HomeMy WebLinkAbout1075 Resolution1075
RESOLUTION NO.
A RESOLU'T'ION OF THE CITY OF PASCO PROVIDING
FOR DEVELOPMENT OF A UTILITY BILLING SYSTEM
WHEREAS, the Cities of Pasco and Richland have thoroughly
considered independent utility billing systems and joint utility
billing systems, and
WHEREAS, the City of Pasco finds it in the City's best
interests to enter into an agreement with the City of Richland
for development of a joint utility billing system, now, therefore,
IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PASCO as follows:
Section 1. The City Council hereby authorizes and directs the
the City Manager to enter into an agreement with the City
of Richland to develop a joint utility billing system.
Section 2. The terms of said agreement shall be those contained
in the letter attached to this resolution and by this
reference incorporated herein, dated March 2, 1977, from
the City of.Richland.
Section 3. The total cost to the City of Pasco shall not exceed
$7,157.00 unless additional authorization is obtained from
this Council.
Section 4. This resolution shall become effective upon its
passage.
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PASSED this 15 day of march, 1977.
V � ,
Jan rick, Mayor
Attest:.
City Clerk
Approved as to form:
C;a2trEioctk T. Roach, City Attorney
I
sivaLah, �1L�J'
CITY OF RICHLAND, WASHING -ION
Community Services/Personnel
March 2, 1977
Mr. __eo Olney
Finance Director
City of.Pasco
412 West Clark
Pasco, Washington 99301
P
RE: UTILITY BILLING SYSTEM
DEVELOPMENT
Dear Mr. Olney:
This letter is to formalize our understanding of services to be provided
to Pasco by Richland and our consultant, Compass Management Group, in
developing a Joint Utility Billing System. All services and costs are
in accordance with the (1) Joint Data Processing Agreement dated
January 3, 1977 and (2) the Compass proposal dated February 23, 1977.
1. The system will be developed for use by both cities and
considering the needs of both cities equally. Our consultant
and Data Processing Supervisor will work directly with you
during system design and during implementation to ensure that
the system meets your needs.
2. Costs for developing the system will be split between the two
cities on the basis of usage. Pasco will pay 25% of total
development costs as specified on pages 12, 13 and 14 of the
Compass proposal. Total cost to -Pasco Will not exceed $7,157
unless additional specific written authorization is obtained.
3. Development costs including consultant services staff time and
equipment usage will be invoiced to Pasco by Richland on a
monthly basis as cost is incurred.
505 SWIFT BOULEVARD BOX 190 RICHLAND, WASHINGTON 99352 509-943.9161
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sivaLah, �1L�J'
CITY OF RICHLAND, WASHING -ION
Community Services/Personnel
March 2, 1977
Mr. __eo Olney
Finance Director
City of.Pasco
412 West Clark
Pasco, Washington 99301
P
RE: UTILITY BILLING SYSTEM
DEVELOPMENT
Dear Mr. Olney:
This letter is to formalize our understanding of services to be provided
to Pasco by Richland and our consultant, Compass Management Group, in
developing a Joint Utility Billing System. All services and costs are
in accordance with the (1) Joint Data Processing Agreement dated
January 3, 1977 and (2) the Compass proposal dated February 23, 1977.
1. The system will be developed for use by both cities and
considering the needs of both cities equally. Our consultant
and Data Processing Supervisor will work directly with you
during system design and during implementation to ensure that
the system meets your needs.
2. Costs for developing the system will be split between the two
cities on the basis of usage. Pasco will pay 25% of total
development costs as specified on pages 12, 13 and 14 of the
Compass proposal. Total cost to -Pasco Will not exceed $7,157
unless additional specific written authorization is obtained.
3. Development costs including consultant services staff time and
equipment usage will be invoiced to Pasco by Richland on a
monthly basis as cost is incurred.
505 SWIFT BOULEVARD BOX 190 RICHLAND, WASHINGTON 99352 509-943.9161
Mr. neo Olney
City of Pasco -2 March 2, 1977
4. Computer programs developed will be come the joint property
of Richland and Pasco and shall be subject to paragraph 9
of the Joint Data Processing Agreement.
We expect to begin work on the system in late March, pending approval
of the consultant contract by our City Council.
Very truly yours,
DSS: gem
CONCUR:
BY:
TITLE:
CITY OF PASCO
DANIEL S. SMOLEN, Director
Community Services/Personnel
z c
t
COMPASS MANAGEMENT GROUP, INC.
