COUNCIL DISTRICT: City-Wide
Approval to issue a Request For Proposal (RFP) for an integrated service solution for Recycle Plus billing, customer service and performance monitoring.
BACKGROUND
Since the beginning of the City's Recycle Plus program in 1991, the City has been billing its customers using an in-house billing system (known as Socrates). Because of the limited nature of the system in use, in November 1998 the City entered into an agreement with Creative Computer Solutions (CCS) for installation and maintenance of its utility billing system. Over the course of the next two years, CCS was unable to successfully convert customer data from the City’s current Socrates system into CCS’s UBSelect system.
In July 2000, Harris Computer Systems acquired CCS and proposed substituting the UBSelect system for Harris’ utility billing system, PUBS. The project was temporarily put on hold while staff assessed the functionality of the proposed Harris solution, and whether it was in the City’s best interest to pursue the Harris system or do a new RFP process.
Staff has determined that it would not be prudent to select the Harris system without reassessing the current level of technology in light of the need to integrate the billing system with customer service and performance monitoring systems. The City and Harris have mutually agreed to discontinue the current contract.
The purpose of this report is to outline the next steps in obtaining a replacement billing system, which will integrate with customer service and performance monitoring.
Over the past year, staff has reassessed its needs and direction, as well as kept abreast of advances in technology. The program needs and technological opportunities, such as on-line bill payment capability, have greatly expanded since the billing system project began in 1997. The RFP specifications used in 1997 were primarily focused on the functional needs of the billing operation. Now, equally essential is a focus on the functional needs of contractor performance monitoring and customer relationship management.
Contract performance monitoring needs have changed with the new set of Recycle Plus contracts, which base contractor payment on compliance with performance standards. In addition, the new contracts require the contractors to use the City system for customer information and service requests.
The purpose of this requirement is to ensure consistent information and to allow the City and contractors to share customer service information in real time. Sharing a single system will lead to improved service to customers.
Opportunities exist to improve the management of the relationship with our customers and access to program information. Customer relationship management (CRM) system technology, now available, would serve the need to share information between the City and contractor customer service operations.
CRM technology also affords the City the option to expand into new territory such as web based self-service options for Recycle Plus customers and others in the future.
The integrated service solution recommended by staff would include billing, customer relationship management, and performance monitoring functionality. The desired functions may be available through a single product or multiple products. The desired solution, whether a single product or multiple products, will seamlessly integrate so that it appears as single system to the end user.
The objective is to acquire an enterprise system capable of growing with, not only the Recycle Plus program, but integrating other City billing and customer service operations in the future. This approach is consistent with the City’s Information Technology Master Plan.
The project will be directed by a steering committee, comprised of executive staff from Environmental Services Department, Finance Department, Information Technology Department and the City Manager’s Office, and will be coordinated with the Information Technology Planning Board.
A Project Manager will be hired who will report to the Environmental Services Director. The Project Manager will be responsible for day-to-day management of the project. The Project Manager will also coordinate with staff from each of the departments.
The first objective for the Project Manager will be to perform a detailed mapping of the business processes associated with billing, customer service and contractor performance monitoring. Based on the outcome of the mapping process, the Project Manager will develop the specifications for the procurement document.
The mapping process will ensure that the specifications are complete and accurately represent all functional requirements. The Project Manager will also conduct due diligence on a variety of system and process options. Staff estimates the release of an RFP in early 2002.
Performance standards in the new Recycle Plus contracts require close monitoring of services delivered to customers. Complete outsourcing of the billing responsibilities reduces the City’s ability to ensure that the contractor remains in compliance with the contractual requirements.
In addition, complete outsourcing would not work well with the performance based payment requirements in the new Recycle Plus contracts. Outsourcing would decrease the City’s fiscal and data management control, and the City would lose direct connection to our customers. Additionally, in-house billing is consistent with the best practices of other cities.
This option has also been discussed with Norcal and GreenTeam. Norcal indicated that they are not interested in assuming billing responsibilities; GreenTeam is interested in billing, and staff expects that they would participate in the recommended RFP process.
Not applicable.
This memorandum has been coordinated with Finance Department, Information Technology Department, City Manager’s Office and the City Attorney’s Office.
COST IMPLICATIONS
There are no cost implications associated with the recommendation at this time. The agreement resulting from the procurement process will be presented to Council for approval. The associated costs will be presented at that time.
CARL W. MOSHER SCOTT P. JOHNSON
Director, Environmental Services Department Director, Finance Department
WANDZIA GRYCZ
Chief Information Officer