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HomeMy WebLinkAboutFinance & Admin - 2001-09-10 SFINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 10, 2001CITY OF KITCHENER The Finance and Administration Committee met this date in special session, commencing at 7:05 p.m., Chaired by Councillor J. Ziegler with the following members present: Mayor C. Zehr and Councillors M. Galloway, G. Lorentz, J. Smola, B. Vrbanovic and C. Weylie. Others Present:Ms. P. Houston, Ms. L. MacDonald, Ms. R. Pitfield, Ms. A. Tanner, Ms. D. Gilchrist, and Messrs. R. Pritchard, F. Pizzuto, G. Sosnoski, B. Stanley, M. Grummett and R. Weber. 1. CSD-01-146 – AUTOMATION AND TELECOMMUNICATIONS INITIATIVES The Committee was in receipt of Community Services Department report CSD-01-146, dated September 4, 2001, briefly outlining the automation and telecommunications proposed for the City of Kitchener. Attached to the staff report were: an executive summary of the “City of Kitchener Telecommunications Infrastructure Strategy Project”, prepared by Graycom Analysis, dated July 24, 2001, and an executive summary of the report titled “A Customer Service Delivery Concept for the Community Services Department”, prepared by Pacomm Consulting Inc. and CentrePoint Inc., dated August 27, 2001. Full copies of these reports were distributed to the Committee members at this meeting. Mr. F. Pizzuto advised that staff and Management Committee believe the proposal before the Committee is in keeping with the City’s “Service First” philosophy. The new telephone system and technologies proposed will provide staff with the tools they need to do their jobs well. These new initiatives will enhance the City’s communications abilities with respect to our customers and each other. Mr. Pizzuto then introduced Mr. John Eddington of Graycom Analysis, Mr. Robert Pachal of Pacomm Consulting Inc., and Mr. John Hodgson of the City of Markham, each of whom would make a presentation on one aspect of the proposed initiative. Mr. John Eddington of Graycom Analysis addressed the Committee advising that his is an independent consulting firm, not connected with any hardware or software supplier. He stated that the review undertaken by his firm included people and process as well as technology. Mr. Eddington then reviewed the process involved in undertaking the study, beginning with his assessment with the City’s existing Rolm System, purchased in 1983, which, although being a good system for the City at the time of purchase, has now reached the end of its useful life. He then reviewed the technology issues, business processes and public point of view with respect to obtaining access to the exact staff member who can assist them. He stated that the technology and business processes much be changed in concert. Mr. Eddington advised that through his analysis of the best option for the City of Kitchener, he reviewed best practices of other municipalities, and brought forward statistics from the following municipalities: Hamilton, Mississauga, Montreal, Ottawa, Sudbury and Toronto. Mr. Eddington then advised that his proposed business concept for the City of Kitchener called “Access Kitchener” which will change the way staff interface with the public, particularly on the telephone. “Access Kitchener” would be a new general inquiry call centre to serve the public and support departments, which would be advertised as “Access Kitchener - Call 519-741-CITY” which will move the City towards a more “citizen centric approach” to service delivery. With respect to the telecommunications strategy proposed by Graycom, Mr. Eddington advised as follows: when the City tenders for a new telecommunications infrastructure provider, the City should not define its requirements with respect to the underlying technology, but only define its requirements and objectives. Secondly, consideration should be given to what the possibility is for voice/data/video convergence for the proposed telecommunications system. Mr. Eddington noted that such possibility exists in any new system acquired by the City must be evaluated on this basis. The City must then identify the capital and operating costs of its chosen new direction. He estimated a capital cost of $950,000. to $1M for a new PBX system, as compared to approximately $250,000. to $300,000. for a Centrex system, but noting the larger operating cost associated with Centrex. Councillor Vrbanovic questioned the possibility of making use of the fiber network owned by the Hydro utility, in order to provide for the voice/data/video convergence, noting that an existing fiber network currently runs to most City facilities. Mr. Grummett questioned whether the Hydro utility would allow the City to buy fiber strands as there is a difference between leasing and owning. Councillor Vrbanovic requested that the City investigate potential use of this fiber network and prepare a cost benefit analysis. FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 10, 2001- 103-CITY OF KITCHENER 1. CSD-01-146 – AUTOMATION AND TELECOMMUNICATIONS INITIATIVES (CONT’D) Councillor Vrbanovic spoke in support in the “Access Kitchener” concept and requested that staff register the name “Access Kitchener” as soon as possible. A brief discussion then took place with respect to the possible technologies and their associated costs. Mr. Robert Pachal of Pacomm Consulting Inc. then presented the report prepared by his firm titled “A Customer Service Delivery Concept for the Community Services Department”. Mr. Pachal noted that the impetus for this study had been the recommendation in the “Galloway Report” that an information and registration call centre be developed for the Community Services Department. He advised that early in the process, the project was refocused to a “Customer Service Delivery System” rather than a call centre. He noted the various methods of information gathering, from which they were able to determine a need for flexibility in the registration process, particularly aquatics registration, which would provide for registration by phone/IVR, internet, kiosks as well as in person. With respect to program registration, the conclusions reached through this process are: the need for year-round program registration, registration capabilities over alternate channels, the ability to register for any program, and alternate methods of payment such as credit cards and debit cards. Mr. Pachal then reviewed the benefits for Parks and Environmental Services of a customer service delivery system which can include work order tracking and status. Mr. Pachal reviewed the major conclusions and recommendations of the report: improved customer service and operating efficiencies within the Community Services Department and utilization of technologies for customer self-service. He stated that the introduction