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HomeMy WebLinkAboutTab 1: ERP Project StatusVillage of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DAVID ERB, FINANCE DIRECTOR BRIAN SIMMONS, COMMUNITY DEVELOPMENT DEPUTY DIRECTOR JOAN MIDDLETON, INFORMATION TECHNOLOGY DIRECTOR MICHAEL DALLAS, ADMINISTRATIVE ANALYST DATE: APRIL 18, 2012 SUBJECT: ENTERPRISE RESOURCE PLANNING (ERP) — PROJECT STATUS PURPOSE To provide a progress report of the Enterprise Resource Planning (ERP) System project. BACKGROUND In late 2009, the Village entered into an agreement with New World Systems to install their Logos.NET software suite. Early the next year, the Village and New World Systems kicked -off the project's implementation phase to address: • Financial Management ■ Community Development • Human Resources and Payroll ■ Utility Billing During the spring and summer of 2010, Village staff focused primarily on the software's Financial Management and Human Resources - Payroll modules; learning how the software works, configuring the system, training and testing the set -up, and converting any necessary data to Logos.NET. On September 28, 2010, staff provided the Village Board a progress report, including a description of the efforts undertaken to that point and the major areas of improvement (annual budget process, chart of accounts, and some Microsoft integration). See Attachment #1. DISCUSSION A. Overall Progress and Process Improvements Since 2010, we have made considerable progress transiting from old software programs, shadow systems, spreadsheets, and paper processes to Logos.NET. While we have already exceeded the original two (2) years estimated to complete implementation, we have spent invaluable time and effort streamlining many processes that have improved our day -to -day operations. Paper has been reduced, duplication of efforts has been eliminated in many cases, information submittals have been standardized, and phone calls and emails spent on simple inquiry requests have decreased. Below is a list of other improvements available system -wide that greatly improve our overall ability to manage Village operations. • Tighter Accounting Controls: Logos.NET has validation requirements, process approvals, minimum purchasing requirements, and security settings which have established tighter accounting controls to protect against employee negligence or fraud. • Security: There is a wide array of security configuration settings that provides a greater ability to share information for some without granting full access to others. JAProjects\ERP- Enterprise Resource Planning \Phase 4 - Implementation \Project Management\2012 Board Status Review\ERP Status Update - COW 4- 24- 12.docx Enterprise Resource Planning (ERP) - Project Status April 18, 2012 Page 2 Forms /Letters: In some cases, end -users have the ability to create and maintain some of the system's forms and /or letters using Microsoft Word's Mail Merge feature. Because Logos.NET interfaces to a commonly used application there is less of a need to utilize Information Technology resources. Reports: In general, Logos has a greater array of reports available to it than other systems. Additionally, New World's Business Analytics reporting tool makes it easier for end -users to create custom reports without assistance from Information Technology. Laserfiche: Laserfiche has become the Village's primary electronic records management system, providing easy access to stored invoices, quotes, and journal documentation via Logos.NET. In the future, Logos will also connect to Community Development documentation, employee records, license related information, and miscellaneous billing information. B. The Software Modules Below is a summary of the progress and process improvements associated with each of the four (4) main modules. If you would like to see a more detailed list of process improvements, please see Attachment #2. Additionally, if you wish to see a few examples of how business processes have been changed as illustrated via workflow diagrams, please see Attachment #3. 1. FM Module In October 2010, the Village went live with the following FM applications: • Accounts Payable ■ Miscellaneous Billing • Annual Budget (implemented mid -July 2010) Purchasing • Chart of Accounts Revenue Collections • Journals At the beginning of implementation, the Village worked with New World to redesign our chart of accounts. Since the chart is the foundation by which all financial transactions are processed and recorded, staff spent a significant amount of time planning its structure. The new chart of accounts provides greater controls through security, more detailed reporting, and a structure that is easier to understand, train, and update with new general ledger accounts. Other important process improvements include: Decentralization: Data entry has been L ogos. NE T- Accounts Payable Approvals Screen Shot decentralized in most of the business `{ - ° ° processes above, eliminating paper and duplication of efforts. Approvals: Most of business transactions noted above date and time stamp supervisor approval, making it easy to determine where a transaction is being routed and whether it is taking longer than expected. Information Access: Employees don't need to create shadow tracking systems because they can obtain real -time general ledger information. Inquiries and reports are much easier to use, decreasing the need to constantly call or email Finance with questions. Enterprise Resource Planning (ERP) — Project Status April 18, 2012 Page 3 2. HR- Payroll Module While the Village originally planned to go -live in January 2010, some complications arose which pushed the go -live to June 2011. The complications primarily stemmed from a New World trainer that was replaced after four trips, which required staff to reconfigure the system, as well as convert payroll data. Notwithstanding the delay and extra work related to configurations and parallels, both employee maintenance and payroll processing have been easy to administer since go -live. Significant improvements include the following: Payroll: Payroll processing was significantly streamlined, owing much of its success to initiatives that included: (1) reducing the number of payroll batches by moving all employees to the same payroll schedule; (2) time entry decentralization; (3) adding a new electronic time keeping system (for Public Works) that integrates with Logos's payroll process; and (4) simplifying overtime reporting and accounting requirements. eSuite: eSuite is an on -line portal that permits individuals to access data from Logos. Some applications are designed for employees only, while others are designed for the public. - eEmployee: For the first time ever, employees have the ability to access their employee record and payroll information via eEmployee. They can also change contacts, dependents, direct deposits, and other personal information. This application helps reduce the number of phone calls Human Resources and Finance receives, as well as reduces data entry. - eTimesheet: Many employees are using eTimesheet to enter time - worked and time -off information directly into this application rather than submitting it via paper. This information is then imported directly into Logos's payroll process for review and approval. This application eliminates duplication of efforts and reduces eSuite HR Portal paper processing. - eBenefitEnrollment: For the first time ever, employees enrolled in a E Dental Enrollment their benefits ( "open enrollment ") •w - -� ro °`,�'�;� „,_�„ on -line. Like a tutorial wizard, the application guides employees step -by -step through the process. This application eliminates duplication of efforts, reduces paper processing, and gives N . - -• - •^ employees a greater sense of control over the process. eSuite's eBenefitEnrotiment Screen Shot Starting later this month, staff will begin a major upgrade of this module to New World's NexGen platform. The module has been completely redesigned with improved features and automation. Staff has participated in demonstrations and is excited to utilize the new release. Go -live is tentatively scheduled for June 2012. 