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CityView Proposal CityView 4464 Markham Street, Suite 2307, Victoria, BC., V8Z 7X8 Canada Toll-Free: 1.800.665.5647 |Fax: (613) 226.3377 Request for Proposals (RFP) for Permitting System Software and Implementation Services To: City of La Quinta, California Submitted By: A Division of Harris Computer Systems Primary contact: Paul Sliz Telephone: (312) 288-2620 Ext. 67021 Email: PSliz@harriscomputer.com Closing Date: June 28, 2013 Closing Time: 2:00 p.m. Cover Letter Permitting System Software and Implementation Services June 28, 2013 2 Cover Letter CityView, a Division of Harris Computer Systems 4464 Markham Street, Suite 2307, Victoria, BC., V8Z 7X8 Canada Toll-Free: 1.800.665.5647 | Fax: (613) 226.3377 June 28, 2013 City of La Quinta City Hall Attn: Mr. Chris Escobedo 78-495 Calle Tampico La Quinta, CA 92253 RE: Request for Proposals: Permitting System Software and Implementation Services To Mr. Chris Escobedo, Dear City Clerk’s Office, Thank you for the opportunity to respond to your RFP to provide and implement a Permitting System. We greatly appreciate the opportunity to work with the City of La Quinta, The Gem of the Desert - with its history of growth – over 50% population increase in the last 12 years – its popularity as an off-season place to live and provider of a high quality of life for its citizens. We believe we understand your requirements and your desire to transition from a paper and multi-source system to one integrated solution offering options for growth in the future. Our proposal is an ideal fit for your situation. It offers a core set of modules (the CityView PreBuilts) addressing your key needs of Permitting, Inspections, and Planning for a totally integrated enterprise solution. In addition, your mission critical solutions – Laserfiche, GoRequest, Digital Map Products, Esri GIS and HTE will be integrated to this enterprise solution to further lever your investments in these 3rd party solutions. Just as La Quinta has grown over the last 12 years, your needs for the Permitting solution will expand also. Based on your requirements you already are planning for this. We will be ready to help you execute on the vision of expansion with options including: CityView’s Electronic Plans Review, which provides for a paperless plan check process that saves both you and your customer time and money, as well as protects the environment; Public (Web) access which extends your services 24x7 to your constituents and field (Mobile) access for your inspectors which increases productivity and saves time and fuel. Licensing will help manage your license management and automate your renewal process. Consolidating cashiering to your permitting team will be complemented by using our Cashiering PreBuilt to have one source in managing the fee collection process, batch management and further extend the HTE integration. It is not enough to have the right solution and integrations available, but as important to have the expertise to deliver the solution to you. Moving jurisdictions from paper and diverse systems to our integrated solution has become a standard for CityView. We have provided Permitting solutions for over 30 years. We will support you through the partnership with software and services, but as importantly give your staff the knowledge and tools to adjust and control the solution provided as the process and demands within your environment changes. Your staff will not have to rely on CityView in order to make changes to your solution, but we will be there to support you. Cover Letter Permitting System Software and Implementation Services June 28, 2013 3  All contacts related to the execution and delivery of the products and services within this proposal are CityView employees.  There are no pending or past litigation, liens or legal claims against CityView relative to deficiencies in performance.  CityView has not had a bankruptcy nor has it had any insolvency proceedings.  All individuals who will perform work for CityView are free of any conflict of interest.  CityView states the following exceptions to the City’s legal document: We have reviewed the City’s Professional Services Agreement as contained in the RFP. While we substantially agree with its terms, we anticipate certain terms will require negotiation. We expect that the resultant agreement shall be based on Consultant’s and industry norm standard agreements for software licensing and maintenance and that the resultant agreement between the Consultant and the City should include provisions typically seen in these types of software agreements, including: limitation of liability, warranty, license use and restrictions, mutually acceptable acceptance terms, payment terms (including the use of milestones for payment), maintenance terms, approved statements of work, and other provisions typical in software license/support/service agreements and that the absence of any clauses in City’s standard contract which was provided will not affect Consultant’s ability to negotiate such clauses and to modify the standard contract as needed. We look forward to discussing and negotiating a mutually agreeable software license agreement, services agreement and support agreement with you at the relevant junctures.  CityView is a division of N. Harris Computer Corporation (legal name) that is owned by the Constellation Software Inc. (CSI) group of companies. Constellation Software is a rapidly growing conglomerate of vertical market software (VMS) companies; each focused upon dominating its respective market niche. Constellation is a publicly traded company on the Toronto Stock Exchange under (TSX: CSU). Please find enclosed our information. The pricing in this proposal is valid for 120 days from the proposal date. If you have any questions please do not hesitate to contact Paul Sliz who will be your primary contact: CityView Paul Sliz Regional Sales Manager 4464 Markham Street, Suite 2307 Victoria, BC., V8Z 7X8 Canada Telephone: 1.312.288.2620 Fax: (613) 226.3377 Email: psliz@harriscomputer.com Sincerely, Susan McCormick Executive Vice President, CityView Harris Computer Systems Table of Contents Permitting System Software and Implementation Services June 28, 2013 4 Table of Contents COVER LETTER .................................................................................................................................................... 2 TABLE OF CONTENTS .......................................................................................................................................... 4 EXECUTIVE SUMMARY ....................................................................................................................................... 6 EXECUTIVE SUMMARY ..................................................................................................................................................... 6 HIGHLIGHTS OF THE CITYVIEW PROPOSED SOLUTION ............................................................................................................. 6 1. CITYVIEW COMPANY BACKGROUND .............................................................................................................. 8 1.1 OUR MANDATE ........................................................................................................................................................ 9 1.1.1 Partners ........................................................................................................................................................ 9 1.2 FINANCIAL STATEMENTS ........................................................................................................................................... 10 1.3 KEY STAFF ............................................................................................................................................................. 10 2. CITYVIEW QUALIFICATIONS .......................................................................................................................... 11 2.1 QUALIFICATIONS RELATED TO CITY OBJECTIVES ............................................................................................................. 11 2.2 CITYVIEW CUSTOMER BASE ...................................................................................................................................... 12 2.3 RECORD OF EXPERIENCE ........................................................................................................................................... 13 3. REFERENCES ................................................................................................................................................. 16 4. PROPOSED SOLUTION ................................................................................................................................... 21 4.1 SUMMARY OF PROJECT APPROACH ............................................................................................................................. 22 4.2 CITYVIEW’S RESPONSE TO THE CITY’S APPENDIX B – REQUIREMENTS TEMPLATE ................................................................. 27 4.3 ADDITIONAL PROPOSED CITYVIEW MODULES ............................................................................................................... 44 4.3.1 CityView Licensing (Optional) ..................................................................................................................... 44 4.3.2 CityView Cashiering (Optional) ................................................................................................................... 45 4.3.3 CityView Portal (Optional) .......................................................................................................................... 46 4.3.4 CityView Mobile (Optional) ......................................................................................................................... 46 4.3.5 CityView Electronic Plans Review (Optional) .............................................................................................. 48 5. IMPLEMENTATION APPROACH ..................................................................................................................... 50 5.1 CITYVIEW PROJECT ORGANIZATIONAL CHART ............................................................................................................... 51 5.1.1 Management Profiles ‐ Brief resumes ......................................................................................................... 52 5.1.2 Project Team ............................................................................................................................................... 55 5.2 IMPLEMENTATION METHODOLGY AND APPROACH ......................................................................................................... 62 5.3 ROLES AND RESPONSIBILITIES .................................................................................................................................... 67 5.3.1 Resource Requirements .............................................................................................................................. 76 5.4 TRAINING .............................................................................................................................................................. 79 5.4.1 Validation Training ..................................................................................................................................... 79 5.4.2 User Training ............................................................................................................................................... 80 5.4.3 Proposed Training Plan for the City of La Quinta ........................................................................................ 82 5.5 PROJECT MANAGEMENT .......................................................................................................................................... 84 5.6 CHANGE MANAGEMENT METHODOLOGY .................................................................................................................... 88 5.7 USER ACCEPTANCE METHODOLOGY AND QUALITY ASSURANCE ........................................................................................ 89 5.7.1 Sample Test Plan and Test Script ................................................................................................................ 90 5.8 DATA CONVERSION ................................................................................................................................................. 91 5.9 DOCUMENTATION ................................................................................................................................................... 92 5.9.1 Sample Validation Training Plan ................................................................................................................. 93 5.9.2 Sample Basics Training Plan ....................................................................................................................... 95 5.10 DETAILED TASK/ACTIVITY LISTING ............................................................................................................................ 96 Table of Contents Permitting System Software and Implementation Services June 28, 2013 5 6. OTHER REQUIREMENTS ................................................................................................................................ 97 6.1 ONGOING SUPPORT AND MAINTENANCE ..................................................................................................................... 97 6.2 USER GROUPS AND/OR USER CONFERENCES .............................................................................................................. 101 6.3 ONGOING TRAINING RESOURCES AVAILABLE .............................................................................................................. 101 6.4 USER AND ADMINISTRATION DOCUMENTATION .......................................................................................................... 101 6.5 RECOMMENDED HARDWARE CONFIGURATION AND SPECIFICATIONS ............................................................................... 102 6.6 NEW SYSTEM CLIENT ............................................................................................................................................. 111 6.7 TEST AND PRODUCTION ENVIRONMENTS ................................................................................................................... 111 6.8 PATCHES AND RELEASES ......................................................................................................................................... 111 6.9 DOCUMENT MANAGEMENT SYSTEM ......................................................................................................................... 112 6.10 ONGOING RESEARCH AND DEVELOPMENT................................................................................................................ 112 7. PRICING...................................................................................................................................................... 113 8. ADDITIONAL INFORMATION ........................................................................................................................ 123 8.1 CITYVIEW PRODUCT OVERVIEW INFORMATION ........................................................................................................... 123 8.1.1 Product Overview ...................................................................................................................................... 123 8.2 THE CITYVIEW PLATFORM ...................................................................................................................................... 125 8.2.1 CityView Configuration Tools .................................................................................................................... 127 8.2.2 The Smart Client Desktop Application....................................................................................................... 133 8.2.3 CityView Desktop User Interface ............................................................................................................... 134 8.2.4 CityView Integration Capabilities .............................................................................................................. 135 8.3 CITYVIEW PREBUILTS ............................................................................................................................................ 138 8.3.1 CityView PreBuilts Overview ..................................................................................................................... 139 8.3.2 CityView Property Information ................................................................................................................. 141 8.3.3 Microsoft Outlook Add‐in.......................................................................................................................... 144 8.4 SAMPLE USER AND ADMINISTRATIVE MANUALS .......................................................................................................... 145 8.4.1 CityView Property Information Manual .................................................................................................... 146 8.4.2 CityView System Administrative Documentation ..................................................................................... 151 8.5 STANDARD SOFTWARE LICENSING AND MAINTENANCE AGREEMENTS .............................................................................. 157 8.6 ANNUAL FINANCIAL STATEMENTS ............................................................................................................................ 158 Executive Summary Permitting System Software and Implementation Services June 28, 2013 6 Executive Summary Executive Summary CityView is pleased to provide the City of La Quinta, CA with our proposed CityView solution for your Permitting System to automate your business management needs for the Permitting and Planning processes. We look forward to the opportunity to add to our already strong California customer base. Our CityView solutions are proven from over 30 years working successfully with building, planning, Public Works, engineering, licensing, code enforcement and other departments concerned with permitting. Our customers are able to leverage their existing investments in third party software such as, Electronic Document Management, Service Requests, Financial Management, Public Works, GIS and other systems by facilitating data flow between them and CityView. The Required System We understand the City of La Quinta is using HTE for permit record keeping and tracking along with a number of electronic and paper processes to manage the collection of data and processing of permit applications and plans reviews. Some have inherent limitations and many are disparate, so data flow is less streamlined than it could be and data is tough to access and report on. Inter-departmental and external contact collaboration is challenging. The City has identified a number of areas where the flow of data can be streamlined, processes can be adjusted and customer service optimized and technology is acknowledged as key to that process. The City is looking for a permitting system and business tool that can provide a single source for permitting data, assist in streamlining workflow and business processes, help staff manage their daily workload, ensure data is easily accessible internally and by the public and provide a number of tools to improve efficiencies and save time. The system needs to be accessible across the city, also to key contacts outside the city team, fit within the technology infrastructure of the City and be able to integrate with, Laserfiche, GoRequest, Digital Map Products, HTE and Esri solutions. The Proposed Solution CityView proposes a Full Service or turnkey implementation to the City of La Quinta. The Full Service implementation tailors the solution to the specific workflow processes and needs of the City. Our Professional Services team will work with your staff to understand your workflow and configure the CityView solutions to automate your processes using the CityView PreBuilts . Our proposal includes CityView Property Information, Permits and Inspections and Planning PreBuilts, with integration to GoRequest, Laserfiche, Digital Map Products, HTE and Esri. Optional offerings for future growth include CityView Mobile and Portal, CityView Electronic Plans Review, Cashiering and Licensing PreBuilts. Highlights of the CityView Proposed Solution CityView has been serving local governments with permitting and licensing solutions for more than 30 years. We are a very well known, committed and consistent entity in this marketplace. Our products have always been leading edge in technology and we have always offered an upgrade path. Where we commit to deliverables, including our products as well as integrations with third party products, we keep those commitments. We hope the City of La Quinta joins the more than 200 jurisdictions currently using our software and propose that the City will implement CityView version 2013.3 or the most updated available release based on contract signing date. Executive Summary Permitting System Software and Implementation Services June 28, 2013 7 By choosing CityView you are choosing a partner for the long term and are meeting the fiduciary responsibilities you have to your constituents. You are choosing the path of least risk:  Fit by Design: The CityView PreBuilts are built for this purpose, on leading edge technology with depth, maturity and experience: CityView embeds in our solutions, more than 30 years of experience working with Municipalities across North America.  