HomeMy WebLinkAboutFIN-07-117 - CIS (Tax/Utility Billing System) Consultant - Contract Extension - Gas Distribution Access Rule (GDAR) Implementation'*W
ILREPORT
Report To: Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
Date of Meeting: September 24, 2007
Submitted By: Pauline Houston, General Manager of Financial Services
& City Treasurer
Prepared By: Pauline Houston (2646)
MIN
Date of Report: September 18, 2007
Report No.: FIN-07-117
Subject: CIS (Tax/Utility Billing System) Consultant — Contract Extension —
Gas Distribution Access Rule (GDAR) Implementation
RECOMMENDATION:
THAT the contract for the CIS consultant (John Little) be extended by 12 months to the end of
2008 to complete the system design requirements for Phase 11 of the Gas Distribution Access
Rule (GDAR) Implementation.
The Ontario Energy Board introduced the Gas Distribution Access Rules (GDAR) in December
2002. The implementation deadline set by the Ontario Energy Board was June 1, 2007. In
order to meet the anticipated tight deadlines in an environment where the specifications were
still changing, the CIS project team started work on GDAR back in January 2004. As
anticipated, the final specifications for the system were not known until mid March 2007,
resulting in some unavoidable redesign/rework being required for Phase I. As well, some
system requirements were delayed until Phase 11 and some temporary manual "work-arounds"
were put in place, with the automated solution for these components being planned for Phase 11.
To date, GDAR Phase I has cost approximately $1.2 million in staff time and external resources.
The transitioning to a self-sufficient model and developing system design documents has been
invaluable since the City became self-supporting for the CIS system in May 2000. The CIS
consultant has been an integral part of that transition. The succession plan over the last several
years has been to increase the capacity of the internal staff project team to allow for the phasing
out of the use of the external consultant. That plan has been working very well to date, resulting
in all support and much of the design for smaller modules in the system, and all development of
new modules now being completed by the internal staff project team.
1014 a 0 :
It is anticipated that GDAR Phase 11 will cost approximately $500,000. The gas distribution rates
include a provision for recovery of these costs of approximately $250,000 per year. Therefore,
the overall investment payback period for Phase I and 11 is approximately 7 years. The overall
investment and payback period is proportionately consistent with other gas distributors in
Ontario.
In reviewing the options of completing Phase 11 of GDAR, Staff has concluded that the use of
the CIS consultant to lead the design component for this phase is the most cost effective
approach to take, for the following reasons:
• Earlier expected completion for the end of 2008, compared to a completion date of
March 2010, using only internal staff resources.
• The consultant's expert knowledge of the design of Phase I is considered a key
requirement for the successful completion of Phase 11
• Earlier elimination of manual work arounds
• Allow for other systems improvements and modules to proceed on schedule (e.g. E-Post
implementation and Collections module improvements)
The legislative environment related to natural gas vendors and vendor billing options and
specifications is constantly changing. In addition, smart metering is potentially on the longer
term horizon for natural gas. Given those potential changes, staff will need to reassess the
future need for the CIS consultant contract in late 2007.
FINANCIAL IMPLICATIONS:
The approximate cost of a one year extension of the consultant is $250,000, funding for which
can be accommodated within the funding currently allocated in the 10 year capital forecast for
the maintenance and development of this system.
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer
PH/mf