- December 16, 2003 Executive Session
BUSINESS SERVICE AGREEMENTS
- Enviro Spatial - Enhancements and Maintenance of McKenzie Watershed Emergency Response System (MWERS) - Environmental Management - Corporate Services. In August, 2002, Enviro Spatial helped develop the MWERS concept and put together a GIS demonstration for the 28 partner agencies involved in this effort. The cost of this initial work was well under $5,000, so no formal contract was executed. Enviro Spatial performed several other discrete tasks related to the development of this application over the next year, as funding came available. This work was also performed via Purchase Orders, which were for very small dollar amounts (well below competitive bidding and Board approval thresholds). After receiving grant funding in early 2003, a formal contract was executed with Enviro Spatial in the amount of $19,500 for the further development of the MWERS application. This project was completed in September 2003, and beta testing by seven agencies began. Feedback was received from the beta testers and as a result of the feedback; another contract was executed with Enviro Spatial in the amount of $9,000 to perform the requested changes. This work was completed in December 2003. The 28 partner agencies have identified further application functionality and enhancements. Including the addition of a search function and the development of a application for hand-held computers used by first responders. Since Enviro Spatial developed this application and its functionality, they are the only source available to make enhancements to the program. The programming and source code are proprietary and not available to other customers. Contact person is Karl Morgenstern -Cost is $80,000 over two years.
- Transunion - Credit Reporting - Customer Service - Finance & Customer Service Division. There are four major credit-reporting agencies in the United States (Equifax, Experian, Dunn & Bradstreet, and Transunion). EWEB has established a permanent qualification (exemption from bidding) in 2002 for use of all four credit bureaus on an "as needed" basis. The reason for working with all four credit bureaus is because of the diversity in the different bureau reporting capabilities. EWEB relies most heavily on Transunion credit rating agency, the primary west-coast reporting agency, to verify the identity and credit worthiness of all new customers and to determine whether a customer deposit will be required or waived.
Due to the increased concerns about identity theft, the use of the Transunion services has increased (nearly doubled) over the last year. Transunion provides electronic real-time reporting to utility inquiries; this service is integrated into EWEB's customer account management system. An inquiry can be made and a response received while the Customer Service Representative is helping the customer. Real-time reporting has also been further integrated into the customer transaction Internet applications that have been developed and are expected to go into production later this year.
Service fees are charged on a per transaction basis (as needed) and not on any specific contract amount. During 2002 and 2003, $16,000 and $28,000 respectively were paid to Transunion for services. Due to the higher number of transactions being processed by Customer Services, fees are expected to increase to approximately $30,000 in 2004.
Staff requests Board approval for award of a price agreement contract to Transunion for credit reporting services on an "as needed" basis. It is estimated that approximately $30,000 per year will be spent for these services over the next five years (2004-2008). Award is based on"need" and not on any specific dollar amount. Funds for 2004 expenditures have been budgeted. Contact person is Mark Freeman or Dawne Howard, 484-2411.
- AON Consulting - Employee Health Benefits & Actuarial Consulting - Human Resources - Corporate Services. An agreement was established with AON Consulting to act as EWEB's Insurance Broker or "Agent of Record" for the utility's Benefits insurance coverage. AON goes to market for EWEB's needed coverages and also provides consulting and actuarial services as they relate to Benefits. The original Personal Services agreement with AON was established prior to adoption of EWEB's current procurement rules.
With the events following 9/11 and the dramatic change in the commercial insurance environment (large increases in policy costs and higher deductibles), the utility felt that it was in its best interests to retain the current broker who possessed the background knowledge and intimate understanding of EWEB's needs, and not consider changing brokers at such an unpredictable time. Consequently a new contract was executed with AON in December of 2001.
Staff is requesting Board approval to amend the contract with AON through 2004, and possibly into 2005 when a new agreement will be competitively bid. It is estimated that $81,365 will be spent for "core" consultative work (e.g.: Plan Administration, Plan Design, Financial and Renewal Consulting, and Compliance Guidance) and $66,780 will be spent for "special project work" (e.g.: benefits survey work , benefits plan redesign and analysis, and performing an RFP for the medical, dental & vision plan) in 2004. Total amount budgeted for 2004 is $158,145. Contact person is Laurie Muggy, 484-2411, ext. 3013.