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HomeMy WebLinkAboutContracts & Agreements_53-2001CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 • Advanced, with coordination through the respective project managers, will be provided with the option to have direct contact as required with the technical staff at the City and with senior users. This option will allow faster resolution of issues in order to ensure that the timeline contemplated in the current project plan can be met. For Advanced, the Steering Committee representatives will be Patricia Sorbara, Kathryn McKay, Philip Playfair (Chief Marketing Officer) and Steven Hammond (Chief Information Officer). Renata Anderson will continue to act as the Project Manager for Advanced. Advanced is confident that the City's Steering Committee representatives (Mike Reynolds, Gary Phelps and Rod Hill) and the representatives from Advanced will ensure resolution of the issues. With approval of Change Order No. 2 for the completion of the implementation, Advanced is committed to completing the project within the hours identified in this Change Order. CITY OF REDLANDS by: ADVANCED UTILITY SYSTEMS by: PAT GILBREATH Mayor ATTEST: President and CEO 8 CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 BACKGROUND On June 21st, 2000, Advanced Utility Systems Corporation (Advanced) and the City of Redlands (the City) executed a Software License and Implementation Agreement (the Agreement). The Agreement provided the foundation upon which Advanced would implement CIS Infinity, its billing and customer service software, at the City. Included, as Schedule B 1 in the Agreement is a Statement of Work, which represents a detailed outline of the implementation, including the methodology and work plan. The estimated costs related to the implementation are included in Schedule D of the Agreement. Section 5.1(b) of the Agreement indicates that "Services will be charged to the Organization at the rates and under the schedule set forth in Schedule D, on a not -to -exceed basis subject to the maximum cost to the Customer of $173,000.00 as set forth in Schedule." It further states that, "In no event will the cost to the Organization of the Services exceed the maximum contract price as set forth in Schedule D, unless agreed upon in advanced in writing signed by authorized representatives of both parties." In Section VI of the Statement of Work, Assumption # 6 states that, "Any changes to the original Statement of Work...will be escalated to the Steering Committee of each company for resolution. This will include costing and changes to the implementation milestone dates if applicable." Section 1.1 (n) of the Agreement outlines the process under a Change Order may be issued to change particular aspects of the Statement of Work and to cover additional work required to complete the implementation. REQUIREMENT FOR A CHANGE ORDER Based on a number of changes to the original Statement of Work and project plan, it is evident that the number of hours originally estimated by Advanced as required to complete each aspect of the implementation will be insufficient. Outlined below are the specific implementation details which have impacted on the hours used to date, as well as a revised estimate of the number of hours required to complete the project. From an overall perspective, the following factors have resulted in a need for additional hours: • Project Schedule: A six-month project was originally envisioned, beginning in late June 2000 with a go live date of January 1, 2001. The project did begin in early July 2000, however, there have been several delays that have resulted in an extended time CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 frame. The current target date for live is July 10, 2001. Based on a twelve-month implementation rather than a six-month implementation, during which time many aspects of the implementation continued to progress, the hours in each category will need to be increased. • Data Conversion Issues: The inability to extract the City's data on a timely basis has created the need to deal with issues not normally faced during an implementation of CIS Infinity. These issues are outlined more fully below, however, this issue has contributed significantly to the overall project delay. • Project Management: The overall project management hours required for this project have been far more significant than anticipated. This issue is outlined further below however, this issue has impacted on the estimated hours. On Wednesday, February 7`'', 2001 the members of the Steering Committee met by teleconference to discuss the status of the Implementation. During that meeting, representatives of Advanced indicated that it was likely that additional hours would be required to complete the Implementation, based on the revised Project schedule. The purpose of this Change Order is to make two significant changes to the Statement of Work: 1. A revised Project Schedule. 2. Finalization of a process required to ensure a timely conversion of the City's data, based on the involvement of a third party vendor. 3. Revision of the estimated hours required to complete each aspect of the implementation, based on the revised Project schedule and the conversion process. SCOPE OF WORK: 1. REVISED PROJECT SCHEDULE On February 15, 2001, Renata Anderson, the Project Manager for Advanced provided Janet Miller, the Project Manager for the City, with a final draft of the revised Project Schedule. This plan was completed following a significant level of discussion between the City and Advanced, and several draft plans. Janet Miller provided written approval of this Project Plan on February 15, 2001. Based on that approval, Advanced and the City began work toward the completion of the milestones delineated in the plan. The primary issues which impacted on the requirement to revise the Project Plan were: 2 CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 • The delay in the installation of the software from August 2000 (as per the original project plan) to mid -December 2000. The delay was directly related to the length of time required to complete the initial extraction of the data and the delay in the installation of the hardware • Ongoing delay in determining a workable approach for data extraction • Finalization of the training plan was delayed for several reasons, including the requirement that the Advanced training schedule be established around the schedule set under the SunGard implementation. Under the Agreement, a change of this magnitude must be approved by the Steering Committee. As you are aware from the teleconference held on February 7tt', the delay in the implementation resulted in a requirement to change the Advanced Project Manager. As a result of the extended timeframe of the project, the initial Project Manager, Kathryn McKay, was no longer available for the project. Renata Anderson is now acting as Project Manager. 