Excellent Technology Match: Excellent fit with City’s technology infrastructure: Microsoft .NET, Sql Server, XP and Windows 7, SSRS Reporting, Esri GIS-integrated, Active Directory/LDAP-integrated, supports Windows Server Environments and Virtual environment.  Full Service Implementation: Our proposal accounts for a thorough implementation that tailors workflows (one workflow which both Buildings and Inspections and Public Works can use since their requirements were identical and one for Planning), data needs, business rules, document outputs to your specific requirements. We will be relying on your business experts to provide information on your business processes and to validate that we have captured those accurately in the software, but the configuration work, development of interfaces, quality assurance, customizations and end-user training is our responsibility.  Experience, Empowerment, Knowledge Transfer: Our implementation methodology is proven across over 200 implementations. It focuses on Configuration (as opposed to customization), customer empowerment and knowledge transfer: Our implementation provides for three (3) person-trips to your site and twelve (12) days of onsite services and training. All users from end-users to system administrators to power users will be trained not just on the use of the system but also on the tools to evolve and administer the system, maximizing your return on investment,  Local and International User Forums: We hold both Regional User Group meetings and Training sessions annually. We also hold an annual North America-wide User Conference that draws customers from all of North America from a Harris customer pool of 10,000 customers and intersperses communities and disciplines, providing a superb forum for knowledge transfer, innovation, networking and problem-solving,  Ability to Grow and Integrate: CityView offers a wide and diverse array of land- based information management products and value-add components for the City to realize your overarching objectives of an enterprise, integrated system to connect departments and maximize efficiencies and service.  Stability: We are stable, profitable and publicly transparent. This ensures you have the peace of mind, consistency and the convenience of working with the same vendor for the long term. 1. CityView Company Background Permitting System Software and Implementation Services June 28, 2013 8 1. CityView Company Background CityView Products A Winning Partner  Serving local governments since 1982  Over 200 successful implementations  Covering 6 Provinces and 31 states across North America  Property Information  Permits & Inspections  Code Enforcement  Planning  Business Licensing  Animal Licensing  Service Requests  Cashiering  Rental Housing  Parking Management  Cemetery Management  CityView Portal  CityView Mobile  CityView GIS  Application Builder  Experienced  Innovative  Flexible Software  Committed Staff  Great References  Stable Since its inception 31 years ago, the makers of CityView have focused solely and completely on creating comprehensive permitting and land management solutions for municipalities across the Continent. CityView’s headquarters is in Victoria, BC (4464 Markham Street, Suite 2307, Victoria, BC., V8Z 7X8). We have satellite offices in Ontario, Missouri, Illinois and Florida. CityView’s headquarters office will service the City of La Quinta. Harris employs more than 2000 personnel and 35 are exclusively dedicated to supporting the CityView product line. The CityView product was initiated by two local government employees with the vision of helping to automate municipal processes. Since its initial release, CityView has been continuously refined and updated to incorporate new technologies and to meet the diverse needs of our clients. The company was founded in 1982 and went public in 2002 under the name Municipal Software, Inc. (TSX-V: MSZ). In July 2008, Municipal Software was purchased by N. Harris Computer Corporation and became the CityView division of N. Harris Computer Corporation. N. Harris Computer Corporation is owned by the Constellation Software Inc. (CSI) group of companies. Constellation Software is a rapidly growing conglomerate of vertical market software (VMS) companies; each focused upon dominating its respective market niche. Constellation's growth is based on a simple strategy: identify promising Vertical Market Software firms; acquire them; and then integrate them into the Constellation family while building on their fundamental strengths to help them become world class organizations. For more information on Constellation please visit their website: http://www.csisoftware.com. Constellation is a publically traded company on the Toronto Stock Exchange under (TSX: CSU). 1. CityView Company Background Permitting System Software and Implementation Services June 28, 2013 9 1.1 Our Mandate It is our goal to provide easily installed, powerful and long-term software solutions that manage the everyday business processes of municipalities. Throughout our 31 year history CityView has focused on needs of Community Development departments for local governments. These solutions are based on our combined years of experience in municipalities and on a product that easily adapts to the changing practices of clients. We are committed to providing a variety of comprehensive services for this software, from installation and training to ongoing technical support. We want to be a trusted advisor, coach and supporter. More than just a vendor, we want to be the company to partner with. 1.1.1 Partners The following details partnerships we have formed to ensure that our clients receive the benefits from the latest technologies and additional functionality to meet your wide range of needs. 1.1.1.1 Microsoft As a Microsoft Certified Gold Partner, CityView is able to use the latest in technological advances, including Microsoft's .NET platform to continuously develop and enhance the CityView product line. In 2002, the CityView Solutions of CityView were selected as a worldwide winner in the fifth annual Microsoft Certified Partner Awards in the Packaged Application category. This was specifically for the product’s incorporation of Microsoft technologies for deploying complex business processes to the Web. Nearly 900 applications in nine different categories were reviewed for this award. 1.1.1.2 Esri CityView's Certified partnership with Esri gives the company access to the latest technology from the leading GIS solution provider. One of the most powerful features of CityView PreBuilts is the ability to access and use an organization's mapping data to its full potential. CityView PreBuilts integrate with Esri's ArcGIS suite using ArcGIS Server directly as well as ArcGIS Desktop where Server is not present for consuming, managing and manipulating spatial information, bringing the power of GIS to the front desk. As an Esri partner for 12 years, CityView is able to provide the innovation of industry- leading mapping to staff and citizens in cities and counties throughout North America. 1.1.1.3 Tele-Works (IVR) Founded in 1986, Tele-Works has established itself as the leading provider of inbound and outbound communication solutions for local governments and utility agencies. and the BuildingWorks application solution together with the Tele-Works Voice Platform (TVP) provides functionality to address the aspects of building inspections department and its contractor community. This is also the basis for an enterprise wide solution for the entire community under a single service umbrella. CityView clients benefit by having access to the latest communication technologies without having to deal with multiple vendors. 1. CityView Company Background Permitting System Software and Implementation Services June 28, 2013 10 1.1.1.4 Laserfiche CityView's Professional Development Partnership with Laserfiche stems from the natural symbiosis between the roles they fulfill for Municipalities. A necessary output of customer service in Community Development departments is documents, images and correspondence, the recording and storage of which is critical. The business processes tracked and automated in CityView on behalf of customers generate such documentation and the need to relate document records to applications, permits, cases and licenses. Laserfiche provides a structured and safe method for storing and archiving such records. The integration achieved between the two products is seamless. Laserfiche is a successful provider of Electronic Document Management, Content Management and Records Management solutions to over 3,500 State and Local Government Customers in North America. 1.1.1.5 Bluebeam Bluebeam's intuitive markup and editing tools and straightforward interface are meticulously designed to deliver results instantly. Bluebeam invents, develops, and commercializes PDF software intelligently designed to meet the needs of design, engineering and business professionals. Bluebeam produces high-quality, easy-to- use products that allow professionals to improve communication and collaboration immediately with virtually no learning curve. CityView leverages the PDF markup technology inside of CityView’s workflow and plan review processes to deliver cost-effective and comprehensive electronic plans review. 1.2 Financial Statements Harris Computer Systems is proud to be a successful, stable, and profitable company. Harris is a part of a public conglomerate that trades under (TSX; CSU). For more information on our financial status, please visit the following website: http://csisoftware.com. In addition, we have included in Section 8.6 a copy of CSI’s 2012 and 2011 Financial Statements. 1.3 Key Staff CityView staff is experienced and knowledgeable in your business, and committed to success in our business. Your CityView team comes with best practices and ideas that come from implementing projects across all of North America. Our Staff offers in excess of 200 years of combined experience. Please find on the following pages bios of our management team and qualifications of key staff that would be assigned to implement the CityView solution. 2. CityView Qualifications Permitting System Software and Implementation Services June 28, 2013 11 2. CityView Qualifications 2.1 Qualifications Related to City Objectives Our CityView solutions are proven from 31 years working successfully with building, engineering, planning, code enforcement, GIS and other departments concerned with land management processes. These systems are implemented to; replace paper-based and legacy systems with a state of the art, electronic system that automates workflow and data entry, eliminates redundant data, provides easily accessible data and reporting functionality, streamlines revenue collection, ensures accountability, assists users with their daily tasks and improves customer service to citizens and contractors. Our customers are able to leverage their existing investments in third party software such as Financial Management, GIS (Esri), Electronic Document Management (e.g. Laserfiche, SharePoint, and others), Property Tax and other systems by facilitating data flow between them and CityView. In particular to the City of La Quinta:  Improve Customer Relations: A modern, comprehensive database schema, based on 31 years CityView experience creating and implementing permitting systems for Municipalities, means data is grouped in sensible ways with modern navigation tools to get at the data swiftly. This means when a customer makes an enquiry the staff member has ready access to the data to answer the enquiry quickly and accurately. Significant automation in the system ensures speed, accuracy and standardization and customers like that they are dealt with quickly and efficiently, in a consistent manner. CityView Portal is a modern, intuitive, browser interface offering significant services to your constituents online, giving them the convenience of self-service and giving you the convenience of having certain of your data entered into the system real time by your constituents. Our CityView Portal is built on leading edge technology and has grown out of the innovation that earned us the 2002 Microsoft Worldwide Partner award for deploying customer service business processes to the Web.,  Reduce Manual Processes and Increase Productivity: CityView is a comprehensive system enabling customers to incorporate their end to end business processes in the system. Significant configuration tools and a rules engine offer the capability of automating the business process and enforcing of business rules greatly, without the need for programming and without affecting the customer’s ability to upgrade. This means a lot of data entry is done for you through automation, workflow is automated and business rules are enforced of checks and balances flagged for user ease. Complete integration between modules and with citizen services over the web and field services through CityView Mobile result in access anywhere and data entry once and once only, improving productivity significantly.  Improve Integration between applications and other systems: CityView offers a host of out of the box integrations with third party systems such as GIS (Esri), Document Management (a number of systems through an embedded document management integration framework), financial management systems and Integrated Voice Response (IVR). For integrations with other systems CityView uses an array of tools from integration frameworks, database integrations, programmatic integrations using Web Services and more. 2. CityView Qualifications Permitting System Software and Implementation Services June 28, 2013 12  Improve citizen/customer’s ability to interact and do business on-line with the City of La Quinta: CityView Portal is a modern, intuitive, browser interface offering significant services to your constituents online, giving them the convenience of self-service and giving you the convenience of having certain of your data entered into the system real time by your constituents. Our CityView Portal is built on leading edge technology and has grown out of the innovation that earned us the 2002 Microsoft Worldwide Partner award for deploying customer service business processes to the Web.  Take advantage of newer technology: CityView is designed with advanced technology, using Microsoft’s .NET 4.0 and embedding multiple frameworks for streamlined integrations with third party applications. The system is delivered with a modern and user-friendly graphical (GUI) employing WPF (Windows Presentation Foundation) interface along with a Visual Studio.NET, browser-based solution for your citizens and contractors and both Smart Client and HTML 5, JQueryMobile field solutions for your inspectors. Aside from the inherent business process improvements realized under the technology, the advantages provided include ease of deployment and ease of access (City Hall, Field, Home), ease of maintenance and administration, and ease of upgradability. 2.2 CityView Customer Base There are over 220 Local Government customers using CityView products across 31 States and 6 Canadian Provinces. Our customers range in size from populations of 6,000 through to large cities and counties of 700,000. Thank you for the opportunity to respond to your RFP to provide and implement a Permitting Software System. We greatly appreciate the opportunity to grow our strong California customer base. California Active Customers City of Diamond Bar Eastern Municipal Water District City of Huntington Beach – Custom CityView Version City of Lawndale City of Ontario City of Paramount City of San Juan Capistrano City of San Mateo City of Sunnyvale City of Yucaipa 2. CityView Qualifications Permitting System Software and Implementation Services June 28, 2013 13 2.3 Record of Experience Record of Local Government Experience HISTORY Property Information, GIS & Permitting solution by 1986; First field inspection solution by 1996; Customers dating back over 20 years; 7 Major software releases in 26 years; DOS, Windows 16-bit, 32-bit, .NET, 64-bit, Ajax, HTML 5. INNOVATION 1st land management software vendor to provide a totally integrated mapping and database solution, 1st to .NET, in 2002, 1st with a Web Services API, early adopter of the Windows platform, 1st to adopt database replication in the field, early adopter of ArcGIS Server integration, 1st to integrate with Active Directory, amongst the first to deploy a device- agnostic HTML 5-based field solution. GLOBAL Serve both USA and Canadian markets; First USA customer in 1997; 27 more in 2002 alone; Consistent additions of new customers each year; CityView in 31 States and 6 Canadian provinces. SUCCESS CityView has consistently ranked as a leading vendor, often THE leading vendor in this space for the past 31 years; 12 customers live in 10 months in 2007/08; State of the art technology, great references, consistent growth, profitability. COMMITMENT Founded by Local Government, for Local Government, 1982; All CityView software applications are built for Municipalities. PARTNERSHIP We partner with industry leaders that serve Local Government: Microsoft, Esri, Laserfiche, TeleWorks and Selectron IVR, Bluebeam. KNOWLEDGE Over 200 implementations across 31 U.S. States and 6 Canadian Provinces; A number of our employees come from a Local Government background, selected for the value their domain experience brings. INDUSTRY Memberships include, Esri, International Code Council (ICC), American Planners Association (APA), MISA California, CALBO California Building Officials and more. EVENTS Annually attend, regularly sponsor, and exhibit at leading and local industry events including: California Building Officials (CALBO), APA American Planning Assoc., Alberta Building Officials Assoc., Ontario Building Officials Assoc., ICC, MISA Prairies, MISA BC, MISA ON, BC Building Officials Assoc., International City/County Management Assoc. (ICMA), MISAC, and others. STABILITY Parent company, Harris Computers; serves 10,000 Government customers in the areas of Utilities, Land Management, Tax and CAMA, ERP, Public Safety, School Districts, since 1977; Publicly traded: $255M gross revenues in 2012; Profitable! 