Agenda 01/24/2012 Item #16C4n
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1/24/2012 Item 16.C.4.
EXECUTIVE SUAMARRY
Recommendation to approve an increase to the annual estimated not to exceed amount for
contract number 11 -5698 with _ N. Harris Computer Corporation for maintenance,
licensing, and technical services, from $140,004 to $224,000. The increase is to include the
credit card payment; processing transaction costs associated with iWEB, a hosted payment
system provided by Transaction Warehouse (a Harris sub - contractor) through contract
number 11 -5698.
OBJECTIVE: Approve an increase to the annual estimated not to exceed amount for contract
number 11 -5698 with N. Harris Computer Corporation for maintenance, licensing, and technical
services, from $140,000 to $220,000. The increase is to include the credit card payment
processing transaction costs associated with iWEB, a hosted payment system provided by
Transaction Warehouse (a Harris sub - contractor) through contract number 11 -5698.
CONSIDERATIONS: On October 11, 2011, under agenda item 16C3, the Board of County
Commissioners approved contract number 11 -5698 with N. Harris Computer Corporation
(Harris), in an annual amount estimated not to exceed $140,000. That approval included three
main components.
1. Licensing, including concurrent user licenses (for Utility Billing staff), and seat licenses
based on the number of active accounts in the system ($15,000).
2. Maintenance, which provides access to technical experts in the event of system failures, and
for general annual maintenance (including software version upgrades) ($85,000).
3. Hourly rates for design and coding modifications of existing software functionality,
technological product consulting and testing, product training, and report writing services
($40,000).
The Public Utilities Division (PUD) has enhanced the performance of the inHANCE billing
software by adding the iWEB module (integrated into the mHANCE billing software), a hosted
Payment Card Industry Data Security Standard (PCI DSS) compliant software system to accept
credit card payments via the Internet. The actual credit card processing function is provided by
Transaction Warehouse, a Harris sub - contractor. This service provides our customers with a
secure environment to make individual monthly and automated credit card payments. As Harris'
largest customer for the inHANCE billing system, the PUD benefits from Harris' leverage for
ongoing services by Transaction Warehouse.
The Harris contract included language within Exhibit A, iWEB System, referencing the charging
of transaction fees. However, staff mistakenly understood that the transaction fees did not need
to be included in the Harris contract estimated annual costs in that the fees are paid to
Transaction Warehouse, albeit through Harris.
PUD staff included credit card processing transaction costs in the FY2012 operating budget
(approved by the Board on September 22, 2011) for all credit card payments received, including
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1/24/2012 Item 16.C.4.
those received via the telephone to customer service, automatic telephone system, internet, and
cashiers. iWEB transaction fees are $0.60 per transaction at the current number of monthly
transactions in excess of 5,000 per month. These levels are estimated to at least double with the
introduction, of eBILI , the ability for customers to receive their utility bills via email. This
feature - encourages new iWEB users as current lockbox customers move to web payments. The
transaction fees are estimated to add $80,000 to the value of the Harris contract. Subsequent
years are Jikely to show further increases in monthly transactions as customers move to
automated web payment services.
FISCAL EWFACT: Funds are available in the Water - Sewer District Operating Fund (408)
approved FY2012 Budget for credit card processing transaction fees. There is no net fiscal
impact associated with This agenda item.
LEGAL CQNSID►ERATIONS: This item has been reviewed by the County Attorney's Office,
requires majority vote, and is legally sufficient for Board action. CMG
GROWTH MANAGEMENT IWACT: There is no growth management impact associated
with this action.
RECOMMENDATIONS: Approve an increase to the annual estimated not to exceed amount
for contract number 11 -5698 with N. Harris Computer Corporation for maintenance, licensing,
and technical services, from $140,000 to $220,000 to include the credit card payment processing
transaction costs associated with iWEB, a hosted payment system provided by Transaction
Warehouse through contract number 11 -5698.
PREPARED BY: Peter'Lund, Revenue Manager,, Utility Billing and Customer Seivice, Public
Utilities Division
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W
T .
1/24/2012 Item 16.C.4.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.C.4.
Item Summary: Recommendation to approve an increase to the annual estimated not to
exceed amount for contract number 11 -5698 with N. Harris Computer Corporation for
maintenance, licensing, and technical services, from $140,000 to $220,000. The increase is to
include the credit card payment processing transaction costs associated with iWEB, a hosted
payment system provided by Transaction Warehouse (a Harris sub - contractor) through contract
number 11 -5698.
Meeting Date: 1/24/2012
Prepared By
Name: debbie chinn
Title: Administrative Assistant,Utilities Finance Operations
12/28/20118:53:37 AM
Submitted by
Title: VALUE MISSING
Name: LundPeter
12/28/20118:53:38 AM
Approved By
Name: HapkeMargie
Title: VALUE MISSING
Date: 12/28/20119:20:06 AM
Name: LundPeter
Date: 12/28/20119:41:56 AM
Name: ParkerNicole
Title: Contracts Specialist,Purchasing & General Services
Date: 12/28/2011 11:36:45 AM
Name: WardKelsey
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1%24/2012 Item 16.C.4.
