HomeMy WebLinkAbout2000-10-04 Agenda Packet - Board (13) TDPUD STAFF REPORT
TO: Board of Directors
FROM: Mary Chapman, Administrative Services Manager V�ZCz
_j
SUBJECT: Consideration of the adoption of a resolution dispensing with bidding for the purchase of
a remittance processing system
DATE: September 28, 2000
AGENDA #
Last year during the District's strategic planning session, one of the strategic issues was to make
the PUD state-of-the-art in all respects. In the last few years, we have installed modern
hardware and software to improve our efficiency and allow us to be more responsive to our
customer needs.
In the last couple of budgets, we have included the purchase of a remittance processor to
streamline our operations further. We held off purchasing the remittance processor last year,
because we knew we would be changing billing software and decided to wait until the
conversion was completed.
On Monday, November 6th, representatives will be here from CADP (now National Information
Systems Cooperative or NISC) to convert our billing system from Orcom to NISC. We would
like to implement the remittance processing equipment right after the conversion. The NISC
Mailroom Services who will be printing and mailing our bills will be able to print an OCR line on
the billing stub, which will be read by the remittance processor. It currently takes us most of the
day to open the mail, prepare the deposit and enter payments into the system. The remittance
processor will speed up the preparation of the deposit and entering payments into the system.
Two years ago, the Board authorized the purchase of a more sophisticated letter opener which
works very well for us.
The remittance processor system is an NCR machine. Omega Systems is a company that
provides the remittance processing software that works on the machine. NISC provides the
interface software that communicates with the Omega System software and the NISC billing
system software. NISC has at least 22 other utilities using the Omega Systems remittance
software and the NISC interface software. Some of the large utilities are using a larger and
much more expensive machine.
I performed a phone survey of four utilities to inquire about their experience with the
performance of the NCR machine and the associated software. All four utilities had glowing
reports. Their comments included that they were very happy with the equipment, they were
saving a lot of time over hand keying payments and that the maintenance was prompt.
Attached is a breakdown of the cost of the system. I have included $50,000 in the 2000 budget.
RECOMMENDATION: That the Board adopt the attached resolution dispensing with
bidding and authorize staff to proceed with the purchase and installation of the
remittance processing system.
OMEGA SYSTEMS NA ID :6078443228 SEP 29 ' 00 12 : 57 No .002 P . 02
NCR 7731 FLEX SYSTEM PRICING
NCR 7731 HARDWARE PLATFORM
OMEGA SYSTEMS OF NORTH AMERICA
7731 FLEX SOFTWARE
September 29, 2000
PRICE MAINT,
TOTAL HARDWARE& SOFTWARE INVESTMENT $ 43,106" $33,.7_3,55
* Subject to zone charges
**Plus Shipping, Travel and Supplies
** A 50%deposit required with order.
***Subject to survey a=ptance
FLEX Internet Image Archive/Retrieval System $ 10,500 $ 1,990
FLEX Archive Storage Software
FLEX Internet Retrieval Interface
Standard Formatted Reports
DVD WRITER $ 800
UPS POWER SUPPLY $ 100
Martin-Yale Model 400 Jogger $ 500
Thermal Journal Printer $ 100
TOTAL $ 55,106 $5,625
Government Discount 10% -$ 5 $ .650
TOTAL 4$ 9495* $44,975
Sales Tax @ 7.8750 3,906
Out-of-pocket travel expenses (estimate) 1,200
Total _54,701
0
RESOLUTION NO. 00_
OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
DIRECTING THAT COMPETITIVE BIDDING BE DISPENSED WITH IN CONNECTION
WITH THE PURCHASE OF A REMITANCE PROCESSING SYSTEM
WHEREAS, in February, 1999, the District authorized the purchase of a new computer
system including hardware, software, training and support services from Central Area Data
Processing (currently operating under the name of National Information Systems Cooperative
or NISC) to process its utility billing and financial accounting data processing needs; and
WHEREAS, the District converted to the NISC Cost and General Accounting software in
November, 1999; and
WHEREAS, the District will be converting to the NISC CAPS XL Plus Billing software in
November, 2000; and
WHEREAS, the Administrative Services Department has been implementing various
technological solutions to improve its efficiency and response time to the customers; and
WHEREAS, the District staff manually processes payments stubs and checks received from
customers on a daily basis and wishes to purchasing a hardware and software solution to
automate these processes; and
WHEREAS, NISC has many clients already using the Omega Systems NCR 7731 Flex
Remittance System and has already developed the software to interface with the NISC Billing
System; and
WHEREAS, purchasing a remittance processor from another vendor and developing
interface software would not be desirable and would be costly to the District; and
WHEREAS, upon delivery of the remittance processor, an Omega Systems technician will
come to the District to install the hardware and software, provide staff training and
subsequent direct link support of such software; and
WHEREAS, various California court decisions, including Graydon v. Pasadena Development
Agency, 104 C.A. 3d 631 (1980), hold that if the subject of a contract is such that competitive
proposals would be unavailing or would not produce an advantage and the advertisement for
competitive bids would thus be undesirable or impractical, a public agency may dispense with
competitive bidding; and
WHEREAS, due to the facts set forth above, competitive bidding would be unavailing and
would not produce an advantage to the District and the advertising for competitive bids would
not produce an advantage to the District and would be undesirable; and
WHEREAS, Public Utilities Code Section 20206.4 generally requires that the District seek
competitive bids in connection with the purchase of goods; and
WHEREAS, the District finds that the computer hardware, software and support services
more nearly resembles a special service, for which no competitive bidding is required, as
opposed to a "good"; and
WHEREAS, the Public Utilities Code Section 16034 and Government Code Section 53060
provide that the District may, without competitive bidding, contract for special services and
advice in financial, economic, accounting, engineering, legal, administrative and professional
matters if such persons are specially trained and experienced and competent to perform the
special services required; and
WHEREAS, since Omega Systems would provide a sole source of purchase, installation,
training and subsequent support and that the installation and implementation would be
smoother and more efficient because of it.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors that it adopts the above
stated recitals as its findings.