3. CD Module On October 31, 2011, the Village went live with the Community Development module, which includes the following major applications: • Projects (planning and zoning) ■ Service requests and cases • Permits 0 Inspections • Licensing (contractor licenses only) E Parcel management Enterprise Resource Planning (ERP) — Project Status April 18, 2012 Page 4 The IT Division also set -up new cash collection stations in the Community Development department to collect revenue for all related fees. In March 2012, the Village went live with eSuite's Request for Action (service request) portal. As expected, Logos has integrated almost all Community Development business processes within one common platform. Information that was siloed in a custom program is now available to anyone who has the proper security permissions in Logos. Consequently, those in Planning, Building, Fire Prevention, Engineering, Health Divisions and others can closely manage the lifecycle of a new business or residence from construction through occupancy. Rather than calling or emailing individuals to find status information about a project, permit, or inspection, individuals can now obtain information with a couple of clicks of a mouse. This integration has also significantly reduced the need to maintain interfaces between off - the -shelf and custom software programs as illustrated below. Database Integration - Before Notes: Community Development business processes are highly dependent on tracking information. The Notes feature in Logos eliminates the need to use paper or email to document and track issues. More importantly, communication about a common issue can be organized and tracked under one thread. Outlook Integration: Inspectors are required to use a calendar in Logos to schedule their inspections. Through a close integration with Logos, appointments can be pushed and pulled to Microsoft Outlook making scheduling inspections and managing the day's activities easy. Laserfiche: End -users can now click a paperclip icon in Logos to find any documentation in Laserfiche related to a plan, permit, or case. Admittedly, this module's implementation has been somewhat challenging. While we are live on all Logos applications, we are still not using the Licensing application to manage business, alarm, liquor, elevator, landlord /tenant, and other licenses due to complications related to the data conversion and the system's renewal process. We hope to manage all licenses in Logos this Fall. We also have a project planning conversion that must be completed. In addition to these setbacks, we have experienced some system error and speed issues completely isolated to this module. We have been working with New World Systems to address these issues, some of which have been resolved. Other benefits worth noting are: Database Integration - After (after licensing transition) Enterprise Resource Planning (ERP) — Project Status April 18, 2012 Page 5 4. Utility Billing Module Currently, we are about halfway through the Utility Billing module implementation. We have completed most of the module's configuration and training as it relates to areas such as customer service, the move - in /move -out process, and the billing and delinquency process. The remaining time will be spent converting data to Logos.NET and paralleling the billing process. Go -live is tentatively scheduled for August 2012. Notably, staff plans to move those on a bi- monthly billing to a monthly billing, as well as continue the use of automatic meter reading (AMR) technology for commercial /industrial customers, with the plan to employ the same technology for all residential customers in the future. C. Other Aspects of the Project 1. Training The management team believes that training and education is absolutely essential to a successful ERP system implementation. As such, project staff has created detailed end -user training documents with screen shots and instructions. These have been used to teach Village employees how to use the system. The IT Division has also set -up and maintained test environments so that staff can practice what they have learned or test a new process. In 2013, staff will implement a new, annual training program for new hires and existing employees to ensure we maintain a high level of system competency. In addition to these efforts, the management team has recently proposed starting an Illinois user group to discuss system issues or concerns. These meetings will help core system users address business processes that still have not been addressed by Logos.NET or reconfigure others to be more efficient. 2. Project Expenses The project management team has diligently managed all project costs to ensure it remains under budget. Below is a financial summary of the project up to April 16, 2012. TOTAL FUNDS IN ERP CAPITAL FUNDS $1,092,000.00 minus Contract $988,500.00 II. MAJOR ERP AGREEMENTS New World Systems (One -Time Project Costs) $936,750.00 insulting (Plante & Moran) - Amended Contract $37,880.00 $974,630.00 minus All Thus Far TOTAL REMAINING ERP CAPITAL FUNDS $756,767.25 $231,732.75 3. Vehicle License Software In February 2012, the Village went live with a new vehicle licensing software application for the 2012/2013 sticker season. The software provides residents and businesses the ability to purchase their stickers on -line. To date, 23,800 stickers have been sold. Of this amount, 29% have been purchased using the on -line option, significantly more than staffs goal of between 15% and 20% for the first year. As we expected, the licensing software is meeting an apparent need; one that we anticipate will grow in the future as more people learn about it. Please note this software is not part of the Logos.NET suite of software. Enterprise Resource Planning (ERP) — Project Status April 18, 2012 Page 6 4. What's on the Horizon While New World's System's software has met or exceeded the needs of many, there is still considerable room for improvement. Staff is working with New World Systems to address the following major areas below: a. eServices: As noted above under the HR- Payroll Module section, New World's eSuite is now providing employees the ability to access and actively participate in the exchange of information 24 hours a day /7 days a week; a capability never enjoyed in the past. While e- Service software applications such as eEmployee, eTimesheet, and eBenefit Enrollment are very well developed and have significantly improved Village operations, the other eService applications that serve residents and businesses such as eLicense and ePermit need more work. For example, in the eLicense application a licensee can pay to renew their license, but cannot review their existing information, make changes, or submit a renewal application. Notably, many of these types of functions already exist in the employee e- Service applications so addressing their deficiencies may not take considerable effort. Village staff will not go -live with these applications until they are addressed by New World. Community Development: During the selection process, it was readily apparent that Logos.NET's Community Development module was not as mature as some of the other modules. While still able to employ applications that result in process efficiencies, it remains clear that New World needs to devote significant resources to redevelop the module. Applications like the inspection process are clunky and slow, which have admittedly frustrated staff at times. While arguably the overall efficiencies still outweigh the module's issues, staff is unwilling to accept status quo and compromise its expectations of the software. Consequently, staff has taken the initiative to join New World's client advisory committee to help prioritize and advance recommendations to shape the module's future development. Additionally, staff agreed to a request from New World System's management team to serve as one of a few beta test sites to help redevelop the software. c. Mobility: One of the objectives of this project is to ensure that the software can be used in the field to conduct inspections. The Community Development Department has been working with the Information Technology Division to test the code enforcement inspection process using an iPad in the field. While operating the software in the field has received positive feedback from inspection staff and management is considering deploying iPads to the rest of the Environmental Health Division, it still remains apparent that New World needs to redesign their system so that end -users can easily navigate through screens designed with simple checklists and notes fields. Other issues related to hardware such as connecting to the Internet and printing in the field need more attention. Business Analytics: The Business Analytics tool (Microsoft Excel Pivot Table feature) is being used by non -IT staff to create custom reports. It is a very powerful tool, as staff can quickly pull data from Logos and analyze business information and performance. Unfortunately, the tool is not populated yet with all of the data sets from Logos. Consequently, there has been a few times where staff has contacted the Information Technology Division and New World to find other ways to pull the information from Logos. The Village continues to encourage New World to add more data sets to Business Analytics so that staff may use the tool to its full capability. Enterprise Resource Planning (ERP) — Project Status April 18, 2012 Page 7 D. Conclusion While considerable time was spent summarizing the project's progress and process improvements, it is very important to recognize the efforts by key staff within Finance, Human Resources, Community Development and Information Technology that spent countless hours in addition to the regular workload configuring, testing, training, converting data, and maintaining the system. Many of them sacrificed weeknights, weekends, and family time to ensure there were no interruptions to the Village's day -to -day operations. Unlike a construction project or consulting contract where much of the work is done by a third -party and a few Village employees manage or coordinate their efforts, many were in the computer lab for weeks