Agenda 09/28/2010 Item #16C 5
Agenda Item No. 16C5
September 28,2010
Page 1 of 11
EXECUTIVE SUMMARY
Recommendation to renew Contract #06-3972 and add funds in the amount of $300,000
(estimated $60,000 annually) with Tele-Works, Inc., for ongoiug system maintenance and
enhancements to the Utility Billing and Customer Service Department's Interactive Voice
Response Software System over a five year period.
OBJECTIVE: To renew Contract #06-3972 and add funds in the amount of $300,000
(estimated $60,000 annually) with Tele-Works, Inc., for ongoing system maintenance and
enhancements to the Utility Billing and Customer Service Department's Interactive Voice
Response (IVR) Software System over a five year period.
CONSIDERATIONS: On September 26, 2006, under Agenda Item 16CI2 the Board of
County Commissioners authorized the purchase of the Utility Billing and Customer Service
Department's ryR Software System and an annual system Maintenance Fee in the total amount
of $230,400. System acceptance date was October I, 2008 and the first year of warranty expires
on September 30, 2010, with the second year of warranty expiring on September 30, 201 I.
Maintenance fees and time and materials billing rates remain fixed until the end of the warranty
(Contract #06-3972, Exhibit A, Sections 24.2 and 24.3 refer), however the previous Executive
Summary did not provide funding for ongoing system maintenance and enhancements.
The Agreement provides that should the County renew the Contract all prices at the time of the
renewal may be adjusted on the anniversary date of the Agreement, based on the Consumer Price
Index-Southern States for the immediate twelve month period preceding the renewal of the
Contract.
The IVR system continues to provide an efficient and cost effective means of managing up to
35% of inbound customer calls, particularly through its integration with the in-HANCE billing
software. Total call volume to Utility Billing and Customer Service averages 17,000 montWy.
The IVR system handles, on average, 6,000 of tbose calls each month, allowing customers' to
make water-sewer payments, advise address changes, schedule meter unlocks, and arrange for
bank drafts, all without speaking to a customer service representative. At that call volume, it
would take three additional customer service representatives, at an approximate annual cost of
$145,000 (including salary and benefits), to handle the call volume now handled by the IVR
system. Benefit to cost ratio is 2.4.
As new functionality and improvements are developed for the billing system, there are necessary
companion enhancements that need to be developed and implemented for the IVR system. IVR
system support and maintenance is budgeted at $44,000 for FY20] I. Annual costs for enhanced
system functionality are estimated at $16,000. Therefore, total annual system maintenance and
functional enhancement costs are estimated at $60,000.
LEGAL CONSIDERATIONS: It is a policy decision as to whether to renew the Contract and
add funds. - JBW
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Agenda Item No. 16C5
September 28, 2010
Page 2 of 11
FISCAL IMP ACT: Funds in the amount of $60,000 are budgeted for FY20 I I in the Collier
County Water-Sewer District Operating Fund (408), Water User Fees (412), and Sewer User
Fees (414).
GROWTH MANAGEMENT IMPACT: This action has no impact on the Growth
Management Plan.
RECOMMENDATIONS: Renew Contract #06-3972 and add funds in the amount of $300,000
(estimated $60,000 annually) with Tele-Works, Inc., for ongoing system maintenance and
enhancements to the Utility Billing and Customer Service Department's Interactive Voice
Response Software System over a five year period.
PREPARED BY: Peter Lund, Customer Service and Education and Compliance Manager,
Utility Billing and Customer Service Department.
Agenda Item No. 16C5
September 28,2010
Page 3 of 11
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16C5
Recommendation to extend Contract #06-3972 and add funds in the amount of $300,000
(estimated $60,000 annually) with Tele-Works, Inc., for ongoing system maintenance and
enhancements to the Utility Biiling and Customer Service Departments Interactive Voice
Response Software System over a five year period.
Meeting Date:
9/28/20109:00:00 AM
Approved By
Thomas Wides
Director - Operations Support - PUD
Date
Public Utilities Division
Utilities Finance Operations
8/20/2010 10:57 AM
Approved By
Joseph Bellone
Manager - Utility Billing & Cust Serv.