Title: Manager - Contracts Administration,Purchasing & Ge
Date: 12/28/2011 11:53:17 AM
Name: RiesenTeresa
Title: Manager - Revenue,Utilities Finance Operations
Date: 12/28/2011 12:31:34 PM
Name: Joseph Bellone
Title: Manager - Utility Billing & Cust Serv.,Utilities Finance Operations
Date: 12/28/2011 12:34:48 PM
Name: WidesTom
Title: Director - Operations Support - PUD,Utilities Fina
Date: 12/28/20112:18:57 PM
Name: CarnellSteve
Title: Director - Purchasing/General Services,Purchasing
Date: 12/28/20117:09:32 PM
Name: GreeneColleen
Title: Assistant County Attorney,County Attorney
Date: 12/29/2011 11:51:19 AM
Name: YilmazGeorge
Title: Director - Wastewater,Wastewater
Date: 1/11/2012 11:57:54 AM
Name: GreenwaldRandy
Title: Management/Budget Analyst,Office of Management & B
Date: 1/11/2012 4:10:15 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 1/12/2012 8:28:28 AM
Name: IsacksonMark
Title: Director -Corp Financial and Mgmt Svs,CMO
Date: 1/13/2012 8:34:40 AM
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1/24/2012 Item 16.C.4.
EXECUTIVE SUMMARY
Recommendation to approve a waiver of formal competition and approve contract number 11 -5698
with N. Harris Computer Corporation for Department of Utility Billing Services Integrated
Software System in an annual amount not to exceed 5140,000.
OBJECTIVE: Approve contract number 11 -5698 with the N. Harris Computer Corporation to
continue utilizing the inHANCE Utility Billing Services Integrated Software System for
water /wastewater services in an annual amount not to exceed $140,000.
CONSIDERATIONS: The Board of County Commissioners (Board) approved contract number
00 -3113 with IMSoftTech on June 26, 2001, agenda item 16C3, to purchase the inHANCE
Utility Billing Services Integrated Software system for water /wastewater services. The contract
also included provisions for annual maintenance, licensing, and technical services. IMSofTech
was the original owner of the inHANCE billing software. On December 14, 2004, agenda item
16E7, the Board approved reassignment of contract number 00 -3113 to N. Harris Computer
Corporation, which acquired IMSofTech. The company is now known as N. Harris Computer
Corporation (Harris). The original contract was for a five -year period with a five -year renewal
expiring on June 25, 2011. Public Utilities staff initiated renewal of these services prior to
January 2011. There are no pending open work orders; however, there is a necessary version
upgrade that must be enabled pending this contract renewal in order to effect outstanding
enhancements. The new contract is for a five -year period with a five -year renewal. In working
through the renewal process with Purchasing, staff came to the conclusion that this was a single
source agreement for the Harris Corporation's business software platform. The contract
essentially provides for maintenance, user licensing, and programming resources for new and
emerging modules and upgrades to further improve efficiencies and integration.
The Public Utilities Division (PUD) has been satisfied with the performance of the utility billing
software and with the services provided by Harris. Since the software was implemented in 2003,
the PUD has enhanced the performance of the mHANCE billing software by adding additional
modules, including iWeb, a hosted Payment Card Industry Data Security Standard (PCI DSS)
compliant software system to accept credit card payments via the Internet; and the Satori
addressing verification software. The PUD also improved reporting services and modified
software code to meet unique county business needs, -and improve efficiencies.
The inHANCE utility billing software is a dynamic software system currently connected to many
applications via existing system interfaces within the Board's Agency, the Clerk of Courts, our
bill print and mail vendor, and outside financial institutions (see Appendix A). The Harris
inHANCE software system provides information to the BCC's financial system (SAP) and
follows generally accepted accounting practices; is a viable system and can be fully utilized to
serve the integrated billing software needs of the PUD. This agreement is compatible with the
short and long term goals of enterprise asset management. Contract number 11 -5698 includes
three main components:
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1/24/2012 Item 16.C.4.
1. licensing, including concurrent user licenses (for Utility Billing staff) and seat licenses
based on the number of active accounts in the system;
2. maintenance, which provides access to technical experts in the event of system failures,
and for general annual maintenance (including software version upgrades); and
3. hourly razes for design and coding modifications of existing software functionality,
technological product consulting and testing, product training, report writing services,
and enhancing quality assurance/quality control and internal controls
The primary expense for this contract is annual maintenance of software and licensing. Only the
software manufacturer can provide licensing to its software. In addition, only the software
manufacturer can provide software maintenance since maintenance includes future releases.
Staff is requesting a waiver of formal competition under Section V(C) of the Purchasing Policy.
The annual amount estimated not to exceed $140,000 includes an annual maintenance fee of
approximately $85,000, licensing costs of approximately $15,000 to accommodate additional
accounts for new customers, and approximately $40,000 for technical programming services
within the existing software configurations that lead to more efficient and automated processes.
Monies will only be expended for enhancements that are clearly tested as improvements to
QA/QC, internal controls, and improved documents requested by Collier County customers.
Rates will be held for four years from the contract execution date. After that date, rate increases
are limited to 75 percent of the February South Urban Consumer Price Index (CPI). Over any
two year period, the cumulative increase shall not exceed five percent per year.
FISCAL EWPACT: Maintenance costs of approximately $85,000 and license costs of $15,000 are /01*N
included in the FY2012 Budget in the Water -Sewer District Operating Fund 408; costs of
approximately $40,000 for technical programming services are budgeted in Capital Projects
Funds 412 and 414.
LEGAL CONSIDERATIONS: This item was reviewed by the County Attorney's Office, requires
majority vote, and is legally sufficient for Board action. — CMG
GROWTH MANAGEMENT EMPACT: There is no growth management impact associated with
this action.
RECOMMENDATION: That the Board of County Commissioners, as Ex- officio the Governing
Board of the Collier County Water -Sewer District approve a waiver of formal competition and
approve contract number 11 -5698 with N. Harris Computer Corporation for the inHANCE
Utility Billing Services Integrated Software System for water /wastewater services in an annual
amount not to exceed $140,000, and authorize the Chairman to sign the contract, after review by
the County Attorney. The new contract is for a five -year period with a five -year renewal.
PREPARED BY: Teresa Riesen, Revenue Manager, Utility Billing and Customer Service, Public
Utilities Division
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