at a time with no additional incentive other than their willingness to see this project succeed. Many have shined under enormous stress and deserve our thanks for their patience and willingness — they truly have exceeded expectations! Finance Director Information Technology Director Community Development Deputy Director Administrative Analyst ATTACHMENT #1 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DAVID ERB, FINANCE DIRECTOR MICHAEL DALLAS, ADMINISTRATIVE ANALYST DATE: SEPTEMBER 23, 2010 SUBJECT: ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM - IMPLEMENTATION UPDATE PURPOSE To provide a progress report of the Enterprise Resource Planning (ERP) System project. BACKGROUND During 2009, the Village assembled a committee and hired Plante & Moran, a technology consultant, to select and purchase an Enterprise Resource Planning (ERP) System to replace its current financial management, community development, and other in -house software applications. After several months spent assessing the organization's needs, creating a Request for Proposals document, evaluating proposals, participating in system demonstrations, and conducting site surveys and reference checks, the selection committee recommended New World Systems and their Logos.NET software system. The Village Board approved the committee's selection in December 2009, and a contract was negotiated and executed. DISCUSSION A. Pre - Planning Prior to beginning the software implementation process, a few important actions were taken to help ensure the project's continued success. First, it was decided that the steering committee as constituted during the selection phase of the project would remain in effect, but transform itself from an evaluative body into a more diverse organism, becoming a fact gatherer, resource provider, process improver and decision - maker. Its first task during the implementation phase was to identify the project's overall objectives. See Overall Project Objectives. These objectives act as a compass to help guide the project's implementation and make any necessary strategic decisions. After the overall project objectives were defined, the committee established some more detailed objectives to closely align with the software's four (4) main modules.' See FM and HR- Payroll Module Objectives. In addition to identifying objectives, a core group within the committee participated in a risk assessment exercise, identifying and documenting the project's risks, their impact to the project, their likelihood, and the possible response strategies. The risk assessment and its response strategies were reviewed and approved by the committee. It serves as a valuable tool to proactively manage the challenges that arise within the project. ' Only the Financial Management and HR- Payroll objectives have been identified since the related modules are being implemented in 2010. J:\Projects\ERP- Enterprise Resource Planning \Phase 4 - Implementation\Project ManagemenhBoardVNemos\ERP Status Update 9- 23-10.docx Enterprise Resource Planning (ERP) System — Implementation Update September 23, 2010 Page 2 B. Project Kick -Off, Schedule and Implementation Plan On February 22, 2010, the Village and New World Systems formally kicked -off the implementation phase of the ERP System Project. Andy Breeden, New World's project manager, presented an overview of their company's history and organizational structure, project objectives, software modules, and their implementation process to a large group of Village end - users. See Kick -Off Presentation. They also provided a brief system demonstration of their software. Key Village staff spent the remainder of the week in a "discovery" process reviewing the Village's financial business processes and identifying process - related requirements and challenges to configuring the Logos.NET software applications. During this time, Mr. Breeden and Mike Dallas, the Village's project manager, begin developing the project's implementation plan and schedule. At the end of the discovery week, it was decided that the Financial Management and Human Resources - Payroll modules would be installed in 2010, while the remaining two modules, Community Development and Utilities Management, would wait until 2011. The "Go- Live" dates for the first two modules were set as follows: 1. Financial Management— October 1, 2010 2. Human Resources - Payroll —January 1, 2011 Financial Management was scheduled to "Go- Live" in October in order to utilize the software's annual budget process to manage the Village's 2010 annual budget process. The Human Resources - Payroll module was scheduled to "Go- Live" in January due to the accounting and tax implications associated with processing the Village's payroll system at the end-of the year. C. Software Environments In order to begin configuring the new software, the Information Technology Division (IT) worked closely with New World Systems to set -up one live and three test environments (or databases) on the Village's servers. Test environments are set -up similar to the live environment to permit staff to reconfigure the software and test functionality without affecting the system's core data. Each environment must be regularly maintained by IT because New World Systems releases two major upgrades a year, as well as other related software patches. D. Monthly Trips During the last eight months, New World Systems subject matter experts have traveled to Mount Prospect for generally a week at a time to assist Village staff to configure the software and teach its functionality. Each trip generally covers a few main functional areas, such as purchasing or bank reconciliation. For each area, time is generally spent doing the following: 1. Demonstration New World Systems provides software demonstrations for each functional area in order to provide some foundation from which the Village's subject matter experts can determine how existing business processes might be tweaked or even reconfigured to meet the software's existing structure or parameters. 2. Business Process Discussion Once the software has been demonstrated, New World Systems leads the core group in a discussion of how the software will be configured. Many hours have been spent during this time period to explore new practices in order to more efficiently process work and adopt best business practices. 3. Configuration Once decisions are made regarding business processes, New World trainers help Village subject matter experts configure the system to work as required. Most times, there Enterprise Resource Planning (ERP) System — Implementation Update September 23, 2010 Page 3 is too much work to be completed during the trip and Village staff must work on it during subsequent weeks. 4. Training Once some of the system has been configured, Village subject matter experts are trained on how to navigate through each software process. Fortunately, the software is designed so that much of this process workflow is the same, making the learning curve a little easier. 5. Security Finally, IT and Village subject matter experts meet with New World Systems to set -up user security and configure the system's workflow. This process can be cumbersome because the system has an infinite amount of options to control access to its information and processes. E. Project Progress In an effort to "Go- Live" with both the Financial Management and Human Resources - Payroll modules by October 2010 and January 2011 respectively, Village staff have been working diligently on the following main areas: Financial Management Human Resources - Payroll • Account Payable ■ Benefits • Annual Budget ■ Deductions • Asset Management ■ Employees • Bank Reconciliation ■ Payroll Processing • Chart of Accounts • Position Budgeting • Journals ■ Retirees • Miscellaneous Billing • Purchasing • Revenue collection Annual Budgeting went live in mid -July to facilitate the Village's 2011 annual budget process. Significant time was spent training end -users on the new chart of accounts structure and the software. Very recently, end -users were trained to enter purchase orders and invoices into the system. System end -user guides were developed and distributed to help Village staff use the system. F. Data Conversion While considerable time has been spent configuring the system to match business processes, staff has also been working closely with IT to "convert" or transfer data from the old software to Logos.NET. fn layman's terms, data conversion is a process by which data is extracted from the current software, often using a third -party software program, and placed into Microsoft Excel spreadsheets in standardized data formats. Before loading the data from the Excel spreadsheets into Logos.NET, Village staff must review and "clean" the data to ensure it is accurate and unduplicated. Sometimes, "cross- walks" must be created to map the old data values to the new data values. Once the data has been reviewed, it is sent to New World Systems to analyze. Once the data is validated by New World Systems, it is returned to the Village in a database to be uploaded into the system and tested. The conversion process is a long, iterative process, requiring a lot of staff