Date
Public Utilities Division
Utilities Finance Operations
8/20/2010 11 :04 AM
Approved By
Peter Lund
Manager - Revenue
Date
Public Utilities Division
Utilities Finance Operations
8/20/2010 12:13 PM
Approved By
Margie Hapke
Operations Analyst
Date
Public Utilities Division
Public Utilities Division
8123/2010 2:25 PM
Approved By
Kelsey Ward
Administrative Services
Division
Manager - Contracts Administration
Date
Purchasing & General Services
9/3/201012:48 PM
Approved By
James W. Delany
Public Utilities Division Administrator
Date
Public Utilities Division
Public Utilities Division
9/17/20108:34 AM
Approved By
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
9/17/20109:10 AM
Approved By
Jennifer White
Assistant County Attorney
Date
County Attorney
County Attorney
9/20/20102:29 PM
Approved By
Randy Greenwald
Management/Budget Analyst
Date
Office of Management &
Agenda Item No. 16C5
September 28,2010
Page 4 of 11
Budget
Office of Management & Budget
9/21/2010 4:31 PM
Approved By
Mark Isackson
Management/Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
9/21/20105:01 PM
Agenda Item No. 16C5
September 28, 2010
Page 5 of 11
AG RE EMENT#06-3972
for
Utilitv Billing- Interactive Voice Response
THIS AGREEMENT, made and entered into on this 26th day of September, 2006, by and
between Tele-Works, Inc., authorized to do business in the State of Florida, whose business
address is: P. O. Box M, Blacksburg, Virginia 24063-1027 or 1080 South Main Street,
Blacksburg, Virginia 24060, hereinafter called "Tele-Works" and Collier County, a political
subdivision of the State of Florida, Collier County, Naples, hereinafter called "Collier
County":
WITNESSETH:
1. COMMENCEMENT. This Agreement shall commence on the date of award by the
Collier County Board of County Commissioners. The Collier County Project Manager
will issue a Notice to Proceed prior to the beginning of the work.
2. STATEMENT OF WORK. The Consultant shall provide an interactive voice response
system in accordance with the terms and conditions of RFP #06-3972, Exhibit A
attached hereto and made a part hereof by reference, and the Consultant's proposal
referred to herein as Schedule r and made an integral part of this agreement.
3. COMPENSATION. The County shall pay the Consultant for the performance of this
Agreement pursuant to the following, all of which are attached hereto and made a
part hereof by reference:
Total System Price in accordance with Section 5.0 of Exhibit A, page 3
Annual System Maintenance Fee in accordance with Section 24.2 Annual System
Maintenance Fee or 24.3 Time and Materials Software Maintenance Service of
Exhibit A, pages 13-14
Out of Pocket Expenses in accordance with Section 15.0 Out of Pocket Expenses in
Exhibit A, page 6
Schedule B - List of Modifications, page 20
Schedule C - Tete-Works Supplied Equipment, page 25, and in accordance with
Section 4.0 Tele-Works Supplied Equipment Price of Exhibit A, page 3
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C( fi 1/
Agenda Item No. 16C5
September 28, 2010 I
Page 6 of 11
Schedule E - Application Software Price, page 27, and in accordance
with Section 3.0 Application Software Price of Exhibit A, page 3
Schedule G - Payment Schedule, page 29
Schedule H - Implementation Services, page 30, and in accordance
with Section
14.0 Training to Exhibit A, page 5
4, NOTICES. All notices from the County to the Consultant shall be deemed
duly served if mailed or faxed to the Consultant at the following Address:
Elaine Vass Gal, Business Manager
Tele-Works, Inc.
1080 South Main Street
Blacksburg, Virginia 24060
Telephone: 540-951-6473
Facsimile: 540-951-4016
All Notices from the Consultant to the County shall be deemed duly served
if mailed or faxed to the County to:
Collier County Government Center
Purchasing Department - Purchasing Building
3301 T arniarni Trail, East
Naples, Florida 34112
Attn: Steve Carnell, Purchasing/General Services Director
Telephone: 239-774-8407
Facsimile: 239-732-0844
The Consultant and the County may change the above mailing address at
any time upon giving the other party written notification. All notices under
this Service Agreement must be in writing.
