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HomeMy WebLinkAboutResolutions - 2008.01.17 - 9452REPORT (misc. 107293) January 17, 2008 BY: General Government Committee, Christine Long, Chairperson IN RE: MR #07293 — Drain Commissioner — Collaborative Asset Management System (CAMS) Project To: The Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The General Government Committee, having reviewed the above-referenced resolution on January 7, 2008, reports with the recommendation that the resolution be adopted. Chairperson, on behalf of the General Government Committee, I move acceptance of the foregoing report. GENERAL GOVERNMENT COMMITTEE CkA/4 'CV' a v, c'Y General Government Committee: Motion carried on a roll call vote with Gregory voting no and Suarez and Greimel absent. MISCELLANEOUS RESOLUTION #07293 December 13, 2007 BY: Planning and Building Committee. Sue Ann Douglas, Chairperson IN RE: DRAIN COMMISSIONER — COLLABORATIVE ASSET MANAGEMENT SYSTEM (CAMS) PROJECT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Drain Commissioner's office has identified a need to develop a strategy for the implementation of a centrally-hosted collaborative maintenance management, customer request management, and permitting system; and WHEREAS this initiative would also benefit other Oakland County public works agencies such as the Road Commission of Oakland County and local cities, villages and townships; and WHEREAS a Collaborative Asset Management System represents an opportunity to standardize countywide infrastructure (water. sewer, storm and roads) and allow Oakland County, and its local governments, to proactively manage assets and mitigate long-term costs associated with the operations and maintenance of critical infrastructure; and WHEREAS the system would include a Computerized Maintenance Management System (CMMS) for work orders, inspections, and inventory; Customer Request Management (CRM) for complaints, correction, and feedback; Permitting for applications, evaluation, inspections, and violations; Real-Time Sensors for vehicles, resources, and weather; and WHEREAS the CAMS project would promote collaboration, improved workflows and reduce redundancy among users handling service requests; maximize the capital investment being made by Oakland County to provide a low cost opportunity to local cities, villages and townships; provide a "one- stop shopping" experience for county constituents that makes government easier to access; supports collaboration in a public works community during a mutual aid event; promotes data sharing throughout the public works community in order to improve government accountability and collaboration across jurisdictional/organizational boundaries; and WHEREAS county agencies supporting the implementation of the CAMS project include Oakland County Drain Commissioner's Office, Oakland County Executive's Office, Oakland County Information Technology and Road Commission for Oakland County; and WHEREAS the local public works agencies supporting this initiative include Independence Township, City of Ferndale, City of Royal Oak, Waterford Township, Village of Beverly Hills, Bloomfield Township, City of Pontiac, Village of Lake Orion. West Bloomfield Township and the City of Farmington Hills; and WHEREAS the cost of the CAMS project is approximately $6,600,000; and WHEREAS the $6,600.000 includes software, hardware, data conversion, professional services, OCDC & OCIT internal staff costs associated with the implementation of the project; and WHEREAS investment studies provided by the Drain Commissioner, the Department of Information Technology and the attached Return on Investment (R01) show that savings to the constituents of Oakland County would approach fifteen million dollars over a six-year period. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the implementation of the Collaborative Asset Management System Project. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING & BUILDING COMMITTEE VOTE: Motion carried on a roll call vote with Gosselin voting no. 896611DC Oakland County — Collaborative Asset Management Program Return on Investment As Of: 12/3/07 Project Summary Description I Year 1 Year 2 1 Year 3 1 Year 4 Year 5 Year 6 I Total i 1 , Benefits/Savings: i 1 I _iTangible Benefits Subtotal: o! --- 01 o o o _ o Cost Avoidance Subtotal: I _.. oi 2,904,000; 3,432,000 i - 3,960,000i 4,400,000 14,696,000 Costs: - - [Development Services Subtotal: 4,606,404 0 at 0 01 0 4,606,404 Hardware Subtotal: 161,200; 350,000 _ , _ 01 _ . 