HomeMy WebLinkAbout6. Vehicle Licensing Software 12/13/2011Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGER
FROM: FINANCE DIRECTOR
DATE: DECEMBER 8, 2011
SUBJECT: VEHICLE LICENSING SOFTWARE AND ORDER FULFILLMENT SERVICE
PURPOSE:
Present for the Board's consideration a recommendation to purchase vehicle license software
and order fulfillment services through Third Millennium Associates (TMA).
BACKGROUND:
Village issued vehicle licenses are required for practically all licensed motor vehicles registered
in Mount Prospect. To manage the licensing process the village currently utilizes a custom
written program that is outdated and lacks certain features such as on -line purchase of licenses.
Finance staff has conducted a search for software solutions to replace the existing software.
With the software change, staff also wanted to address delays in processing that occur during
periods of extremely high volume by looking into outsourcing opportunities for a portion of the
license renewals. License renewals are sent out in the first week of February. The initial sales
period continues through April 30. The license period runs from May 1 to April 30. The Village
issues approximately 40,000 stickers annually. Of this amount, over 32,000 or 80% of the
renewals occur during the initial sales period.
DISCUSSION:
The current vehicle license software program is outdated and the underlying programming
language is no longer supported by the vendor. As a result, a search was needed to find
replacement software. Through the search process, Village staff has identified a
comprehensive web -based vehicle licensing software solution developed by Third Millennium
Associates (TMA) to complement the village -wide ERP system. The Village currently contracts
with TMA to provide our vehicle license and utility bill mailing service.
One feature of the new software will allow residents and businesses to purchase their license
on -line. This on -line feature addresses one of the goals established with the implementation of
the ERP system which was to allow individuals and businesses to apply, renew and pay for
licenses on -line. Although the V -Pay system is accessed through the Village website, the
software resides on a remote TMA server totally separated from the Village's financial
applications. This provides the utmost of security for the Village's network. Finally, although
this software is an "off- the - shelf' solution, it can be customized to meet the needs of the Village
without costly modifications.
In addition to providing a software solution to manage the licensing process, Third Millennium
also offers vehicle license order fulfillment. The Village can now outsource the processing of
first -time and renewal license applications processed through the V -Pay module or mailed to the
Vehicle Licensing Software and Order Fulfillment Services
December 8, 2011
Page 2
post office lock box. Although the Village currently utilizes a lockbox solution to take in
payments, order fulfillment is still done in- house. Order fulfillment through TMA will reduce the
lag time in processing a village sticker during the initial billing period from two weeks to two to
three days. Order fulfillment will also minimize the impact on regular village business conducted
over the counter and eliminate the need to bring in temporary help to assist with the backlog.
The cost of temporary help and staff overtime each year during the initial licensing period is
approximately $7,500.
The initial cost of the vehicle software, including V -Pay is $7,990. This one -time fee is
supported within the current ERP budget. Annual maintenance costs are $1,490. All future
modifications universal to TMA clients is included in the cost of annual maintenance.
The first -year cost of providing on -line purchasing of vehicle stickers through the V -Pay module
is $3,275. This cost assumes an adoption rate of 15% in the first year. The first -year cost of
order fulfillment for vehicle licenses purchased on -line or mailed to the lockbox total $11,770.
This cost assumes that 30% of applications are processed through the lockbox and the 15%
adoption rate of the V -Pay system. The Finance Department will be able to offset approximately
45% of the total annual total cost of implementing the V -Pay solution with order fulfillment
services using funds currently in the budget. A cost summary of all components of the proposal
is attached for your review.
The Village has utilized TMA to handle its annual vehicle sticker and twice - monthly utility bill
mailings since before 2003. Our experience has been very positive. TMA is responsive to
questions and interaction with Village staff is exceptional. I recommend we further our
relationship with TMA and utilize their comprehensive web -based vehicle licensing software
solution and order fulfillment service.
Review of the software and service agreements is currently being done by the Village's
Corporation Counsel. Pending Board approval, it is expected that the vehicle licensing
software, V -Pay module and order fulfillment services would be in place prior to the next license
period.
RECOMMENDATION:
It is recommended the Village Board accept the proposal from TMA to provide the Village with a
Vehicle License software solution and order fulfillment services at a cost not to exceed the
quoted amount.
David O. Erb
Director of Finance
DOE/
I: \Vehicle License \VL Software Purchase.docx
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