BE IT FURTHER RESOLVED BY THE Board of Directors that for the reasons set forth
above, the District finds that competitive bids for the purchase of a remittance processing
system including hardware, software and support services would be unavailing and would not
produce an advantage to the District and the advertisement for competitive bids would not
produce an advantage to the District and would be undesirable and costly.
BE IT FURTHER RESOLVED that the District finds that computer hardware, software and
support services more nearly resembles a special service, for which no competitive bidding is
required, as opposed to a "good."
BE IT FURTHER RESOLVED that the District shall therefore dispense with competitive
bidding for the acquisition of a remittance processing system and associated hardware and
software, and the District staff is authorized to purchase from Omega Systems the necessary
hardware, software and software licenses to operate said system including installation costs
and training.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within
the District on the _ day of October, 2000 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By.
Peter L. Holzmeister, Clerk of the Board
ATTEST.
Susan M. Craig, Deputy District Clerk
N 128 West Main Street
y� Dryden, NY 13053
Tel: 607.844.4011
OF NORTH AMERICA, INC. Fax: 607.844.3228
June 1, 2000
Mary Chapman
Supervisor Admin. Services
Truckee-Donner PUD
PO Box 309
Truckee, CA 96160
Dear Mary:
Enclosed is the proposal for the NCR 7731 FLEX System you saw at the NiSC user meeting..
The NCR 7731 Flex System can combine 7 manual step into a single automated process, and
eliminate all keying on 80% to 85% of the payments. While processing 600 to 700
transactions per hour the system can reduce the number of error, improve posting times and
provide dramatically improved research capabilities.
The 7731 FLEX Software application has been developed from years of experience in the
remittance and imaging markets. It will perform all the functions required to process
payments in a wide variety of environments but allow the end user to select the hardware
configuration that is ideal for their processing requirements. The result is a high level
program that offers maximum platform and configuration flexibility.
Couple that with the Flex Image Archive and Retrieval System and you can research
payments by account number, amount, check number or any field on the stub or check. This
look up can be performed over a network or the Internet and includes the images of the stubs
and checks. This product can improve research, customer service and eliminate storage of
documents all while cutting labor costs.
Remember to visit our web site at: "http:/ww-w.omegasyscorp.com". If you have any
questions on the system or the enclosed information please feel free to call me at (607) 844-
4011.
Sincerely,
Evan . Lewis
General Manager
EPL/tw
Encl.
DAM
OF NORTH AMERICA. LIc.
NCR 7731 FLEX
Remittance System
FRONT IMAGE CAMERA THREE POCKET MODULE
THERMAL ENCODER REAR BANK STAMP
AUTOFEED HOPPER AUDIT TRAIL PRINTER
POWER HAND FEED WINDOWS NT SOFTWARE
DATABASE DRIVEN LOCKBOX APPLICATION
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OMEGA SYSTEMS OF NORTH AMERICA, LIC. TEL: 607.844.4011
128 WEST MAIN ST. FAX: 607.844.3228
DRYDEN, NY 13053 E-MAIL: infoCfomeaasyscoro.com
Visit our Web Site at www.omegasyscorp.com
1. Envelopes are opened: 1. Envelopes are opened, keeping checks and stubs
together, and sorted by payment type:
�I
2. Checks and stubs are = w
separated into two piles: --_—_
Full Pays Odd Pays Multiples Checks only Stubs only
a_.o.._ ,-... Account#written
w check 2. Payments are
processed:
3. Accounts are reconciled
by adding totals: - —
Accounts are reconciled (balanced).
4. Checks are rear • Checks are endorsed.
stamped: Checks are encoded.
• Audit trail is generated.
• Deposit slip is encoded.
VWN 011MK
3. Personnel time is freed up for other tasks:
5. Payment data entered
into system:
6. Deposit ticket filled out:
6
7. Average cost per check for
bank encoding:
4
• Amounts keyed 4 times. • 80% no keying.
• Account number keyed once and written on • 20% amount keyed only once
check once. • Reduced errors.
• Increased chance for errors • Reduce labor.
• Time- consuming • Faster posting.
RUM# Systems 128 W. Main St. Dryden, NY 13053 Tel: 800.451.8364 fax: 607.844.3228
OF NORTH AMERICA,LLC. (//)fa7 E-mail: sales@omegasyscorp.com Web:www.omegasyscofp.a0m