01 0 , 0 511,200 [Software Subtotal: 701,6401 0 250,000 250,000i 250,006 250,000 1,701,640 _i _ _ _ _ . ._ 01- 0 01 01 0 1 0 o _ -4 -- - o oi 1 0• _, Di Or 0 iOther Subtotal: 750,0001 011 01 1 0! 0 750,000 Annual Statistics: 1 - 1 !Annual Total Savings OI 0 , 2,904,000! 3,432,000 3,960,000 4,400,000 14,696,000 Annual Total Costs 6,219,244 1 350,0001 250,0001 250,000 250,000 250,000 7,569,244 - -1 - I 7 126 756 Annual Return on Investment (6,219,244)1 (350,000) 2,654,000 , 3,182,000 3,710,000 I 4,150,000 _2 _ , jAnnual Costs/Savings Ratio 0.00%! 0.00% 8.61%; 7.28% 6.31%I 5.68% Project Cumulative Statistics: }Cumulative Total Savings 0 1 o t 2,904,000 L. 6,336,000 L 10,296,000 i 14,696,000 14,696,000 i Cumulative Total Costs 6,219244 1 + 6,569,244 1 6,819,244 i 7,069,2441 7,319,244 7,569,244 7,569,244 1 1 1 - [ - - L. I jCumulative Return on Investment (6,219,244)! (6,569,244)i (3,915,244)! (733,244)i 2,976,756 I 7,126,756 7,126,756 _ _ I Cumulative Cost/Savings Ratio 0.00%1 0.00%1 1 234.82% 111.57`)/61 71.09%L 51.51% 51.51% - t - - - - - - [- Year Positive Payback Ach ! ieved Year 5[ Year 5 ! 1 State or Federal Mandate? I Signatures: [ Benefits Reviewed By Project Sponsor Date: 1 Costs (including IT Resources) Reviewed By I 1 t Information Technology Project Manager Date: 1- ICosts (including IT Resources) Reviewed By !Technical Services Manager Date: , Collaborative Asset Managment R0I-v2/Project Summary Date Printed: 1214/2007 Page 1 REV: May 31, 2006 Oakland County — Collaborative Asset Management System Program Return on Investment D1 DC As Of 12/3107 Savings Detail Affects Project ROI Potential Savings Extensions Piefect Savings Unit ate per Annual 1 i i Benefit/Savings Description Category Budget Category/Funding Source Dasc Units Unit Total Savings Multiplier Y11 Y2 Y31 Y4 Y5 Y6 11 02 1 Y9 Y4 I Y5 Yb ropac savr ewer infrastructure) from implementation of I predict,* maintenance system Csl Avoidance 2.200.000 0 000 0 1.452.000 t,71€,0 I 1.980.000 2.200,000 Projected OW savings (water infrastructure) from implementation of 1 _predictive maintenance sntem Cosi Avoidance 2,200,000 0 000 0 o 0 0 1.452.000 1 ,716 000 i .1,980000 2200.000 1 I. 1 _ — GoNborar. Asud Urtgn.1 R01,25ann9s cet., Dee PrIrtbd 1211120177 PK, REV 1,4%,, 3, '2I). D96611DC Oakland County -- Collaborative Asset Management System Program Return on Investment As 01: 12/3/07 Savings Summary Benefit/Savings Description I Year 1 I Year 2 Year 3 Year 4 Year 5 Year 6 1 Total , Tangible Benefit: 1 Tangible Benefits Subtotal: i ; Cost Avoidance: I i i !Projected O&M savings (sewer . , i f f of !nrastructure) from implementation o 1 1 1 I predictive maintenance system 1,452,000; 1 716 000I 1,980,000; 2,200,000 I I 'Projected O&M savings (water infrastructure)! E i ! from implementation of predictive 1 1 1 , maintenance system 1 452 000; t 1,980,000 t 2,200,000 , ; , 1 7 6 000; ; , ; I I !Cost Avoidance Subtotal: Z904,000 , 3,432,000 ' 3,960,000 4,400,000 14,696,000 t ‘Savings Total: 2,904,000 , 3,432,000 , 3,960,000 4,400,000 14,696,000 Collaborative Asset Managrnent ROI-v2/Savings Summary Date Printed: 12/412007 Page 3 REV: May 31, 2006 D/6511DC Oakland County — Collaborative Asset Management System Program As Ot 1213107 Reton on Imestment Cost Detail AffectsProject R017 Potential Cost EaUmsions -WIT Annual -T I - Cost Pe sn ion Pr.'nctCoatC Bud et Cate • • tFundin. Source Orme Units ReVrer Unit Total Cost Monti her Y1 Y2 Y3 Y4 Y51 YG Y1 112 Y3 Y4 YS Y6 IT Hours - New Development Development Svcs 17,386 122 ' $ 2,121.052 00 'X [ ' '2.121.0921 ____ OCDC Hours - New Development Development Svcs 20.535 64 $ 1285,717 32 X I 1.288,717 Software 00 00 Azteca Cityworks Software . Acgursitton Software i 360,0 X 350,006 ESR1 and Microsoft Saftware-Acquanion Software $ 341,640 00 X 341.640 ezteca Annual Soflwate Maintenance Software $ 250,000 00 000 X X X X 250000 250.000 259 000 2A03300 Hardware Hardware NtoloSe Device • Atirposton Hardware 100 3.500 $ 350,000 00 X 350,000 Server Hardware- Acquisition Hardware $ 16120050 X 161.200 Professional Services Strn Integrator . New Development DoeloproorttSotn 5 1.!95.59SO 0 1,155.595 CVT Data Conversion Local Government Infrastructure Data Conversion Development Svcs 750.000 750.000 Calletaxwave As. Menu,* vol ,o2r-cat Date., Date Pre-ead 12142007 Pare • REV Mee 3, 2006 096611DC Oakland County -- Collaborative Asset Management System Program Return on Investment As Of: 12/3/07 Cost Summary 1 i Cost Description I Year 1 Year -2 Year 3 Year 4 Year 5 Year 6 I Total Development Services: ' ! 