2. CONVERSION PROCESS On April 3, 2001, Change Order No. 1 was approved by the City of Redlands. Under this Change Order, a third party vendor will be responsible for the extraction of the data from a back up tape provided by the City. The third party vendor will convert the data into Access files. Advanced will interface directly with the third party vendor to expedite this phase. Thirty (30) hours were approved in Change Order No. 1 to cover the additional consulting hours required for Advanced to work with the third party vendor. As a result of the change in the manner in which the City's data will be extracted, Advanced will be required to build a new conversion routine to accommodate the files that will be received from the third party vendor. Specifically, the initial conversion routine written by Advanced was designed to relate the text files provided by the City to the structures required by the Advanced CIS Infinity billing and customer service software. The third party vendor will be providing the extracted data in Access and as such, Advanced will be required to re- write the original conversion routines. In the long run, the Access files represent a more efficient approach to the conversion process, however, it requires hours to re -write a routine that can be used for all remaining conversions. As at March 31, 2001, there are 65 hours remaining in the conversion category. Advanced believes that in addition to the remaining 65 hours, another 120 hours will be required to complete the conversion elements of the implementation. Advanced is confident in the approach being taken, however, it is important to note that the third party vendor may have additional requirements following their initial review of the data. CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 Although problems are not anticipated, Advanced feels it is necessary to advise the City of this possible outcome. 3. SET-UP AND SOFTWARE INSTALLATION AND CONFIGURATION As of March 31, 2001, the original estimate of the number of hours required to complete the Set-up and Software Configuration had been exceeded by ninety-three (93) hours. There are several factors impacting on the hours required in this category: • The extended project schedule and timeframe (resulting in an extension of the implementation by a minimum of six months). • The number of hours dedicated to project management has been much higher than anticipated. In particular, discussions with the Project Manager for the City have been considerably more extensive than normally experienced. While this is not a concern, it was not anticipated and has resulted in the usual number of hours quoted in this area to be exceeded. • The City Project Manager has regularly changed the reporting format provided by Advanced. While this is not a concern, it was not anticipated and has increased the effort required by Advanced to analyze the issues submitted. • Business process analysis has been required in some areas, including consolidation of rates and re -structuring of the account types, which was not anticipated in the original quote. At this time, it is anticipated that completion of the set-up and software configuration, as well as project management will requirement approximately 80 hours per month. Based on the remaining five months of the implementation, this will require the approval of an additional 400 hours. TRAINING As at March 31, 2001, there were 103 hours remaining in the training category. Based primarily on the extended period of the contract, it is estimated that another 80 hours will be required to complete a successful training process. In particular, based on the current status of the project and the need to ensure that users are fully ready to use the system in a live environment, Advanced would strongly recommend that on -site assistance be available to users during the critical hard parallel phase, which is upcoming. 4 CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 APPROVAL OF ADDITIONAL HOURS Hours used to Date: Service/ Estimated Hours Conversion Set-up and Install Training Original Hours Estimated in Agreement 250 255 270 Hours Used as at March 31, 2001 185 348 167 Hour R.r.m' .1, 2001. (5 -93 103 Additional Hours: Service/ Estimated Hours Conversion Set-up and Install Training Original Hours Estimated in Agreement 250 255 270 Add:i:tio:t al 1.:Io. • •s 1 equested in ;1. ang- Ord t• 2 1.20 400 81:1 Revised Total Hours Required for Project 370 655 350 As per the above chart, Advanced is submitting this Change Order in order to request approval of the Additional Hours as required to complete the project: Additional Conversion Additional Set-up: Additional Training: $14,400.00 (120 hours x $120.00 $48,000.00 (400 hours x $120.00) $9,600.00 (80 hours x $120.00) Additional Cost: $72,000.00 The following chart reflects the initial pricing and the new pricing, based on the hours included in the change order: 5 CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 siek�i.. '77 o Licenses Server License $35,000.00 User License $45,000.00 Up size to Oracle Database $ 0.00 $80,000.00 Services Conversion - Original Agreement Amount $30,000.00 $30,000.00 Increase due to Change Order No. 1: Conversion Services by Third Party, Flat Rate $39,020.00 Conversion - Advanced Consulting 3,600.00 $42,620.00 Increase due to Change Order No. 2: $14,400.00 $14,400.00 Re -write of Conversion Routine Set-up and Install -Original Agreement Amount $30,600.00 $30,600.00 Increase due to Change Order No. 2: $48, 000.00 $48, 000.00 Project Management, Software Configuration $32,400.00 $32,400.00 Training - Original Agreement Amount $9,600.00 $9,600.00 Increase due to Change