Agenda Date: 12/01/2020
Subject:
Title
Ordinance 28-2020: An ordinance on second reading approving a five-year agreement with Cartegraph Systems LLC for an enterprise asset management system
Body
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Prepared by: |
Keith Reester, Public Works Director |
PURPOSE:
To approve a five-year agreement with Cartegraph Systems LLC for an enterprise asset management system.
PRESENTATIONS:
Staff Presenter(s): Keith Reester, Public Works Director
Additional Presenter(s): N/A
SUMMARY:
The City of Littleton owns and maintains a large network of public infrastructure including pavement, underground utilities, municipal buildings, grounds, and much more. Infrastructure represents a large capital investment for the City. Maintaining and operating infrastructure on a large system such as this typically involves complex decisions about how and when to apply various techniques to ensure proper performance and keep operating costs as a reasonable level.
It is unlikely that infrastructure materials will become so good that they never need repair. Similarly, it is unlikely that major increases in funding for infrastructure maintenance and replacement will occur in the near future. All the while, costs of routine maintenance activities continue to dramatically rise. The need for efficient management is greater today than ever before, and the tool for efficiency is a good asset management system.
Development of an Asset Management Program is an important aspect of infrastructure master planning. An Asset Management Program is a good tool to assess the current condition of a very large investment, assist in determining future needs, and has the potential benefit of applying appropriate rehabilitation at optimum times. The ability to plan and program the most effective maintenance strategy will allow the City to forecast future funding requirements in advance of the actual need.
In early 2018, the Public Works Department began discussing the strategy for development and implementation of an asset management system. Staff met with other municipalities who had undertaken similar efforts with a variety of software vendors, to gain an understanding of the successes and any potential roadblocks encountered during their processes. In August of 2018, proposals were received from qualified vendors for implementation of an Enterprise Asset Management System. After a robust vetting process, Cartegraph was selected as the preferred vendor. The primary reasons Cartegraph was chosen are the user-friendly nature of the software platform, their deep industry experience, and their understanding that focus on the people and the processes is key to the system’s success.
Staff chose to implement Cartegraph in phases, one or two divisions at a time. Staff strategically chose to start with the Utilities Division since the data related to the underground infrastructure was largely converted to GIS through many years of past effort, and the condition of this infrastructure had recently been documented through CCTV inspection of both the sanitary sewer and storm sewer systems. Implementation began in early 2019 for the Utilities Division and was live for full use in August 2019. During that time, multiple staff members dedicated countless hours to documenting processes, workflow, and training on use of the software. Utilities has successfully been using the asset management system for approximately one year.
In May of 2020, implementation of Cartegraph began in the Grounds Division and Traffic Division. Both are anticipated to be complete in December 2020. The Streets Division is proposed for implementation in 2021.
PRIOR ACTIONS OR DISCUSSIONS:
This contract has not been discussed with city council in the past; however, the principles and benefits of an asset management system have been discussed many times in support of financial sustainability for long-term capital needs.
This ordinance passed on first reading on November 17, 2020.
ANALYSIS:
Staff Analysis
The new Asset Management System will bring antiquated paper processes into the 21st century. It will also integrate with other software systems such as GIS, SeeClickFix, TRAKiT, and Laserfiche, saving critical work time for staff. The system will provide the Public Works Director with valuable metrics on operational efficiency and data to demonstrate the resource and capital financing needed to support high quality infrastructure. The Cartegraph Enterprise Asset Management System will be a valuable tool for the Public Works Department for many years to come.
Council Goal, Objective, and/or Guiding Principle
Implementation and support of the enterprise asset management system aligns with Council Goal 3: Good Governance/Objective 4: Technology Strategic Planning as it will increase organizational performance. The asset management system also aligns with Council Goal 2: Financial Sustainability/Objective 3: Identify, Assess, and Prioritize Long-Term Capital Needs as this system will help to document infrastructure condition which will lead to development of capital improvement plans.
Fiscal Impacts
All expenditures for 2020 have been accounted for in an existing contract with Cartegraph Systems. Staff has negotiated a 5-year contract with Cartegraph for our enterprise asset management system used in the Public Works Department, which will cost $54,021.37 in 2021. This cost will be spread over the five Public Works divisions that use the software. A typical year-to-year software licensing renewal contract would contain a 5% annual price escalation. Staff has worked with Cartegraph to have a 0% increase for the first year and 3% annually thereafter. This results in a cost savings of over $18,000 over five years versus a year-to-year contract.
Alternatives
Deny the five-year term contract, which will require staff to either pursue a more expensive one-year term contract or forego the software, leaving the Public Works Department with diminished productivity and reporting capability as a result of reverting to a paper or spreadsheet-based system.
STAFF RECOMMENDATION:
Staff recommends approval of the five-year contract.
PROPOSED MOTION:
Proposed Motion
I move to approve the ordinance on second reading approving a five-year agreement with Cartegraph Systems LLC for an enterprise asset management system.