MANAGEMENT CONSULTANTS
February 23, 1977
Mr. Leo Olney
Finance Director
City of Pasco
P. O. Box 293
Pasco, Washington 99301
Dear Mr. Olney:
We are pleased to present a proposal to assist the City of Pasco and City of
Richland with implementation of a joint Utility Billing System.
The proposed approach and my involvement in the project will provide these
significant advantages to the cities:
• Knowledge and experience I have gained in working with other
utility billing systems (in private and public utilities) will be
extremely useful in design of the new system.
• Applying proven project management methods, as I have done
in the recently completed Utilities Inventory system, will mini-
mize the risk of project failure.
• My familiarity with both data processing resources and system
user personnel should be extremely useful in designing a system
which will best meet the needs of both cities.
I am confident we can meet the target date for system completion of July 15 if
we begin work in late March. Timely and successful completion of this project
should help ensure continuation of a joint data processing operation which is of
great benefit to both Pasco and Richland.
Very/truly yours, -
4
Donald W. Cornell
THE COMMONS BUILDING, SUITE 160 BELLEVUE, WASHINGTON 98004 (206) 454-8328
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CITY OF RICHLAND
CITY OF PASCO
PROPOSAL FOR
SYSTEMS ANALYSIS AND PROJECT MANAGEMENT SERVICES
FOR
JOINT RICHLAND/PASCO UTILITY BILLING SYSTEM
COMPASS MANAGEMENT GROUP, INC.
February 1977
V
V
INTRODUCTION
The City of Richland and City of Pasco have entered into a joint data
processing services agreement. It commits the cities to sharing of a
computer-based utility billing system using the Richland computer.
A feasibility study of alternatives for implementing a joint utility billing
system has been performed by Richland's Data Processing Supervisor.
The most significant conclusions of that study are summarized as follows:
• The current utility billing system used by Richland is
technically obsolete, functionally inadequate, and not usable
as the basis for joint billing.
• Alternatives such as major revision of the current system
or transfer of a system used elsewhere are not feasible.
The most feasible means of implementing joint utility
billing is by developing a new system, using an experienced
analyst/project manager from outside the City to lead the
project and in-house data processing staff for programming
and testing.
• Costs of system development should be shared by the cities
on a basis consistent with the number of accounts served
by each.
The Data Processing Steering Committee has, reviewed and accepted the
feasibility report. The Committee Chairman asked for a written proposal
from Compass .Management Group to provide the necessary systems analysis
and project management services. This proposal describes the proposed
approach, the role of the consultant, and the qualifications of the consultant.
1
I
1
PROJECT OBJECTIVES
The overall goal of the proposed project is to produce a functioning data.
processing system for utility billing, receivables management, and pay-
ment processing which will be used by both the City of Richland and City
of Pasco. The new system will replace each city's present systems for
utility billing, which are inadequate, inefficient, and obsolete.
The more specific objectives of the project are as follows:
• To develop a system which meets all needs for utility billing
which are identified by system users in each city
• To take full advantage of the technical capabilities of the com-
puter, including high-speed disk storage and access capability
and on-line inquiry to account status
• To minimize and eliminate whenever possible manual
data manipulation and calculation which can be more effi-
ciently done by the computer
• To provide a single consolidated master record for each
account, reflecting all account activity and current status
• To provide accounting for customer deposits
• To maintain a file of meter information
• To automatically prorate final bills and new customer bills
To reduce processing time and cost by fifty percent
• To develop a system which is flexible enough to be trans-
ferred and sold to other cities
The extent to which these objectives are actually achieved in the new system
will depend on the skill and dedication of the project team. The systems
analyst and system designer roles will be especially important, because
shaping of the system to match the objectives will take place in the analysis
and design phases.
2
SCOPE AND APPROACH
In accordance with the implementation approach approved by the EDP
Steering Committee, Compass Management Group proposes to provide
the necessary systems analysis and project management services which
cannot be readily provided by in-house staff. Richland staff members will,
however, have important roles performing the functions they are most
qualified to perform: detailed system design, program coding, testing,
and documentation.
Working together as a project team, consultant .skills and staff skills will
be combined to provide the best assurance of successful and timely proj-
ect completion.
Project Phases and Deliverables
As project manager, the consultant would utilize a structured, proven
approach in developing the new system. The approach involves clearly
defined responsibilities, specific deliverable products at critical points,
user approval of all deliverable products, specific documentation require-
ments, and proven project control methods.
