HomeMy WebLinkAboutCOD-004-16 C.1arington
Corporate Services
Report
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Report To: General Government Committee
Date of Meeting: March 28, 2016
Report Number: COD-004-16 Resolution: (A
File Number: By-law Number:
Report Subject: Recreation Software Replacement
Recommendations:
It is respectfully recommended that the General Government Committee recommend to
Council the following:
1. That Report COD-004-16 be received;
2. That, under the single source provision of the Municipality's Purchasing By-Law,
Council grant the Purchasing Manager the authority to negotiate an agreement with
ACTIVE Network for the provision of recreation registration and facility booking
software service; and
3. That the Purchasing Manager be authorized to execute the agreement with the
ACTIVE Network for the purchase, installation, migration and maintenance of
software required to replace the current CLASS program software used for
recreation management.
Municipality of Clarington
Report COD-004-16 Page 2
Report Overview
To provide Council with information surrounding the "end of life" of the current CLASS
recreation software program and services, as well as to provide information on the preferred
choice to migrate from the expiring CLASS software to the ACTIVE Network solution to best
serve the Municipality's recreation users.
1. Background
In 1999 the Municipality implemented CLASS software to manage the delivery of
recreation programs and services. The CLASS software solution brought automation to
registering recreational activities. Today this software is used for all program
registrations, facility bookings, field permits, memberships, drop-in passes, point of sale
as well as business reporting. CLASS has allowed the Municipality to operate more
efficiently and effectively.
The delivery of recreation programs and facility bookings are not only important services
offered to residents but are also significant sources of revenue for the Municipality.
Program registrations for older adults, aquatics, recreation and camps, as well as fitness
programs and memberships are all currently processed through the CLASS registration
software. Additionally, all facility and sport field permits are processed using the CLASS
facility booking module. The CLASS software solution has been the main software for the
majority of automated business processes related to community programs and activities.
In 2004, CLASS was purchased by ACTIVE Network. As of Fall 2017, CLASS will no
longer be supported by the service provider. As a replacement for CLASS, ACTIVE
Network has introduced a web-based technology product called ACTIVE Net. The
ACTIVE Net solution is a software system that is based on the CLASS model with
enhanced security and payment features hosted and supported using cloud technology
with up-to-the-second updates.
With the approach of the CLASS "end of life", the Municipality requires a solution that
provides residents with a user-friendly, secure web-based tool in which to register for
Municipal programs and services. Ensuring that the right solution is available for the
Municipality's clients would not only assist with minimizing any financial impact due to
service disruption but would also ensure that Municipal staff have the right tools to
manage and automate business processes.
Staff have recently been involved in researching the market for viable solutions to replace
CLASS. Municipal staff also reached out to municipalities both local and outside of
Durham Region to understand the approach and direction that they will be taking in
regards to replacing CLASS technology. Staff also reviewed core registration and facility
booking processes to mitigate foreseeable customer impacts.
Municipality of Clarington
Report COD-004-16 Page 3
A number of municipalities have already switched to ACTIVE Net from CLASS during
2015 with many more following suit in 2016. A few of these locations have gone through
the formal RFP process and ended up with the same result— installing the new ACTIVE
Network recreation software for their purposes. Others have retained ACTIVE Network
via a single source process, with some reporting to Council for approval to contract with
ACTIVE Network.
Below is a chart showing how other Canadian Municipalities have proceeded to replace
the CLASS software:
CLASS Replacement
Agency/Municipality RFP or Sole Source Replacement Software
Whitby Sole Source ACTIVE (pending approval
Ajax Sole Source ACTIVE (pending approval)
Pickering Sole Source ACTIVE
Barrie Sole Source ACTIVE
Bradford Sole Source ACTIVE
Kitchener Sole Source ACTIVE
London RFP ACTIVE
Vancouver RFP ACTIVE
Article 22 Negotiation / Single / Sole Source Purchases of the Purchasing By-law allows
for acquisition by negotiation where there is a proven need for product standardization
which is necessary to ensure compatibility with existing products, standards, services,
systems or strategies as well as consideration due to the current market conditions.