1 -- IT Hours - New Development 2,121,092! 2,121,092 10CDC Hours - New Development 1,289,717: 1,289,717 !System Integrator - New Development 1,195,5951 t 1 'Development Services Subtotal: 4,606,404 i 4, 606,404 ^ Hardware: 1 1Hardware Mobile Device - Acquisition . 350,0001 350,000 - t 1Server Hardware- Acquisition 161,200 1 161,200 Hardware Subtotal: 161,200 1 350,000 511,200 Software: !Azteca Cityworks Software - Acquisition 360,000 [ 360.000 i , ESRI and Microsoft Software Acquisition 341,640, I , 1 1Azteca Annual Software Maintenance , 250,000 ; 250,0001 250,000! 250,000 1,000,000 ! , [Software Subtotal: 701,640 250,000 ; 250,000 1 250,000 250,000 1,701,640 i 1 1 - 1 1 1 i i ._ _ Other: ' I- ICVT Data Conversion 750,000 , 750,000 t i Other Subtotal: 750,000 750,000 : Costs Total: 6,219,244 1 350,000 _ 250,000 ' 250,000 250,000 I 250 000 , _ , 7,569,244 Collaborative Asset Managment ROI-v2/Cost Summary Date Printed: 12/4/2007 Page 5 REV: May 31, 2006 096611DC Oakland County — Collaborative Asset Management System Program As Of: 12/3/07 Return on Investment Assumptions Date Assumption Description Because the Collaborative Assef Management System is being funded at the program level, individual organizational savings (labor, ;technology, equipment, etc.) have not been quantified. Instead, industry standard efficiency gains have been applied to a documented 03-Dec-07j0perations and Maintenance cost for sewer and water infrastructure within Oakland County. jAccording to the US Department of Energy, Energy Efficiency and Renewable Energy Division, the introduction of a predictive maintenance 03-Dec-07 program can reduce future O&M costs by an estimated 10%. lOakland County's projected sewer O&M costs were identified in the 2001 SEMCOG study. The 2001 SEMCOG study cited a $2.8 billion idollar cost regionally over a 28 year period (2001-2030) Oakland County comprises 22% of the regional cost. The cost estimates are in 03-Deo-07,2001 dollars. 08ihil savings was derived using the following formula. (Regional O&M Costs) multiplied by .22 (Oakland's % of Region) equals potential ,cost of sewer O&M within Oakland County. Then, Oakland County's sewer O&M costs were divided by 28 years to arrive at an annual cost 03-Dec-07ifor O&M. The O&M cost was then multiplied by ,10 (efficiency gained implementing predictive maintenance) to arrive at a savings estimate. Total Sewer O&M savings estimates equal $2,200,000 annually Estimated savings are expected to start at 66% in year 3 and climb 03-Dec-07 equally to 100% by year 6 ;Water O&M savings were estimated using the same formula (sewer O&M savings) and an evaluation of Oakland County households with 25-Oct-07,oublic water service —,Total Water O&M savings estimates equal $2,200,000 annually. Estimated savings are expected to start at 66% in year 3 and climb 03-Dec-07jequally to/00% by year 6. FMitigated sewer and water O&M costs will continue to accumulate beyond year six of the ROI at a rate of $4,400,000 per year Over the life 133-Dec-07; of the SEMCOG Report, this could equate to over $100 million dollars in mitigated O&M costs. 'Savings from a predictive maintenance program have only been applied to water and sewer infrastructure within the County Additional 25-Oct-07 isavings are expected when this program is applied to RCOC assets and stormwater infrastructure within the County. ;Hardware acquisition includes the purchase 9 Servers, field hardware required for OCDC Staff and the setup of a redundant application 25 Oct-07 land database environment at the Troy site. 25-Oct-07 Software acquisition includes the Azteca Server, ESRI and Microsoft licenses necessary to deploy the hosted service. ;CCDC labor estimates include 20,036 man hours and a total project team of 28 Team members will be assigned to the project for 18 !months however, only a percentage of each team members time will be utilized for implementation. OCDC labor estimates reflect an 25-Oct-0-leverage rate_p_er employee assigned to the project. 25-Oct-07 IT labor estimates include 17,386 Hours and an estimated project team of 6. Team members will be assigned to the project for 18 months - Program Manager, Business Analyst, Application Developer, System Administrator Project Manager, and Infrastructure Support IT labor estimates reflect the level of effort the third-party implementor will be providing : 25-Oct-071Data conversion estimates are for the water, sewer and storm data in early adopting communitieS. 