5. NO PARTNERSHIP. Nothing herein contained shall create or be construed
as creating a partnership between the County and the Consultant or to
constitute the Consultant as an agent of the County.
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Agenda Item No. 16C5
September 28, 2010
Page 7 of 11
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6. PERMITs: LICENSES: TAXES. In compliance with Section 218.80, F.S., all permits
necessary for the prosecution of the Work shall be obtained by the Consultant. Payment
for all such permits issued by the County shall be processed internally by the County.
All non-County permits necessary for the prosecution of the Work shall be procured
and paid for by the Consultant. The Consultant shall also be solely responsible for
payment of any and all taxes levied on the Consultant. In addition, the Consultant shall
comply with all rules, regulations and laws of Collier County, the State of Florida, or the
U. S. Government now in force or hereafter adopted. The Consultant agrees to comply
with all laws governing the responsibility of an employer with respect to persons
employed by the Consultant.
7. NO IMPROPER USE. The Consultant will not use, nor suffer or permit any person to
use in any manner whatsoever, county facilities for any improper, immoral or offensive
purpose, or for any purpose in violation of any federal, state, county or municipal
ordinance, rule, order or regulation, or of any governmental rule or regulation now in
effect or hereafter enacted or adopted. In the event of such violation by the Consultant
or if the County or its authorized representative shall deem any conduct on the part of
the Consultant to be objectionable or improper, the County shall have the right to
suspend the contract of the Consultant. Should the Consultant fail to correct any such
violation, conduct, or practice to the satisfaction of the County within twenty-four (24)
hours after receiving notice of such violation, conduct, or practice, such suspension to
continue until the violation is cured. The Consultant further agrees not to commence
operation during the suspension period until the violation has been corrected to the
satisfaction of the County.
8. NO DISCRIMINATION. The Consultant agrees that there shall be no discrimination
as to race, sex, color, creed or national origin.
9. INSURANCE. The Consultant shall provide insurance as follows:
A. Commercial General Liability: Coverage shall have minimum limits of $1,000,000
Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property
Damage Liability. 1bis shall include Premises and Operations; Independent
Consultants; Products and Completed Operations and Contractual Liability.
B. Business Auto Liabilitv: Coverage shall have minimum limits of $500,000 Per
Occurrence, Combined Single Limit for Bodily Injury Liability and Property
Damage Liability. 1bis shall include: Owned Vehicles, Hired and Non-Owned
Vehicles and Employee Non-Ownership.
C. Workers' Compensation: Insurance covering all employees meeting Statutory
Limits in compliance with the applicable state and federal Jaws.
D. Professional LiabiJitv: Coverage shall have minimum limits of $1,000,000.
Page 3 of5
Agenda Item No. 16C5
September 28, 2010 I
Page 8 of 11
Special Requirements: Collier County shall be listed as the Certificate Holder and
included as an Additional Insured on the Comprehensive General Liability
Policy.
Current, valid insurance policies meeting the requirement herein identified shall
be maintained by Consultant during the duration of this Agreement. Renewal
certificates shall be sent to the County thirty (30) days prior to any expiration date.
There shall be a thirty (30) day notification to the County in the event of
cancellation or modification of any stipulated insurance coverage.
Consultant shall insure that all subConsultants comply with the same insurance
requirements that he is required to meet. The same Consultant shall provide
County with certificates of insurance meeting the required insurance provisions.
10. INDEMNIFICATION. To the maximum extent permitted by Florida law, the
Consultant shall indemnify and hold harmless Collier County, its officers and employees
from any and all liabilities, damages, losses and costs, including, but not limited to,
reasonable attorneys' fees and paralegals' fees, to the extent caused by the negligence,
recklessness, or intentionally wrongful conduct of the Consultant or anyone employed or
utilized by the Consultant in the performance of this Agreement. This indemnification
obligation shall not be construed to negate, abridge or reduce any other rights or remedies
which otherwise may be available to an indemnified party or person described in this
paragraph.
This section does not pertain to any incident arising from the sole negligence of
Collier County.
11. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of
the County by the Utility Billing & Customer Service Department.