of telephone registration will require a significant change in business process and support systems, predominantly the CLASS Application Suite, and the report recommends that telephone registration on a broad scale not be introduced without an Interactive Voice Response (IVR) module. The report also recommends that registration not be handled through the main City telephone number without front-end call classification or adoption of the specialized call centre model. The report also outlines a “starting scenario” which assumes that the City will obtain a telecommunications platform that will support some form of front-end call classification capabilities and that the Community Services Department will obtain an IVR capability to handle the bulk of registrations. Coucillor B. Vrbanovic questioned the recommendation not to use kiosks for program registration and Mr. Pachal advised that they reviewed best practices and found that other municipalities are moving away from the use of kiosks, for various reasons including their high cost. As an alternative, Councillor Vrbanovic suggested making computer terminals available at Community Centres as a method for people to undertake program registration, and Mr. Pizzuto advised that staff will take the suggestion under advisement. Mr. John Hodgson and Mr. Biju Misra of the City of Markham were in attendance to demonstrate E-Markham, the internet program of the Town of Markham. Mr. Hodgson advised that this internet program was initiated in 1999, as the result of a plan prepared by Orion Technologies. E-Markham provides a one window electronic access to all the Town’s information and services. He advised that the initial flow of information was one way, from the Municipality to the public; however, the third phase, which includes e-commerce, now provides a two way flow of information and services, and provides a solid base for customer relationship management. Mr. Misra then gave a demonstration of E-Markham showing information which has been made available to the public. Mr. Misra then explained that the integration of GIS into the system is absolutely essential to be able to offer the public personalized information such as: the closest community centre, school, bus route, etc. to their home. Mr. Misra then explained the “CARE” concept which allows members of the public to request information and services as well as submit complaints. This system also enables the customer to track the status of their request. Ms. P. Houston then reviewed staff’s funding proposal for all three projects, and as part of the agenda material the Committee was in receipt of a Telephone Reserve Fund projection for the years 2000-2009. Ms. Houston advised that the $1.5M estimated for telephone upgrades anticipates a greater equipment need than identified by the consultant. She explained that the capital costs for the Community Services Department Customer Service Delivery System had FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 10, 2001- 104-CITY OF KITCHENER 1. CSD-01-146 – AUTOMATION AND TELECOMMUNICATIONS INITIATIVES (CONT’D) been divided between two phases costing $328,000. in 2001 and $120,000. in 2002. Also, $500,000. has been estimated as the Capital cost for the customer “CARE” system. Ms. Houston noted that the Telephone Reserve Fund will return to a positive balance in five years and the systems will last longer than that. With respect to the “Access Kitchener” proposal, Ms. Houston stated that there are sufficient resources in City Clerk’s for this project without the need for additional staff resources. She also spoke of the need for a 35% of a full-time equivalent to perform bank reconciliation with respect to the CLASS System. Ms. Houston advised that the partnership with the City of Markham and Orion Technologies is cost effective, as to undertake this project alone would cost the City over $1M. Funding for the web site partnership would be funded through the Web Site Capital Budget and the Telephone Reserve Fund. Councillor Vrbanovic questioned whether the number of staff in City Clerk’s can manage the volume of calls anticipated for “Access Kitchener”. Mr. Sosnoski advised that the existing staff resources currently handle general inquiry calls. The staff are a resource which can be built on and the situation requires more in-depth investigation. Councillor Vrbanovic noted his concerns about the number of calls received by the City at tax time and questioned whether Revenue staff can be blended into the system when needed. Mr. Grummett offered the example of the City of Ottawa where, at tax time, expert staff are moved to the call centre. Mayor Zehr noted that a City reserve fund has operated in a negative position in the past, and Ms. Houston noted that the Telephone Reserve Fund had been in a negative position, and the proposal being considered at this time returns the reserve fund to a positive position quite quickly. Mr. Pizzuto summarized the proposals presented advising that staff feel it is worthwhile proceeding in the recommended direction. He then reviewed the recommendations in the staff report. Councillor J. Ziegler questioned whether the purchase of the components from CLASS Software Solutions Ltd. is not included in the request for proposal and Mr. Pizzuto advised that it is not included, as there is only one vendor for this product. Councillor Vrbanovic questioned whether kiosks could be added later, if desired, once the CLASS System has been purchased and Mr. Grummett advised that kiosks would not be precluded; however, there would be an additional cost. He also requested that staff pursue what possibilities there may be with Kitchener-Wilmot Hydro and their fibre network, and Mayor Zehr offered to assist Mr. Grummett in this regard. Councillor Vrbanovic spoke in support of proposals presented and put forward the recommendations contained in the staff report. On motion by Councillor B. Vrbanovic – : it was resolved “That the Telecommunications Strategy as outlined in Community Services Department report CSD-01-146 be approved in principle; and, That staff be authorized to request proposals for a new telecommunications infrastructure from qualified vendors; and, That staff be authorized to purchase the necessary components from CLASS Software Solutions Limited to implement the Customer Service Delivery Program; and, That staff be authorized to commence negotiations of a web site development partnership agreement with the City of Markham/Orion Technologies; and further, That capital funding for the above initiatives be provided from the Telephone Reserve Fund.” Carried unanimously 2. ADJOURNMENT FINANCE & ADMINISTRATION COMMITTEE MINUTES SEPTEMBER 10, 2001- 105-CITY OF KITCHENER On motion, the meeting adjourned at 8:55 p.m. Dianne H. Gilchrist Committee Administrator