time to test and "clean" the data. In fact, each data conversion can take several months to complete. In general, data from the last five to ten years has been converted, meeting or exceeding state information retention standards. Currently, the Village has converted or is working on converting the following data: 1. Accounts Payable History; 2, Employee Information; 3. General Ledger History; 4. Vendors. Enterprise Resource Planning (ERP) System — Implementation Update September 23, 2010 Page 4 G. Other Related Projects While the weekly ERP trips take place and the Village subject matter experts work on any necessary homework or data conversions, many within the project are also working on some other very important related tasks to meet the project's overall objectives and improve process efficiency. Here is a brief summary of some of those sub - projects being worked on right now: Business Analytics — Microsoft Excel 2007 One of the more important tools that the Village purchased from New World Systems is Business Analytics. It's a report writing tool that leverages Microsoft Excel 2007's pivot tables to pull system data into a spreadsheet and filter, sort, and organize it to meet reporting requirements. Importantly, because this tool requires Excel 2007 and the Village was using the Office 2003 software suite up until late summer, IT quickly installed the Office 2007 software suite (something that was already planned for this year, but was expedited due to the ERP project's requirements). Additionally, since Office 2007 is significantly different than Office 2003, Harper College was brought in to provide formal software training to end - users. 2. Payroll in Arrears: In the past, almost all Village employees were being paid "prospectively" to the actual date of the payroll check rather than "in arrears." A "prospective" payroll can best be described as follows: Once the payroll period ends, the timesheets are turned in for processing and employees are paid for the two weeks up to and during processing. In order to process the payroll, the employee has to complete their timesheet projecting the amount of time worked or time -off during the processing week, even though that time during the processing week is not worked yet. If the projected work or time -off does not actually occur as reported, then the payroll sheets are revised during the next payroll period. Ultimately, this process can result in confusion for both the employees reporting their time and the Finance Department processing the payroll. Most employers pay their employees "in arrears," which means that once the payroll period ends there is a processing period of about a week before the employees are paid for the past dates in which the employee worked. By paying "in arrears ", all time worked and time -off is reported based on actual time worked and time -off and not a projection. To address this issue, all employees who were on a "prospective" payroll were transferred to a payroll "in arrears" schedule in early August. Time Clock Currently, the Public Works Department is using a time clock to punch their employees in and out of work. The committee is working with the Public Works Department to select and install an electronic timekeeping system that will integrate with Logos.NET's payroll process. H. Major Areas of Improvement While the implementation phase of this project is only about six months into its twenty -four journey, Village staff have already noted several major areas of improvement, some of which include: Annual Budget Process In the past, the process to obtain each department's budgetary figures and justifications was primarily a paper process. Worksheets were handed -out in binders and forms were completed using typewriters, pens, or pencils. Very recently, the paper process improved a little so that departments could complete their budgets via a Microsoft Excel spreadsheet. Logos.NET permits the end -user to view each account's history, trends, and balance, and make all necessary budgetary edits (including the justification) directly in the Enterprise Resource Planning (ERP) System — Implementation Update September 23, 2010 Page 5 software. The workflow is then electronically managed to account for each department's budget approvals. 2. Chart of Accounts In order to leverage the system's very powerful inquiry, reporting, and security features, the Chart of Accounts had to be completely redesigned. It has been restructured to more closely align with the Village's organization chart, making it easier to understand and configure. The new General Ledger chart of account structure is broken down into the two (2) primary segments: (1) Organization Set ( "Org Set ") and (2) Account. The Org Set and Account are further broken into segments, providing very powerful inquiry, reporting, and security functionality. 3. Microsoft Integration One of the primary reasons for purchasing the software was its close integration with the Microsoft Office suite. Staff has already noted several areas of improvement using the system's integration with Microsoft products, including: a. Forms: The Logos.NET system leverages Microsoft Word's Mail Merge function to create customized forms, such as miscellaneous billing invoices or purchase orders. Thanks to this functionality, it is no longer necessary to dedicate IT resources to develop forms. Reporting: The Finance Department plans to use Business Analytics and other Logos.NET reports to produce much of its annual budget report this year, a significant time -saver over the previous year's process. The process for preparing and printing the budget documents in past years was quite involved, requiring a merging of several Microsoft Word and Excel documents. Additionally, many of the financial reports used on a monthly basis could only be prepared by IT. Now, Finance has the capability to print monthly reports on demand, saving critical IT resources and reducing the time to obtain the information. c. Security: The software uses Microsoft Windows authentication security to login to the system using the end -users Windows login and password, and not a different system user name and password. By utilizing this functionality, less time is needed by IT to manage user names and passwords, and end -users are less frustrated by having to remember another login name and password. I. Project Horizon There is still a considerable amount of work to be accomplished and more process improvements to realize. Worth noting, the committee plans to leverage Laserfiche, its existing document management system, to store all of the paperwork processed using the software, such as vendor invoices, proposals, contracts, applicant resumes, and other employee documents. If successful, the Village will be one of the few New World Systems clients using the system's full capability. Another improvement that should take effect towards the beginning of next year is the deployment of the software's on -line component called eSuites. Among other things, eSuites will provide Village employees access to their earnings and personal information and help manage the benefit open enrollment process. c: ERP Steering Committee ATTACHMENT #2 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) FINANCIAL MANAGEMENT MODULE Chart of Accounts: Chart of accounts was a. completely redesigned b. C. d. e. Security: 1). Greater ability to control who has access to what accounts — system can control access by granting access to specific segments in the chart of account structure 2). Finance Department can easily assign access through user - based security without IT involvement Reporting: 1). Accounts can be "rolled -up" to a base account providing a summary of types of expenses (detail 4 base) 2). End -Users can "drill- down" into accounts to get detail (base 4 detail) Comprehension: The new chart of account structure was designed with a structure and numbering system that can be more easily trained and understood Chart of account structure provides ability to track and report cross - departmental expenses Chart of Account structure is flexibly designed to permit new G/L accounts to be added with ease Page 1 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) General Ledger and Journals Page 2 of 14 1. End -users can now get a. Need to create shadow spreadsheet /tracking mechanisms for real -time data related to accounts is significantly reduced /eliminated, reducing duplication general ledger account of efforts and avoiding confusion due to difference between balances, and spreadsheet and Finance tracking mechanism comparisons to b. Less time spent calling Finance Department for basic reports or adopted /amended inquiries budget c. No longer sending monthly reports saving time 2. Departments enter a. Finance Department no longer taking departmental journal budget adjustments/ requests via email, phone, or face -to -face transfers and b. Reduces possibility of error translating department's request amendments directly c. While the Finance Department must still review and approve the into the system data entries, it is presumed that the Finance department has m „ mm more time to address other issues /concerns 3. The