25-Oct-071Professional service estimates reflect fix-firm price estimate from a third-party implementor. Collaborative Asset Managrnent ROI-v2iAssumptions Dale Printed 121.4/2007 Page 1 REV May 31, 2006 Resolution #07293 December 13, 2007 The Chairperson referred the resolution to the General Government Committee and the Finance Committee, There were no objections. FISCAL NOTE (M.R. #07293) January 17, 2008 BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON IN RE: DRAIN COMMISSIONER - COLLABORATIVE ASSET MANAGEMENT SYSTEM (CAMS) PROJECT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Drain Commissioner's office has identified the need for a Collaborative Asset Management System (CAMS) that would standardize countywide infrastructure (water, sewer, storm and roads) to proactively manage assets and mitigate long-term costs associated with the operations and maintenance of critical infrastructure. 2. The system will include computerized maintenance management, customer request management, and permitting system that will provide information on work orders, inspection reports, permits and other work activities. 3. By centralizing data the system will promote information standardization, reduce duplication of data and will be a low cost way for other Oakland County governmental agencies to gather and share information across jurisdictional and organizational boundaries. 4. The CAMS project will benefit the Oakland County Drain Commissioner's office, Road Commission for Oakland County and multiple CVTs who have expressed support for this initiative. 5. The estimated cost for the CAMS project is $6,600,000, with an estimated Return on Investment to the county constituents of fifteen million dollars over a six-year period. 6. The $6,600,000 includes software, Oakland County hardware, CVT data conversion, professional services, and Oakland County Information Technology and Oakland County Drain Commissioner costs. 7. $6,600,000 was designated in the General Fund as part of the FY 2007 year end report and is available for appropriation (Designation Account #371406). 8. The costs of the project will be tracked under the Major Departmental Support Projects Funds as a separate fund and project number. 9. Upon project completion, the appropriate project costs will be recognized as part of the County's General Fixed Assets. 10. Centralized CAMS annual support/maintenance costs are expected to be $250,000 per year and includes CAMS system software maintenance and Information Technology support for the CAMS software. Replacement costs are not included in the $250,000. 11. Participating agencies will be responsible for paying their share of the centralized CAMS maintenance/support costs and will be responsible for paying maintenance/support costs on such items as agency equipment, wireless communication costs and GIS data maintenance costs. FINANCE COMMITTEE Ayes: Long, Potter, Kowall, Douglas, Crawford, Middleton, Rogers Nays: Zack, Coulter, Woodward Absent: Greimel 12. The following budget amendment is recommended for FY 2008: FY 2008 GENERAL FUND #10100 Revenue 9010101-196030-665882 Expense 9010101-152130-788001-42050 Planned Use Bal. $6,600,000 Transfer Out $6,600,000 COLLABORATIVE ASSET MGMT SYSTEM FUND #42050 Proj Business Unit MAJOR, Project #100000001126, Activity A Revenue 9016001-152130-695500-10100 Transfer In $6,600,000 Expense 9016001-152130-731773 Software Purchase $ 701,640 9016001-152130-760132 Computer Equipment 511,200 9016001-152130-731458 Professional Svcs 1,945,595 9016001-152130-773630 IT Development 2,121,092 9016001-152130-731822 Special Projects 1,289,717 9016001-152130-730359 Contingency 30,756 Total $6,600,000 F7TE COMMITT E • ibtinsbii, County Clerk Resolution #07293 January 17, 2008 Moved by Douglas supported by Potts the resolution (with fiscal note attached) be adopted. Moved by Douglas supported by Potts the General Government Committee Report be accepted. A sufficient majority having voted in favor, the report was accepted. Discussion followed. Deputy County Executive Phil Bertolini addressed the Board. Vote on resolution: AYES: Gosselin, Greimel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Zack, Bullard, Coleman, Crawford, Douglas, Gingell. (19) NAYS: Gregory, Woodward, Burns, Coulter, Gershenson. (5) A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted. HEREBY ARRcr'P THE Pr'R 7('O'T RPCOI I '"'ON STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on January 17, 2008, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 17th day of January, 2008.