The project will be performed in four distinct phases:
Phase I General Systems Design
Phase II Technical Design
Phase III Coding and Testing
Phase IV Conversion and Implementation
Specific deliverable products to be produced in each phase, consultant
responsibilities, Richland data processing staff responsibilities, and tar-
get dates are shown in a chart on the following page.
Responsibility for quality control of the deliverable products will be
assigned to the consultant in his role as project manager. Each phase of
the project will be considered complete only after the designated user
representative from .each city has approved the deliverable product of
the phase.
3
PROJECT DELIVERABLES AND RESPONSIBILITIES
PHASE AND
CONSULTANT
DP STAFF
USER
TARGET COXTPLETION
DELIVERABLES
RESPONSIBILITY
RESPONSIBILITY
RESPONSIBILITY_
I- General Design
General systems design docu-
Develop a conceptual design
Participate in meetings with
Provide information on
ment including:
based on discussion of require-
users. Assist consultant with
needs and desired fea-
April 20, 1977
1. Overall system design
ments with users. Refine
layout of report formats.
tures of new system.
flowchart
design and fully define the
Identify most efficient input/
Review and approve
2. Output format descriptions
inputs, outputs, and processes
output modes,
deliverable products.
3. Input descriptions
necessary to satisfy objectives.
4. General description of sys-
tem processing logic
II - Technical Design
Technical design specifications
Assist the DP Supervisor in
Expand on the general design to
Review and approve the
including:
preparation of technical design
provide enough detail so that
deliverable products.
May 15, 1977
1. Detailed processing flow-
documentation. Review all pro-
programming may be done. Pre -
chart
cessing logic, file designs, and
pare all documentation needed as
2. File design
record layouts to ensure com-
deliverables.
3. Record layouts
patibility with general design
4. Program specifications
and project objectives. Pre-
sent the technical design to
users.
III - Coding and Testing
1. A completely programmed
Direct the performance of this
Write programs to meet specifi-
Review test output.
system
phase to ensure timely and sue-
cations in technical design docu-
Review and approve all
June 30, 1977
2. System test plan and com-
cessful completion.. Review
ment. Test and debug programs
deliverables.
plete test data base
each of the deliverables for
to the satisfaction of the project
3. Technical and internal pro-
acceptability. Prepare the
manager. Prepare necessary
gram logic documentation
conversion plan. Prepare test
documentation as specified in
for system maintenance
data and review test output to
deliverables list.
4. Job stream and operations
ensure program accuracy.
documentation
5. I/O control instructions
G. File conversion plan
IV - Conversion and
1. Implementation plan
Direct the performance of this
Implement the system, following
Review plan, documen-
Implementation
2. Implemented system in
phase to ensure timely and sue-
the plan. Execute file creation
tation, and training
production status
cessful implementation of the
and conversion programs. Pre-
materials. Indoctri-
July 15, 1977
3. User -level systems
system. Prepare an implemen-
pare user documentation and
nate staff. Install new
documentation
tation plan and assist in prep-
training materials.
manual interfaces.
4. User training materials
aration of user training
Review output of initial
materials. Monitor outputs of
runs.
system execution following
conversion.
Project Organization
For purposes of this project, the organization structure and reporting
relationships will be as shown on the following page. The consultant will
be directly. responsible to Richland's Community Services Director (the
department head responsible for data processing). Richland's Accounting
Supervisor, and Pasco's Finance Director will provide information and
assistance in system design and will review all project products. The
Data Processing Supervisor will provide day-to-day supervision of all
work done by the data processing staff and will report progress to the
consultant.
9
UTILITY BILLING SYSTEM
PROJECT ORGANIZATION CHART
User
Representatives
• Richland Account-
ing Supervisor
(H. Dellinger)
• Pasco Finance
Director
(L. Olney)
Richland
Programmer
T. Hyatt
Community
Services
Director
D. Smolen
Consultant
Project Manal
D. Cornell
Ric hland
Data Processing
Supervisor
B. Quiver
6
Programmer
M. Surplus
L
PROJECT SCHEDULE AND RESOURCES
The project will be begun as soon as the Financial System installation is
complete, approximately March 21. Assuming normal progress, the tar-
get dates for completion of each phase are:
Phase I April 20
Phase II I I May 15
Phase III. .June 30
Phase IV July 15
To meet this schedule, this project must have top priority for the data
processing staff. The Data Processing Supervisor should spend nearly
full time on the project from April 10 until completion. Two programmers
will be needed nearly full time from May 15 to project completion.