system's workflow a. Greater accountability over business process decisions process tracks /stores all b. Ability to quickly find historical information related to approvals g required approvals c. Information for auditors more readily available /faster access electronically 4. Journals are created a. While the Finance Department must still review and approve the automatically via sub- data entries, it has more time to address other issues /concerns systems b. No longer a need to enter journals into Excel document first (see page 4 of flow chart) c. IT is no longer involved in applying journals to financial system, E giving them more time to address other day -to -day issues 5. Journal entries can be Close Integration between Microsoft Excel and Logos reduces need to imported from Microsoft enter data again in Logos, eliminating duplication of efforts Excel to Logos Page 2 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Purchasing and Accounts Payable: Page 3 of 14 IN 1. Greater use of purchase a. Improved day -to -day control over Village purchase obligations order's across the and remaining budget organization b. More knowledge about purchase obligations, leads to faster, improved decision making _ 2. IT Division now has With the IT Division required to approve technology related review over all (most) purchases, management has better control to ensure department are technology related purchasing hardware /software /systems that are interoperable, best purchases — must practice, able to be supported, cost effective, same minimum approve purchases standard 3. Purchasing approval a. The workflow approval process for all purchases below X amount levels were increased does not go to the Finance Department for approval, thereby streamlining processing and freeing -up Finance Department managers to address other issues /concerns b. Approval levels are now more appropriate for costs associated with purchasing decisions 4. Departments enter a. Submittal of information via paper and interoffice mail has been purchase orders and substantially reduced, decreasing duplication of efforts, invoices directly into the standardizing data entry (information on forms not always system (shift from consistent) and streamlining process (reducing time spent in centralized to interoffice mail) — significant improvement in case of errors decentralized) b. Reduces possibility of error translating department's request c. While the Finance Department must still review and approve the data entries, it has more time to address other issues /concerns 5. End -users can easily a. In general, eliminates the need to create shadow access purchase order spreadsheet /tracking mechanisms for accounts (eliminates and vendor payment duplication of efforts and lessens confusion due to difference information via inquiries between spreadsheet and Finance tracking mechanism) and reports b. Reduces time spent contacting the Finance Department for information related to purchase orders and payments 6. The system's workflow a. Greater accountability over business process decisions process tracks /stores all b. Ability to find historical information related to approvals quickly required approvals c. Information for auditors more readily available /faster access electronically 7. All supporting material a. Reduced the amount of paper filing by Finance of paperwork for purchase orders and b. Can access supporting material such as invoices electronically invoices are scanned instead of searching for paper in file rooms into Laserfiche c. Leverage existing investment in Laserfiche software d. Laserfiche has many other features that organization is not currently using that may be used in the future to further improve business process efficiency e. Now have the ability to use Laserfiche as an efficient means to address records retention policies and delete records with a few j b utton clicks Page 3 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Page 4 of 14 f. Auditors have exclaimed how easy it is to conduct an audit using this process 8. All invoices must now be Finance Department can now monitor invoice due dates and be more sent directly to the proactive with departments regarding Village's obligation to pay, as Finance Department to well as ensure it is properly abiding by accounting rules be scanned into Laserfiche before they can be processed 9. System tracks remaining Finance no longer has to track purchase order installment payments obligation on an open via Excel eliminating duplication of efforts and lessens confusion due purchase order to difference between spreadsheet and Finance payment system 10. Departments revise or While the Finance Department must still review and approve the data add new vendor entries and address all W -9 issues, it is has more time to address i information into the other issues /concerns system (shift from centralized to decentralized) 11. Manual check process is a. No need to use a different system (Microsoft Word) to create a now easier to administer check b. Better controls over how a manual check is issued, improving I accounting practices c. Separate numbering system for manual checks makes it easier to identify what is a manua check Page 4 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Annual Budget Page 5 of 14 1. Budget worksheets and a. The Information Technology Division has more time to address related reports do not other issues /concerns have to be created by the b. The annual budget process is streamlined, reducing the time the Information Technology Finance Department needs to prepare for department entry of Division annual budget figure and justifications 2. Budget books are no a. Less paper is used to develop the annual budget longer printed by Finance b. The annual budget process is streamlined, reducing the time the and given to Finance Department needs to prepare for department entry of departments (still annual budget figures and justifications produced for management) 3. Departments enter a. Finance Department no longer enters figures and justifications into budget figures and system for other departments, eliminating duplication of efforts justification directly into and reliance on paper and interoffice mail /Microsoft Word forms the system (shift from b. While the Finance Department must still review and approve the g centralized to data entries, it has more time to address other issues /concerns i decentraliz c. Reduces possi of error translating department's request _ 4. Budget development/ a. Information Technology Division no longer involved in budget process workflow is figure update /edit process and now has more time to address automated in system other issues /concerns b. The annual budget process is streamlined, reducing the time the Finance Department needs to prepare for department entry of an budget figures and justifications 5. Finance Department uses a. Dramatically reduces the work required to produce the annual Business Analytics tool budget figures in following years (unless formatting changes or (Microsoft Excel pivot new data types needed, just connect to the database, refresh, and tables) to produce modify the filters to obtain the new figures) financial report for the b. The Information Technology Division has more time to address annual budget report other issues /concerns c. The annual budget process is streamlined, reducing the time the Finance Department needs to prepare for department entry of annual budget figures and justifications d. Because Business Analytics required Excel 2007 as minimum operating standard, Village escalated its Microsoft Office upgrade from 2003 to 2007 and brought in Harper College to train end- users, benef all emp loyees us ing Micro Off suite TrvA M Page 5 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Position Budgeting Finance Department can now create employee position budgeting scenarios within system and apply final proposal to the annual budget Process to pull employee position data automatically from HR- Payroll module and do simple scenario comparisons has reduced time from the budgeting process Page 6 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Miscellaneous Billine 1. As a part of using Logos's Regular schedule eases the burden of administering the Miscellaneous Billing miscellaneous billing process application, Finance established and enforces a regular billing and statement schedule 2. Miscellaneous billing Automation reduces need to create a receivable and improves invoice automatically accounting procedures i becomes a receivable in Logos 3. The system's workflow a. Greater accountability over business process decisions process tracks /stores all b. Ability to find historical information related to approvals quickly required approvals c. Information for auditors more readily available /faster access electronically 4. Number of steps to Reduction in steps permits Finance staff to have more time to address complete the other issues /concerns Miscellaneous Billing process is reduced going from GEMS to Logos Page 7 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Revenue Collections ���#Osiooss Process Change impact 1. Revenue collections a. As payments are made in Revenue