HomeMy WebLinkAboutINS-14-040 - Change to Cityworks Support & Maintenance Agreement Staff Rep►�►r
I r Infrastructure Serlrrres Department www1itrhener ra
REPORT TO: Community & Infrastructure Services Committee (CISC)
DATE OF MEETING: April 28, 2014
SUBMITTED BY: Jason Winter, Manager Support Services & Business
Systems x4630
PREPARED BY: Jason Winter, Manager Support Services & Business
Systems x4630
WARD(S) INVOLVED: All
DATE OF REPORT: March 26, 2014
REPORT NO.: INS-14-040
SUBJECT: CHANGE TO CITYWORKS SUPPORT & MAINTENANCE
AGREEMENT
RECOMMENDATION:
That the Mayor and Clerk be authorized to sign an agreement(s) with Azteca Systems Inc. and
ESRI Canada Ltd. for an expanded CityWorks Enterprise Licence capability and for updates and
maintenance on the software with a fixed yearly cost of:
• $95,000—year 1
• $105,000—year 2
• $110,000—year 3
for the next three (3)years starting in 2015 and further;
That the Deputy CAO Infrastructure Services be delegated authority to execute future
agreement(s) for updates, maintenance, and technical support respecting the CityWorks
Enterprise software, provided such agreement(s)are satisfactory to the City Solicitor.
BACKGROUND:
This software (CityWorks) is currently used across Infrastructure Services as a work management tool to
assist and automate the workflow processes with respect to Service Requests, Work Orders and
Inspections. Costs associated with labour, materials and equipment are all captured and made available
for reporting and decision making processes. This software is primarily used for the creation of service
requests and work orders so staff members know what utility or operations type work needs to be
completed. CityWorks then will manage the flow of work and track all pertinent information (including
costs) associated to what is being done by City staff.
When implemented in 2008, the City of Kitchener entered into a "per license" software agreement for
Cityworks that limited the number of City users to licenses for 175 named users (currently 148 in use).
This annual agreement provided on-going support and maintenance capabilities from our primary
integration partner— ESRI Canada. Year over year, the contract is tied to a percentage increase, closely
aligned to the Consumer Pricing Index (CPI) with the expectation that the City would remain within the
original number of licenses originally purchased.
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REPORT:
In an effort to provide an effective strategy for on-going cost savings of the City's investment in
Information Technology, a review of the current CityWorks license, support & maintenance agreement
was completed. The intent of this exercise was to find ways to improve the total cost of ownership of this
solution and to uncover additional savings due to the projected increased number of users and need for
additional features within the software. A major benefit of the proposed expanded licence is that the City
will not have to pay additional fees when the number of users increases.
The current Cityworks implementation is at a point where we need the expanded capability for the
following reasons:
• Introduction of the mobile strategy will allow for better use of the information at the point with
which the work is being done. Easier input of information and access to important information
would be possible through implementing the mobile capability.
• As additional departments (e.g. Cemeteries, Golf Courses) are introduced to CityWorks the
number of licenses will grow. As well, having front-line staff use CityWorks Mobile along with
remote time entry will increase the license count.
• With more users on CityWorks, the need to do more advanced functions and analysis will be
required. Included in the proposed Enterprise License Agreement are advanced solutions that
will support this need. Examples include CityWorks Analytics and Citizen Engagement Web
Integration.
• Over the next three years, with the addition of the various departments and introduction of new
functionality (i.e. Mobile), the projected average growth will be around 9% year over year.
Along with alignment to the Asset Management Program and strategy, the benefits surround both
improved cost efficiencies and added functionality as we grow our CityWorks implementation. The end
game is to enable better decision making and introduce efficiencies based on using information coming
from CityWorks.
In addition to the core license, current features and current maintenance costs, the proposed Enterprise
License Agreement will provide additional functionality which are currently out-of-scope and at additional
costs within the current arrangement. Third-party integration `packages' are included within the scope of
this new agreement, whereas individually in the current agreement, each integration solution costs
$19,495 (plus $4,290 maintenance per year). Examples of these third party integration packages include:
CityWorks Analytics, Citizen Engagement Web Integration and other current integrations already in place.
These new features will be useful for advancing the analysis, reporting and integration capabilities with
other Enterprise systems. With the furthering of Cityworks across the City of Kitchener, it is inevitable that
some/all of these integration packages will be required over the next three years.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
This recommendation is closely aligned with several Strategic Plan priorities:
✓ E1.1 Stewardship of Public Funds — The Asset Management Program creates a strategic
framework for which appropriate strategies are put into place for the City's infrastructure assets.
CityWorks supports this program by providing insight into operational costs associated to
managing and maintaining assets. This information ensures a more complete picture end-to-end
of the City's investments.
✓ E4.2 Access to Information is the First Step to Transparency, Accountability, Engagement
and Customer Service — Over the past five years, a wealth of information has been (and
continues to be) captured surrounding the operational activities related to the City's assets.
Providing a simple, complete and consistent approach to accessing this information enables
stakeholders to make better decisions and review overall efficiencies across the board.
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FINANCIAL IMPLICATIONS:
Current yearly license fees are $78,650 + $5,640 (Contracts Module) = $84,290. This cost is limited to
175 named users within the system. Without the recommended Enterprise License Agreement, each
additional integration extension (e.g. Mobile, Analytics, Citizen Engagement modules)would cost$19,495
(plus $3,895/year in maintenance). As well each additional user license would cost $1,295 plus an
additional $285/year/license in maintenance fees.
The negotiated rate for the Enterprise License Agreement based on our current product suite will be as
follows:
Year 1: $95,000
Year 2: $105,000
Year 3: $110,000
The following table outlines the costs within the current agreement with projected growth (overall average
of 9% per year), integration of additional functions and on-going maintenance and support costs. This is
compared to the proposed Enterprise License Agreement.
2014 2015 2016 2017
11 c IIIt I(.,)vvtII J`a 8 l 2(7
Additional License Costs $15,540 $12,108 $38,141
Mtc&Support Costs $95,248 $107,248 $118,572 $131,508
CityWorks Mobile $19,495
CityWorks Analytics $19,495
Citizen Engagement Web $19,495
Third Party Integration $19,495 $19,495
otall leanly Cost Projecdoinsl $95,248 $161a7"78 $169,6 71 $189,144
9u°o1posed I1::i1teu1l3u1se li..ficeusse Agreeiment I s/a $99,666 $105,000 $IlIl6�666
At the end of the three (3) year term, the pricing model will be tied strictly to the annual Consumer Price
Index for Ontario as calculated by Statistics Canada year over year. The exception to this formula is
based on when the City's population grows to over 250,000. At this point, a new license plateau is
achieved and further negotiations will need to take place.
Funding will continue to be available through the 10-year operating budget with Cost Centre
1019131(GEN EXP-CITYWORKS).
***Note: All prices are subject to HST
COMMUNITY ENGAGEMENT:
None as all current stakeholders are internal to the City's operations.
CONCLUSION:
The value gained from CityWorks over the next several years will increase significantly. To that end the
use of this solution will be more prevalent across more teams and additional stakeholders within the City.
To most effectively manage the on-going costs associated as we evolve and realize this value, it is
recommended to proceed with the Enterprise License Agreement to better plan and manage future costs.
ACKNOWLEDGED BY: Pauline Houston, DCAO
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