa Rosintoski, Deputy Director, Utilities Customer Connections
THROUGH: Darin Atteberry, City Manager
Theresa Connor, Interim Utilities Executive Director
RE: June 2, 2020 City Council Meeting Agenda Item #15 - First Reading of
Ordinance No. 076, 2020, Appropriating Prior Year Reserves in the Light and
Power Fund, the Water Fund, the Wastewater Fund, and the Stormwater Fund,
and Authorizing the Transfer of Previously Appropriated Funds in the Broadband
Fund for the Utilities Customer Information and Billing System Project
Attached is the revised PowerPoint presentation for the referenced agenda item. Specific updates
are:
Added slide 2 to specify request for additional appropriation
Modified visuals in packet agenda slide deck for slides 5 – 7
Added a note to slide number 9, formerly slide 8 in agenda packet presentation
Added additional back-up slides, 12-14, that were not in packet agenda presentation
CC: Mike Beckstead, Executive Advisor
Lance Smith, Utilities Strategic Finance Director
Colman Keane, Connexion Executive Director
Kevin Wilkins, Chief Information Officer
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
6/1/2020
6/1/2020
6/1/2020
11
Utilities Customer Information/
Operational Support Billing Systems
June 2, 2020
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
2
Appropriation Request
Request Additional Appropriation of $950,000 for the replacement of the
Customer Information and Operational Support Billing system.
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
3 3
Strategic Alignment
• Ensuring
predictable rates
• Deploy and deliver
high-speed internet
services
Customer
Information /
Operational
Support Billing
Systems
• Enhance service
delivery through
technology
• Drive reliability,
costs, efficiency
and customer
experience
• World-class
municipal
services Economic Health
High-Performing
Government
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
Why A New Billing System?
4
Current system: ~20
years old, uses “home-
grown” integrations.
1
Customers asking for
features not possible
with legacy system.
Best practice to have
one system manage
five utilities.
Connexion requires
functionality current
system can’t support.
TOTAL
COST
$9.6M
2
3
4
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
5
Original Timeline
Vendor /
City Team
Launched
Training /
Testing
2018 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019
Data Migration /
Integration / Configuration
Integration /
Configuration
Training /
Testing
Broadband Utilities
Go Live /
Stabilization
Go Live /
Stabilization
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
6
Project Schedule Impacts
Aggressive Timeline Given Project Complexity
• Under-estimated time to ramp up and manage
two diverse project teams
• Under-estimated learning and training time to
manage configuration of new system
Project Management & Resources
• Vendor project manager turnover October 2019
• City project manager turnover December 2019
and March 2020
• Significant staff turnover within City IT and
Utilities Customer Connections
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
7
Project Schedule Impacts
Maturity of Connexion Business Model
• New business with new processes and products
to be defined. Addition of video product offering.
• Significant rework as things were defined
and changed.
• Aligning broadband regulatory requirements as
part of billing system in compliance with legal.
Software was less mature than anticipated and
required for North American marketplace
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
8
Revised Timeline & Cost
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Broadband
limited products
launched
2020
Utilities Go-live
Utilities configuration / integration / migration & stabilization
BB go-live
stabilization
2019
Broadband production environment – additional product offerings
• Broadband live August 2019 –
significant resource focus in 2019,
delaying Utilities efforts.
• Additional work required after August
on functionality.
• Utilities go-live Q4 2020.
• Additional 13 months and overall
cost impact of $3.1M plus $0.2M
contingency / living expenses.
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
9
Revised Cost Impacts
Total Project Impact: $3.3M
Cost Share Agreement
• Fort Collins Utilities: 55% ($1.7M)
•Open: 45% ($1.4M)
• City funds additional contingency /
living expenses: up to $200,000
Internal Cost Share
Connexion / Utilities split (50/50)
$
Note: Internal cost funded by Enterprise
Revenues that can only be used
specific to each Enterprise
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
10
Uncertainty
Risk
Resources
• Employee turnover
• Pandemic impacts
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
11
Recommendation
Staff recommends
approval of Utilities
additional appropriation
of $950,000.
Broadband has
appropriation coverage
for their portion.
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
12 12
Back Up Slides
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
13
Rate Forecasts
13
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7
14
Open SmartFlex Funding
OASIS PROJECT BUDGET TRACKING
BUDGET
ADDITIONAL
FUNDING
REVISED BUDGET
IMPLEMENTATION SERVICES $ 4,694,113 $1,700,000 $ 6,394,113
PRODUCTION SUPPORT & LICENSING $ 906,587
TRAVEL & LIVING EXPENSES $ 1,236,000 $200,000 $ 1,436,000
CONVERSION EXPENSES $ 510,000
CITY PROJECT EXPENSES w/ contingency $ 2,199,301
TOTAL PROJECT COSTS $ 9,546,001 $1,900,000 $ 11,446,001
14
DocuSign Envelope ID: 8B12627C-CCEB-405E-A2F6-D94CAE0224F7