12. CONFLIcr OF INTEREST: Consultant represents that it presently has no interest and
shall acquire no interest, either direct or indirect, which would conflict in any manner
with the performance of services required hereunder. Consultant further represents
that no persons having any such interest shall be employed to perform those services.
13. COMPONENT PARTS OF TIllS CONTRACT. This Contract consists of the attached
component parts, all of which are as fully a part of the contract as if herein set out
verbatim: Exhibit A and attached Schedules A through K, Insurance Certificate, and
RFP #06-3972 Scope of Services.
14. SUBJECT TO APPROPRIATION. It is further understood and agreed by and between
the parties herein that this agreement is subject to appropriation by the Board of County
Commissioners.
15. PROHIBITION OF GIFTS TO COUNTY EMPLOYEES. No organization or individual
shall offer or give, either directly or indirectly, any favor, gift, loan, fee, service or other
Page 4 of5
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Agenda Item No. 16C5
September 28,2010
Page 9 of 11
item of value to any County employee, as set forth in Chapter 112, Part III, Florida
Statutes, Collier County Ethics Ordinance No. 2004-05, and County Administrative
Procedure 5311. Violation of this provision may result in one or more of the following
consequences: a. Prohibition by the individual, finn, and/ or any employee of the firm
from contact with County staff for a specified period of time; b. Prohibition by the
individual and/or firm from doing business with the County for a specified period of
time, including but not limited to: submitting bids, RFP, and/ or quotes; and, c.
inunediate termination of any contract held by the individual and/ or firm for cause.
IN WITNESS WHEREOF, the Consultant and the County, have each, respectively, by an
authorized person or agent, hereunder set their hands and seals on the date and year first above
written.
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BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
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By: -- ~..:_-
Frank Halas, Chairman
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First Witness
TELE-WORKS, INe.
Consultant
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Second Witness
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Typed signature and title
Approved as to form and
"g,j~/!
Assistant County Attorney
Page 5 of5
Agenda Item No. 16C5
September 28,2010
Page 10 of 11
I
Prior to commencement of any additional services, Tele-Works shall define in writing the labor-
hours, billing rate, description of services and/or work to be performed, the changes or additions to the
Application Software, the way In which the Tele-Works System will function upon completion of the
modifications, including the impact on system performance, and the estimated time period for the services
to be performed. Collier County shall not be charged for any services untillhe additional services are
approved by the Collier County Project Manager in writing. Only after Tele-Works receives approval in
writing will Tele-Works perfonm the additional services.
24.0 Tele-Works Svstem Suocort.
24.1 Svstem Maintenance Service, After the expiration of the Warranty of Operation for
the Application Software, Tele-Works shall make System Maintenance Service available to Collier County.
Tele-Works shall offer System Maintenance Service to Collier County on an annual basis. System
Maintenance Service shall include, but not be limited to, the following:
(a) unlimited telephone support services concerning the use of the Application Software and
Tela-Works Supplied Equipment;
(b) response to problem notifications and correction of all errors or equipment malfunctions
found in the Application Software or Tele-Works Supplied Equipment within the timeframes
defined in Section 19.0 of this Exhibit;
(c) correction of any Application Software or Tele-Works Supplied Equipment non-
conformances to the System Specification within the timeframes defined in Section 19.0 of
this Exhibll;
(d) one (1) copy of each subsequent update, revision, release or new version of the Application
Software and related material inciuding the Source Code and related user and technical
documentation for each subsequent update, revision, release or new version;
(e) one (1) copy of the new or updated documentation for the Application Software which
accurately reflects the changes in the update, revision, release or new version of the
Application Software;
(f) installation, by Tele-Works, of each update, revision, release or new version of the
Application Software. Tele-Works shall first perform the installation in Collier County's test
environment. After Collier County has tested the update, revision, release or new version of
the Application Software in the test environment. Tele-Works will perform the installation in
Collier County's live environment.
On-site service shall be available to Collier County at Tele-Works' cost and at no additional
charge to Collier County where on-site service is necessary to correct incidents, problems, deficiencies,
defects or errors In the Application Software or Tele-Works Supplied Equipment which cannot otherwise
be corrected by way of remote su pport.