Staff recommend that Council approves the single sourcing of the ACTIVE Network's
solution as a replacement for the CLASS product in 2016 for the following reasons:
1. The ACTIVE Network solution will potentially mitigate the disruption to the workflow
and customer interaction in comparison to installing a completely new and different
solution.
2. Integrity of data migration is a key concern, fitting within the sole source Purchasing
By-Law provision to maintain compatibility with an existing product.
3. The Market conditions of every municipality essentially competing for a unique
product at the same time based on industry changes, fits, within both the market
conditions, and the competitive product section of the sole source conditions.
4. ACTIVE Network has provided an incentive to sign an agreement with them prior to
April 30, 2016 which will result in 2 years of maintenance credit totaling $30,000.
5. The sole sourcing of this project would ensure the project will be completed within the
required timeframe and without requiring additional staffing resources.
Municipality of Clarington
Report COD-004-16 Page 4
2. Analysis
Representatives from the Community Services Department, Finance Department and
Corporate Services Department reviewed the capabilities of the ACTIVE Network
recreational software and highlighted the benefits:
• ACTIVE Net has the capabilities of addressing the Municipality's current and
future recreation software requirements including client engagement, Payment
Card Industry Data Security Standards compliance, enhanced public interface as
well as mobile application.
• ACTIVE Net operates on a transactional fee structure which replaces costs
associated with licensing, upgrading/patching and solution expansion. The
transactional fee replaces the annual software maintenance fees currently paid.
The responsibilities for the ongoing maintenance, security and upgrade costs
associated with a typical solution will shift from the Municipality to ACTIVE
Network.
• ACTIVE Net is the market leader for recreation solutions in the Municipal sector.
A number of municipalities and regions have completed an RFP for the
replacement of CLASS and have chosen ACTIVE Net as their new solution.
Many municipalities have awarded or are in the process of awarding contracts to
ACTIVE Network including Whitby, Ajax, Pickering, Port Hope, Barrie, Aurora,
Cambridge, York, Waterloo, and London.
• Software that ensures customer information data is securely maintained and
meets all current regulations.
• Assurance of PCI-DSS compliance (Payment Card Industry Data Security
Standard) being met. ACTIVE/CLASS currently provides the Municipality with
updates in this area. PCI-DSS is becoming a very complex issue with more and
more regulations being implemented and the continual changes being made. If
compliance is not maintained and/or met the Municipality would be assuming
liability for any potential credit card fraud.
• The new ACTIVE Net recreational software allows unlimited concurrent users to
access the website at one time without interruption. This is possible as the hosted
server has the ability to shift server resources to increase capacity on high traffic
volume days during peak registration periods.
• As a Cloud based software solution, our residents' online access to Active Net will
not be affected if the Municipality's computer servers or internet connection goes
down.
• ACTIVE Net provides online services that include program registration,
membership sales and facility bookings, and will provide customers self-serve,
web-based options which consumers are expecting with the changes in
technology.
Municipality of Clarington
Report COD-004-16 Page 5
• Through research by staff it was revealed that although there are a few other
vendors providing similar software solutions, there is no software solution, other
than ACTIVE Net, that could singularly replace the existing CLASS software.
• Having the servers hosted in Canada is the Municipality's preference in order to
more easily comply with the Municipal Freedom of Information and Protection of
Privacy Act (MFIPPA).
• Some vendors are introducing their applications as a new product in response to
the end of CLASS however there is a concern that their product has not been fully
tested for success as of yet.
Project Time Line
The process to replace the current CLASS software system is a complex and lengthy
process. The project would be led by the Community Services Department with support
from all relevant Departments as required.
