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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 electric · stormwater · wastewater · water 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522-0580 970.212.2900 V/TDD: 711 utilities@fcgov.com fcgov.com/utilities fcgov.com/utilities 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