Collections, sub - systems and process located directly related information are immediately updated so further within same system that processing can take place (e.g. permit is paid, can then be issued other applications are by the system) running b. Village employees (with proper security) have access to real -time status of customer balance in order to make more informed decisions 2. Community a. Information Technology Division does not have to maintain a Development separate program and support non - standardized cash register Department is entering hardware their revenue collection b. While the Finance Department must still review and approve the batches directly into data entries, it no longer has to enter revenue collection data, Logos eliminating duplication of efforts and now has more time to a ddress other issues /concerns 3. Staff can enter "back a. Process improves control /accountability regarding who is taking office" (non -cash in cash at other locations other than through a cash register register) revenue b. With more collection stations, staff no longer has to wait for a collection batches cash register to be open to enter in a "back- office" revenue directly into Logos collection batch 4. The system's workflow a. Greater accountability over business process decisions process tracks /stores all b. Ability to find historical information related to approvals quickly required approvals c. Information for auditors more readily available /faster access electronically Page 8 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Real Estate Transfer Process Real estate transfers no longer have to be made in a separate software system, eliminating the need for IT to support and maintain a different application Page 9 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) HR- PAYROLL MODULE Payroll Page 10 of 14 .o 1. All departments are a. No more paper process to enter time worked information and responsible for entering approve time their own time worked b. Data entry is standardized, eliminating inconsistencies on paper information into payroll that Finance had to interpret and /or spend time following -up system (shift from c. Supervisors have access to payroll reports to validate the time centralized to worked information and help find errors decentralized) d. While the Finance Department must still review and approve the data entries, it is has more time to address other issues /concerns as it does not have to enter time worked information into the system 2. Village Hall and a. No paper timesheets, so no chance of misplacing paperwork Community Connection b. E- Timesheet can be submitted early (if employee on leave) or from Center employees use location that is not at work eTimesheet (on -line c. Time submitted is easily approved and imported into Logos payroll application) to submit application with a few clicks time worked info 3. Administrators from Fire Administrators can translate time work information from shift roster and Police Departments reports directly into Logos payroll system, eliminating duplication of directly enter time efforts submitting to Finance on a paper timesheet worked informati 4. Public Works uses a time a. No more paper timecards and punch clock to use to and attendance system validate /interpret employee paper timesheet (software/ hardware) to b. Electronic approvals are tracked and stored within system i manage employee time c. Public Works has access to reports to manage time worked, I absenteeism, tardiness, etc d. Time worked information from timekeeping system can be easily exported and imported into Logos payroll application 5. Logos workflow process a. Greater accountability over business process decisions tracks /stores all b. Ability to find historical information related to approvals quickly required approvals c. Information for auditors more readily available /faster access electronically 6. Finance can complete Information Technology Division no longer involved in the payroll the entire payroll process and now has more time to address other issues /concerns E process, including printing checks and posting payroll file to the bank without interaction from the Information Technology Division Page 10 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Human Resources t s 1. HR enters employee a. Some work has shifted from the Finance Department to the information, benefit and Human Resources Division, eliminating duplication of efforts by deduction data directly Human Services keeping their own Microsoft Excel spreadsheets into Logos to manage /track HR information and submit to Finance to enter b. While the Finance Department uses this information for payroll processing and other related processes, it is has more time to address other issues /concerns 2. Employees select their a. Paperwork related to this process has been significantly reduced, benefits via eSuite's with plan documents now available via the on -line enrollment eBenefit Enrollment process process (on -line process) b. Ability to select benefits in this manner gives employees greater — started for 2012 open sense of control and understanding enrollment benefit c. While the Human Resources Division still has to review and i process approve the data entry associated with the selection process, it has more time to address other issues /concerns d. In the long -term, this process is expected to reduce the number of phone calls /emails that t he Human Resources Division receives 3. Employees have 24 a. First time ever, employees have had access to this type of hour /7 day a week information at their fingertips anywhere, anytime access to employee b. Employees can submit change requests directly to HR via the HR (accrual, benefits, Portal for information such as dependents, contacts, direct contacts, deductions, deposit, and other information dependents, direct c. While the Human Resources Division still has to review and deposits, pay rate approve the change requests, it has more time to address other history, personal issues /concerns information, positions d. Employees can print a copy of their notice of deposit and W -2 via held, taxes) and payroll the HR Portal information via eSuite's e. Ability to access employee and payroll information and submit HR Portal change requests in this manner gives employees greater sense of control and some transparency; perceived accountability f. Data entry for change requests g. In the long -term, employee access to information is expected to significantly reduce the number of phone calls and emails that the Human Resources Division and Finance Department receives 4. In the future, Human a. Will reduce the amount of paper filing by Human Resources Resources will use b. Can access supporting material such as I -9s electronically instead Laserfiche to manage of searching for paper in file rooms employee records c. Leverage existing investment in Laserfiche software electronically and access d. Laserfiche has many other features that organization is not them via Logos's currently using that may be used in the future to further improve L paperclip integration busin process e Page 11 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) COMMUNITY DEVELOPMENT MODULE Projects (Planning & Zoning) and Permits: 1. Project types have Due dates for activities are automatically set by Logos, providing the standard activities that project coordinator a way to easily manage priorities and proactively are chronologically address issues organized 2. Fees can be added to a Can now easily calculate fees based on project type and related project based on type activities, reducing chance for errors and activities Page 12 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Service Requests and Cases land related Inspections) Service requests can a. This feature eliminates duplication of efforts entering in the same automatically be turned into information that was already tracked in the service request a case by a few button clicks b. History exists between service request and case Page 13 of 14 VILLAGE OF MOUNT PROSPECT ERP System Project — Business Process Improvements (2012) Parcel Management 1. Parcel Messages can be a. These messages are available in the same system that all end - applied to addresses to users are operating in, avoiding the need to open another alert end -users to program to verify whether any alerts exist in the system specific issues and even b. In the old system, alerts were only information notifications — in restrict processes to this system, they can actually restrict processes to continue in continue in Logos, such Logos, putting much needed controls in place to errors as a permit being issued c. The number of property "alerts" entered into Logos has been significantly reduced as compared to those in the previous system in part due to the way Logos manages parcel (property) data 2. Ownership changes to a. Ownership changes are real -time and can be utilized by related parcels that affect other applications /sub- systems as soon as the change is made — no related applications need to go to another sub - system (permits, licenses, etc.) b. 