Subject to Council approval to proceed with the recommendations, the Community
Services Department has identified July 2017 as the ACTIVE Net go live date as it is the
beginning of the Fall 2017 registration.
A proposed implementation schedule is shown below:
April 11, 2016 Council approval
April 12, 2016 Begin Contract Negotiations
September 2016 Commence software implementation - includes installation,
configuration, customization, training and data
creation/m ig ration
November 2016 Test environment created and completed
February 2017 Training
March 2017 Go live- preparation and testing
July 2017 Go live - transition all locations and users to new software
solution
A well planned migration for current resident profiles within CLASS to the ACTIVE Net
solution is extremely important to the long term success of the Municipality's recreation
programs and services. The ACTIVE Net solution provides additional tools to manage
and potentially grow programs and service revenues. ACTIVE Net would provide
residents with a secure, robust and user-friendly, web-based tool.
Municipality of Clarington
Report COD-004-16 Page 6
3. Financial/Budget Funding
ACTIVE Net's fee model is transactional based, making the cost to operate directly
related to revenues generated. Note all prices shown in this report are excluding HST.
Proposed Operating Cost
Based on 2015 data, ACTIVE Net transaction fees would be approximately $137,644
(see Confidential Attachment 1). The Municipality currently budgets $47,900.00 for the
processing of payments associated with CLASS transactions plus an additional $26,000
in software maintenance fees. A migration to ACTIVE Net would result in an increase of
approximately $63,744.00 in costs. The impact to Community Services Department
would be approximately 50% or $ 31,872.00 in 2017 with the full impact occurring in
2018. It is anticipated that the cost recovery would be managed through departmental
rates and fees structure. The aforementioned fees are estimates only.
There is a potential for savings should the various Agencies of Durham Region proceed
as a group pooling their revenues in order to reach a higher revenue bracket which
results in lower fees. The potential savings range from to 13% to 35% (refer to
Confidential Attachment 1).
Proposed Capital Costs
The one-time capital impact of moving to ACTIVE Net is estimated to be $ 126,451.00.
This figure includes proposed service costs, technical service fees and hardware costs.
See Confidential Attachment 2 for a further breakdown of these fees. ACTIVE Network
has offered the Municipality a one-time Customer Loyalty Credit of approximately
$30,000 which is available until April 30, 2016. This would reduce the capital impact to
approximately $96,451 if the Municipality confirms with ACTIVE Network that the
Municipality is interested in partnering ACTIVE Network before April 30, 2016.
The Corporate Services Department has budgeted funds available to cover the initial
capital procurement costs associated with this new solution.
4. Concurrence
This report has been reviewed by Nancy Taylor, Director of Finance who concurs with the
recommendation.
5. Conclusion
It is respectfully recommended the Purchasing Manager and relevant Departmental Staff
be authorized to negotiate with ACTIVE Network in order to develop a mutually agreed
upon contract and to allow for the transition and customer migration to begin. The
ACTIVE Net solution provides the necessary technology tools and features for both
Municipal staff and Clarington residents. This solution would plan an integral role in the
ongoing delivery of programs and services.
Municipality of Clarington
Report COD-004-16 Page 7
As this is an operational contract, it is recommended that the Purchasing Manager
execute the agreement on behalf of the Municipality.
6. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
sv.
Submitted by: Reviewed by
arano, H.B.Sc., C.M.O. Franklin Wu,
trector of Corporate Services Chief Administrative Officer
J seph Caruana,
Director of Community Services
Staff Contact: David Ferguson, Purchasing Manager, 905.623.3379 Ext 2209 or
dferguson@clarington.net
Attachments: 1. Group Buy Incentive (Distributed Under Separate Cover)
2. Proposed Capital Cost Summary (Distributed Under Separate Cover)
MM/DF/sm
Confidential Reports
General Government Committee
Report Number: COD-004-16
Attachment #1 & #2- Only
Date of Report: March 29, 2016
Replacement of Recreation Software