Involvement of the consultant will be most necessary in Phase I and Phase
IV, when he will be spending full time on the project. In phases H and III,
his time commitment will be reduced substantially. Estimated consultant
man-hours are as follows:
Phase Estimated Hours % of FTE
I 160 100%
H 64 50
III 60 25
IV 88 100
Total Consultant Hours 372
7
IMPLEMENTATION SCHEDULE
RICHLAND/PASCO
UTILITY BILLING SYSTEM_ Dore
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CONSULTANT QUALIFICATIONS
The consultant who will serve as project manager and systems analyst
is Don Cornell. He is uniquely qualified for this assignment for these
reasons:
He has been providing consulting. services to Richland since.
July of 1976. He was responsible for the Data Processing
Evaluation Report, served as Acting DP Supervisor for three
months, served as project manager for the successful imple-
mentation of a Utility Inventory Control system, and is
currently project manager for the Financial System
installation project.
• He has been project manager for a successful city utility
billing system project in Bremerton.
• Before becoming a consultant he was a systems analyst and
programmer for billing systems for two years with a private
electric utility.
• He has a total of more than ten years' experience in data
processing systems development.
A resume for Mr. Cornell is included on the two following pages.
K
K
DONALD W. CORNELL
SUMMARY:
Mr. Cornell is a senior data processing consultant for Compass Management Group, providing
technical and managerial consulting services to a variety of governmental. and private organiza.-
tions. He has more than ten years' experience in large-scale data processing, as a consultant,
a systems analyst, and a programmer.
EDUCATION:
University of Wisconsin, Bachelor of Business Administration, major in Finance;
completed substantial graduate work in the MBA program
Received formal training in statistical sampling and auditing techniques while
employed by a major CPA firm
EXPERIENCE:
The following paragraphs list Mr. Cornell's professional experience and major relevant projects
with large-scale computing systems.
1975 Present -- Senior Consultant, Compass Management Group
Mr. Cornell has performed several major studies for computer users since joining
Compass. For the Seattle School District, he reviewed the organization and manage-
ment of the data processing department and system design of an on-line data base
system for budgeting and accounting control.
He has performed an audit of internal control and security in the State Treasurer's sys-
tem for issuance and redemption of warrants. This included review of all processing
and file controls and transmission procedures for remote batch processing.
For the City of Bremerton, he has redesigned and supervised the programming,• testing,
and implementation of a system for billing and accounting for all utility services. Also
for the City of Bremerton, he directed the development of a financial management sys-
tem.
For the City of Richland, Mr. Cornell performed a detailed study of data processing
activities and needs.
For the Municipality of Metropolitan Seattle, he assessed future applications require-
ments and performed a salary review.
Most recently, he has managed the development, including systems analysis, design,
and programming, of a sophisticated client tracking and financial system for the State
of Washington Department of Social and Health Services.
10
1973 - 1975 -- Supervisor of Data Processing Consulting, Ernst & Ernst
Mr. Cornell performed or supervised all data processing audit activities for Ernst &
Ernst in Washington, Oregon, Alaska, and Northern California. All of these studies
were done to determine data processing controls and procedures and management poli-
cies were adequate to ensure control over financial transactions. Opinion of the inde-
pendent auditors depended upon the audit work performed by Mr. Cornell.
Additionally, he evaluated the on-line system of the Pacific National Bank of Washington
to determine if the teleprocessing monitor software was adequate to provide. support for
a network of over 100 terminal devices.
For Paccar Inc. and Simpson Timber Company he evaluated the adequacy of telepro-
cessing support software used for data transmission and CPU -to -CPU communication.
For Santa Clara County, California, Mr. Cornell performed a complete review of all
data processing functions performed by the County Data Center for the County Hospital.
Included was an evaluation of cost/benefit of an on-line base system supporting 40 termi-
nals at the hospital. This four-month study resulted in recommendations for improved
efficiency in teleprocessing system usage and revised cost allocation methods for both
on-line and batch processing.
For the Pacific National Bank of Washington, he developed detail design specifications
and reviewed implementation of a major cost accounting system on a large-scale com-
puter.
1969 - 1973 Systems Analyst. Allis-Chalmers Corp.
Designed, programmed and implemented major changes to on-line terminal monitor soft-
ware to provide more efficient polling of terminals and report more accurate cost data
for terminal users. Developed a called subroutine to unstring on-line terminal input
screen characters into the proper receiving fields in the calling application programs.
