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Home My WebLink AboutAgenda_GGAF_03.29.2017Notice of Meeting for the General Gov ernment and Finance Adv isory Board of the City of Georgetown March 29, 2017 at 4:30 PM at Georgetown Communications and Technology Conference Room, located at 510 West 9th Street, Georgetown, TX The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Legislativ e Regular Agenda A Review minutes fro m the March 1, 2017 General Go vernment and Financ e (GGAF) Ad visory Board Meeting - Danella Elliott, Board Liaison B Co nsideration and poss ib le approval o f rec o mmendatio n to solic it a Reques t for Proposal fo r a third- party o nsite emp lo yee clinic vend o r - Tad d P hillips , HR Direc tor C Co nsideration and possible ap p ro val o f a c o ntract with S tewart Organizatio n to p ro vide managed c o mp uter p rinter and pho toc o p ier services for an amo unt o f $130,000.00. Chris Bryce, Directo r, Info rmatio n Tec hno lo gy; James Davis , IT Op erations Manager D Co nsideration and possible ap p ro val o f a c o ntract with F ib erlight, LLC to p ro vide a sec o nd d ed icated internet s ervic e fo r a total of $63,000 o ver three years - Chris Bryc e, IT Direc tor E Dis cus s ion and pos s ible actio n to recommend FY 2017 bud get amendments to the Co uncil Disc retionary Fund . Leigh Wallace, F inance Direc tor CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2017, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 1 of 23 City of Georgetown, Texas Government and Finance Advisory Board March 29, 2017 SUBJECT: Review minutes from the Marc h 1, 2017 General Government and Financ e (GGAF ) Advis o ry Bo ard Meeting - Danella Ellio tt, Bo ard Liais o n ITEM SUMMARY: Review minutes from the Marc h 1, 2017 General Government and Financ e (GGAF ) Advis o ry Bo ard Meeting. FINANCIAL IMPACT: N/A SUBMITTED BY: Danella Ellio tt, Exec utive As s is tant ATTACHMENTS: Description Type 3.1.17 Draft Minutes Backup Material Page 2 of 23 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, March 1, 2017 at 4:30 PM The General Government and Finance Advisory Board met on Wednesday, March 1, 2017 at 4:30 PM at the Georgetown Communications and Technology building (GCAT), located at 510 West 9th Street, Georgetown, Texas. Board Members Present: City Staff Present: Tommy Gonzalez, Chair David Morgan, City Manager John Hesser, District 3 Laurie Brewer, Assistant City Manager James Bralski Leigh Wallace, Finance Director Severine Cushing Chere Heinzman Board Members Absent: None Chad Berg, Emergency Management Coordinator John Sullivan, Fire Chief Mike Stasny, Technical Services Manager Stan Hohman, Fleet Maintenance Supervisor Tadd Phillips, HR Director Paul Diaz, Budget Manager Sabrina Poldrack, Administrative Assistant Others Present: Adam McCane, Weaver Legislative Regular Agenda Tommy Gonzalez, Chair called the meeting to order at 4:30 p.m. A Review minutes from the January 11, 2017 General Government and Finance (GGAF) Advisory Board -- Danella Elliott, Executive Assistant Board did not have any comments regarding the minutes from January 11, 2017. Motion to approve the minutes by Severine Cushing, second by James Bralski. Approved 5-0 B Review and discuss General Government an Finance board (GGAF) purpose and bylaws – Tommy Gonzalez, Board Chair Tommy highlighted and reviewed some significant points regarding the bylaws, including the date and time of regular meetings, quorum requirements, 75% attendance participation, and the Open Meetings Act. He reminded Board members of the importance of communicating with the liaison (Danella Elliott) if they were unable to make it to a meeting. There were no questions and all Board members were present during the discussion. D. Discussion and possible approval for the purchase of Motorola radios not to exceed the amount of $824,268.20 to support the citywide Radio Replacement Plan – Chad Berg, Emergency Management Coordinator Chad Berg presented Item D. He gave the history of the radios, and reminded everyone that in April of 2015, Williamson County sent “Intent to Cancel” radio support notifications to all subscribers of Motorola. Page 3 of 23 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, March 1, 2017 at 4:30 PM He noted that all of the 800 MgHz. radio systems that the City of Georgetown currently uses were included in the equipment that Motorola will no longer service. The service support end date for our portable radios (XTS5000) is 12/31/2018. There are currently approximately 176 Motorola 2-way radio units in use today dispersed amongst many City departments. The existing mobile and portable radio units in use today are reaching their end of service life in 2018. A citywide Communications Task Force was developed to maximize resources in the purchase of radio equipment. This task force developed the radio purchase plan to be administered over three years. The proposal presented is year one of the three year radio purchase program. The financial impact of the year one purchase for the radio replacement program is made up of a combination of funds from the sale of bonds and the City’s general fund. The purchase should not exceed the amount of $824,268.20 for year one of the radio purchase program. Discussion followed. Motion to approve the Item D by James Bralski; second by Severine Cushing. Approved 5-0. Tommy suggested that if funding has already been approved in the budget process, the item shouldn’t need to go before a board, but could be placed directly on the Council Consent Agenda. David will follow up on this request. C. Review and discussion of the Comprehensive Annual Financial Report and results of the audit for Fiscal Year Ended, September 30, 2016. Leigh Wallace, Finance Director and Laurie Brewer, Assistant City Manager. Leigh distributed updated handouts and gave a presentation on the CAFR and introduced the City’s external auditor, Adam McCane with Weaver and Tidwell, LLP. He presented the results of the City’s annual audit and resulting Comprehensive Annual Financial Report (CAFR). Mr. McCane said that the results of the auditors' examination was in compliance with the testing for grant proceeds, as well as their testing on fraud and risk assessment. The auditors rendered an "unmodified" or clean opinion (highest level) on the City's financial statements, which means they were able to obtain reasonable assurance that the basic financial statements are free of material misstatements. Mr. McCane said that no material weaknesses in internal control were noted; no significant findings and no instances for concerns. Mr. McCane answered questions and thanked staff for all of their help, assistance and expertise. The CAFR will be submitted to the Government Finance Officers Association for consideration for the Certificate of Achievement for Excellence in Financial Reporting. The City of Georgetown has received this award for the last 28 consecutive years. Tommy thanked Mr. McCane and Leigh and her staff for a job well done. Page 4 of 23 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, March 1, 2017 at 4:30 PM E. Election of General Government and Finance (GGAF) Advisory Board Officers - Tommy Gonzalez, Board Chair Mayor Ross appointed Tommy Gonzalez as GGAF Board Chair at the February 14th City Council Meeting. James Bralski volunteered to take the Vice Chair position. Motion to elect James Bralski as Vice Chair by James Bralski; second by Severine Cushing. Approved 5-0 Motion to elect Severine Cushing as Secretary by Chere Heinzman; second by James Bralski. Approved 5-0 F. Review of the City Council’s Boards and Commissions Attendance Policy – Tommy Gonzalez, Board Chair Tommy reviewed the Attendance Policy and noted how important it was to attend the meetings, and noted the 75% attendance policy. There were not questions and all Board members were present during the discussion. G. Discuss dates/times for future General Government and Finance Board (GGAF) meetings – Tommy Gonzalez, Board Chair Tommy noted that the meetings are currently on the 4th Wednesday of every month at 4:30 p.m. Everyone agreed to keep the same meeting schedule. Page 5 of 23 Minutes General Government and Finance Advisory Board City of Georgetown, Texas Wednesday, March 1, 2017 at 4:30 PM Adjournment Motion to adjourn the meeting at 5:33 p.m. Approved 5-0 __________________________________ ____________ Tommy Gonzalez Date Board Chair __________________________________ ____________ Severine Cushing Date Board Secretary __________________________________ ____________ Danella Elliott Date Board Liaison Page 6 of 23 City of Georgetown, Texas Government and Finance Advisory Board March 29, 2017 SUBJECT: Cons id eration and p o s s ible approval of rec o mmendation to solic it a R eq ues t fo r P ro p o s al for a third -p arty o nsite employee c linic vend o r - Tadd Phillips , HR Direc tor ITEM SUMMARY: McGriff, Seibels and Williams , the City’s clinic feas ib ility cons ultant d id an analys is o f the City’s employee p o p ulatio n, d emo graphics, and c laims to determine if a c linic wo uld b e a viab le optio n to b o th improve lo ng-term cos ts trend s for o ur health p lan and pos itively impac t the health o f our employees . Bas ed o n this analys is , it is McGriff ’s rec ommend ation that a third-p arty ons ite vendor would b e viable and s us tainab le for the City o f Geo rgeto wn and that it would b e in the best interest o f the City to do a Reques t fo r Propos al fo r vendor o p tions . If ac tion is taken to mo ve forward with a Req uest for P ro p o s al, res ults and recommend ations from that p ro p o s al will b e taken to GGAF and Counc il at a later date before further ac tion is taken. FINANCIAL IMPACT: Direc t cost of this item is initiating the s econd p has e o f c o nsulting p ro ject, at a c os t of $20,000. Additio nally, moving to a third-party c linic o p tion is expec ted to dec reas e the expens e trend line of medic al claims fro m the Self Ins urance Fund o ver a 5 year p eriod. One-time start-up exp ens es o f approximately $100,000 to $200,000 would c o me fro m c urrent unalloc ated S elf Ins uranc e F und res erve. S p ecific start-up and o p erating c o s ts will not be d etermined until after the Req uest for Propo s al proc es s . SUBMITTED BY: Tadd Phillip s , HR Direc tor ATTACHMENTS: Description Type Clinic Feas ibility Pres entation Pres entation Page 7 of 23 3/24/2017 1 Presented By: Lance Pendley, Senior Vice President Scott Gibbs, Senior Vice President Sandy Brown, Vice President Mike McAbee, Assistant Vice President/Data Analytics Clinic Feasibility Project I.Health Care & Clinic Trends II.Clinic Survey Data & MSW Client Specific Cost Trends III.City of Georgetown Plan Overview & Clinic Purpose IV.Clinic Vendor Options & Pros & Cons V.City Clinic Recommendation VI.Cost Estimates & Clinic 5 Year Projection VII.Vendor Considerations Table of Contents 2 Page 8 of 23 3/24/2017 2 •Medical and Pharmacy costs are increasing every year •Cost shifting continues to burden employers and employees alike •In a traditional physician environment, the member must take the necessary steps to improve health after learning of their status through preventative/wellness exams. –“Knowing their numbers” i.e. Blood Pressure, Cholesterol –There is little or no coaching from the provider throughout the remainder of the year –More reactionary in nature of treating symptoms not overall health •Outside physicians are not as familiar with employer plan designs, drug formulary list, and employer initiatives 3 Health Care Trends 59% 29% 24%25% 18%15% 10% 46% 15%17% 10% 5% 5% 13% Employers offering work-site clinic by industry Percentage of large employers offering medical service center Occupational health services Primary care services 2015 Mercer Survey on Worksite Clinics 4 Mercer Survey: Employee Offering Employee Clinic Page 9 of 23 3/24/2017 3 Survey of 14 Cities was conducted in March of 2015. Goals of the survey: •Determine the number of cities offering an Employee Clinic •Review various options cities use in implementing an Employee Clinic, including implementation cost and services provided Results of the survey: •7 out of 14 cities offer an employee clinic: –Carrollton, Dallas, Denton, Fort Worth, Garland, Lewisville, Mesquite (red=HDHP offering) •3 cities (Allen, McKinney, Plano) are planning on implementing a clinic in the future •Out of 7 cities that offer an employee clinic: –2 cities directly manage their clinics – Garland and Mesquite –5 cities use third party management companies –4 cities share their clinics with other entities, such as other cities, counties, or school districts –Reported implementation cost ranged from $58,600 - $200,000 –Clinic copays at different cities range from $0 - $25 –4 cities tie their Wellness program to the employee clinic 5 Summary City EE Clinic Survey 47% 59% 61% 68% 72% 74% 77% 91% Objectives in establishing a work-site clinic Ranked important to employers offering a general medical clinic 2015 Mercer Survey on Worksite Clinics Controlling total health spend Reducing lost employee productivity Enhancing health/wellness leadership image Managing employee health risk and chronic conditions Improving member access to health care Better quality/consistency of health care Means of attracting and retaining valued employees Managing workplace injuries 6 Mercer Survey: Employee Objectives Page 10 of 23 3/24/2017 4 4% 5% 8% 24% 26% 32% 38% 63% 71% 73% 84% 87% Medical services offered Percentage of respondents offering a general medical clinic 2015 Mercer Survey on Worksite Clinics Immunizations Screenings Urgent care (other than workplace injury) Preventative care exams Chronic disease management Pharmacy Mental health or employee assistance counseling Physical therapy Lab/X‐ray Other Dental services Vision 7 Mercer Survey: Typical Services Provided •Typical cost of clinic accounts for 10% or less of total healthcare spend with half of respondents accounting 5% or less of spend. •85% of respondents perceive their clinic as a success •Measuring ROI remains a challenge with only 41% of employers being able to measure ROI –ROI less than 1.00 (5%) –ROI of 1.00 – 1.99 most common (23%) –ROI of 2.00 (13%) –EE satisfaction perceived as better measure of success than ROI 87% 73%63%58%54% 54% Employee satisfaction Clinical utilization rate Lost work days Helping members control chronic conditions Reducing modifiable health risks ROI ‐ Medical cost savings Measures of Clinic Success Percentage of employers rating measure as successful 2015 Mercer Survey on Worksite Clinics 8 Mercer Survey Findings Page 11 of 23 3/24/2017 5 10.03% 6.51% 24.00%23.62% 2.02% 3.87% ‐4.71% 33.63% Entity 1Entity 2Entity 3Entity 4 Active Employee Cost Trend Before / After Clinic Implementation Pre Clinic Trend Post Clinic Trend Bold figure shows total 4-year cost trend 10.63% 65.19% 18.16% 12.15% 9 MSW Client Cost Trend with Clinic 29.82% 18.87% 15.58% 18.95% Entity AEntity BEntity C Government* Active Employee 4-Year Cost Trend Public Entities Without Clinic Entity A Entity B Entity C Government* *Government includes all respondents(Mercer data) 10 MSW Client Cost Trends Without Clinic Page 12 of 23 3/24/2017 6 •City of Georgetown’s health plan claims are trending 8.64% higher than prior 12 month period (does not include Aetna runout claims). •Current plan year has incurred 12 large claimants over $50,000 in claims with 5 having over $100,000 in claims. •City plan has had 929 PCP claimants for a total of $246,667. In addition, City has had 507 Specialist claimants for a total of $552,676. •Health plan has paid $310,114 in ER claims and $7,221 in Urgent Care Claims •It is estimated at 23.8% of the City’s ER claims could have been redirected towards a more cost effective alternative provider •22% of the ER claimants are repeat utilizers •Top ER visits include abdominal pain and superficial injury/contusion 11 City of Georgetown Plan Overview •495 members incurred wellness claims on the health plan, which amounts to 38.7% of members receiving a wellness related exam. −280 Female & 215 Male subscribers make up the 495 members receiving a wellness services. −Wellness services include age appropriate screenings for Breast, Cervical, and Colon Cancer. Also included would be Well Baby and Well Adult visits including physicals, vaccinations, and blood work. −74% of the City’s employees are male, while only 30% of male members had a wellness visit in 2016. •UHC book of business is an average wellness related exam utilization of 39.9%. •In a recent Kaiser survey, 62% of respondents claim to have had a preventative screening in the last 12 months, while 92% view it as very important. 12 City of Georgetown Plan Overview Page 13 of 23 3/24/2017 7 13 •Our analysis shows that many of our employees are not seeking Preventative Care as often as appropriate •Reasons include but not limited to: •Having no established relationship with a Primary Care Physician or Specialist. National stats suggest that 1 in 2 adults have no identified physician. •Enrollment in high-deductible consumer driven health plans (CDHP) may be causing a barrier to entry. Members are not aware of their coverage for preventative/wellness visits, and are concerned about out of pocket expenses. •25% of all health plan enrollment nationwide was in a high deductible health plan in 2015. City of Georgetown’s high deductible health plan currently has 45% of members enrolled. •The proliferation of convenient ways to get care, such as stand alone emergency rooms and urgent care centers, has led to higher utilization and higher costs. We would like to drive these claims into a clinic setting where more time is spent with the member, and costs can be managed appropriately. City of Georgetown Findings •To find potential chronic conditions early and be proactive when those conditions are found •To impact the claims cost for the City of Georgetown’s Self-Funded Medical Program •To improve member access to convenient care •To refer employees to high quality & cost effective Providers & Facilities •To increase wellness opportunities for employees and better manage care •To improve productivity due to lost time at work •To add a new employee benefit to participants in the health program to attract and retain employees 14 City of Georgetown Clinic Purpose Page 14 of 23 3/24/2017 8 •To engage those members not currently using a Primary Care Physician on a regular basis •Educate on the use of generic and low cost drugs •Provider referral to other City Benefits –EAP –Compass –Premium Designated Providers •Health Risk Assessments performed on employees who choose to use clinic •Integrate HRA results with TPA to impact individual wellness and promote lifestyle changes 15 Clinic Role & Efficiency •Option 1: Directly run by the City or Shared Party Model •Option 2: Contracted through third-party onsite services vendor •Option 3: Contracted through local health system, hospital or physician group •All Options: –Educate & Coordinate –Impact to Emergency Room Costs/Visits –Improvement to non-catastrophic cases –Increase Preventive Screenings –Reduce Absenteeism 40%34% 18% 5%4% Third‐party management company Managed in house Hospital system Provider group Other Work-site clinic management Percentage of respondents using specified management resource 2015 Mercer Survey on Worksite Clinics 16 Clinic Options Page 15 of 23 3/24/2017 9 Option 1: Directly run by the City or Shared Party Model Pros –Most Cost Effective –Control over clinic design, provider selection, & scope of services Cons –Time consuming for City staff, not the City’s core business practice –Liability on the City for compliance, regulatory requirements, HIPAA privacy practices Option 2: Contracted through third-party onsite services vendor Pros −Control over clinic design while utilizing experienced vendor for clinic implementation, physician selection, & recommendations −Vendor responsible for complying with regulatory requirements and holds liability Cons –More expensive than option 1 Option 3: Contracted through local health system, hospital or physician group Pros –Collaboration with local partners Cons –Potential conflict of interest if provider’s goal is to drive business to own network –Potential limitation on data to review utilization of services, clinic procedures, difficult to determine ROI –Less control than options 1 and 2 Recommendation: –Option 2, Third party model, which is the most utilized model amongst employers. 17 Clinic Options: Pros & Cons •Entities with approximately 1,000 employees can sustain their own in-house/full- time employee clinic −At the size of Georgetown’s employee headcount, it is recommended that the City operates a clinic at 25 hours per week. −This enables future opportunity for other partners to join in the City clinic and the ability to increase hours of operation •Geographically, the centralization of the City’s employee base allows for access to an employee clinic −Typically employees are within a 25 mile radius of their employment office −75% of City of Georgetown employees reside within a 12.5 mile radius of the City •Using a third-party model allows for the clinic to become the centralized hub of the wellness program. 18 City of Georgetown Recommendations Page 16 of 23 3/24/2017 10 •Initial implementation –Dependent on contract that includes facility or if City of Georgetown identifies facility –Initial Implementation costs •Annual Fees –Dependent on clinic staff •Number of employees •Medical Doctor vs. Physician Assistant •LVN vs. Medical Assistant –Hours of operation (25 hours vs. 40 hours) –Services Provided •Estimated Annual Cost –$500,000 based on: •1 Physician Assistant •2 Medical Assistants •25 hours per week •Third Party Model 19 City Costs Estimates All Subscribers ‐No Clinic 2017‐2021 2016 2017 2018 2019 2020 2021 5‐Year Totals Subscribers 539 577 617 660 706 755 663 Headcount % Increase ‐‐7.0% 7.0% 7.0% 7.0% 7.0% 14.9% Annualized Med Trend ‐‐8.00% 8.00% 8.00% 8.00% 8.00% 36.05% Annualized Rx Trend ‐‐12.00% 12.00% 12.00% 12.00% 12.00% 57.35% Medical PEPM $424.72 $458.70 $495.40 $535.03 $577.83 $624.06 $543.76 Rx PEPM $142.36 $159.44 $178.57 $200.00 $224.00 $250.88 $205.65 Total PEPM $567.08 $618.14 $673.97 $735.03 $801.83 $874.94 $749.41 Medical Claims $2,747,089 $3,176,039 $3,667,942 $4,237,438 $4,895,376 $5,653,984 $21,630,777 Rx Claims $920,784 $1,103,963 $1,322,132 $1,584,000 $1,897,728 $2,272,973 $8,180,796 Total Claims $3,667,873 $4,280,001 $4,990,074 $5,821,438 $6,793,104 $7,926,956 $29,811,573 All Subscribers ‐Third‐Party Clinic 2017‐2021 2016 2017 2018 2019 2020 2021 5‐Year Totals Subscribers 539 577 617 660 706 755 663 Medical Decrement ‐‐0.00% 5.00% 5.00% 5.00% 5.00% 10.07% Rx Decrement ‐‐0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Medical PEPM $424.72 $458.70 $472.46 $486.63 $501.23 $516.27 $488.99 Rx PEPM $142.36 $159.44 $178.57 $200.00 $224.00 $250.88 $205.65 Total PEPM $567.08 $618.14 $651.03 $686.63 $725.23 $767.15 $694.64 Medical Claims $2,747,089 $3,176,039 $3,498,094 $3,854,110 $4,246,421 $4,677,406 $19,452,069 Rx Claims $920,784 $1,103,963 $1,322,132 $1,584,000 $1,897,728 $2,272,973 $8,180,796 Total Claims $3,667,873 $4,280,001 $4,820,226 $5,438,110 $6,144,149 $6,950,379 $27,632,865 Claim Savings $0 $0 ‐$169,848 ‐$383,328 ‐$648,955 ‐$976,577 ‐$2,178,708 Clinic Cost $0 $100,000* $500,000 $500,000 $500,000 $500,000 $2,100,000 Net Cost $3,667,873 $4,380,001 $5,320,226 $5,938,110 $6,644,149 $7,450,379 $29,732,865 Net Increase/(Savings) $0 $100,000 $330,152 $116,672 ‐$148,955 ‐$476,577 ‐$78,708 * 2017 Clinic Cost represents startup costs. 20 City Clinic 5 Year Projection Page 17 of 23 3/24/2017 11 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2016 2017 2018 2019 2020 2021 2022 2023 With Clinic Without Clinic Trend (w/ Clinic)Trend (w/o Clinic) 21 City Clinic 5 Year Projection •Pricing Model •Experience with Public Sector •Flexibility to Adapt to Employer •Reporting •Health and Wellness Solutions •Account Management Resources 22 Vendor Considerations Page 18 of 23 3/24/2017 12 23 Clinic Feasibility Timeline Thank you! Page 19 of 23 City of Georgetown, Texas Government and Finance Advisory Board March 29, 2017 SUBJECT: Consid eration and possible approval of a c o ntract with Stewart Organizatio n to provide managed computer p rinter and photocopier services fo r an amount of $130,000.00. Chris Bryce, Director, Informatio n Tec hnology; James Davis, IT Op erations Manager ITEM SUMMARY: This item is to request approval of a new c ontract with Stewart Organization to provide managed printing s ervices for an amount of $130,000.00 per year ($10,834 a month). The current model the City has in place has pres ented a number of drawb ac ks : - Higher in-house costs to replace gro wing printer/copier fleet - Lo s s o f productivity because of aging units with a high number of s ervic e c alls. Lower q uality, remanufactured toner being us ed by current support vend o rs to c ontrol costs. - T he us e of lower quality replacement p arts to control costs. - Higher administrative costs resulting fro m the excessive use of 5 devic e manufacturers, 42 device mo d els , and 35 software drivers. This co ntrac t was quoted by three vend o rs . Dahill, Zeno, and Stewart Organization. - Dahill’s offering was a c o mplete printer fleet refres h, including all rec ently purchased units, o n a traditional 3-year leas e of each unit. This res ulted in a higher initial cost and greater increase per year as units are added. - Zeno ’s offering, the City’s current vendor, was replacing 10 o f our current Multi-function printers on a traditional 3-year leas e, all other units remain. This res ulted in a higher initial c ost and greater increase per year as units are added. This would also allow fo r Non- OEM to ners to continue to be used as well as add 1 new manufacturer and 2 new models of printers. Stewart Organizatio n offers the bes t so lutio n for the proposed MPS c o ntrac t. T his will cover the fo llowing items for the City p rint fleet for the d uration of the contract: - All OEM toner - All s ervic e, OEM parts, and repairs - Initial and ongo ing rep lac ement o f multi-Function, black & white, and c o lo r p rinters at no cos t excep t for added page counts (all new and rep lac ement equipment becomes p roperty of the City) - Remo val and disposal of any replac ed or retired units - P rint fleet reduced to 2 manufacturers and 15 models of printers - 2 p rint drivers to manage - All p rinters purchased with in the las t two years will not be replaced , s aving the City’s investment in thes e units The selec tio n was based on the following req uirements scoring, total cos t p er year (TCO), and 3-year total c o s t of ownership. MPS Vendor Requirements Rating Annual Cost 3yr TCO Devic e Cost Per Print Cost S LA for s ervice Fleet refresh Bud get Adjustments Total Dahill 0 0 0 1 0 1 0 2 Zeno 0 0 0 0 0 0 0 0 Stewart 1 1 1 0 1 1 1 6 As-Is 0 0 0 0 0 0 0 0 Scoring:The vendor offering the bes t s o lution received a 1 for each c atego ry. The vendor not offering the bes t s olution received a 0 for each category. Page 20 of 23 The 3-year Total Cost of Ownership was c alc ulated using the following info rmation and estimations - Vend o rs per print cost for B&W and Color prints - Initial monthly print counts of 185,000 B&W and 60,000 color - A to tal of three new MFP color printers being added each year at a c o s t of $13,000 per unit - Ad d ed print count per month of 1000 c olor pages per MFP - A to tal of three B&W printers being ad ded each year at a cost of $800 p er unit - Ad d ed print count per month of 600 B&W pages per B&W printer - All new printers added at the beginning of each contract year - Co s t for new units co-termed over the remaining life of the contrac t - No ad ditional monthly prints above what was added with new units FINANCIAL IMPACT: All items were budgeted during the FY 2017 budget process. Expens es will be recorded in account 570-5-0641-51-341 (Annual Contrac ts ). SUBMITTED BY: Chris Bryc e, Director, Information Techno lo gy Director and James Davis , IT Operations Manager Page 21 of 23 City of Georgetown, Texas Government and Finance Advisory Board March 29, 2017 SUBJECT: Cons id eration and p o s s ib le approval of a c ontrac t with Fiberlight, LLC to provid e a s econd dedic ated internet servic e for a to tal o f $63,000 over three years - Chris Bryce, IT Direc to r ITEM SUMMARY: This item is to req ues t ap p ro val of a new three-year c o ntract with Fib erlight, LLC fo r a s econd d ed icated internet c ircuit for a to tal o f $63,000 ($1,750 a mo nth). IT staff wo rked with multiple vend o rs for p ricing o n this projec t. Fiberlight offered the best value in this s p ace b as ed o n the following requirements . 1. Internet s ervic es d elivered o ver d ed icated fib er optic cable 2. Ab ility to ro ute the City’s current pub lic IP s p ace 3. Ab ility to o ffer band width to mirro r our p rimary connec tion 4. Co s t to the City fo r the s ervic es provided The p ro p o s ed c o ntract will ad d a sec o nd internet c o nnectio n at 200 megab its/s econd with a separate internet s ervic e p ro vider to be terminated at the Pub lic S afety c o mplex. This will allo w City staff to s tay connec ted to internet s ervices s hould our p rimary internet service p ro vider, ro uter, or firewall lo cated at the GCAT build ing go d o wn. Bid s were taken fro m 3 separate vendors for this s ervice. FINANCIAL IMPACT: All items were b udgeted d uring the FY 2017 bud get p ro ces s . Expens es will b e recorded in ac count 570-5- 0641-51-341 (Annual Contrac ts). SUBMITTED BY: Chris Bryce, Direc tor, Informatio n Tec hno logy Direc tor Page 22 of 23 City of Georgetown, Texas Government and Finance Advisory Board March 29, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion to rec o mmend F Y 2017 b udget amendments to the Counc il Dis cretio nary Fund. Leigh Wallac e, Financ e Directo r ITEM SUMMARY: The Counc il Dis cretio nary Fund was estab lis hed in 2015. The p urpose o f the fund is to take year-end b alanc e in the General F und and determine appropriate one-time uses. The current available b alanc e of the fund is $1,919,824. Counc il S RF Beginning Balanc e $185,045 Unused Fund Ba lance from p reviou s yea r Trans fer In, GF Es timated Year End 750,000 Approved in FY 2 0 1 7 Budget Trans fer In, GF Lone Star Rail 48,000 Curren t Budg et Amendment Trans fer In, GF Final Year End 936,779 Curren t Budg et Amendment Total Available $1,919,824 FINANCIAL IMPACT: N/A SUBMITTED BY: Leigh Wallace, Financ e Directo r Page 23 of 23