2. CityView Qualifications Permitting System Software and Implementation Services June 28, 2013 14 Long-time Leaders in Innovation 2. CityView Qualifications Permitting System Software and Implementation Services June 28, 2013 15 SOLUTIONS Enterprise solutions for Municipalities include the following:  Property Information  Water and Sewer Management  Permits and Inspections  Cemetery Management  Planning, Code Enforcement  Voters Registration  Business Licensing  Work Orders  Animal Licensing  Infrastructure Management  Cashiering  9-1-1, Computer Aided Dispatch (CAD)  Service Requests  Parking Management  Fire Incident Reporting (NFIRS)  CityView Citizen Portal  Electronic Plans Review Mobile Inspections 3. References Permitting System Software and Implementation Services June 28, 2013 16 3. References These references are chosen through criteria of proximity, size, innovation and nature of the project. All have the same suite of CityView products that we are proposing for the City. As a matter of courtesy we like to give our customers notice before they are contacted. Therefore, we ask that the City inform us before you start the reference checking. Should the City require additional references, we would be pleased to provide them. Reference # 1 Customer Name City of Diamond Bar, CA Customer Contact Name, Title, Address, Phone, and E-mail Ken Desforges, IT Director 21810 Copley Drive Diamond Bar, CA 91765 (909) 839.7080 Kdesforges@diamondbarca.gov Brief Project Description Implementation including project management, installation, conversion, training and customer support of CityView products. # of Users 10 Current Status of Project Live Current Software Release Version CityView 2012.2 in production, and 2013.2 sp2 in test Database Environment SQL Modules Implemented Property Information, Permits and Inspections, Code Enforcement, Cashiering, and CityView Portal Go-Live Date Initially in 2008; most recent upgrade March – 2013 Implementation Period (months) Phase One ‐ 4 months. Phase Two ‐ 6 months. Phase Three – 24 months. Implementation Cost For client confidentiality reasons we are not at liberty to share the contract amounts 3. References Permitting System Software and Implementation Services June 28, 2013 17 Reference # 2 Customer Name City of Mount Vernon, WA Customer Contact Name, Title, Address, Phone, and E-mail Kim Kleppe, Information Systems Director 320 Broadway PO Box 809 Mount Vernon, WA 98273 (360) 336.0623 kimk@mountvernonwa.gov Brief Project Description Implementation including project management, installation, conversion, training and customer support of CityView products. # of Users 15 Current Status of Project Live Current Software Release Version CityView 2013.2 Database Environment SQL Modules Implemented Property Information, Permits and Inspections, Planning, Code Enforcement, Licensing, and Cashiering. Integration with GIS and EDMS Go-Live Date 2001 Implementation Period (months) 7 months Implementation Cost For client confidentiality reasons we are not at liberty to share the contract amounts 3. References Permitting System Software and Implementation Services June 28, 2013 18 Reference # 3 Customer Name City of Yucaipa Customer Contact Name, Title, Address, Phone, and E-mail Jayson Underwood, IT Director 34272 Yucaipa Blvd. Yucaipa, CA 92399 (909) 797.2489 junderwood@yucaipa.org Brief Project Description Implementation including project management, installation, conversion, training and customer support of CityView products. # of Users 10 Current Status of Project Live Current Software Release Version 2012.4 SP3 (testing 2013.2 sp2 in the coming days) Database Environment SQL Modules Implemented Property Information, Permits and Inspections, Planning, Code Enforcement, CityView Portal, Integration with GIS. Integration with Laserfiche EDMS. Complaint submittal and permit and project status checking through CityView Portal. (http://64.183.66.115/YucaipaPortal) Go-Live Date 2008 Implementation Period (months) 14 months Implementation Cost For client confidentiality reasons we are not at liberty to share the contract amounts 3. References Permitting System Software and Implementation Services June 28, 2013 19 Reference # 4 Customer Name City of Ontario, CA Customer Contact Name, Title, Address, Phone, and E-mail Elliott Ellsworth, CIO 303 East B St., Civic Center Ontario, CA 91764 (909) 395.2406 eellsworth@ci.ontario.ca.us Brief Project Description Implementation including project management, installation, conversion, training and customer support of CityView products. # of Users 25 Current Status of Project Live Current Software Release Version 2012.5 Database Environment SQL Modules Implemented Custom Code Enforcement in 2004. Now CityView Code Enforcement and Rental Housing PreBuilt, CityView Portal, and CityView Mobile Go-Live Date 2004 and 2012 Implementation Period (months) 16 months Implementation Cost For client confidentiality reasons we are not at liberty to share the contract amounts 3. References Permitting System Software and Implementation Services June 28, 2013 20 Reference # 5 Customer Name City of Lee’s Summit, MO Customer Contact Name, Title, Address, Phone, and E-mail Desiree Hourigan, IT Applications Manager 220 SE Green Lee's Summit, MO 64063 (816) 969.1252 Desiree.Hourigan@cityofls.net Brief Project Description Implementation including project management, installation, conversion, training and customer support of CityView products. # of Users 69 Current Status of Project Live Current Software Release Version 2013.2 Database Environment SQL Modules Implemented Property Information, Permits and Inspections, Planning, Code Enforcement, Cashiering, CityView Mobile, CityView Portal, CityView Application Builder 2010 Go-Live Date August 2010 Implementation Period (months) Complete implementation 26 months Implementation Cost For client confidentiality reasons we are not at liberty to share the contract amounts 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 21 4. Proposed Solution Our CityView solutions are proven from more than 30 years of working successfully to bring efficiencies and positive change to building, engineering, planning, licensing, Public Works, GIS and other departments concerned with permitting systems. These systems are implemented to; replace paper-based and legacy systems with a state of the art, electronic system that automates workflow and data entry, integrates data across multiple systems, provides unparalleled reporting functionality, streamlines revenue collection, ensures accountability, assists users with their daily tasks and improves customer service to citizens and contractors. Our customers are able to leverage their existing investments in third party software such as Financial Management Systems, GIS, Electronic Document Management, Property Tax and other systems by facilitating data flow between them and CityView. CityView Release History CityView underwent a major redesign in 2003-2006, which enabled us to create a very solid product infrastructure that positions us exceedingly well for any future, foreseeable technology shifts. It is based on a .NET platform and over the years we have easily transitioned to each new version of .NET as it has been introduced. We use all the current technologies for communications, user interface design, and so on, but we are also able to swap technologies fairly painlessly (e.g. in 2011 we moved from WinForms to Windows Presentation Foundation WPF in approximately 3 calendar months). All major dependencies (Windows, MS SQL Server, .NET, etc.) are supported virtually as soon as they are released due to our status as a Microsoft Gold Partner, which gives us early access to the latest versions of Microsoft’s products. There are no major rewrites or fundamental changes planned in the next 5+ years. We are exploring alternate delivery models, such as SaaS as our product is already fully web- capable. We host many of our customer environments while they are in implementation, which gives us confidence in our ability to operate in a remote server scenario. We do plan to make incremental enhancements by continuing to build out browser and other device- agnostic alternatives to our installed user interface. We follow a variant of the agile development methodology, known as Kanban, which simply means we endeavor to address the highest priority items in our development queue at all times. All enhancement requests are placed in our tracking system and prioritized on a weekly basis. Those with the highest priority are addressed with the intent to release as soon as those items have moved through the release process (typically 6-8 weeks). This allows us to be very responsive to high priority fixes and critical enhancements but it also means that there is a continuous stream of “minor” versions being released that our customers are free to pick up, or not, based on what features are of interest to them. We rarely do a “major” release because that goes against the concept of Kanban; however, our first release of 2011 was a notably larger release (this was when we introduced WPF and the Microsoft ribbon to our user interface) and our first release of 2013 was significant in that we launched our Electronic Plans Review solution at that time. Upcoming features include, but are not limited to, more use of mapping in the field (route planning, location awareness, etc.), ongoing work on reporting and dashboard capabilities, browser and device-agnostic forms, replacement of our SOAP-based web services with a more modern REST web service interface, addition of new business 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 22 processes so that we can continue delivering added value to our customer base (e.g. Parking Management), etc. 4.1 Summary of Project Approach Proposed Software: CityView is designed with advanced technology, using Microsoft’s .NET 4.0 and embedding multiple frameworks for streamlined integrations with third party applications. The system is delivered with a modern and user-friendly graphical (GUI) employing WPF (Windows Presentation Foundation) interface along with a Visual Studio.NET, browser-based solution for your citizens and contractors and both Smart Client and HTML 5, JQueryMobile field solutions for your inspectors. The following PreBuilts and software components are proposed for the City of La Quinta: Application Software – Integrated CityView PreBuilts CityView Property Information Comprehensive tracking of land data. Connects to GIS or land management system or stores GIS and county assessor data. Displays summary data for all current and historical permits, projects, businesses and code cases on each property. Provides means to create and manage subdivisions and track parcel genealogy. Tracks all documentation tied to a property. Included CityView Planning Planning and zoning application processing and project management. Data capture, automated workflow generation and tracking, approval tracks, submittals, reviews, hearings scheduling, inspections, inherent field inspections capability with support for connected, disconnected and slow connection modes, attachments, generation of correspondence/letters, fees, bonds/deposits/escrows, conditions, reporting, and more. Included CityView Permits and Inspections Permits and inspections management. Data capture, automated workflow generation and tracking, submittals, reviews, inspections, inherent field inspections capability with support for connected, disconnected and slow connection modes, attachments, generation of correspondence/letters, fees, bonds/deposits/escrows, conditions, reporting, and more. Included 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 23 CityView Cashiering Central cashiering module. Streamlines cash receipting from all land management applications, integrates with third party financial systems, manages transaction processing, tracking and batch reconciliation, reporting and more. Optional CityView Licensing Business and Contractor Licensing Issuance and Renewal. Data capture, automated workflow generation and tracking, reviews and inspections management, gross revenue reporting, license classification types, license and renewal fees and tracking, automated license batch renewals, image and document attachment, generation of licenses/correspondence/letters, reporting, and more. Optional Server Software CityView Server and Manager Software Application Server, Management Server software including centralized management client for administering production, test and development environments, security, software updates, global configuration settings, server activation/deactivation, version summaries, scheduled events settings, Exchange Server and Document Management system integration settings, Payment Gateway settings and more. Included Extensions CityView GIS Seamless integration with Esri ArcGIS Server, in the office, on the Web, in the field. Directly consumes Esri Map Service to enable spatial analysis, measurement, information gathering, permit/project/case/license initiation, buffer selections, spatial queries, property information and related data, layer management and more. CityView can use GIS as “first class” data. Included CityView Outlook Add-in The CityView Outlook Add-in allows data from CityView and Outlook to be easily shared between the two applications. Have you ever wished that you could easily attach an email that is currently in your Outlook Inbox to a particular Permit application or Code case in CityView? Have you ever wished that emails you send through CityView would appear as attachments to your permits, projects and City contacts? Have you ever wished your CityView To Do List items would popup as Tasks in Outlook? All of this, and more, is provided using the CityView Outlook Add-in. Included CityView Desktop Reporter Powerful ad hoc report writer for the creation of pivot reports, detailed reports, charts and graphs. Allows end-users to create reports, save the specifications for future use, share report specs with their peers, export reports to PDF, Word and Excel. Uses descriptive field names for ease of use, drag and drop functionality for speed and intuitiveness. Provides the capability of slicing and dicing data to assess development information. Reports rendered in Sql Server Reporting Services (SSRS). Included 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 24 CityView Hearings Meeting and agenda management. Hearings and meetings tracking, agenda generation, attachments, hearings workflow and more. Included CityView’s Electronic Plans Review Bluebeam’s award-winning Revu for PDF creation, markup, editing, flattening of markups, version comparisons, collaboration in the Cloud. Standard and CAD options enable dealing with CAD files, PDF files, 3D PDFs and a host of other formats. Configurable profiles, customizable markup ToolChest. Combine with CityView for an integrated paperless plan review solution. Optional CityView Portal Citizen access portal. Enables citizen/contractor registration, property lookup, permit and project application & electronic submittal upload, status checking, fee payment, inspection requests, complaint submission, meeting requests and more. Optional CityView Mobile (Permitting Inspections) Field inspections, checklists, corrections & comments, image attachment, automated email notification, bluetooth printer inspection card generation, GIS integration, property lookup, permits lookup, contractor information, hyperlink navigation, device agnostic incl. iphones, iPads, Blackberry Smartphones & PlayBooks, Androids, Windows Mobile phones. Optional 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 25 Proposed Implementation: The CityView implementation approach maximizes the flexibility of the product to deliver a solution tailored to the customer’s specific business needs. Extensive and easy-to-use configuration tools make it possible for us to do this efficiently with low risk as compared with a custom-built solution or one that is less flexible. The result is lower implementation risks, increased user adoption, and a system that can grow with you over time, because we also train the advanced users on the use of the configuration tools. The implementation approach involves:  Project Planning & Scheduling,  Data discovery/collection,  Configuration,  Validation and refinement,  Final Acceptance testing,  Training: End-user, Advanced User, System Administrator, Developer (optional),  Go-live, including post go-live support,  Refresher Training (optional) CityView provides you with a Project Management Team charged with determining the customer’s needs, communicating clear expectations, then meeting these expectations. The project team includes:  Project Manager,  Infrastructure Analyst,  Implementation Specialists  Trainers  Data Conversion and Interface Specialist  Application Developer Lead,  Quality Assurance Lead. “It is fantastic that the software gives me the flexibility to make these changes. No other software out there would let us do that without significant contracting dollars needing to be spent.” Craig McEachern, City of Airdrie, AB 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 26 Proposed Training Training is provided on-site at the City. Our proposal includes a comprehensive program of training comprising twelve (12) days of training. Our trainers make CityView PreBuilt courses an interesting and engaging experience for all students. Our trainers are chosen for their skill as facilitators, trainers, coaches and computer specialists. They are also our Implementation Specialists and as such they have a wealth of knowledge not only of our software but also of the business processes they have configured in your tailored solution. We have Three Training Objectives for our Customers: 1. Knowledge Transfer: We provide your Subject Matter Experts with the knowledge they need to assist us in tailoring the solution to the requirements, and verifying we have captured those requirements. We do this through PreBuilt walkthroughs prior to data collection and Validation Training after configuration. 2. Enablement: We train the end-users to maximize the use of the functionality developed specifically to help them better complete their day-to-day activities of processing applications, capturing accurate data and finding and disseminating that data and maximizing your return on investment. This is achieved with End-user Training and Go-live Facilitation. 3. Empowerment: We provide advanced users and system administrators with the knowledge to sustain and evolve the data needs and workflows of the CityView system. This we do through Maintenance and System Administrator Training, Configuration Training and CityView Reporter Training. 4. Should the City choose to benefit from the power of the CityView Application Builder, a fourth objective will be introduced, Liberation: here we prepare your developers with the expertise to create local government business process application modules and further grow the value of the total CityView solution to the City; we train your developers on the use of the development tools. “The flexibility and customization abilities of CityView have significantly aided our ability to train new employees. It used to take six months to get a new employee up to speed with how the processes worked and CityView has allowed us to cut that down to about a 2 week window. It’s amazing!” John Meck, Rockingham County, VA 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 27 Support The following is a summary of our support services and measures:  Unlimited Phone, Web, and Email technical support  12/5 support from 6:00 a.m. to 5:30 p.m. PDT on regular business days  Unlimited access to CityView WIKI Knowledgeshare  Unlimited electronic access to newly released documentation  Unlimited software upgrades and updates to your licensed software  Local and International User forums and conferences. CityView hosts both regional and international conferences and training sessions. These are opportunities for users to talk about their implementation strategies and processes, share innovative ideas and creations, network and troubleshoot. They feature training, product presentations and updates, workshops, open discussion sessions and customer presentations. They also provide an opportunity for CityView users to suggest new features that benefit all clients. For example in 2012 we held three User Conferences for our North America-wide users, our Eastern Users Group and our Western Users Group. We also offer the Harris-wide User Conference which draws customers from multiple government disciplines from a pool of 10,000 customers. In 2013 this conference will be in Orlando, FL.  Knowledge Transfer through scheduled, free Web training sessions that we hold periodically throughout the year, focusing on specific functionality, best practices and usability tools and tips. Our support measures are designed to solve immediate issues and to provide knowledge transfer on the most effective ways to use the CityView Solution in their business practice. This reduces your total cost of ownership, leverages the time of key staff members, and increases your return on investment. 4.2 CityView’s Response to the City’s Appendix B – Requirements Template On the following page, CityView’s Responses to the City of La Quinta’s Appendix B, Requirements Template. “We found the level of Support from CityView employees to be excellent. They have provided an amazing amount of support and assistance throughout the entire process.” John McMains, City of Yucaipa, CA 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 28 Appendix B – Proposal Section 4 - Response Requirements Template The following table should be incorporated into the Proposer’s proposal response as indicated. Please address each requirement in the space labeled, “PROPOSER RESPONSE HERE.” Proposers are required to fully complete this table and include in their proposals. RFP Requirement Number Requirement 3.1 General System Characteristics The City seeks a system that provides the following general system characteristics: The ability to generate email from within the application to parties included on the application or to other contacts, and to view the associated email correspondence from within the application record. PROPOSER RESPONSE HERE –E-mails can be configured as part of workflow and sent upon completion of a workflow activity to internal or/and external contacts. Emails can also be triggered on an ad hoc basis from within CityView and when sent, attached to the application record using the CityView MS Outlook Add-in. The CityView Outlook Add-in allows data from CityView and Outlook to be easily shared between the two applications with minimal user intervention. Emails can be attached to permits/cases/projects/contractors from Outlook so that all communications involving properties and cases are recorded with their associated data in CityView, for future reference. The ability to import Word, Excel, PowerPoint and PDF documents to attach to the application, with the ability to view the attachments from within the application record. PROPOSER RESPONSE HERE-Yes. Documents are attached through our Documents and Images screen for permits, cases, planning projects, properties and hearings, This allows users to view all information associated with an application, case or plan including Word, Excel, PowerPoint, letters, PDFs, drawings and images instantly. Comprehensive search ability into active and historic records by street name, street number, APN, developer, contractor, plan check number, building permit number, owner name, general project description, tract number, parent parcel number, business name, etc. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 29 RFP Requirement Number Requirement PROPOSER RESPONSE HERE -Yes. CityView offers many powerful search tools. Search Dialogue uses a wildcard approach offering results from all related data (e.g. A street name may return many addresses or contacts, permits, code cases etc.). Over 150 Pre-defined searches are available (e.g. search permit applications by “Type”). Advanced Search includes searching on any database field and users can add criteria, ranges, and limits to narrow or widen their results (e.g. Search New Residential Construction Permits in 2012, ready for issuance with expiration date). Once created an advanced search can be saved for future use. Contain master files for architects, contractors, owners, tenants, engineers and developers including contact information (including multiple telephone numbers and email addresses) and license numbers. PROPOSER RESPONSE HERE A Global Address Book exists for all CityView users to access for viewing owner, occupants, applicants, contractors, property and parcel data, and project data for ease of input, elimination of redundant records, data validation and data entry error reduction. All PreBuilts utilize one central database and leverage autosuggest to assist in filling in customer and address information already on record in the database. The ability to add warnings or flags with notices or restrictions. PROPOSER RESPONSE - Alerts and Property Restrictions are listed within each property record and are flexible to include many options (e.g., flood zone, open code case, encroachments, etc.). Audit trails to record user activity. PROPOSER RESPONSE HERE – CityView provides full record-level auditing and can be easily enabled from the Audit Configuration screen. Auditing can be enabled for any table for updates, inserts or deletes (or any combination.) Calculate applicable fees, accept payments (cash, check or credit card), and generate a payment receipt. PROPOSER RESPONSE HERE -CityView’s “Flex Fee” system ensures that appropriate fees are always charged by enabling the ongoing maintenance of fee schedules and valuation tables. Fees will be automatically calculated and business rules will automate which fees get added to each application. CityView Cashiering provides acceptance of fee payments (cash, check or credit card), the receipt is produced through the Letter Generator and attached to the application record for future reference or printing. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 30 RFP Requirement Number Requirement Provide the ability to issue refunds or adjustments to fees. PROPOSER RESPONSE HERE –Fees can be adjusted through the Fee Adjustments screen for applications (e.g. waivers, adjustments). Refunds are processed within the Batch Management screen of cashiering and can be done on a per fee or multiple fee basis. Utilize the City’s accounting codes associated with fees. PROPOSER RESPONSE HERE – A list of Accounting Codes can be configured in CityView and associated with fee types based on the City’s requirements. Provide an online knowledge base to assist users with application use. PROPOSER RESPONSE HERE- The main source of documentation for live clients is the CityView KnowledgeShare WIKI. The KnowledgeShare Wiki is similar to the Wikipedia brand of software. The focus of the KnowledgeShare is to ensure up to date information is being maintained in one location, including details on new releases and the added functionality they contain. This information is further extended within the dynamic help feature of CityView desktop. This context sensitive help functionality provides the user with instant access to help features from within the application. Dynamic help links to the CityView KnowledgeShare allowing users to get additional information to help understand or expand their knowledge base. Interface with the State licensing database to determine if contractor licenses are active. PROPOSER RESPONSE HERE - Working with our California customers, we have created automation running behind the scenes which accesses the state licensing database, retrieves the most up to date information on the contractor, fills our table with it, then authenticates against that data; all within seconds. Maintain multiple fee schedules with effective dates. PROPOSER RESPONSE HERE -Within CityView all fee calculations have a “date effective” and “date expiration” that control whether or not they are used. Past fee schedules can be retained and new fee schedules can be entered ahead of when they become effective to ease pressure in setting up new fee schedules to be active on a targeted date. Multiple fee schedules can be active simultaneously 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 31 RFP Requirement Number Requirement Provide user defined fields for added information flexibility. PROPOSER RESPONSE HERE-End users with appropriate rights can easily add fields to screenscreating special fields without knowledge of code or script writing. RFP Requirement Number Requirement 3.2 Plan Check Application Fee Calculation and TrackingThe system will support the plan review process for commercial, industrial and residential development. Describe the system’s ability to support activity, including due dates, comments, meeting schedules, record actions, and attach documents. PROPOSER RESPONSE HERE -CityView is an activities-based workflow system providing users with a consistent path through the system and ensuring that users and departments are aware when tasks have been assigned to them. Plan check is an integral part of the workflow. Whatever your current business practices are, a suitable workflow of activities and outcomes is created, making it clear to users which steps are part of a particular process, when those tasks become due, and who is responsible for them. Workflow is configured for the types of applications you deal with (commercial, industrial, etc.) and that defines the plan check requirements and routing applicable. The workflow created automates this process so each activity (e.g. inspection, review,etc.) has a contact assigned to it, a priority, date required, outcome and date complete. Upon completion the activity is dated and, based on its outcome, the next automated workflow step is created and assigned. Documents in many formats (eg.PDF, Word, Excel, etc.) and types (e.g. Images, Plans, Letters, Schedules, etc.) can be attached to a project and viewed from CityView. CityView also has an Electronic Plans Review offering which enables you to completely remove paper from the plan check process. Calculate fees. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 32 RFP Requirement Number Requirement PROPOSER RESPONSE HERE - CityView's Flex Fee system ensures that appropriate fees are always charged by enabling the ongoing maintenance of fee schedules and valuation tables, without the need for programming. Fees will be automatically calculated and business rules will automate which fees get added to each application. CityView supports flat, incremental, percentage and range percentage based calculations, as well as combinations of these and many configurations of how fees are applied. Fees will be automatically calculated and business rules will automate which fees get added to each application. Track application submission date, date(s) notices were forwarded to the required reviewers both inside and outside of the City, and calculate the date the comments are due from the reviewers. Provide reminders to identify late comments. Provide the ability to view the status of comments. Allow consolidation of all plan review comments and conditions for approval into one document; the consolidation may be repeated as additional comments and conditions are received. Provide the ability to view and list all required approvals with the status of the approval. PROPOSER RESPONSE HERE–CityView’s Workflow can be configured to send activities to contacts in or outside of the City as part of the review process. Individuals with CityView rights and access would complete each activity, record results and have it tracked within the tailored workflow for the application. Approvals within workflow can be required in order to move to the next activity and reminder emails can be configured as part of the automated process. The City can streamline the plans review process by using CityView’s Electronic Plans Review. This integrated solution utilizes the workflow within CityView and provides the ability to accept citizen/contractor plan applications and upload documents through the City’s web site using CityView Portal. Every step of the plans review process is electronically tracked and documented through workflow. Reviewers are assigned activities, and use Bluebeam (CityView’s PDF markup, editing solution) to markup, edit, flatten markups and create version comparisons and overlays showing differences between plans. All markups are tracked and recorded by author, status, comments, subject and more. Versioning of plans is shown within CityView workflow and easily accessible to determine status and stage of completion. Mark-up summaries are easily created showing history (e.g., Subject, status, author, date, time, etc.) and approvals can be set within workflow to assure activities are created only when previous activities are completed successfully. Comprehensive reporting can document review comments and conditions for approval at any point in time. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 33 RFP Requirement Number Requirement 3.3 Public Works Improvement PlanProcessingImprovement plan application processing may require project review and approvals from city departments, and from organizations outside of the City. When the conditions of approval are established and construction is underway, inspections are conducted by the Building Inspectors. PROPOSER RESPONSE HERE Provide the ability to add or overwrite fees to support specific negotiations for developer(s). PROPOSER RESPONSE HERE –New Fees can easily be added within an application andfee amounts can be adjusted through the Fee Adjustments screen (e.g. waivers, credits, discounts, adjust up or down, etc.). Present subtypes in a drop down menu based on the specific class code. PROPOSER RESPONSE HERE -CityView will configure a subtype list from the City making it available in drop down menus based on class code. Permit expiration:  Track the permit expiration date, as delineated in the City’s ordinances.  Provide a report with the permits that will expire within a specified number of days, and export the information into a Word mail merge to generate permit expiration letters to applicants.  Change the status of an expired permit.  Allow the expiration date to be extended. Record the original expiration date, the modified expiration date and create an audit record identifying the user that made the change. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 34 RFP Requirement Number Requirement PROPOSER RESPONSE HERE –1) Permit expiration dates are tracked on all applications with expiration timing based on City ordinances. 2) A Batch Process can be scheduled to run on a predetermined basis to search for soon to be expiring permits, create expiration letters through the CityView Letter Generator and bulk print them for mailing. 3) A permit extension or reactivating a permit is accomplished through the Permit Details screen. 4) CityView provides full record-level auditing and can be easily enabled from the Audit Configuration screen. Auditing can be enabled for permit expiration including updates, inserts or deletes (or any combination.) Provide a master file for contractors and subcontractors, i.e. architects, engineers, soil engineers, electricians, mechanical, plumbing, etc. PROPOSER RESPONSE HERE ‐ CityView provides a Global Address Book which shares information across all PreBuilts (Property Information, Permits & Inspections etc.). Details of any contacts, project, businesses or application can be associated with a Property, Contractor, Business, Professional or Residential contact. This is all visible and accessible by end users so a complete history of projects, transactions and details related to any contact, business or parcel is easily viewed. A comprehensive ability to calculate various fees is required. The screen should prompt the operator to enter the appropriate fee criteria based on the type of fee. PROPOSER RESPONSE HERE ‐ CityView's Flex Fee system ensures that appropriate fees are always charged by enabling the ongoing maintenance of fee schedules and valuation tables, without the need for programming. CityView supports flat, incremental, percentage and range percentage based calculations, as well as combinations of these and many configurations of how fees are applied. Fees will be automatically calculated and business rules will automate which fees get added to each application. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 35 RFP Requirement Number Requirement 3.4 Building Permit Application Processing Building permit application processing may require project review and approvals from city departments, and from organizations outside of the City. When the conditions of approval are established and construction is underway, inspections are conducted by the Building Inspectors. PROPOSER RESPONSE HERE Provide the ability to add or overwrite fees to support specific negotiations for developer(s). PROPOSER RESPONSE HERE –New Fees can easily be added within an application andfee amounts can be adjusted through the Fee Adjustments screen (e.g. waivers, credits, discounts, adjust up or down, etc.). Present subtypes in a drop down menu based on the specific class code. PROPOSER RESPONSE HERE -CityView will configure a subtype list from the City making it available in drop down menus based on class code. Permit expiration:  Track the permit expiration date, as delineated in the City’s ordinances.  Provide a report with the permits that will expire within a specified number of days, and export the information into a Word mail merge to generate permit expiration letters to applicants.  Change the status of an expired permit.  Allow the expiration date to be extended. Record the original expiration date, the modified expiration date and create an audit record identifying the user that made the change. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 36 RFP Requirement Number Requirement PROPOSER RESPONSE HERE –1) Permit expiration dates are tracked on all applications with expiration timing based on City ordinances. 2) A Batch Process can be scheduled to run on a predetermined basis to search for soon to be expiring permits, create expiration letters through the CityView Letter Generator and bulk print them for mailing. 3) A permit extension or reactivating a permit is accomplished through the Permit Details screen. 4) CityView provides full record-level auditing and can be easily enabled from the Audit Configuration screen. Auditing can be enabled for permit expiration including updates, inserts or deletes (or any combination.) Provide a master file for contractors and subcontractors, i.e. architects, engineers, soil engineers, electricians, mechanical, plumbing, etc. PROPOSER RESPONSE HERE ‐ CityView provides a Global Address Book which shares information across all PreBuilts (Property Information, Permits & Inspections etc.). Details of any contacts, project, businesses or application can be associated with a Property, Contractor, Business, Professional or Residential contact. This is all visible and accessible by end users so a complete history of projects, transactions and details related to any contact, business or parcel is easily viewed. A comprehensive ability to calculate various fees is required. The screen should prompt the operator to enter the appropriate fee criteria based on the type of fee. PROPOSER RESPONSE HERE ‐ CityView's Flex Fee system ensures that appropriate fees are always charged by enabling the ongoing maintenance of fee schedules and valuation tables, without the need for programming. CityView supports flat, incremental, percentage and range percentage based calculations, as well as combinations of these and many configurations of how fees are applied. Fees will be automatically calculated and business rules will automate which fees get added to each application. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 37 RFP Requirement Number Requirement 3.5 Permit DuplicationTo streamline building permit application processing, the ability to create multiple permits from one master permit is required. Provide the ability to create a master building permit for duplication, i.e.:  For each unique model within a housing tract and specify the number of permits that should generate for the model.  For a contractor to apply for a number of water heater permits. o Allow data entry for the unique information on a duplicated permit (lot, tract, address). PROPOSER RESPONSE HERE – CityView support permit cloning, with very robust and versatile capability in this area. Master permits can be created and cloned. For model homes the master permit is given a unique identifier (Application Type name for example) and every time that model needs to be cloned it is accessed and cloned. For the contractor and water heater example the initial permit application is created and then the number of clones defined and with a click of a button the clones are created. Every time a permit is cloned the user can select specifically what information is to be cloned from the master to the clones. This saves a significant amount of data entry time and ensures accuracy and standardization. Provide the ability to modify a master building permit to create an additional master permit. (For example, models within a development differ only by the number of square feet.) PROPOSER RESPONSE HERE -Please see previous answer. Cloning would be used in this instance as well. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 38 RFP Requirement Number Requirement 3.6 Inspection SchedulingInspections are requested by calling a specified city telephone number the day before an inspection is requested, and the request is recorded by voice mail. PROPOSER RESPONSE HERE –Inspection scheduling capability in CityView is vast. Requests can come in through CityView Portal, through Integrated Voice Response or through the traditional voicemail means the City uses now. CityView customers who employ our online inspection request system report that up to 60% of their inspections are requested that way and this saves them tremendous time and reduces the volume of calls they have to take or listen to. Provide an Inspection report sorted by each inspector including the results of the last inspection. For assistance with problematic inspections, provide the ability to flag an inspection request so that all inspection results will print on the new inspection request form. PROPOSER RESPONSE HERE - CityView’s out of the box Inspection to-do List report provides aninspectors tasks for the day and CityView would make past results available to flag problematic inspections. In addition, a variation of this report will provide past inspections results for problematic scheduled inspections. Using CityView Mobile would make all of this information instantly available from the field without the need for an inspection report. RFP Requirement Number Requirement 3.7 Inspection Activity and ResultsThe inspectors need the ability to research inspection history and record inspection results in an efficient manner. Provide the ability to search inspection history and view corrections. Easily enter standard inspection results (i.e. approved, denied, not ready, rescheduled) as well as free form comments. Print inspection history. Attach photos and documents to inspection results. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 39 RFP Requirement Number Requirement PROPOSER RESPONSE HERE –When a user is positioned on a permit record, the entire inspection history is available to them, including previous inspections, outcomes of those inspections, comments, corrections and related documents. If the inspector is using CityView Mobile in the field, the same information is readily available. Standard inspection results are selected from a drop down (approved, denied, etc.) while standard corrections can also be entered using an autosuggest feature which saves time and ensures accuracy. Free form comments, attaching photos and documents and printing inspection history are also included. RFP Requirement Number Requirement 3.8 Certificate of OccupancyThe Certificate of Occupancy is issued after final inspections are conducted. Allow rules to prevent the Certificate of Occupancy from issuance until all inspections are signed off by the appropriate parties. PROPOSER RESPONSE HERE –This is easily configured as part of workflow within a Permit Application. RFP Requirement Number Requirement 3.9 Reporting Activity reports are required with various frequencies (monthly, quarterly and annual). Comparative reports with the current month compared to the same month last year, and year-to-date information for the current year and previous year. The ability to easily generate ad hoc reports and the ability to export data to Excel is desired. Activity reports by class code, type, contractor, project, etc. are examples of ad hoc reports that may be requested. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 40 RFP Requirement Number Requirement PROPOSER RESPONSE HERE – Users will find success using CityView’s Out-of-the-box standard reporting to discover and report on information needed. With standard reports, users can search within reports, select page numbers to move to, alter the report view, use filters in the report and print and export the reports to multiple different formats (PDF, html, Excel, txt, rtf). End-user ad hoc needs are met through CityView’s Desktop Reporter, which provides for Pivot table reports, Detail reports and Charts and graphs. This reporting tool is a drag and drop ad hoc reporter allowing end-users to drag and drop fields into Rows and Columns, add filter criteria, select the content (e.g. Counts, Averages, Variances, Sums, Max, Min, Standard Deviations, Running values etc.), select how to group the data and label the groups and render the reports in CityView Desktop very quickly and professionally. Reports are rendered in Microsoft SQL Server Reporting Services (SSRS), right within the CityView product. Reports can be saved for future repetitive use, exported to Excel, PDF and Word and printed. Charts can also be quickly generated, using drag and drop tools to create line graphs, Pie charts, bar graphs, areas, doughnuts and column graphs. CityView Desktop reports can be pulled into an end users dashboard to run dynamically. 