HomeMy WebLinkAboutFCS-16-026 - Sole Source - Class Software Replacement
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-02-22
SUBMITTED BY: Michelle Palmer-Novakovic, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2016-02-02
REPORT NO.: FCS-16-026
SUBJECT: Sole Source - Recreation Management Software
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RECOMMENDATION:
That Active Network Ltd., Vancouver, British Columbia, be the sole source for the
purchase, installation, and maintenance of the Active Net recreation management
software, based on a satisfactory contract being negotiated and an upset fee
being established.
BACKGROUND:
The City currently utilizes a recreation management software system (CLASS) which is
hosted in-house for all program registrations, facility bookings, memberships, drop-in
passes, point of sale and business reporting. The City had been notified that CLASS
has reached the end of its life and will no longer be supported beyond November 30,
2017.
CLASS is licensed for 100 concurrent online users. This means that a maximum of 100
people have the ability to access the system and register for programs at one time.
Demand for online registration during peak periods is in excess of three times the
amount of licenses. Preliminary pricing to increase the number of licenses to 200 and
the subsequent annual fees and hardware costs made it an unfeasible initiative to
continue to host the software in house. Active Network, the current vendor for CLASS,
also provides a hosted software solution called Active Net, which will allow unlimited
concurrent users access to the website without interruption. The hosted server has the
ability to shift server resources to increase capacity on high traffic volume days during
peak registration periods.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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REPORT:
In March 2015, the City of Waterloo issued a Request for Information (RFI) and
received 8 submissions. Representatives from the City of Kitchener, City of Cambridge,
Township of Wilmot and Township of Wellesley participated in vendor presentations of
four (4) identified potential software solutions.
The RFI process revealed that although there are a number of other vendors providing
similar software solutions, there was not a software solution, other than Active Net,
which was hosted on servers within Canada and could singularly replace the existing
CLASS software. Having the servers hosted in Canada is the City’s preference in order
to more easily comply with the Municipal Freedom of Information and Protection of
Privacy Act (MFIPPA). Additionally, Active Net is the only solution that has an online
feature that would allow customers to search for children’s recreation programs on a
regional level, versus municipal basis. This is a highly desired feature by many
community members. The municipal partners agreed that Active Network is the only
vendor that can collectively meet the needs of all municipalities and that the best
opportunity to leverage any advantages from a regional approach would be to enter into
negotiations for a sole source purchase. The City of Cambridge, as well as the
Township of Wilmot, and the Township of Wellesley have already committed to
negotiating an agreement with Active Network. The City of Waterloo is currently seeking
Council approval to do the same.
Article 9 -170.9.1 (c) of the Purchasing By-law allows for acquisition by negotiation
where there is a proven need for product standardization which is necessary to ensure
compatibility with existing products, standards, services, systems or strategies. A
collaborative purchasing approach ensures a standardized and consistent public
experience throughout the Region and will allow the City to maintain the existing
functionality within its current payment system as well as the potential for shared
knowledge and the sharing of best practices. The public often utilizes services in more
than one municipality. Utilizing the same software will provide a consistent online
interface for end users and provide increased opportunities for system enhancements
that could benefit the customers’ experience from a regional standpoint.
This recommendation is supported by each of the municipalities participating in this
cooperative initiative, as well as, M. Hildebrand, Director of Community Programs and
Services, B. Cheyne, Supervisor of Athletics and R. Scott, Buyer, who concur with the
above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
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FINANCIAL IMPLICATIONS:
The net cost for project, is fair and reasonable for a project of this scope, and the upset
limit is within the budget allowance. The projected surplus will remain in the account to
cover any additional costs associated with the project, and then returned to tax capital
upon completion.
2016 Capital Project Budget : $250,000.00
Total Services Cost $84,524.80
Technical Services $29,910.00
CLASS Migration Loyalty Credit (30,000.00)
ActiveNet Subtotal: $84,434.80
Other Projected Costs:
Hardware Costs $25,000.00
Temporary Staff $50,000.00
Other Projected Costs Subtotal: $75,000.00
Contingency 10% $7,500.00
Total Cost $166,934.80
Project Surplus $83,065.20
Further to the capital acquisition costs, Active Network will charge a “technology fee” for
use of the Active Net software. This technology fee is in lieu of charging a licensing and
annual maintenance fees and is a percentage of the revenue that flows through their
payment processing system. The percentage rate is based on the scope of anticipated
annual revenues. The technology fee covers significant hardware and software costs
and eliminates City costs for purchasing servers and pin pad hardware, staff time for
performing upgrades, managing the service desk, ensuring PCI compliance, and
reduces the costs of consulting services and staff training workshops.
The new technology fee will require a budget increase of approximately $82,000 which
will be addressed as part of the 2017 and 2018 budget processes. Through a
collaborative purchasing approach, the five (5) municipalities were able to secure lower
rates for the “technology” fee. The City’s share of this collaborative purchasing benefit is
an annual $56,000 compared to the technology fee if the City was entering into an
agreement on its own (i.e. the operating budget increase would have been $138,000 if
the City was purchasing on its own).
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COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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