Provided technical support to application programmers for resolution of problems in on-
line systems. Taught classes in use of JCL and DAL to new employees.
Developed a large segment of the corporate cash management system, including on-line
application programs and methods for processing the integrated data base. Designed and
implemented changes to the financial system which processed all transactions for finan-
cing of customer notes receivable. Analyzed and designed systems for administration of
credit policy and installment. loan processing for a large credit organization.
1966 - 1969 -- Programmer and Methods Analyst, Wisconsin Electric Power Compan
Developed changes to the customer information billing system, using a large number of
on-line terminals for both inquiry and updating of customer records. Programmed all
changes made to the primary file maintenance program for all electric utility customer
billing transactions.
Served as systems group liaison to users of the on-line system, answering all questions,
resolving operational problems, and prioritizing needs for changes. Developed complete
user documentation for the system.
11
PROJECT COST
Consultant Services Cost
The cost of consultant services for this project will be billed at the rate
of $28 per hour for professional services, plus all reasonable and neces-
sary out-of-pocket expenses incurred. The best estimate of total fees
and expenses is computed as follows:
372 hours @ $28
Expenses estimate
$10,416
2,500
Total Estimated Consultant Cost $12,916
Actual time spent on this project may, of course, vary from. the estimate,
but is expected to be in the range of 280-400 hours. Compass Management
Group would be willing to accept a contract with a maximum amount of fees
and expenses (such as $12, 916 above) and limit our involvement to no more
than 372 hours.
Compass would prefer to bill all charges for professional services to
Richland because we will be directly responsible to the Community Services
Director. A portion of those costs would be shared with Pasco through the
established process.
Cost Sharing
The Data Processing Steering Committee recommended spreading costs
for this project to each city on the basis of system usage. In that case,
Richland would bill Pasco for data processing staff time and computer
time in accordance with the rates established in the Joint Data Processing
Services Agreement and the relative number of service billings. The
12
The service billings (number of accounts) for each city are as follows:
Pasco Accounts Richland Accounts
Water 51500 12, 493
Sewer 41800 11.1733
Garbage 42 800 11,.733
Electricity 0 M733
Total 15, 100 Accounts 47, 692 Accounts
Total Service Billings:
Pasco 151100 25%
Richland 47, 692 75
Total 62,792 100%
Total Project Cost Including Allocation of. Budgeted Costs
The total cost of this project consists of consultant fees (the only additional
out-of-pocket expenditure) and an allocation of Richland's current staff and
equipment costs (already budgeted). The total project cost is $28, 628, of
which 25%would be paid by Pasco. Of Richland's 75% share, most costs
represent staff and equipment already available. Richland's additional out-
of-pocket cost is $5, 659 and Pasco's out-of-pocket cost is $7, 157. Details
are as follows:
Outside consultant services
Cost of Richland staff and equipment
(already in budget) -
Programming staff time (1, 016 hours
@ $12)
Computer test time (50 hours @ $42)
Data entry (80 hours @ $9)
Total Staff and Equipment
TOTAL PROJECT COST INCLUDING
STAFF AND EQUIPMENT
13
$12,916
121192
23,100
720
157712
$28,628
Net Cost Calculation
Total cost including staff and equipment
Less: Richland billings to Pasco for
this development project (257o of total)
Richland share of total project cost
including current staff and equipment
Less: Staff and equipment already
budgeted
Net additional expenditure by Richland
for this project
14
$28,628
7, 157
21, 471
15, 712
$
5,659
•
CONSULTANT SERVICE TERMS AND CONDITIONS
Compass Management Group will manage this project and perform the
necessary systems analysis and general design as described in the Scope
and Approach section of this proposal. Total consultant service costs
would be determined by the number of hours spent by the consultant
multiplied by the hourly rate of $28. 00. Expenses for reasonable and
necessary consultant travel and living costs will be itemized and billed
to the client(s).
The following terms and conditions apply to this agreement:
1. Fees and expenses for consultant services will not exceed
$12, 916 without express written approval by the designated
client representative.
2. Invoices for services and expenses will be presented semi-
monthly in arrears. All invoices are due and payable within
15 days of receipt.
3. Any additional required work related to this project which is
not now foreseen and stated in the proposal will be treated as
a change of scope. No additional work would be done without
written authorization. Additional compensation for any such
work would be charged at the standard rate.
15