3.10 Data Conversion Conversion of the existing building permit data is required. The AS 400 database is DB2 and the OS is V6R1M0, and the data can be provided in Excel or other delineated format. PROPOSER RESPONSE HERE – CityView has experience converting electronic data from many different sources and formats from over 200 installations, including AS400 DB2. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 41 RFP Requirement Number Requirement 3.11 System InterfacesProvide the ability to integrate the permitting application with the following systems. ESRI GIS – for address validation LaserFiche document management for document data storage and access within the permitting application. Digital Map Products – online GIS GoRequest – online service request / inquiry provided by GovOutreach. PROPOSER RESPONSE HERE –1) CityView's Certified partnership with Esri gives the company access to the latest technology from the leading GIS solution provider. One of the most powerful features of CityView PreBuilts is the ability to access and use an organization's mapping data to its full potential. CityView PreBuilts integrate with Esri's ArcGIS Server directly for consuming, managing and manipulating spatial information, bringing the power of GIS to the front desk. CityView can also use GIS as the authoritative source of parcel and address data within the application. 2) CityView is a Laserfiche Professional Development Partner (PDP) and CityView’s distinctive framework for integrating with Document Management Systems (EDMS) has been used extensively with Laserfiche. 3) CityView has successfully created an interface for Digital Map Products in previous implementations. This uses a button to launch the DigiMap url, placing the user in context with the property they were positioned on in CityView. 4) CityView has created interfaces for multiple applications across over 200 implementations and anticipate success in creating an interface for GoRequest. An interface cost for GoRequest is included in our proposal. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 42 RFP Requirement Number Requirement 3.12 Additional FeaturesThe City desires to obtain a system that can provide additional features to provide enhanced services. In your proposal, provide information about the features available within your system, and provide separate pricing for each feature. If your system offers additional enhancements that may be of interest to the City, include the description and cost of those features in your proposal. E-Government  The ability to request inspections online through the City’s web page and check the status of inspections.  E-Permitting – Allow electronic permit issuance and fee collection for simple permits, (i.e. water heater) through the City’s web site with PCI compliancy.  View permits on line.  View plan check status. o The City’s web site is provided by Vision Internet. PROPOSER RESPONSE HERE-CityView Portal provides your constituents and contractors the convenience of working with the City 24/7 without having to leave their homes and offices. The Portal offers access to public facing information and interactive services to registered and non-registered users. The Portal is designed for public use in a variety of ways including: ease of use, security, and general functionality. Using the CityView Portal, citizens and contractors can initiate code cases, apply for and pay for permits, upload documents, check permit and plan check status, requests inspections and meetings. It is an intuitive web browser use and is browser-agnostic. Third party secure payment processors that integrate with CityView are PCI compliant. Mobile Access  Provide the inspectors with system access using a mobile device to both inquire and update while working in the field.  Allow the inspectors to provide inspection results to the applicant while working in the field. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 43 RFP Requirement Number Requirement PROPOSER RESPONSE HERE – 1. Field inspectors using CityView Mobile can view and complete their scheduled inspections using CityView Mobile with any modern Smartphone device or touch device. 2. CityView Mobile provides inspectors the ability to print inspection letters in the field and share with contacts created for the inspection process (e.g. Inspection Results letter). Electronic Plan Check  Provide the ability for developers to submit plans electronically through the City’s web page.  Allow for resubmission of changes as necessary  Route to multiple reviewers  View and mark up CAD layers, PDF, DWG, etc. file types  Review and compare marked up drawings; maintain version control PROPOSER RESPONSE HERE – CityView can track applications from inception to completion using CityView’s Electronic Plans Review. This solution utilizes the workflow within CityView and provides the ability to accept citizen/contractor plan applications through the City’s web site using CityView Portal. Every step of the plans review process is electronically tracked and documented through workflow. Reviewers are assigned activities, and use Bluebeam (CityView’s PDF markup, editing solution) to markup, edit, flatten markups and create version comparisons and overlays showing differences between plans. All markups are tracked and recorded by author, status, comments, subject and more. Versioning of plans is shown within CityView’s document management controls and easily accessible to determine status and stage of completion. Mark-up summaries are easily created showing history (e.g., Subject, status, author, date, time, etc.) and approvals can be set within workflow to assure activities are created only when previous activities are completed successfully. CityView’s Electronic Plans Review uses PDF format for electronic markup. These PDFs can be created from DWG and a multitude of other file formats. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 44 4.3 Additional Proposed CityView Modules 4.3.1 CityView Licensing (Optional) CityView Licensing opens the door to accurate and timely data, increasing your revenues and decreasing your stress. CityView Licensing allows you to track and manage licensing for any type of business. This solution manages workflow for you, from tracking and issuing business licenses that are going to expire to generating batch renewal notices, creating tax certificates and producing correspondence logs. With CityView Licensing you will increase revenue because you can track expired business licenses accurately and calculate correct penalty fees and interest. LICENSING ACCESS TO INFORMATION  Accurately track licenses over their lifetime, even when business locations and owners change.  Correctly collect fees by easily identifying expired business/contractor licenses and accurately calculating penalty fees and interest charges.  Collect gross receipts and other information where pertinent (e.g. changes in # of employees) for the system to calculate renewal fees.  Create action items based on precise, timely data.  Report on your businesses, business types, renewal status, penalty fees etc. Flexible reports ensure that you know the status of all businesses in the system, whether their license fees have been paid by the expected date and what the value is of those unpaid fees is.  Map the whereabouts of your businesses through GIS integration, dealing with such things as Business Improvement Districts. AUTOMATION  Automatically calculate correct renewal fees, penalty fees and interest.  Create tax certificates.  Generate batch renewal notices and process batch renewals.  Automate Business License expiries based on delinquency rules. REPORTS & LETTERS  Generate all your Licensing correspondence quickly and easily, e.g. License Certificates, Renewal Notifications, Past Due Renewals,  Preconfigured reports including: Business Status, Emergency Contacts, Inactive Licenses, Short Term Licenses, Business Not Reporting Gross Earnings, Past Due Licenses, Tax Exempt Businesses, Total Amount Billed, and more  Standard document templates with letters configured to your specification 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 45 4.3.2 CityView Cashiering (Optional) CityView Cashiering integrates with all other CityView PreBuilts for a seamless cashiering process, giving you the power to manage the revenue from all your community development initiatives. CASHIERING ACCESS TO INFORMATION  Manage your revenue in a central location for all your community development initiatives.  Meet all standard cashiering expectations by splitting payments across multiple payment methods or joining them into a single transaction  Void or refund transactions (in whole or in part), as required, and manage your daily batches.  Correctly account for payments that need to be distributed to multiple GL accounts based on fixed amounts and percentages  Update all permits, cases, and licenses with fees payment information, such as payee and receipt.  Allow users to quickly search for outstanding fees by project reference number or contact information. System will find all related fees and mark them for payment at the click of a button. AUTOMATION  Generate transaction numbers, receipt numbers, payment date and payment receiver to create an audit trail of monies received.  Automatically calculate correct penalty fees and interest  Generate batch exports to your general ledger system  Easily set up and change your fee structure to meet your exact requirements and set automatic fee activation and expiry dates. REPORTS & LETTERS  Understand your revenue with reports that detail all payment transactions for a given time period by account, or by payment method. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 46 4.3.3 CityView Portal (Optional) The CityView Portal provides your constituents and contractors the convenience of working with the City 24/7 without having to leave their homes and offices. The Portal offers access to public facing information and interactive services to registered and non-registered users. The Portal is designed for public use in a variety of ways including: ease of use, security, and general functionality. Using the CityView Portal, citizens and contractors can initiate code cases, apply for and pay for permits, check permit status, requests inspections and meetings, view public information regarding specific properties, and much more. The design is consistent with typical, intuitive web browser use and is browser-agnostic. 4.3.4 CityView Mobile (Optional) CityView Mobile is a lightweight, handheld application served out for secure access by your inspectors and mobile staff. It is provided as a second option to CityView Desktop for in-field access by building and code enforcement inspectors. CityView Mobile allows staff members to easily access key CityView functionality from the field using their light-weight handheld devices such as iPhones, iPads, Blackberrys and Playbooks, Androids, Windows Mobile phones, laptops and other tablets. Users can:  Access their inspections to-do lists for the day and view them on a map.  Complete inspections in the field.  Look up Contractors to display the status of their licenses i.e. whether current and valid.  Perform permit searches to check for status and outstanding fees.  Perform property searches to check for valid permits, code cases etc.  Navigate extensively through all of the above.  Automate inspection result emails to contractors.  Print inspection reports in the field, 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 47  Create Code Enforcement cases and issue notices of violation.  Upload pictures.  And more! 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 48 4.3.5 CityView Electronic Plans Review (Optional) CityView combines electronic submission, versioning and workflow capabilities with the vast functionality of Bluebeam’s flagship product, Bluebeam Revu, along with Server products for electronic plans review, management of marked up documents and online collaboration. CityView is an authorized registered reseller of Bluebeam products. 4. Proposed Solution Permitting System Software and Implementation Services June 28, 2013 49 Bluebeam Digital markup solutions that push the limits of collaboration, mobility, cloud storage and plan review communication. Innovative PDF creation, editing and markup technology that will help take you paperless. Revu Powerful PDF creation, markup, editing and collaboration for a paperless workflow. PDF Creation Includes direct plug-ins for AutoCAD®, Revit®, Navisworks® Manage, SolidWorks®, and Microsoft® Office, for one button PDFs and batch creation. PDF Markup Customizable markup tools such as text, notes, highlighter, lines, clouds, callouts, stamps, and more to redline PDFs. Toolchest Save commonly used markups in the exclusive Tool Chest for easy reuse, and import or share tool sets with colleagues. 3D PDFs Create 3D PDFs from, Revit®, Navisworks® and add markups to 3D views PDF Measurement Take measurements, count from PDFs and perform area cutouts electronically. Add formulas to the built-in worksheet to calculate costs in Revu. Compare Plan Sets Automatically highlight the difference between two drawing revisions with clouds, or assign colors to layers with Overlay pages. Digital Signatures Electronically sign PDF documents to support an electronic workflow and protect your intellectual property. Stamps Stamp PDF documents with date, time, signatures, and more. Use predefined stamps in Revu or create your own. Batch Processing Convert an unlimited number of files to PDF. Add security, stamps, headers and footers or flatten an entire folder of PDFs at once. Flatten Markups Flatten all markups, or individual markups, to make them a part of your PDF content. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 50 5. Implementation Approach The CityView Implementation approach focuses on making the best use of the flexibility of the CityView product while using the off the shelf functionality contained in the CityView PreBuilts. For the customer this means efficient implementation times, lower implementation risks and a solution that fits the customer’s specific business requirements. CityView provides you with a Project Management Team charged with determining the customer’s needs, communicating clear expectations, then meeting these expectations. The project team includes a Lead Project Manager, Implementation Specialists and Trainers, an Infrastructure Review Analyst, a Data Conversion and Interface Specialist, an Application Developer and a Quality Assurance Lead. Client sign off is required at key stages of the implementation to provide milestones to review progress, confirm objectives, define scope and detail the activities and timelines for the next phase. Sign off involves acceptance of all deliverables and confirmation of the budget and timeline for the next phase. This keeps all stakeholders informed throughout the project reducing the risk of delays or scope creep. It also ensures that acceptance testing is an ongoing process and project acceptance is milestone-based and therefore contained. On the following page is a CityView Project Organizational Chart. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 51 5.1 CityView Project Organizational Chart CityView Project Manager (David Saxton) l|l||lPlanning Phase (Kickoff, Business Process Review and Infrastructure Review) Discovery Phase (Data Conversion, Data Mapping and Interfaces) Configuration Phase (Configuration, Data Conversion, Interfaces, Customizations and Data Conversation Refinement) Delivery Phase (Installation, End User Training and Production Facilitation) Post Implementation Support Phase CV Project Manager (David Saxton) CV Project Manager (David Saxton) CV Project Manager (David Saxton) CV Project Manager (David Saxton) CV Support Services Manager and Support Team (John Edwards and Support Team) CV Manager of Support Services (John Edwards) CV Implementation Specialist/Trainer Lead (Ian Carmichael) CV Implementation Specialist/Trainer Lead (Ian Carmichael) CV Implementation Specialist/Trainer Lead (Ian Carmichael) Client CV Implementation Specialist for Data Conversion Activities (Chris Mack) CV Implementation Specialist for Data Conversion Activities (Chris Mack) Client CV Application Development Team Lead for Interface Activities (Deborah Verhille) CV Application Development Team Lead for Interface Activities (Deborah Verhille) Client CV Quality Assurance Team Lead (Yuliya Melnyk) Client 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 52 CityView staff is experienced and knowledgeable in your business, and committed to success in our business. Your CityView team comes with best practices and ideas that come from implementing projects across all of North America. Our Staff offers in excess of 200 years of combined experience. Please find on the following pages bios of our management team and qualifications of key staff that would be assigned to implement the CityView solution. 5.1.1 Management Profiles - Brief resumes Jerry Canada President – Harris Public Sector & Schools Home Office Location: Niagara Falls, NY As President of the Harris Public Sector & Schools Group, Jerry is responsible for the overall activities including sales, technical support, professional services and product development. Recently the Public Sector & Schools Group has experienced significant growth organically and through acquisitions, and Jerry has been instrumental in performing due diligence and in integrating new customers, employees, and products into Harris. Jerry joined Harris in 2002 with the Spectrum acquisition where he was a founder, serving as its President since 1991. During that time, the company evolved from offering a single product to offering a complete suite of applications for local governments. Jerry earned a Bachelor of Science in Computer Science from Canisius College in Buffalo, NY. Susan McCormick Executive Vice President - CityView Home Office Location: Victoria, BC As the Executive Vice President, Susan is responsible for CityView’s overall direction, including Product Development, Sales, Professional Services and Support. Together with leadership team, Susan’s focus is on delivering superior business solutions to our customer base as well as expanding market share. Susan has 20 years of experience creating software solutions for government agencies in the areas of permitting, enforcement, and land management. Since joining CityView in 2005, Susan has held a number of influential roles, including Vice President of R&D and Vice President of Business Operations. She received her Bachelors of Science in Computer Science degree from Dalhousie University in Halifax, NS. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 53 Sean Higgins Vice President – Sales & Marketing Home Office Location: Victoria, BC As Vice President of Sales & Marketing, Sean leads a team of professionals responsible for placing CityView solutions in the hands of local government agencies that can best benefit from them. Through his team he provides strategic direction to the company to ensure an alignment of product and services with market needs, and he is responsible for aligning CityView’s offerings to ensure project and customer success. Sean has been with CityView Sales since 2004, serving primarily as Regional Sales Director though also leading several customer implementations in the role of Business Analyst. Sean has almost 15 years of experience in technology sales and a Master of Science in Agriculture (CUM LAUDE) from the University of Natal, South Africa. Mike Tardif Vice President – Professional Services Home Office Location: Victoria, BC As Vice President of Professional Services Mike guides the CityView team of talented Project Managers, Data Conversion and Implementation Specialists in the delivery of our community development solutions to our valued clients, both new and existing. Mike brings over 20 years of Project Management, Finance and Senior Management experience and expertise to CityView. Much of his experience has been in the construction industry with the past seven years focused within the software field. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 54 John Edwards Support Manager Home Office Location: Victoria, BC John has more than 11 years’ experience utilizing the CityView product and how it can best be utilized by municipal governments. He manages the communication channel with clients from U.S. and Canada by handling trouble tickets issued from clients and staff to resolve software issues. In addition, John has experience with reviewing all client network infrastructures to ensure software will smoothly operate on all machines and not impact current utilization. He has also reviewed IT processes to identify possible deficiencies. John has numerous customer accomplishments. Collier County, FL; City of Miami, FL; Inver Grove Heights, MN; Blue Earth County, MN; Town of the Blue Mountains, ON; City of Kingston, ON; and Cariboo Regional District, BC (Canada) to name a few. He received a full scholarship for Engineering - University of Saskatchewan, Saskatoon, SK. Steve Graham Technical Architect Home Office Location: Victoria, BC Steve is an accomplished technical architect with over thirty years of experience developing software for a range of platforms and technologies. With a strong technical background, Steve’s focus has been to provide solutions that solve user’s real needs. He provides high level strategic technical vision, analysis of requirements, identification of key abstractions and definition of the overall architecture. Steve has spent over 19 years guiding the evolution of the core CityView product through numerous technology generations and architectures. In 2002, CityView was the world-wide winner of the Microsoft Certified Partner Awards in the Packaged Application category. Steve received his Engineering degree from the University of Natal, South Africa 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 55 5.1.2 Project Team The CityView project team assigned to your project would consist of:  Executive Sponsor,  Project Manager,  Implementation Specialist,  Trainers,  Infrastructure Analyst,  Data Conversion/Interface Specialist,  Application Development Team,  Quality Assurance Team. Our CityView team is comprised of employees experienced in the business of creating and implementing CityView solutions across the continent. The average tenure of CityView employees is over eight (8) years. Your team would therefore be staffed with employees that understand your business, have tremendous experience in this domain and are local to British Columbia. A sample of project staff follows, to illustrate this experience. Susan McCormick Executive Sponsor Responsibilities We follow the practice of assigning an Executive Sponsor to our projects. The Executive Sponsor has the overriding responsibility for the outcome of the project in terms of project success and fiscal responsibility. Susan will act as the senior decision- maker for anything outside of the authority of the Project Manager, as well as a senior executive and mediator for escalated issues. It is helpful if the customer also assigns an Executive Sponsor as it is advantageous to have someone with overarching accountability to the project who is not wrapped up in the day-to-day activities of it. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 56 Dave Saxton Project Manager, PMP Length of Time with CityView 12 years –Office Location: Victoria, BC Responsibilities As CityView’s Project Manager for your implementation, David leads a full team of qualified professionals to manage your implementation and training. He is involved in both the facilitation of the project as well as the hands- on work in each project phase to ensure that all requirements are met and project deliverables are clearly defined. Qualifications: David joined CityView in 1999 and has been responsible for implementing over 50 projects covering the full range of local government business processes including building permits, planning department processing, business licensing and code enforcement to name a few. Customer Accomplishments (additional references upon request) City of Langford, BC; City of Kingston, ON; City of Ontario, CA; City of Miami, FL; City of Mount Vernon, WA; Wright County, MN. Education Master of Business Administration (MBA) University of Western Australia, Perth David is a certified Project Management Professional (PMP) with the Project Management Institute (PMI). 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 57 John Edwards Support Manager Length of Time with CityView 11 years Responsibilities John has many years’ experience utilizing the CityView product and how it can best be utilized by municipal governments. He manages the communication channel with clients from U.S. and Canada by handling trouble tickets issued from clients and staff to resolve software issues. In addition, John has experience with reviewing all client network infrastructures to ensure software will smoothly operate on all machines and not impact current utilization. He has also reviewed IT processes to identify possible deficiencies. Customer Accomplishments (additional references upon request) Collier County, FL; City of Miami, FL; Town of the Blue Mountains, ON; City of Kingston, ON; and Cariboo Regional District, BC (Canada) to name a few. Education Full Scholarship – Engineering - University of Saskatchewan, Saskatoon, SK. Microsoft Certified Professional – MCSE 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 58 Ian Carmichael Implementation Specialist & Trainer Length of Time with CityView 12 years –Office Location: Victoria, BC Responsibilities As CityView’s Implementation Specialist, Ian will be working with you directly through on-site visits, follow up calls, training, and demonstrations in order to assist you in defining your configuration requirements. After the workbook collection phase he will configure your CityView environment and prepare the environment for the onsite activities. Ian will deliver all end-user training, as well as Go- live facilitation. Qualifications: Ian brings 12 years of experience working with CityView in a variety of roles, including Sales and Marketing, Implementation Specialist, and Project Manager. Ian has devoted the last 5 years to Project Management and Project Implementation. Accomplishments City of Airdrie, AB; County of Grande Prairie, AB; City of Danville, VA; City of Lee’s Summit, MO; and City of Ontario, CA to name a few. Education Masters of Business Administration University of Victoria 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 59 Chris Mack Data Conversion – Interface Specialist Length of Time with CityView 6 Years –Office Location: Bradenton, FL, formerly a CityView customer at the City of Grove City, OH Responsibilities Chris is the chief architect of the property update routine used in all PreBuilts implementations where integration with one or more external property data sources is required. Apart from his robust technical skills and experience, Chris also has a very broad knowledge of municipal government business processes including permits and inspections, planning, business licensing, and by-law enforcement. Qualifications: Chris began his career in the IT industry nearly 16 years ago, utilizing Active Server Pages and Microsoft Access and SQL Server to develop dynamic web-based applications. His first experience with CityView came in 2001 as a client. While working for the City of Grove City, Ohio, Chris was responsible for implementation, development, and maintenance of the City's Permitting and Inspections system using CityView. He came to CityView in 2007 and quickly established himself as a key member of the development team, handling data conversion, report development, and client system customization and advanced configuration. Customer Accomplishments (additional references upon request) Inver Grove Heights, MN; Blue Earth County, MN; City of Danville, VA; Township of Canton, MI; Collier County, FL; Town of Newmarket, ON; Town of Aurora, ON; City of Kingston, ON; and the County of Grande Prairie, AB to name a few. Education Aviation Management, Ohio State University 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 60 Deborah Verhille Application Development Team Lead Length of Time with CityView 11 years – Office Location: Victoria, BC Responsibilities The CityView Application Development team is responsible for customizations and interface developments. They ensure your unique requirements are reflected in the final product and that all interfaces perform as defined during Project Definition. Qualifications: Deborah has spent 16 years working on application development for both government and private industry. She has helped to automate applications for insurance, health care scheduling, integrated business inventory, POS and accounting software. Customer Accomplishments (additional references upon request) Collier County, FL; the City of Kingston, ON; the City of Miami, FL; and Columbia Shuswap Regional District, BC to name a few. Education Deborah has a BSC in Computer Science from the University of New Brunswick in Fredericton, NB. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 61 Yuliya Melnyk Quality Assurance Team Lead Length of Time with CityView 7 years – Office Location: Victoria, BC Responsibilities The Quality Assurance Team is responsible for testing the quality of your CityView PreBuilts and your custom designed applications. They use a combination of automated and manual testing on your environment. Bug Tracker Tools, Unit Testing, and Manual Test Cases are used in a strategic test plan that results in a stable, error free application for our clients. Qualifications: Yuliya Melnyk, your Quality Assurance Team Lead ensures the quality of your CityView solution. Yuliya and her team are responsible for testing your application and the CityView software. She is responsible for creating a Quality Assurance infrastructure and all the processes within that structure. These processes include test plans, test cases, documentation and personnel. Yuliya has tested and shipped CityView software releases, tested against SQL Server, Oracle and Access databases. She is also responsible for documenting and overseeing the CityView Quality Assurance processes as well as creating and reviewing other company-wide documentation. Customer Accomplishments (additional references upon request) Canton Township, MI; City of Yucaipa, CA; Teton County, WY and Haldimand County, ON (Canada) to name a few. Education Yuliya received a Master’s Degree in Computer Science from Chernivtsy State University, Ukraine. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 62 5.2 Implementation Methodolgy and Approach The following is a summary of the implementation methodology, resource requirements and delivered outputs: Validation Training. Customer validates data, configured processes, letters, data conversion, interfaces (critical customer involvement step) Completion of in-scope validation feedback including refinement to configuration, data conversion, interfaces, customizations. Customer testing of corrections Install completed environment, deploy desktops through ClickOnce, End-user & advanced user training, Syst em Administ rat or Training Final run of data conversion, cut-over to new system, hands-on go live assistance. Post go-live refresher training (optional), ongoing customer change management, evolution of environment, installation of updates and new releases Completed Validation Feedback Complete Environment for Final Acceptance Testing Installed Environment Client-site Live Production Environment. Customer Acceptance Letter 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 63 What follows is a description of each step in the process. Pre-Kickoff Meeting The Project Manager reviews all documentation with respect to the implementation in order to prepare the materials for project kickoff. The Project Kickoff culminates with the introduction of a project charter that defines the scope, objectives, and overall approach for the implementation. The charter is a critical element for initiating, managing, executing, controlling, and assessing the project. It is also the single point of reference for project goals and objectives, overall project scope, organization, estimates, work plan, and budget. And it serves as a contract between the Project Team and the Project Sponsors, stating the deliverables according to the budget, time constraints, risks, resources, and standards agreed upon for the implementation. Infrastructure Review CityView analyzes the existing infrastructure to identify any potential areas that may result in sub- optimal performance. Our Infrastructure Review Specialist verifies remote accessibility, available bandwidth and techstack compatibility and advises the network specialists of the hardware and software prerequisites required to optimize the performance of the system. This review is conducted remotely off-site[1]. Should CityView be required at remote City facilities, CityView latency\load testing will need to be done to check performance of CityView at these remote sites. PreBuilt Walkthroughs/Data Discovery The PreBuilt Walkthroughs provide the Subject Matter Experts (SMEs) with a thorough background on each of the CityView PreBuilts offered here. The key business process concepts inherent in each PreBuilt are presented along with high level business scoping exercises that identify and define the workflow. The walkthroughs ensure the users:  Understand the phases that are involved in the Implementation Process.  Learn how to map out and automate workflow.  Learn the basics of activity based workflow.  Learn how to provide the data for Fees, Letters, Lookup Tables, and Automated Business Rules.  Learn how to complete the data mapping assignments. Data Collection and Mapping sessions are also conducted and designed to impart the skills the SMEs require to complete their data collection and mapping assignments. Users are provided with an in depth knowledge of CityView table structures and the formats required to streamline the data collection process. This stage is also used to better understand the interfacing and customization requirements. Budget Validation The CityView Project Manager reviews any requirements that cannot be met with standard configuration and/or customization, that were not evident from the initial set of requirements or [1] The City may choose to have this review conducted on-site however additional charges would apply 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 64 scope listed in the RFP. Special attention is paid to areas where they can guide the staff to use the CityView PreBuilts configuration tools to meet the requirements independently. The CityView Project Manager also validates the estimates made as part of the proposal or as determined during implementation. These typically include:  Interface and integration requirements.  Data conversion requirements.  List of customizations identified in the RFP and subsequent data collection.  Project Charter CityView focuses on the assumptions made prior to the project and measures the design of the final solution against these assumptions. The next steps do not commence until sign off on Budget Validation and data collection occurs. This protects both parties against the risk of unclear expectations. Initial Data Conversion The initial cut of data conversion is undertaken according to the data mapping documentation signed off as part of the scope document. This converted data is provided to the customer for validation during the validation phase, for checking the accuracy of the conversion. Further information on the data conversion process is provided in section 5.8. Configuration CityView configures the CityView Prebuilt with the specifics identified during the data collection. A single client environment is created and an implementation specialist is assigned to lead the configuration of that environment. Configuration of your final solution typically involves the following components:  Letter Template Development – CityView’s powerful letter generation functionality is used to create a predefined number of your letter and certificate templates according to the samples provided by you during data collection e.g. Building Permit Certificate, Case Report, Inspection Report, Corrections Notification, Permit Expiry Letter, Notice of Violation etc. Your SMEs are instructed at advanced end-user training on how to create additional letters to meet additional or future requirements.  Fees, Valuations and Work Items - All the fees, including the automated business rules needed for automatic calculations based upon construction or other properties, are configured in your CityView environment according to the data provided by you during data collection.  Activities Workflow – All activities, based upon the details provided surrounding your business processes, are configured to streamline your workflow. This includes Portal- deployed processes and activities.  Custom Data Fields - Custom data fields to meet your specific data capture needs are defined for each pertinent table where they are required and configured accordingly, along with the business rules to apply these fields where appropriate.  Lookups – All lookup data defined during data collection is entered into the system. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 65  Business Rules - All business rules needed to meet the requirements specified and agreed upon during data collection are configured in your environment. This is often the last configuration done to ensure the business rules account for changes in lookups, activities, letters, fees, and valuations.  Security – users are assigned to the organizational roles that are pre-defined in the PreBuilt products, based on information collected during data collection.  Batch Rules – batch rules are configured according to the requirements for permit and project expiry, once-a-year notifications and various renewal processes. These are defined along with the scheduled processes to test for them. Customizations CityView creates any customizations identified in the requirements and during the data collection that are agreed to in the sign-off of the data collection materials or appropriate change orders if necessary. Interface Development CityView’s architecture allows interfaces to external systems to streamline multi-department use. CityView uses Application Programming Interfaces (APIs), Web Services, and batch files to link to other applications. Furthermore, CityView is ODBC and OLE DB compliant and able to link to both internal and external databases that are ODBC compliant. Initial Installation A development environment with the initial installation is created for the customer’s use in this step. A Development Environment is a customer-specific CityView environment that resides on CityView servers but is accessed from the computer using the CityView Desktop. There are several advantages of using a development environment, these include:  A customer feedback form is provided within the environment for immediate feedback and reporting of issues to our implementation specialists and developers.  Changes and fixes can be made quickly by application developers.  The customer can see updates to the environment right away.  Reduced reliance on support delivery bottlenecks to install updated copy of an application.  Multiple user access for validation.  Improved source control - single version of the environment is being used by both the Customer and developers. Validation Training This session provides users with the skills required to test and validate their CityView solution prior to go-live and provide hands on experience with CityView’s configuration tools. Users are able to:  Navigate the system through their specific processes and workflow  Generate and test fees 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 66  View and validate look up tables  Generate and test letters and documentations which have been configured  Use scenario-based examples to test and validate automated business rules Validation training provides essential skills for acceptance testing. Validation Validation involves a review of all the work done to your setup environment including all configurations and customizations. SMEs are given an overview of your system and the tools required to begin testing the environment with your data and rules. The City of La Quinta starts acceptance testing using self-generated testing scenarios. Should the testing identify any defects, CityView provides in-scope fixes free of charge in parallel to, or immediately subsequent to, the acceptance testing. In Scope Refinements After all fixes deemed essential for go-live are provided and retested, the code is frozen and deployment commences. Provided the acceptance criteria have been met, the customer is asked to formally accept the delivered solution as ready for go-live. The CityView environment is then (remotely) installed at the customer site. Final Environment After the final environment receives acceptance and client sign off for go-live, we perform a data conversion in order to establish an environment that can be used for training purposes. User Training End-user training is performed. Please see section 5.4.2 for further details. Final Conversion Run At this stage the final conversion of historical information is made and the customer is asked to accept the final solution for Go-live. Go-Live We understand that going live can be a disconcerting time for the front line users of any new software, so with this in mind, CityView provides an agreed number of days of on-site go-live assistance. During this time an Implementation Specialist is on-site to help the users with questions as they arise, easing their concerns and complementing their training. After you go-live, a formal transition period to Technical Support will commence. Initially your project team will be directly involved in resolving issues. After a period of six weeks they will formally, with the City’s involvement, transition these issues to Technical Support for resolution. 30 days after Go-Live CityView requests a formal letter of completion to ensure both parties are satisfied with the final product. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 67 5.3 Roles and Responsibilities Below is a description of the roles and responsibilities of each of the resources in the Project. Your CityView project team is comprised of:  Executive Sponsor  Project Manager,  Implementation Specialists,  Trainers,  Infrastructure Analyst,  Data Conversion/Interface Specialist,  Application Development Team,  Quality Assurance Team. Your project team is designed to maximize the efficiency of CityView and City resources. The roles and responsibilities defined below have been developed through our significant experience dealing with projects of a similar size and scope. We understand the importance flexibility plays in a successful implementation so we also ensure your CityView team in comprised of individuals who have the experience to perform multiple roles if it helps to streamline communications or expedite the project goals. Executive Sponsor We follow the practice of assigning an Executive Sponsor to our projects. The Executive Sponsor has the overriding responsibility for the outcome of the project in terms of project success and fiscal responsibility. The Executive Sponsor’s responsibilities include:  Monitor the progress of the project  Empower the CityView Project Manager and the core project team to make decisions  Be the senior decision-maker for anything outside the authority of the Project Manager, as well as a senior executive and mediator for escalated issues  Support the Project Manager in accomplishing the implementation goals  Maintain an active relationship with the City. Project Manager The Project Manager leads a full team of qualified professionals to manage your implementation and training. He/she is involved in both the facilitation of the project as well as hands-on work in each project phase to ensure that requirements are met and project deliverables are clearly defined. The responsibilities include:  Be the primary point of contact for the City’s Project Manager  Ensure successful delivery of CityView’s tasks  Participate, where necessary, in gathering of the business process requirements 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 68  In coordination with the City’s Project Manager, create the project schedule and keep this schedule up-to-date throughout the project  Coordinate the scheduling of tasks for the implementation according to the project schedule  Manage the CityView project resources  Provide brief bi-weekly status update to the City’s Project Manager  In coordination with the City’s Project Manager, co-conduct the project Kick-off meeting  Review and approve CityView’s data collection scope documents for Sign-off  Seek sign-off on all CityView deliverables and approval documents from the City’s Project Manager  In coordination with the City’s Project Manager, manage scope change control  Assist the City’s Project Manager in defining the training and Go-Live plans  Support City in the Go-Live preparation steps  Hold review & status meetings with City’s resources  Facilitate and provide timely resolutions to issues and concerns as it relates to CityView resources, project issues, etc. Infrastructure Analyst & Development Environment Manager The CityView infrastructure analyst (IA) works with the City to review the City’s hardware and software infrastructure as it pertains to the optimum functioning and performance of CityView. Typically the IA is also our Manager of Support and as such carries responsibilities of managing the customer’s hosted development environment, facilitating updates and installs and troubleshooting issues. Responsibilities include:  Prepare and distribute the Infrastructure Review Questionnaire to the City, for collection of appropriate information required to analyze hardware and software infrastructure  Handle any questions and seek clarification on any items in ensuring the information received is complete, for the purpose intended  Assess the suitability of the infrastructure and deliver the Infrastructure Review report  Provide guidance on hardware sizing, third party software, Esri map development and configuration, installation guidelines  Coordinate initiation of the City’s hosted Development Environment and manage this throughout the project, including updates and merges  Together with the City’s technical administrator, coordinate installs at the client site  Prepare the Microsoft ClickOnce package for Desktop installs  Deliver the System Administrator Training 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 69 Implementation Specialists The Implementation Specialist (IS) works closely with the City through on-site visits, follow up calls, training, and demonstrations in order to define the scope of the configuration effort. The IS configures your CityView environment and prepares the environment for the onsite activities. Typically the IS’s also deliver the end-user training and Go-live assistance. Responsibilities include:  Provide progress status to the CityView Project Manager  Perform the data collection and work with the City’s Subject Matter Experts (SMEs) to understand and collect the business requirements  Work with the SMEs in designing the CityView Activities workflows  Provide best practices recommendation and solutions where applicable  Compile the data collection documents for the scope document  Configure the Software based on the scope documents  Unit test the configuration  Provide configured system to Application Developer Team Lead and QA Team lead for configuration review and testing  Provide validation and acceptance testing support  Work with the City’s SMEs to log Validation feedback and correct mis- configuration items  Work closely with the CityView, Developers and QA Lead to answer any business related question that might arise Trainers Often the ISs are also the Trainers as they are qualified as such and they have the best understanding of the City’s configured environment going into the training. Trainers have the following responsibilities:  Provide training to the different City groups as follows: o Subject Matter Experts o Advanced Users o End Users  Provide electronic copies of training materials where applicable  Provide electronic copies of training sessions’ agendas  Leverage adult learning methodology and teaching techniques while documenting and escalating any concerns to the implementation Project Managers Data Conversion & Interface Specialist/s Responsible for analysis, design and testing of the interfaces between CityView and any 3rd party applications or databases. Responsible for the data conversion tasks of Organization’s data sources. List of responsibilities include:  Evaluate interfaces functionality requirements  Provide recommendations on interfacing approaches  Identify Interfaces issues 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 70  Perform the analysis of the required interfaces  Evaluate a sample data structure provided by City to which CityView must create an interface  Create the design documentation of the required interfaces  Manage interfaces’ design documents and revise according to City’s review and comments  Forward the interfaces’ design documents to the CityView Project Manager for review and approval  Unit test the interfaces to ensure they meet the specifications outlined in the design documentation  Work closely with the CityView Developers to answer any technical related question that might arise  Provide training support to the City’s Technical Experts regarding the interfaces  Evaluate sample data structure from which CityView will be converting electronic data  Provide data conversion analysis with the City’s Data Conversion Expert  Provide recommendations on data conversion approaches  Provide data conversion mapping review and assistance  Identify conversion issues  Develop data conversion scripts according to the final mapping documents  Perform the preliminary cut data conversion  Unit testing the preliminary cut data conversion  Modify data conversion scripts based on test results if necessary  Perform any other agreed on intermediary cuts of data conversion  Setup the production ready cut and briefly unit test the production ready cut data conversion  Provide assistance to the City’s Data Conversion Expert in loading the preliminary cut of the converted data and test it  Communicate directly with the City’s Data Conversion Expert on any data conversion related issue / question Application Development Team Reporting to the CityView Project Manager, the Developers will be responsible for the development of any assigned custom reports or customization requirements. Below is a list of responsibilities to be performed by the Developers:  Create in-scope custom reports and unit test them  Create in-scope customizations and unit test them  Create in-scope interfaces and unit test them  Provide customizations and interfaces to the QA Team for unit testing  Periodically review the ISs configuration for adherence to best practices and efficiencies and provide guidance and oversight where necessary 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 71 Quality Assurance Team The Quality Assurance Team is responsible for testing the quality of your CityView PreBuilts and any customizations and interfaces. They use a combination of automated and manual testing on your environment. Bug Tracker Tools, Unit Testing, and Manual Test Cases are used in a strategic test plan that results in a stable, error free application for delivery. Responsibilities include:  Maintain QA environments on the same version as the City’s Development Environment for parallel testing and troubleshooting  Log test results, log issues in detail and provide issues logs to Application Development team  Provide unit testing as detailed within roles above  Provide advice on timing and readiness of version releases. We envisage the City’s project team is comprised of:  Executive Sponsor  Steering Committee  Project Manager,  Subject Matter Experts (SMEs),  Data Conversion Expert,  Technical Analysts/Experts,  Database Administrator,  Systems and Network Administrators,  Testers (often the same people as the SMEs),  Application Administrators  End Users. City Executive Sponsor The Executive Sponsor provides the vision of the project in alignment with the City's corporate short term and long term goals and objectives. The Executive Sponsor’s responsibilities include:  Participate on the project Steering Committee  Promote the project throughout the City  Monitor the progress of the project  Monitor the overall City impact  Empower the City Project Manager and the core project team to make decisions  Make timely decisions  Maintain the authority to set priorities, approve overall scope and settle issues / priorities that significantly affect the project and the City  Support the Project Managers in accomplishing the project goals 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 72  Provide a vision of the City’s goals  Maintain an active relationship with CityView Management City Steering Committee Should the City wish to form a Steering Committee for the project (internal to the City), the Steering committee typically develops the vision for the project in alignment with the City's short term and long term goals and objectives. The Steering committee is suggested to be composed of the City Project Sponsor(s), the City’s Executive Sponsor and the City’s Business Leads. The Steering committee has the following responsibilities:  Attend Steering Committee meetings  Set priorities  Approve scope and scope changes  Resolve escalated issues  Provide strategic guidance to achieve the define project goals  Promote the project throughout the City  Commit the required resources to the project and approve new ones when required  Monitor the project progress  Monitor the overall City impact  Approve extensions to project timeline or addition of new City resources to resolve City -side delays  Empower the City Project Manager and the core project team to make decisions  Generate timely decisions  Conduct periodic review of project progress  Make strategic decisions to manage business and project risks  Support both Project Managers to accomplish project goals  Have an active relationship with CityView management City Project Manager The City Project Manager is responsible for the overall City deliverables and the day-to-day management of the project. This resource is the primary liaison between the CityView Team, the City’s project team and the Steering Committee. Both Project Managers will work together to meet the objectives, address issues, facilitate resolution and participate in active management of the teams. Below is a list of responsibilities to be performed by the City’s Project Manager:  Manage all City resources for project related activities  Manage the project (budget, timeline, quality, risks, scope, issues, deliverables, etc.) in cooperation with CityView’s Project Manager  Communicate project status to the Steering Committee, the Executive Sponsor and the project team leveraging updates from CityView’s status updates  Participate in the Steering Committee meetings  Create, maintain, manage and refine the project schedule with all its elements in cooperation with the CityView Project Manager  Maintain project standards especially Scope & Status reporting 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 73  Prepare, organize and co-conduct with the project kick-off meetings  Manage the delivery and coordination of City project tasks  Manage all project deliverables in coordination with CityView’s Project Manager  Manage and streamline the issue management process in conjunction with CityView Project Manager  Manage project deviations and take necessary corrective actions  Participate in gathering of the City’s business process requirements when required  Plan, manage and execute the Acceptance Test efforts  Plan, manage and execute the end user training efforts  Provide timely reviews and potential sign-offs on all project deliverables approval documents as presented by the CityView Project Manager  Review and accept project milestones  Manage the logistical activities of the end user training o Training facilities o Students booking o Scheduling of sessions o Monitoring and logging the end user attendance  Capture the end user feedback  Responsible for internal & project communication  Provide guidance to project team members  Lead the Go-Live preparation planning  Participate heavily in the Go-Live preparation tests  Must provide Go / No Go Decision throughout the project phases  Must be present for Go-Live City Subject Matter Experts The Business Experts own the business process within their functional areas since they perform these day-to-day business processes. These people collectively form the knowledge base of the City’s business process requirements. Such resources will be involved in the Data Collection, as well as approval of the Scope Documentation and testing and acceptance of the configured system. They will further verify that the new configured system meets the City’s business requirements as outlined in the Scope Documentation. They will participate in making decisions regarding the business processes and they will help both Project Managers manage the project scope and all the associated deliverables. Below is a list of responsibilities to be performed by the SMEs  Attend data collection & validation training sessions  Participate in appropriate project team meetings  Work with the CityView IS to provide input into the analysis of the business requirements and review the Scope Documentation  Work with the CityView IS to validate the configuration through validation testing  Develop appropriate validation test cases based on business scenarios  Assist the City’s Data Conversion Expert in data conversion validation & acceptance 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 74  Assist in the development of user procedures  Assist the project team in defining user access levels and privileges  Assist the project team in the Go-Live support planning  Provide end user post implementation Go-Live support where applicable  Assist the City’s Project Manager in problem resolution  Support End User Training and documentation preparation  Must be present for Go-Live City Data Conversion Expert The Data Conversion Expert will be involved with the CityView Data Conversion Specialist in analyzing, mapping, loading and testing the different cuts of data conversion. This resource must possess a strong knowledge of the existing data sources that will be converted from both the user and database ends of the existing systems that need to be converted. This resource will also learn about the database structure and the integrated tables (from data mapping documents provided by CityView) as this knowledge will help them relate to their existing data sources. This resource will also review and finalize the data mapping documents and will test the data once the preliminary cut is completed by CityView. Below is a list of responsibilities to be performed by the City’s Data Conversion Expert:  Act as the primary contact for CityView Data Conversion Specialist  Acquire knowledge from the CityView Data Conversion Specialist as analysis & mapping is performed  Understand the database structure through knowledge transfer and documentation provided by CityView  Provide file layouts, where available, for existing data sources  Provide data sources in an agreed to format  During the analysis, provide documentation pertaining to the current systems (existing user manuals, etc.) if available  Lead the analysis of the existing data sources as they relate to the database  Finalize and approve the data mapping documents once prepared and delivered by the CityView Data Conversion Specialist  Test and potentially accept the preliminary data conversion cut and any other subsequent data conversion cuts whether performed by CityView or the City’s resources  In coordination with the Database Administrator, prepare any other database environments that might be required for data cuts  In coordination with the Database Administrator, prepare the production database for the final cut data load  Work in conjunction with CityView to identify and possibly resolve conversion issues by directly communicating them to the project team, CityView, users and management  Participate in the Go-Live preparation planning  Should be present for Go-Live 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 75 City Technical and Advanced (Power) Users These resources are involved with the CityView resources to learn the report writing tool and system configuration. They could assist in these two functions once knowledge transfer is accomplished. Once trained they will have access to the tools to support the end users with any future configuration enhancements to the system. These resources could also work in conjunction with CityView to lead the interfaces (third party integrations) analysis, definition and acceptance testing. Below is a list of responsibilities to be performed by the City’s Technical Experts:  Attend required Advanced training sessions (Configuration, Reporter Training)  Acquire the necessary knowledge from the CityView resources through training sessions and documentation  Participate in the analysis, design and acceptance testing of all interfaces to 3rd party systems (potentially)  Should be present for Go-Live  Other responsibilities depending on the degree of participation encouraged by the City City Database Administrator This resource will be responsible for setup and maintenance of the different databases (Testing/ Training and Production) during the initial project phase and for any subsequent requirement. Below is a list of responsibilities to be performed by the City’s Database Administrator:  Setup the initial databases in conjunction with CityView resource(s)  On-going database configuration, monitoring, tuning and troubleshooting of the database environments  Manage production database growth  Provide support to the project team during the project implementation as identified in the project schedule  Manage the performance of the database  Establish and maintain database security and coordinate with application administration the application security levels  Include the databases in the normal backup routines and add them to the recovery management plan  Coordinate activities with City network and workstation administrators  Manage and execute database installation and upgrade patches  Participate in user access rights and privileges planning, definition & testing 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 76 City Systems & Network Administrators These resources will be required to provide assistance to the project team on an as needed basis. Below is a list of responsibilities to be performed by the City’s Systems & Network Administrators:  Prepare servers for initial software setup and configuration  Provide setup of servers and provide network connectivity  Setup required peripherals for the different environments  Provide setup of clients’ workstations – deploy ClickOnce package for central deployment of CityView Desktop (not required to touch individual workstations)  Setup testing environments as requested by the City’s Project Manager  Participate in Go-Live preparation tests  Should be present for Go-Live City End Users These resources will be trained on the proposed PreBuilts and components. Below is a list of responsibilities to be performed by the City’s End Users:  Attend and actively participate in the appropriate training sessions provided by CityView  Understand existing business processes as well as the project scope at a reasonable level of detail  Have good Windows navigation skills 5.3.1 Resource Requirements The following tables provide a summary of the CityView resources dedicated to the project as well as the expectation of time required from City resources. CityView Resources: Table – 5.3.1.a – CityView Resources Project Team Member Estimated Hours on the Project Project Manager 120 