24.2 Annual System Maintenance Fee. Tele-Works shall make System Maintenance
Service available to Collier County for the annual fee of thirty-one thousand, nine hundred eighty-six
dollars ($31,986.00) , (hereinafter "System Maintenance Fee"). Collier County will pay Tele-Works the
System Maintenance Fee for System Maintenance Service upon expiration of the Warranty of Operation
for the Application Software. The System Maintenance Fee shall remain at thirty-one thousand, nine
hundred eighty-six dollars ($31,986.00) until two(2) years after the expiration of the Warranty of Operation
for the Application Software at which time the System Maintenance Fee will be the lower of the following:
(a) an increase which shall not exceed the percentage increase to any other
customer;
or
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Agenda Item No. 16C5
September 28,2010
Page 11 of 11
(b) up to a four percent (4%) increase per year to the net System Maintenance Fee
charged to Collier County in the previous year.
Purchases by Collier County of additional Tele-Works System hardware or software will Increase
the System Maintenance Fee based on the annual fee calculation in place at the time of the additional
purchase.
24.3 Time and Materials Software Maintenance Service. At its sole discretion, and at any
time, Collier County may elect to receive Software Maintenance Service on a time-and-materials basis or
for the Software Maintenance Fee. Tele-Works' billing rates for tlme-and-materials Software Maintenance
Service for the Licensed Programs is one hundred fifty dollars ($150.00) per hour and shall remain at one
hundred fifty dollars ($150.00) per hour until two years from the expiration of the Warranty of Operation for
the Application Software at which time Tela-Works will provide time-and-materials Software Maintenance
Service at the lower of the following:
(a) an increase to the base hourly rate which shall not exceed the percentage
increase to any other customer;
or
(b) an increase which shall not exceed four percent (4%) per year to the base houriy
rate of one hundred fifty dollars ($150.00) per hour.
If Collier County elects to receive software maintenance on a time-and-materials basis, all
guaranteed service levels outiined in Section 19.3 of this Exhibit shall be provided. In addition, system
upgrades will no longer be provided at no charge.
24.4 Modifications in Updates Revisions. Releases and New Versions. All future
updates, revisions, releases or new versions of the Application Software as provided by T ele-Works shall
not affect the Modifications that have been performed as defined in this Exhibit If the installation of a
future update, revision, release or new version of the Application Software causes a Modification to not
perform as originally written or as defined in the Modification Specification, Tele-Works shall, within seven
(7) business days of notification from Collier County and at no charge to Collier County, correct the
Modification so It functions as originally written or as defined in the Modification Specification.
24.5 Maintenance Hours. Tele-Works will respond to calls for service during normal
working hours between 8:30 am and 5:30 pm eastern time, Monday through Friday. Collier County shall
not incur any charges for Software Maintenance Service that Is performed after the nonmal working hours
to correct Showstopper or Hot incidents. Tele-Works will respond to calls for service for High priority
problems twenty-four (24) hours per day, seven (7) days per week, at no additional cost to Collier County.
24.6 Software Maintenance Loa. Tele-Works shall maintain a log of all support calls
from Collier County to Tela-Works regarding problems with the Application Software or questions
regarding the operation of the Application Software. The written log of all support calls shall include, but
not be limited to, a short description of the support call, date, time, Collier County person initiating the
support call, Tele-Works person receiving the call, description of support work performed by Tele-Works
and the disposition of the call. On Collier County's request, Tele-Works shall provide Collier County with a
copy of the written log of all support calls.
24.7 Collier County Responsibilities.
A. Collier County is responsible for maintaining all items received from Tele-Works, including but
not limited to the Tela-Works Supplied Equipment and Application Software in a safe and stable
environment that is out of the way of foot or machinery traffic, suitable for electronic equipment and within
a secure network environment Collier County is responsible for all standard maintenance and licensing
for the application web server and telephony server including, but not limited to, data archival and backup,
service packs, security patches and updates and domain registration. Collier County will license and
install anti-virus software and periodically update virus definitions to assure that the Application Software is
protected from viruses that could be contracted from any source including, but not limited to, the local
network, the Inteme~ physical disk or data exchange.
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