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C - _ C L N o E 3'E E a) ._ �' N o Voo N o C U N a) O � cu 0 N uOi .... _.. Y O 0 o to O 0 � O . U Vl -D U o f c Z M o-0 -,. J V t1a p W .� C C (n .r O o O a) a) 0— a L — Q E ca — a . Q.0 v W o U r a ~ N U d m Z Q a •� N n co L a) Q n w m N m � 30 N O = a 0 = Q cn Z (D O. v c O)N u a° a¢ O_ M ca t -- O a) C CD w m O «_ Z -1 0 3 o 0 a) Mount Prospect Public Works Department INTEROFFICE MEMORANDUM AM?/ TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: WATER & SEWER SUPERINTENDENT DATE: APRIL 18, 2012 SUBJ: REPLACEMENT FOR AUTOMATED METER READING (AMR) / AUTOMATED METERING INFRASTRUCTURE (AMI) SYSTEM Background The Village of Mount Prospect operates a water distribution system that includes over 11,200 metered accounts. Water usage in the Village's distribution system is collected two ways. For most of the system, water use data is collected from readings submitted by residential customers (approximately 10,000 accounts). The remainder of the system is read using a wireless drive -by automated meter reading (AMR) system (TRACE) that handles commercial /multi - family customers (approximately 1,200 accounts). Residential properties, which include single family homes and some townhomes, currently provide meter reads with their water bill payments every other month. Reads can be submitted by mail, phone or email. Finance personnel must manually enter the reads into the billing software. Currently, Finance has four different billing cycles for residential accounts. Commercial and multi - family water accounts are read by staff monthly using the TRACE AMR system. Existing AMR System is Obsolete The Village's AMR system has been in place since the early 1990s when it replaced a telephone -based reading system (Access Plus) that had reached the end of its useful life. The current AMR system is a wireless drive -by system where staff uses a handheld data collector to collect monthly meter reads from the 1,200 commercial and multi - family accounts. The current reading process takes two employees two days to collect all 1,200 reads. The meter reads are uploaded from the collector to the associated reading software, which in turn creates a file that is sent to Finance for billing. The system appears simple and efficient; however, the reading components and associated software are exhibiting serious failures signifying that the system has exceeded its useful life. Badger Meter Company of Brown Deer, Wisconsin provided the TRACE AMR system to the Village under a license agreement from American Meter Company. When the license agreement between Badger and American Meter ended in 2008, Badger almost immediately discontinued the product line leaving dozens of water utilities stranded without access to new or replacement hardware. In addition to Badger's decision to discontinue the production of components, all service and support of the hardware has ceased. Since 2008, the Village has been acquiring Page 2 of 6 RFP Results for an Automated Meter Reading (AMR) System April 17, 2012 surplus stock from vendors and utilities around the country in order to keep our AMR system alive. The available stock has been exhausted and only a few remaining components remain in the Village's parts inventory leaving no repair solutions for future mechanical issues. At this time, the Village is one of the last remaining TRACE drive -by systems in the United States. Also, battery and AMR equipment failures have been increasing due to the lack of replacement parts. The resulting AMR failures require staff to physically visit the property and manually read the water meter. Staff currently reads approximately 100 meters each month requiring between 20 to 30 man -hours per month. This number is increasing by about 10 accounts per month due to failures with the aging system (primarily dead batteries). The batteries that are failing at an alarming rate are found in the AMR module that transmits the reads to the handheld data collector. As previously stated the modules are no longer made or available. When the batteries start to die in the AMR module, reads become intermittent and often erroneous reads occur. This issue causes additional staff time of about six to ten hours per month to identify read errors prior to billing. Ultimately, when the module starts submitting incorrect reads, staff no longer can read the meter with the handheld device and must begin reading the meter manually on a monthly basis. The task of manually reading an increasing amount of meters on a monthly basis is further complicated by limited access to the meter. Many commercial properties have the meters installed behind locked doors, in basements, or other areas that are not easily accessible to staff. Not only is additional time needed to read the meter, but significant man hours are needed to setup appointments. In addition to meters located in basements and other inaccessible areas, there are several metering installations in pits or other areas which create confined space hazards for meter readers. Locations that are designated confined spaces require additional time, equipment, and personnel to safely enter the space to obtain the readings. Finally, the system has been experiencing significant degradation in signal strength between the AMR modules and the handheld collector. The decreased signal strength is requiring personnel to exit the vehicle and walk up to buildings, or in some instances, enter buildings to effectively communicate with the meter using the handheld device. Essentially the "drive by system" has become a "walk up" system. This significantly adds to staff time and will only increase as the signal strength continues to decline. Existinq Self- Reportinq Read System is Inadequate As previously mentioned, the AMR reading system is one of two reading methods utilized by the Village. The primary method for obtaining water meter readings is for residents to self report their water consumption. At first glance, the concept of self reporting reads seems to be an improbable but extremely efficient, cost effective, means of obtaining reads for approximately 10,000 accounts. In reality, the self reporting system requires significant personnel time in the back office to manually enter 10,000 reads (5,000 reads a month). Finance staff spends Page 3 of 6 RFP Results for an Automated Meter Reading (AMR) System April 17, 2012 between 3 -4 hours per day, about 1,000 man -hours annually; entering water meter read data from customers. Currently the readings are submitted via several portals including mail, phone, and email /internet. All of these readings must be compiled, interpreted and entered into the billing software. Due to the nature of self reporting and significant potential for incorrect reads, Public Works currently conducts an audit read program. Public Works staff read approximately 3,000 meters annually as part of a quality control effort to ensure the accuracy and operability of the meters. One part time employee is dedicated solely to reading meters annually. In addition, a considerable amount of back office time is devoted to managing the program, setting up appointments, creating mailings and answering questions from customers. New Water Billing / Utility Billinq Software The Finance Department is currently in the process of replacing a legacy utility billing system with new software that integrates with the Village's Logos (New World) enterprise resource planning platform. A desired goal of this new software implementation is the establishment of shorter and more consistent water billing cycles. Specifically, the Finance Department would like to bill all accounts (both commercial and residential) on a monthly basis and establish a consistent 30 -day billing period. These modifications will improve cash flow and facilitate better financial management for both staff and customers. Due to the inherent problems detailed in the previous paragraphs, neither the TRACE AMR system or the customer self - reporting read system are capable of adequately supporting shorter, more consistent billing cycles. Problem Statement With the current commercial /multifamily AMR infrastructure failing, and a strong desire to move away from the labor intensive self reporting method used for residential reads, there is a need to procure new water meter reading technology. Recommendation Staff investigated the various AMR systems that were in use around the country in order to prepare a request for proposals. As staff progressed, it became clear that two types of AMR systems existed that could potentially meet staff goals. The first was a drive by system similar to our existing TRACE system. The second was a fixed based system that collected and transmitted reads using wireless technologies. After substantial review, staff decided that fixed -based reading systems provided the best opportunity to meet Village goals for the new reading system. A fixed -base system does not require a staff member to drive a route to collect the meter reads or enter a home to read a meter. Meter reads are collected by a wireless system that has fixed data collection points located throughout the Village. Wired to the meter is an AMR module that transmits the meter reading to strategically