Seattle: Costs Soar For City Utilities Computer System

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Seattle: Costs Soar For City Utilities Computer System

Source: Seattle Post-Intelligencer Publication date: Mar 30, 2000

A new computer system being developed by City Light and Seattle Public Utilities was supposed to be able to bill customers with more convenience and at less cost.

But delays have driven up the project's cost by as much as $10 million, and the project won't be running until November.

This has City Council members concerned because it is the second delay and overrun for the project.

The new computer system was originally supposed to be running last year, but it was delayed until May, and the cost increased from $20 million to $26 million.

Now, when it is finally running, the Combined Customer Services System may cost as much as $36 million.

In a letter to Mayor Paul Schell on Monday, council members Margaret Pageler and Jim Compton wrote "the most important task now is to . . . complete it as quickly and efficiently as possible. "We are, however, also concerned about accountability. At the appropriate time, we would like to hear how you will ensure that future information technology projects will not experience similar problems. . . . We would like to carefully examine any organizational and procedural failings that led to this problem," the letter said.

The utilities now each have their own computer system to do billing. Four years ago, they decided to merge their computers into one system.

City Light deputy director Jim Ritch said "operating one system will be cheaper than operating two."

One system, he said, would also let customers make one call to start or stop their garbage pickup through Seattle Public Utilities at the same time they're starting or stopping electricity service.

The new system would also let customers make electronic payments.

But he said the two systems are complex. Billing for garbage pickups, for instance, have different rates for the number and the size of garbage cans. Combining the systems proved complicated, which led to the first delay. Any delay means paying contractors and consultants for a longer period of time.

Then, he said, a consultant - who has since been replaced - advised them they could test the new system at the same time it was being developed. The utilities found out that wasn't the case, and needed to wait on tests until the system was completed last week. That in turn delayed the project until November, while the tests are being done.

Ritch said the $10 million is the most they expect the overrun to be, and the figure could be lower. Compton and Pageler said in the letter that they have no choice but to go forward. The only way to cut costs is to reduce testing. But that would create "substantial risk," the memo said.

The city could just scuttle the project, but it would only have to start a new system in several years at a cost of another $23 million to $36 million. "Because the project budget is already spent, and there are no indications that CCSS will not work when it is completed, spending an additional $10 million (or less) to complete it is preferable," the letter said.

Meanwhile, Ritch said, a consultant has been hired to come up with a plan to make sure the work gets done on schedule.

P-I reporter Kery Murakami can be reached at 206-448-8029 or kerymurakami@seattle-pi.com Publication date: Mar 30, 2000 ) 2000, NewsReal, Inc.

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-- Carl Jenkins (Somewherepress@aol.com), March 31, 2000


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