Order No. 2: Additional On -site Training Total Total - Original Agreement Amount and $215,620.00 Change Order No. 1 Total - Increase due to Change Order No. 2 $72,000.00 Total - Including Change Order No. 2 $287,620.00 6 CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 PROCEDURAL CHANGES As noted in the background section of this document, Advanced is required to submit a Change Order if the total hours estimated for the project are expected to be exceeded. In doing so, Advanced has prepared its proposal in an attempt to ensure that the hours reflected are sufficient to complete the implementation. It is the position of Advanced that the Change Order includes adequate hours to complete the project, however, we are only prepared to provide this assurance based the commitment by the City that a series of conditions will be met. If the City and Advanced can reach agreement on the following conditions, Advanced is confident that a successful implementation is possible within the hours estimated by this Change Order. Additional hours will only be contemplated if an unexpected situation were to occur. The proposed conditions for a successful completion of the project primarily require that the project management process be streamlined and the hours dedicated to this aspect of the implementation be controlled more closely. The situation can be better monitored and controlled through the following approach: • The City and Advanced will formally appoint Project Sponsors, which for the City are designated as Bomiie Johnson and Gary Phelps and for Advanced are designated as Patricia Sorbara and Kathryn McKay. The Project Sponsor will participate in regular project meetings and will have responsibility to resolve issues that have not been addressed at the project management level. • Advanced will provide the City's Project Manager with the information required to finalize a decision regarding the project. Should the City require additional information or should the issue remain unresolved between the City and Advanced, the issue will be escalated for resolution • Either the City or Advanced can request escalation of an issue. Once requested, the issue will be brought forward to a meeting of the Project Sponsors. • The Steering Committees of Advanced and the City will meet every two weeks (via teleconference) to discuss the progress of the project. At that time, an accounting of the hours used to date will be provided and any issues that may impact on the project or the estimated hours will be resolved based on a plan agreed upon by the Steering Committee. 7 CHANGE ORDER NO. 2 CITY OF REDLANDS Issued April 17, 2001 • Advanced, with coordination through the respective project managers, will be provided with the option to have direct contact as required with the technical staff at the City and with senior users. This option will allow faster resolution of issues in order to ensure that the timeline contemplated in the current project plan can be met. For Advanced, the Steering Committee representatives will be Patricia Sorbara, Kathryn McKay, Philip Playfair (Chief Marketing Officer) and Steven Hammond (Chief Information Officer). Renata Anderson will continue to act as the Project Manager for Advanced. Advanced is confident that the City's Steering Committee representatives (Mike Reynolds, Gary Phelps and Rod Hill) and the representatives from Advanced will ensure resolution of the issues. With approval of Change Order No. 2 for the completion of the implementation, Advanced is committed to completing the project within the hours identified in this Change Order. CITY OF REDLANDS by: ADVANCED UTILITY SYSTEMS by: PAT GILBREATH PATRICIA SORBARA Mayor President and CEO 8 Funding Request - Recycling and Litter Cleanup - On motion of Councilmember George, seconded by Councilmember Haws, the City Council authorized submittal of a beverage container recycling and litter cleanup funding request to the Department of Conservation, Recycling Division by AYE votes of all present. Utility Billing Customer Information System - On motion of Councilmember George, seconded by Councilmember Haws, the City Council authorized Change Order No, 2 to the software and license implementation agreement with Advanced Utility Systems Corporation for the City's Utility Billing Customer Information System by AYE votes of all present. Minor Subdivision No. 253, Parcel Map No. 15530, - Final Approval - On motion of Councilmember George, seconded by Councilmember Haws, the City Council approved, by AYE votes of all present, a subdivision improvement agreement for Minor Subdivision No. 253, Parcel Map No. 15530, located on the southeast corner of Redlands Boulevard and New Jersey Street (Essex Development, applicant). On motion of Councilmember George, seconded by Councilmember Haws, the City Council granted final approval for Minor Subdivision No. 253, Parcel Map No. 15530, by AYE votes of all present. COMMUNICATIONS Appointments - Redevelopment Advisory Commission - On December 5, 2000, the City Council approved the reactivation of the Redevelopment Advisory Commission, Members on this commission must be residents of Redlands and may not reside or own property within the Redevelopment Area boundaries, Although several applications have been received, Mayor Gilbreath wanted to re -advertise the availability of appointments. No action was taken at this meeting. Citrus Groves Policy - Mayor Pro Tem George asked the City Council to authorize exploration of ways to assist "pocket" (five acres or less) citrus groves especially in relation to the use of domestic water. Councilmember Haws felt this fell within the recently adopted Citrus Policy. By concurrence, this was referred to staff for a report. Regional Transportation Plan - Mayor Pro Tem George reported about the recently approved Regional Transportation Plan which will carry us to 2025 and reviewed the contents. Included, as a "baseline project," is the extension of Metrolink service to Redlands to be completed by 2010. Mayor Pro Tem George will attempt to move this date up to 2005. Congressman Jerry Lewis - Mayor Pro Tem George reported on the very successful Jerry Lewis Appreciation Day held on April 11, 2001, in the Mitten Building. He expressed his appreciation to the Redlands Allies, Chamber of April 17, 2001 Page 4