TITLE
Recommendation to adopt Specifications No. RFP TI-23-202 and award a contract to i3 Milestone, LLC, of Nashville, TN, for software licenses and professional services for implementation of a Customer Self Service Web Platform (CSWP) solution, in a total contract amount not to exceed $1,749,963, inclusive of a one-time installation cost of $592,900 with a five (5) percent contingency of $29,645, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments;
Increase appropriation in the General Services Fund Group in the Technology and Innovation Department by $822,545, offset by a transfer of funds from Long Beach Utilities and the Public Works Department; and
Increase appropriation in the Refuse Fund Group in the Public Works Department by $224,802 offset by funds available to transfer to the General Services Fund Group. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with i3 Milestone, LLC, for providing complete software licenses and professional services for the implementation of a Customer Self Service Web Platform (CSWP) solution that will meet the needs of the Long Beach Utilities Department and the Environmental Services Bureau in the Public Works Department. This contract will provide easier access for resident and business customers to pay their utilities and improve operational efficiencies.
The City of Long Beach (City) current customer self-service portal is no longer supported by the software vendor. As it was developed years ago, the software also lacks the functionality and customer experience the City’s customers have come to expect from organizations that provide goods and services. Many of the City’s customers expect a seamless, no-contact experience to perform utilities related tasks like starting utility services, transferring services within the City and/or canceling City utility services when they move outside of the serviceable area. Additionally, a modern customer portal encourages and makes available customer serving programs and services such as level billing, viewing and paying bills online, and gas and water usage reports for utility customers.
With a growing population and demand for City services at an all-time high, implementing a modern, user-friendly customer portal will reduce the overwhelming call volume into the utility customer call center. The selected vendor, i3 Milestone, LLC, quoted a 90 percent reduction in calls to start, stop, and transfer services once this customer portal platform was installed in the City of Seattle.
The Request for Proposals (RFP) was advertised in the Long Beach Business Journal on April 4, 2023, and 45 potential proposers specializing in Customer Self Service Web Portal Replacement were notified of the RFP opportunity. Of those proposers, 26 downloaded the RFP via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 44 local, minority-owned, and women-owned business groups. There were 12 proposals received on April 25, 2023. Of those 12 proposers, one (1) was a Minority-owned Business Enterprise (MBE), one (1) was a Women-owned Business Enterprise (WBE), one (1) was a certified Small Business Enterprise (SBE), and none were Long Beach vendors (Local). The selection committee determined that i3 Milestone, LLC, of Nashville, TN (not a MBE, WBE, SBE, or Local), was the most qualified firm to provide the services.
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the Long Beach Buys database to download RFP specifications. Through outreach, three (3) Long Beach vendors were notified to submit proposals, of which one (1) downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley and on October 9, 2023, Purchasing Agent Michelle Wilson on October 5, 2023, and by Budget Development Officer Jennifer Rodriguez on October 6, 2023.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP TI-23-202 and award a contract concurrently is requested on October 24, 2023, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $1,749,963, which includes a one-time installation cost of $592,900 and a five (5) percent contingency of $29,645. The core application software support and licensing will cost $200,000 in the first year and will increase by a six (6) percent Cost of Living Adjustment for each subsequent year until year five. All five years of support are requested within this contract. The Technology and Innovation Department (TID) will manage and implement the system, and the total project will be funded by Long Beach Utilities Department and the Environmental Services Bureau in the Public Works Department. The following table displays the breakdown of costs by Fund Group for the five years, which will be billed to the two impacted departments and will be received as revenue to TID.
The requested action increases appropriation in the General Services Fund Group in the Technology and Innovation Department by $822,545 to cover the implementation, contingency, installation costs and the first year of support and licensing. In addition, an increase in appropriation in the Refuse and Recycling Fund Group in the Public Works Department by $224,804 is being requested to make a transfer to the General Services Fund Group in the Technology and Innovation Department for the project in the first year. The Long Beach Utilities Department has included the project costs in the Water, Gas, and Sewer Funds as part of the Adopted Fiscal Year 2024 (FY 24) budget. The project will be included in the annual Technology and Innovation Department Memorandum of Understanding (MOU) beginning in FY 25 thru FY 28.
TID will assess the level of staff resources necessary to support this system as implementation begins and will communicate with partner departments the changing needs that may be requested as part of a future budget development process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LEA D. ERIKSEN
DIRECTOR
TECHNOLOGY AND INNOVATION
ERIC LOPEZ
DIRECTOR
PUBLIC WORKS
CHRISTOPHER J. GARNER
GENERAL MANAGER
LONG BEACH UTILITIES
APPROVED:
THOMAS B. MODICA
CITY MANAGER