TITLE
Recommendation to authorize City Manager to execute contracts and any amendments thereto with Five Point Partners, in the amount of $153,670, for quality assurance services in support of the implementation of a new utility customer information system. (Citywide)
DISCUSSION
On September 20, 2011, the City Council authorized the City Manager to enter into an agreement with Black & Veatch, of Overland Park, KS, to provide quality assurance services in support of the implementation of a new utility customer information system (CIS). Given the implementation of this new system is a complex project with significant potential risks, quality assurance is needed to provide an independent review of the progress of the project; determine the condition of the implementation with regard to schedule, quality, scope, and budget; and to identify any areas for improvement.
Prior to executing a contract, the City was notified by Black & Veatch that their proposed consultant had left the firm and would not serve on the Long Beach project. Black & Veatch submitted substitute candidates for consideration.
The evaluation team reviewed the qualifications of the substitute candidates against the runner-up proposer, Five Point Partners, of Atlanta, GA. Based on the evaluation, the team is recommending the selection of Five Point Partners.
The recommended vendor, Five Point Partners, was chosen based upon cost, established criteria, demonstrated competence, and verification of references for services performed for other municipal agencies and utilities. The evaluation team reviewing the proposals included representatives from the following City departments:
Long Beach Gas and Oil, Water, Public Works, Technology Services, and Financial Management.
This letter was reviewed by Deputy City Attorney Gary J. Anderson on November 18, 2011, and by Budget Management Officer Victoria Bell on November 22, 2011.
SUSTAINABILITY
With the implementation of a utility customer information system, the City will achieve a number of environmental and sustainable benefits. It will reduce the volume of paper used for utility bills and mailings, as customers opt for online, paperless billing and payment. It will also facilitate the future transition to automated meter reading, which will reduce vehicle emissions by eliminating the need for meter readers to travel by vehicle on a daily basis to all parts of the City's 50 square miles of utility service territory. Additionally, it will raise awareness of increased energy and water usage through rate structures that make consumers more aware of the need to conserve.
TIMING CONSIDERATIONS
City Council action on this matter is requested on December 13, 2011 to allow the vendor to begin providing services in January 2012 as this project has already commenced.
FISCAL IMPACT
The total cost for quality assurance services is $153,670, spread out over two fiscal years, FY 12 and FY 13. The amount is within the estimated cost for these respective services presented to City Council on July 5, 2011.
The cost will be allocated among the four enterprise operations (gas, water, sewer, and refuse), which fund the City's current utility billing function. The allocation is equal to each enterprise's proportionate usage and dependence on the system. Estimated costs by fund are: Gas Fund (EF 301) $58,548; Refuse Fund (EF 330) $40,093; Water Fund (EF 310) $31,717; and Sewer Fund (EF 311) $23,312. Participating departments will request increases in budget appropriation as needed, as the project moves forward. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHRISTOPHER J. GARNER
DIRECTOR of LONG BEACH GAS AND OIL
KEVIN WATTIER
GENERAL MANAGER
LONG BEACH WATER
MICHAEL CONWAY
DIRECTOR of PUBLIC WORKS
JOHN GROSS
DIRECTOR of FINANCIAL MANAGEMENT/CFO
CURTIS TANI
DIRECTOR of TECHNOLOGY SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER