REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Negotiate and Execute Amendments to the Agreement with N. Harris Computer Corporation for the NorthStar CIS Utility Billing System
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City’s utility billing operations rely on the NorthStar Customer Information System (NorthStar CIS) provided by N. Harris Computer Corporation (Harris). NorthStar CIS is a critical utility billing system that supports ten interconnected user applications that enable seamless integration between meter reading, service orders, meter data management, utility bill generation, payment collection across multiple channels, and customer service delivery, including both a call center and an online self-service web portal.
The City originally entered into an agreement with Harris in 1998 for the implementation, support, and maintenance of the NorthStar CIS. In 2017, the City Council authorized the City Manager to execute a new agreement with Harris (2017 Agreement) to upgrade NorthStar CIS from version 6.3 to version 6.4, with a maximum compensation of $276,648 and a term through December 7, 2020. Since then, the agreement has been amended multiple times to incorporate additional critical projects and increase compensation, as summarized below:
• Amendment No. 1 (Authorized under RTC# 20-714, executed December 1, 2020): Extended the term through December 31, 2023, with no change in the maximum compensation. City Council also authorized the City Manager to negotiate and execute future amendments for additional work related to transitioning the customer payment system from NorthStar CIS to the City’s Smart Energy Water (SEW) platform to ensure compliance with Payment Card Industry Data Security Standard (PCI DSS). The PCI DSS is a set of security requirements designed to protect cardholder data and reduce payment card fraud, applicable to any entity that stores, processes, or transmits cardholder data.
• Amendment No. 2 (Executed December 16, 2020): Increased compensation by $189,551 for a revised maximum compensation not to exceed $466,199 for the work related to the SEW project, as authorized under RTC# 20-714.
• Amendment No. 3 (Executed January 2, 2024): Extended the term through December 31, 2025, to accommodate additional time needed to complete the SEW project, as authorized under RTC# 20-714.
• Amendment No. 4 (Authorized under RTC# 24-168, executed May 1, 2024): This amendment modified the scope of services to include discovery work needed to ensure ongoing compatibility between the NorthStar CIS and Silicon Valley Power’s proposed updated meter data management system. Once the updates are complete, Silicon Valley Power will be able to export 15-minute meter data to other systems, significantly reducing staff time troubleshooting system communications issues and improving support for customer service activities relating to energy usage. This scope of work represented the first step in a two-step process and the second step is proposed to be included in Amendment No. 7, as discussed below. In Amendment No. 4, compensation was increased by $70,857 for a revised not-to-exceed amount of $537,056.
• Amendment No. 5 (Authorized RTC# 25-139, executed May 9, 2025): Increased compensation by $233,391 for a revised maximum compensation not to exceed $770,447 for additional work on the NorthStar server migration and mCare upgrade projects.
The purpose of this report is to request City Council authorization to negotiate and execute Amendment No. 6 and Amendment No. 7 to support two new projects and provide additional flexibility and authorization for future work necessary to maintain this critical utility billing system.
DISCUSSION
Since the execution of the 2017 Agreement with Harris, the NorthStar CIS has undergone various updates and modifications to maintain compliance with industry standards and align with the City’s evolving operational needs and technology platforms. As outlined above, these have been implemented through successive amendments to the agreement.
At this time, two new work efforts have been identified that require further amendment of the 2017 Agreement to ensure continuity of service and support the continued modernization of the system.
1. NorthStar Customer Connect Update
The NorthStar CIS Customer Connect module is the current online self-service portal through which residents access their utility accounts information and submit payments. While the City is in the process of transitioning to a new, modern, cloud-hosted portal provided by SEW, with public release anticipated in late 2025, the legacy Customer Connect portal remains in use.
Currently, all merchant services and credit card processing transactions for the legacy Customer Connect portal are processed through Bank of America (BOA), Harris’ banking services provider. BOA has announced a mandatory upgrade to its payment processing system, CyberSource, which is scheduled to go live in August 2025. To maintain uninterrupted service and remain compliant with PCI DSS, the City must implement corresponding updates to the Customer Connect portal to ensure it functions properly with the new CyberSource platform.
Failure to update the Customer Connect portal in advance of the CyberSource transition will result in the shutdown of the Customer Connect portal, which will disrupt the City’s ability to accept online utility payments during the critical period before the SEW portal goes live.
To prevent such disruption, staff is requesting authorization to negotiate and execute Amendment No. 6 to the 2017 Agreement to support the development, quality assurance, testing, and deployment of the required updates to the Customer Connect portal. The cost for this work is not to exceed $45,756.
2. EnergyIP Integration Modernization
The authorization provided in Amendment No. 4 supported Step 1 of a two-step process to upgrade the existing integration between the NorthStar CIS and the EnergyIP Meter Data Management System. That initial discovery process is now complete, and Harris has provided a scope of work to complete the EnergyIP Integration Modernization. To complete the upgrade, SVP will need to upgrade the Honeywell NetSense System (Data Collection), Siemens EnergyIP (EIP) System (Data Management), and the NorthStar CIS. Staff is coordinating with all three vendors and is ready to proceed with the work and a contract amendment with Harris.
To support the services necessary to modernize SVP’s meter data management system and maintain seamless integration with the NorthStar CIS, staff is requesting authorization to negotiate and execute Amendment No. 7 to the 2017 Agreement to support the planning, testing, development, and integration of the upgrades to the EnergyIP Meter Data Management System. The total cost for this work is a fixed price of $215,500.
Authorization for Additional Unanticipated Work
In addition to the two identified work efforts, staff anticipates that additional needs may arise to support the continued operation and modernization of the NorthStar CIS. Given the complexity of the system and its integration with multiple applications, flexibility is needed to respond promptly to urgent or emerging requirements that fall outside the scope of the standard maintenance services.
To address these potential needs, including any additional requirements that may arise under Amendment No. 6 or Amendment No. 7, staff is requesting authorization to negotiate and execute future amendments to the 2017 Agreement for additional services in a total amount not to exceed $300,000 that may be required to maintain system compatibility, support compliance, respond to operational requirements or to take other actions necessary to implement and administer the agreement.
Summary of Cost Impact
Table 1 below summarizes the current and proposed amounts under the 2017 Agreement with Harris.
Table 1 - Compensation Summary
|
Description |
Amount |
|
Current Authorized Compensation (Original Agreement and Amendments No. 1 - 5) |
$770,447 |
|
Proposed Amendments: Customer Connect Update ($45,756) and EnergyIP Integration Modernization ($215,500) |
$261,256 |
|
Subtotal - Revised Compensation After Amendments No. 6 and 7 |
$1,031,703 |
|
Proposed Authorization for Future Unanticipated Work |
$300,000 |
|
Total Not-to-Exceed Maximum Compensation |
$1,331,703 |
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of a California Environmental Quality Act (“CEQA”) pursuant to pursuant to section 15061(b)(3) of Title 14 of the California Code of Regulations in that it can be seen with certainty that there is no possibility that these upgrades and modifications may have a significant effect on the environment.
FISCAL IMPACT
The proposed Amendment No. 6 adds up to $45,756 to support the NorthStar Customer Connect Update with funding available through the Utility Management Information System (UMIS) Enhancements project in the General Government Capital Fund (Project 6103).
The proposed Amendment No. 7 adds up to $215,500 (funded by SVP) to support the EnergyIP Modernization project. Funding is available in the Operations and Planning Technology project in the Electric Utility Capital Fund (Project 2395).
Future amendments may add up to $300,000 for additional services required to maintain system compatibility, support compliance, respond to operational requirements or to take other actions necessary to ensure the ongoing functionality of the system. Funding for potential future amendments will be determined as needs arise and according to the available budgets for the areas in which additional services are needed.
COORDINATION
This report has been coordinated with the Finance and Information Technology Departments, Silicon Valley Power, and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to negotiate and execute Amendment No. 6 and Amendment No. 7 to the agreement with N. Harris Computer Corporation (Agreement) for the NorthStar Customer Information System Customer Connect Portal integration with CyberSource and the EnergyIP Integration Modernization, including extending the term to December 31, 2028 and increasing the maximum compensation by $261,256 for a revised maximum compensation not to exceed $1,031,703, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the Agreement, including negotiating and executing future amendment(s) to (a) add, modify, or delete services, including software subscription or support services, (b) increase the maximum compensation by an additional $300,000 for a total maximum compensation amount not-to-exceed $1,331,703 to cover unanticipated services required to maintain system compatibility, support compliance, or respond to operational requirements, (c) extend the term as needed to complete approved projects, and (d) make de minimis changes, all subject to the total maximum compensation of $1,331,703, appropriation of funds, and review and approval as to form by the City Attorney.
Staff
Reviewed by: Kenn Lee, Director of Finance
Reviewed by: Nico Procos, Acting Director of Electric Utility
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. 2017 Harris Agreement
2. RTC 20-714
3. Amendment No. 1
4. Amendment No. 2
5. Amendment No. 3
6. Amendment No. 4
7. RTC 24-168
8. Amendment No. 5
9. RTC 25-139