placed data collectors. The data collectors receive the reads from the AMR modules and transmit the reads for thousands of meters to a dedicated server. The reads are transferred from the data collectors to the server using a cellular connection, Ethernet connection, Wi -Fi Page 4 of 6 RFP Results for an Automated Meter Reading (AMR) System April 17, 2012 connection, or radio connection. Meter read data is transmitted multiple times per day typically providing 24 hourly readings for each meter with a high degree of accuracy; exceeding 99 %. A fixed -base system eliminates the staff and vehicle costs associated with other methods of data collection. Readings are sent automatically according to the schedule programmed into each module. Discussion Past experience with reading systems being abandoned (Access Plus, Trace) by manufacturers provided the impetus for staff to identify vendors that have a strong history of maintaining legacy systems for long periods of time. Staff also made the decision to seek an AMR system that: • was not proprietary with regard to the type of water meter used, in industry terms, a system that was `meter neutral' • was not affected by the seasonal tree coverage issues with regard to the radio technology used, and • provided robust back -up or system redundancies. Meter Neutrality Staff reviewed the various systems and worked hard to identify those AMR /AMI systems that did not favor one particular water meter over another or that require a proprietary water meter. This meter neutrality allows the Village more choices in the future in acquiring water meters. This is important as water meters have become a commodity item with most meters sold today meeting recognized standards. Currently, the Badger TRACE system while claiming to be meter neutral has been problematic when interacting with other meter manufacturers. To require meter neutrality allows staff to seek competitive pricing for the annual meter replacement efforts. Also, the AMR /AMI manufacturer who is meter neutral has to keep current with offering modules that interface with numerous meter manufacturers or their market will be severely limited. Radio Technology While most AMR systems use the unlicensed 900 MHz radio frequency, the method of using the frequency is different depending on the vendor. Several vendors use a line -of- sight collector system while others use a mesh network. Line -of -sight (LOS) systems have the meters reporting directly to one or more data collectors and it is this redundant reporting that provides read efficiency. LOS systems require a detailed radio propagation study to render an effective design. The proposals using LOS systems would still have to prepare a propagation study to determine the proper number of repeaters and /or collectors that are needed for the Village's system. There is a chance that additional repeater or collectors may be needed to obtain better reception at additional cost. Staff places a high value on proposals where the initial data collection system is as complete as possible. All systems could be expanded to provide better coverage as needed at additional cost. Page 5 of 6 RFP Results for an Automated Meter Reading (AMR) System April 17, 2012 The other technology being proposed is the use of a mesh radio network. The AMR modules (transmitting unit connected to the meter) in a mesh network communicate between themselves or hop between modules to pass along read data until the data reaches the data collector. The mesh network has been described as self - healing in that there can be a number of ways that a meter read gets to the data collector. Currently the Village uses line -of -sight radio and Wi -Fi for the water telemetry and remote site security. There have been issues with the Village's extensive tree canopy blocking line of sight during some periods of the year. As mesh technology is not height dependent; staff feels that the mesh network is a more robust, redundant methodology for meter reads when compared to line -of- sight. Also, some AMR/AM[ systems use a licensed radio frequency in lieu of the unlicensed 900 MHz frequency but staff finds little advantage for this. With a licensed frequency, the signal is better protected from other interference. Most of the unlicensed radio systems have developed a technique where they automatically switch or `hop' frequencies in the allowable bandwidth to avoid interference. Staff does not find significant value to having a licensed versus unlicensed frequency as all frequencies are regulated to provide protection from harmful interferences. Backup or System Redundancy The various AMR components have a varied life expectancy. Many systems have components whose batteries are not replaceable and require that you replace the entire module when the battery fails. Staff felt that the capability of replacing the battery in the various modules as being an essential criterion. There is a cost savings in replacing only the battery compared to replace an entire transmitter unit with battery. However, it should be noted that all vendors offer a 20 year warranty on batteries. The first 10 years of the warranty are complete replacement of the module at no cost with a prorated warranty the second 10 years. Other Benefits A fixed -base AMR /AMI solution for the Village has several benefits for both residents and the Village: • There will be a significant reduction of staff time in collecting, entering and verifying meter reads. • With multiple reads being automatically collected each day, the use of staff to perform physical reads as part of the `final read' effort will be eliminated. There will be a decrease in the amount of time needed for completing the transfer stamp or account transfer process by eliminating appointments for staff to physically obtain the final read as these will no longer be necessary. Annually, Public Works staff performs approximately 500 final water meter readings (2011- 454, 2012 -517) requiring between 250 -300 man hours. The elimination of physical final read will also reduce the inconvenience to residents during these processes. • The elimination of having residents perform their meter reading will save customer time and inconvenience. This also saves additional staff time by eliminating the need to verify some of the meter reads. Page 6 of 6 RFP Results for an Automated Meter Reading (AMR) System April 17, 2012 • There will be savings from the elimination of the pursuit of customers who have failed to submit timely water meter reads. Additional savings will come from not providing notices, tags and from the time involved with the occasional water turn- off for a few recalcitrant customers. Annually, Public Works staff posts approximately 550 tags (2010 -616, 2011 -492). • The reduction of meter reading errors from customers and staff will greatly improve the water billing process and resident satisfaction. • Meter read accuracy will increase as the errors possibly introduced during data handling are significantly reduced. . • The collection of better water use data for customers and customer classes will allow the Village to monitor and report consumption data for regulatory and conservations purposes. • Further staff time savings occur from eliminating the intensive physical effort put forth in monitoring shut -off accounts. Public Works regularly check shut -off properties to ensure that water is off until the account is made current. The AMI software can monitor selected accounts to alert staff on water use. • Finance Staff will save the 3 -4 hours per day (approximately 1,000 hours per year) from not having to manually enter customer reads into the water billing software. Staff received proposals for a fixed -based AMR system from several vendors that have numerous successful installations throughout the country. Seven proposals were received with the proposed cost of the complete system, including all commercial and residential accounts, failing between $2.2 and $2.6 million dollars. The proposed cost to install the wireless infrastructure and to convert all 1,200 commercial /multifamily accounts is $350,000 to $400,000. The cost of converting the remaining 10,000 residential meters over a three year period is $1.8 to $2.2 million. These proposed costs are significantly less than the original capital budget estimate of $4 million to install a complete system throughout the Village. The AMR installation has been included in the Village's Capital Improvement Plan since 2010. Furthermore, the 2012 adopted Village Budget includes $965,000 for the installation of wireless infrastructure, conversion of 1,200 commercial /multifamily meters, and the initial conversion of approximately 2,500 residential meters. Staff is seeking direction from the Village board as to whether there is support in moving forward with implementing the described fixed -base AMR solution for commercial /multifamily accounts and to abandon the self reporting method for residential accounts by implementing the described AMR solution for residential meters. Matt Overeem, Superintendent cc: Director of Public Works Sean P. Dorsey Bid file H: \Water \projects\2012 \amr \RFP Consideration AMR_AMI_rev5.doc