HomeMy WebLinkAboutFIN-06-024 - Customer Information System (CIS) Project Resources Status Update
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KITCHENER
Financial Services
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
August 21, 2006
Pauline Houston, General Manager of Financial Services
& City Treasurer
Pauline Houston (2646) and Mike Bolger (2247)
ALL
August 10, 2006
FIN-06-024
CUSTOMER INFORMATION SYSTEM (CIS) - PROJECT RESOURCES STATUS
UPDATE
RECOMMENDATION:
THAT the following recommendations, to increase development capacity and sustainability of
the City's Tax/Utility Billing System, be approved:
1. Extend the contract of the CIS consultant by eighteen months, phasing out by the end of
2007
2. As part of succession planning for CIS consultant, add a full-time Systems Analyst
position, effective November 1, 2006.
3. Develop sustainability in the project team by converting the following contract positions
to full-time:
- Two Quality Assurance positions
- Three Senior Programmer positions.
4. Add a full-time Systems Administrator position for the CIS system in 2007.
BACKGROUND:
THAT the system status and overall resource plan for the CIS system is reassessed for
Council's consideration in early 2011.
Resources
In 2003, Council approved a ten-year budget for the CIS project (FIN 03 043). Included in this
budget was the availability of additional resources that could be utilized, subject to approval by
CMT (previously Service through Technology Committee). The following recommendation was
made to and approved by Council:
1. To hire developers to increase the complement of the CIS development team.
. 2 full time equivalents in 2004 for an eight year contract term
. 2 full time equivalents in 2004 for a five year contract term
. 2 full time equivalents in 2005, for a five year contract term, subject to needs
assessment and approval by Service Through Technology Committee
. 2 full time equivalents for a five year contract term, for special projects, subject to needs
assessment and approval by Service Through Technology Committee
2. Budget for secondment of 2 full time equivalent staff in Revenue and utilities for inclusion on
CIS projects.
3. Extend the budget for the current CIS development team complement from 2006 to 2011.
4. Continue co-operation and pursuit of opportunities to share development efforts with other
municipalities using the CIS product.
5. Extend the use of the CIS consultant by two years, but phase out this service by 2006.
6. Provide budget for an additional server for the CIS environment.
7. Include the necessary funding for the above recommendations in the 2004 Capital forecast.
Since 2003, the Ontario Energy Board introduced the Gas Distribution Access Rules (GDAR)
and the Anti-Scald legislation. The CIS team has been focused on these areas and will
continue to work on the GDAR implementation. Recognizing the significant impact these
projects, the schedule of additional projects and the support requirements, the CIS Steering
Committee has determined the need to utilize the resources previously approved by council,
subject to CMT approval.
Extension of CIS Consultant Contract and CIS Consultant succession clan
The assistance in transitioning to a self-sufficient model and developing system design
documents has been invaluable since the City of Kitchener became self-supporting in May
2000.
In 2003, Council approved the extension of the consultant contract by one year to mid 2006.
Because of some CIS staff team turnover, introduction of new modules such as GDAR and Anti-
Scald legislation, and intentional delays in adding previously approved resources; Staff are
recommending that the consultant's services be extended by eighteen months, to be phased out
by the end of 2007.
Since Mr. Little's services are not being requested after 2007 and as part of succession
planning a Systems Analyst will be added to the CIS team. The scope of the CIS system and
the continued need to develop in several areas concurrently requires the need for this additional
Systems Analyst. This position was included in the original approvals from Council, on a five
year contract basis. The recommendation reflects filling this position on a full-time rather than
contract basis, consistent with the sustainability rationale outlined below.
Sustainabilitv
In discussions at the CIS Steering Committee, it was noted that it is most probable that the City
will continue to maintain and develop the current application for at least ten more years. The
committee discussed the risk associated with continuing to extend the contracts of existing staff
in lieu of offering full-time positions to the CIS team members. The product knowledge and
technology expertise would both be better protected and sustained by moving these positions to
a full-time status. Due to the extended learning curve of the CIS product and costs associated
with the hiring process, it is to the advantage of the corporation to secure these positions.
Svstems Administrator (Revenue Division)
All major systems require a dedicated systems administrator to design reports, table
maintenance, application security, training, and initial system contact for users. In the original
plan, it was anticipated that this work would be undertaken by the Systems Co-Coordinator/Tax
Specialist in the Revenue division. However, because of the increased complexities of both the
Utilities and tax systems, it is no longer considered feasible to have this work done by one
person.
FINANCIAL IMPLICATIONS:
These requests can be accommodated through the existing CIS Capital Budget, which is
defined to 2015. See details of revised cost projections (Schedule 1).
It is worthy to note, that based on the previous resource plan approved by Council, the funding
requirement for 2004 to 2011 was $11,587,393. The revised resource plan for the same time
period is $11,393,820, representing $194,000 in savings from the original estimate. The
average annual expenditure for maintenance and development of this system for 2004-2011 is
approximately $1.1 million. This annual investment represents approximately 0.29% of total
revenues billed by the system ($382 million per year). Staff has estimated that had the City
been able to purchase a complete package system to meet our needs our going maintenance
costs would have run in the range of $1 million annually, plus the purchase cost of the new
modules (GDAR and anti-scald). Clearly, the cost of the City's approach to system
maintenance and development is very reasonable, compared to the alternatives.
CONCLUSION:
By addressing the resource requirements for the CIS system, including GDAR development, the
City will increase its potential to meet the needs of the Financial Services Department in
producing Tax and Utility bills for the City of Kitchener.
The above recommendations have been reviewed and endorsed by Corporate Management
Team and the CIS Steering Committee (P. Houston, General Manager of Financial Services, M.
Bolger, Manager of Business Systems and Services, M. Grummett, Director of Information
Technology, D. Quinn Director of Utilities, J. Evans, Director of Revenue, L. Piotrowski, CIS
Business Systems Analyst.)
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer
Mike Bolger,
Manager, Business Systems and Services
Corporate Services Department
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