TITLE
Recommendation to authorize City Manager, or designee, to execute an amendment to Agreement No. 32941 with Ernst & Young, LLP, to extend the current Managed Services Agreement for maintenance and support of the utility billing software systems for nine months; and increase the contract amount by $361,224, for a revised total contract amount not to exceed $1,242,477;
Authorize an administrative correction to the Third Amendment to Agreement No. 32941 with Ernst & Young, LLP, for as-needed technical support and integration services, to clarify the contract amount is not to exceed $585,000 annually for a period of two years, with the option to renew for two additional one-year periods; and
Increase appropriations in the General Services Fund (IS 385) in the Technology and Innovation Department (TI) by $361,224, offset by charges to departments utilizing the utility billing system. (Citywide)
DISCUSSION
In 2011, the City Council awarded a contract to Ernst & Young, LLP (EY), for Managed Services to provide maintenance and integration support related to the City’s key utility software systems (Utility Systems), including the Customer Care and Billing System (CC&B), Mobile Workforce Management (MWM), and Advanced Metering Infrastructure (AMI). This agreement is due to expire on February 28, 2017. If the agreement expires, the Utility Systems will not have full support and that could put it at risk of temporary failure. These Systems support the utility billing processes for the City and bill for an estimated $200 million in revenue annually.
EY has increased their monthly cost for providing maintenance and support services from $97,917 (set in 2011) to $138,053, to accurately reflect their actual monthly costs to provide the services required under the contract. As the increased monthly cost of $40,136 is unbudgeted, an appropriation increase in the amount of $361,224 is needed to cover the additional nine-month period. A review of maintenance and supp...
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