Implementation Specialists 325 Trainers 112 Application Development Lead 65 Quality Assurance Specialist 42 Infrastructure Specialist 40 Data conversion/interface specialist 88 Total 792 City Resources: Our implementation approach offers significant opportunities for customer contributions and both business users and IT staff can play an integral part in the implementation. We have designed 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 77 CityView to offer flexibility and independence and therefore our services and support measures are designed for continuous knowledge transfer so that ultimately, customers are empowered. This is a lesson we learned decades ago. Our founders recognized, as ex-local government employees themselves, that legislations and business practices continuously change and a good vendor software needs to offer the tools for customers to effect that change in the software themselves, without reliance on the vendor and without affecting the ability to upgrade the software. That has been the philosophy of our software development since our inception. Below we have specified the typical City roles involved and their time commitment. Typically, certain people would fulfill several roles so these are not mutually exclusive. Table 5.3.1.b – City Resources Functional Role # Employees Required Involvement (% of time) Required for: City Project Manager 1 Periodically throughout project (not a full time position) Planning, progress monitoring (Primary responsibility remains with Vendor Project Manager) - Issue escalation and risk management -Vendor and internal team management -Providing City deliverables within agreed-on timelines -Providing sign-off at required junctures during the project implementation Business Subject Matter Experts (SMEs) 4 - 5 -100% availability during Kickoff/PreBuilt Walkthroughs/Data Collection for own departmental processes -100% availability during Validation Training for own departmental processes -25% availability during Validation Providing requirements: -Lookup values -Activities -Data mapping (may also be IT resource) -Business Rules matrices -Evaluation of processes -Performing validation based on test scenarios and providing feedback -Internal expectations management; Internal Agents for change Infrastructure Specialist 1 (could be same person as other technical roles mentioned below) -20% during Infrastructure Review (few hours only required) -20% during deployment preparation -Infrastructure review -Validation of SW/HW requirements -Set-up and test-runs prior to deployment DBA/ Data Architect 1 (could be same person as other technical roles mentioned below and above) 30% during onsite data collection and validation 30% around Go-live -Data mapping legacy systems to CityView -Data extraction (NOTE: no assumption is made re efforts for data cleaning as this is very client- specific) 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 78 Functional Role # Employees Required Involvement (% of time) Required for: Network & Security Administrator 1 (could be same person as other technical roles mentioned below and above) 10% post validation training/ pre-deployment 30% around Go-live -Access rights -Security/firewall issues -Ensuring software and Infrastructure configuration for go-live is in place -Testing correct configuration and deployment to each user -Conducting performance tests -Managing any 3rd parties who may be required during the Go-Live period (e.g. IVR; other vendors) -Backup plans in case of no-go or issues GIS Specialist Other System Specialists 1 10% during interface development (minimal time required) -GIS interface -Other systems (financial, assessor…) System Administrator 1 (could be same person as other technical roles mentioned below and above) 100% during Sys Admin training (8 hours) 10% of FTE (dependent on number of users) ongoing -Sys Admin training -User maintenance, upgrades Designated Support Contacts 2 Ad hoc basis -Dealing with and qualifying issues - Implementing patches End Users Dependent on # users 100% availability during End User Training and Go-Live facilitation for own departmental processes End-User training Report / Letter Specialist 2 100% availability during Reporter Training and Configuration training Training and on-going business support 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 79 5.4 Training CityView offers a variety of courses designed to meet the full range of training needs. Each of these is described below. Training is provided on-site at the City, unless otherwise specified. Our proposal includes a comprehensive program of training comprising twelve (12) days of training and including all levels of CityView users from end users to system administrators. We have Three Training Objectives for our Customers: 1. Knowledge Transfer: We provide your Subject Matter Experts with the knowledge they need to assist us in tailoring the solution to the requirements, and verifying we have captured those requirements. We do this through PreBuilt walkthroughs prior to data collection and Validation Training after configuration. 2. Enable: We train the end-users to maximize the use of the functionality developed specifically to help them better complete their day-to-day activities of processing applications, capturing accurate data and finding and disseminating that data and maximizing your return on investment. This is achieved with End-user Training, Go-live Facilitation and (optionally) Refresher Training. 3. Empower: We provide advanced users and system administrators with the knowledge to sustain and evolve the data needs and workflows of the CityView system. This we do through Maintenance and System Administrator Training, Configuration Training and CityView Reporter Training. Should the City choose to benefit from the power of the CityView Application Builder, a fourth objective will be introduced, Liberate: here we prepare your developers with the expertise to create local government business process application modules and further grow the value of the total CityView solution to the City; we train your developers on the use of the development tools. Should the City request this, it will be added to the proposal. Training courses are described below. All courses offered assume a basic understanding of Windows-based software and/or web-based applications. In order to provide quality training to the students in the amount of time specified we would ask that you take this into consideration when you are selecting the course participants. 5.4.1 Validation Training CityView has designed its Validation Training around a best-practices approach to introducing new skills to adult learners. At key stages of the implementation, we conduct training sessions to lead your Subject Matter Experts (SMEs) through the procedures required to establish your initial environment. Your SMEs are left well prepared to complete the validation testing. The figure below outlines how Validation Training fits within your Implementation Plan. On-site Sessions are conducted with your designated Implementation Specialist and involve the assignment of tasks. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 80 Figure 5.4.1.a Validation Training is designed to provide your users with the skills necessary to verify and validate your CityView solution prior refinement and again for acceptance to Go-Live, and provides hands- on experience with CityView Desktop such that your Subject Matter Experts are already familiar with the software as they head into End User Training. Having a core group of users who understand the methodology behind the CityView PreBuilts and who have actively participated in the configuration and validation process, is an important contributor to user adoption at the time of Go-Live. 5.4.2 User Training Our trainers use their skills as facilitators, coaches, and computer specialists to make CityView PreBuilt courses an interesting and engaging experience for all students. They have a wealth of experience as adult educators backed by a depth of knowledge, developed over many years working as Programmers, Designers, DBAs, and GIS or Systems Analysts. End-user Training End-user training provides everyday users of your CityView PreBuilts with a series of full, in-depth course programs designed to give them the required skills, tools, and time saving tips to make the most of their new software. This training provides a thorough understanding of the business process and software functionality in your CityView PreBuilts so that everyone is ready for go-live day. End- user training focuses on your configured end-product, training you on the navigation of your processes as configured in the product. CityView uses industry standard databases with the expectation that the administrative training our employees have with these systems is sufficient for knowledge transfer to your staff. Application administration is a standard part of your advanced user training. Maintenance/System Administrator Training This course is designed to provide administrators responsible for managing CityView with the general knowledge of how to install and upgrade versions of CityView, change user rights and manage security. The advanced version of this course will go into additional detail on the architecture of the CityView platform as well as how to maintain the CityView Portal. Students should be selected from the Information Technology discipline, and have an expectation that they will be maintaining the software in the future. Data Collection & Initial Configuration Validation Training On-site (1 day/PreBuilt) Lookups, Letters, Fees & Other Configuration System Navigation, Business Rules & Workflow Issue Tracking & Reporting In scope? Property Data & Legacy Data Mapping Configuration Refinements Acceptance & Go-Live Validation Training within the Implementation Process 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 81 Course participants will walk through typical system maintenance and troubleshooting examples, which will teach them the tools, techniques and terminology applicable to CityView, enabling them to not only support the business users in their organization but also to communicate more effectively with CityView’s Technical Support team. They will be exposed to our best practices approach for Security Maintenance; and, they will learn the processes for installing and upgrading the CityView environments. Students will be instructed in the use of the CityView Manager client, and they will gain an understanding of the architecture behind CityView. Additional topics that may be covered include: configuration of Microsoft Exchange, Web Server settings, LDAP settings, Mapping, and Document Management settings. Configuration Training CityView is a powerful application that has the ability to grow and change as dynamically as your business demands. We provide a rich set of configuration tools that can allow you to alter the behavior of the system in a host of ways without having any impact on your future upgradability. In order to get the maximum value out of your CityView investment, it is important that one or more individuals within your organization take an active interest in learning how to use these tools and become responsible for ensuring that your application continues to evolve as the need arises. Students should be selected from either the Information Technology discipline or from the business domain but must have a strong knowledge of Windows-based software and preferably an understanding of database concepts. Participants will learn the importance of lookup tables and how to determine what lookup matches each field on the screen. They will learn how to create and delete “custom” fields. Students will learn how to evolve their existing activity workflows and create new business rules, including best practices for configuration and proper naming conventions. They will learn how to create new letter templates, including data tags, and the method of maintaining their fee schedule within CityView. Additional topics may include: creating resource groups, security configuration, batch processes, and advanced topics in business rule configuration. In order to successfully perform the above configuration tasks, users will need an understanding of the database structure behind the CityView PreBuilts. We will teach them how to identify what tables/fields are behind the various form controls and how to determine what the relationships are between tables. The students will learn the various Desktop tools that are available for clarifying database schema questions and testing/troubleshooting their own configuration. Reporter Training CityView’s fully integrated report engine and report designer tools provide all of the features that you would expect from other industry-standard reporting tools and allow end users to create reports. In this course, students will learn everything they need to know about creating simple reports, including filters, subsections, and aggregate fields. Students will also learn how to use CityView’s Desktop Reporter to create Pivot, and Detailed reports and charts and graphs and save the designs for future use. Additional topics may include: complex report writing, views, and on- form expressions. There are reporting tools for both end users and IT staff so the course is often split to cater to the staff roles and reporting tools. Refresher Training (Optional) Refresher training is provided approximately 6 months after Go-Live to ensure successful adoption of the system, and to prevent users from developing any bad habits that cause productivity loss or “dirty data”. The agenda will be determined in advance and courses will be tailored to the specific needs of the users. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 82 Real-world experience drives what users want to see covered in these training sessions. Users who were originally keen to write reports may still be resisting taking that first step, so this is a good opportunity to do some refresher training in Report Writer. It is also a good opportunity for the trainer to observe how staff is using the system and make suggestions for ways to increase productivity. Designer Training (Optional) One of the distinguishing features of CityView is that it offers its own development environment, the CityView Application Builder, which can be used to build functionality beyond that which is delivered to you as part of your PreBuilt solution. In this course, users will learn how to develop their own data entry forms, build searches and filters, manage their source code, and ensure that they preserve their PreBuilt upgrade path in the process. Additional topics may include: creating new database schema, importing/exporting application objects, and creating expressions. Students should be selected from either the Information Technology discipline and must have a strong knowledge of Windows-based software and preferably an understanding of database concepts. Previous exposure to a development tool, such as Microsoft Access, improves the classroom experience. Train the Trainer Training (Optional) City in-house Trainers will acquire the knowledge and skills required to train all end users. By taking full advantage of such knowledge transfer and post Go-Live assistance, City Trainers can provide end users with One-on-One, Refresher, Lab and web-based training sessions. At the early stages of Go-Live, the Trainers, along with the Project Team members, can act as a frontline support and guidance to the end users. The City can then have resident experts on the different modules. 5.4.3 Proposed Training Plan for the City of La Quinta Course durations are based on a recommended number of days per PreBuilt; and, class sizes are kept to a maximum number of students to ensure that everyone receives the proper attention. We also recommend extending the training to additional days if more than one department is using a given PreBuilt application to satisfy a broad range of business functions. This allows the instructor to deliver the training in a way that is meaningful to each department, i.e. focusing on their application types, workflows, and business rules. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 83 Table 5.4.3.a - Training Plan Course Objectives Validation Training (onsite) This training provides users with the skills required to test and validate your CityView solution prior to refinement and ultimately go-live. It is conducted following the initial configuration of your development environment. Users will be able to:  Navigate the system through Customer-specific processes and workflow.  Generate and test fees.  View and validate look up tables.  Generate and test letters and documentations which have been configured.  Use scenario-based examples to test and validate automated business rules. They will also receive coaching sessions to ensure they have the skills to test our applied fixes prior to go-live. Duration: 3 days Users: SME Maximum#: 6 End User Training PreBuilts (onsite) This course is designed to enable business users to effectively use CityView PreBuilts in order to fulfill their daily work activities. The course provides specific instruction on how to navigate and complete tasks within CityView. It will cover tasks such as completing an application, adding contacts, attaching files, tracking activities and outcomes, applying and paying fees, producing correspondence, mapping basics, and running reports. Users are able to:  Understand the key concepts that make up the business process.  Be able to navigate and complete tasks relevant to day today activities.  Be able to walk through a business activity based workflow. Duration: 3 days Users: All Maximum#: 10 Configuration Training (onsite) This course is focused on enabling users to configure, maintain and evolve their business process within the CityView PreBuilt environment. Concepts that will be covered include Letter Generation, Automated Business Rules, Maintaining your Activity Based Workflow, Fee Maintenance, Holiday Configuration, Building Batch Processes and Maintaining Lookup values. Users will be able to:  Create and modify Letters.  Create and modify Fees.  Improve and evolve the Activity Workflow.  Meet business requirements through the creation of new Automated Business Rules and Batch Processes.  Keep your system current by updating Lookup tables and creating and maintaining custom attribute fields. Duration: 2 days Users: Advanced Maximum#: 6 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 84 Maintenance/System Administrator Training (remote) This course is designed to provide administrators responsible for managing CityView with the general knowledge of how to install and upgrade versions of CityView, change user rights and manage security. The advanced course will go into additional detail on the architecture of the CityView platform as well as how to maintain the CityView Portal. Course participants will walk through typical system maintenance and troubleshooting examples, which will teach them the tools, techniques and terminology applicable to CityView, enabling them to not only support the business users in their organization but also to communicate more effectively with CityView’s Technical Support team. They will be exposed to our best practices approach for Security Maintenance; and, they will learn the processes for installing and upgrading the CityView environments. Students will be instructed in the use of the CityView Manager client, and they will gain an understanding of the architecture behind CityView. Additional topics that may be covered include: configuration of Microsoft Exchange, Web Server settings, LDAP settings, Mapping, and Document Management settings. Duration: 1 day Users: Advanced Maximum#: 4 Reporter Training CityView’s fully integrated SSRS-based Desktop Reporter and Designer and custom report designer provide all of the features that you would expect from other industry-standard reporting tools. In this course, students will learn everything they need to know about creating simple reports, including pivot reports, detailed reports, charts, graphs, filters, subsections, and aggregate fields. Additional topics may include: complex report writing, views, and on-form expressions Duration: 1 day Users: All, Advanced Maximum#: 4 Go-live Facilitation (onsite) Your Implementation Specialist is onsite at go-live and beyond to provide hands-on, one-on-one training and facilitation to ensure a smooth transition to the new system. Duration: 2 days Users: All Maximum#: N/A Documentation Please refer to Section 5.9 which highlights documentation that is to be delivered during the implementation process. 5.5 Project Management CityView generally adheres to the Project Management Body of Knowledge (PMBOK) methodology which is the core foundation for the Project Management Institute (PMI) and their Project Management Professional (PMP) certification. CityView does use many of the PMBOK principles and several of the PMBOK processes during our implementations. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 85 Lifecycle: The CityView implementation generally follows a waterfall lifecycle with each task flowing into the next until go-live. Figure # 5.5.a Waterfall Lifecycle Assignment of Responsibilities and Progress Tracking: CityView uses Microsoft Project as a scheduling and project management tool to identify all major tasks associated with an implementation and to schedule the task and assign the responsible resources. CityView schedules are duration based and not effort based. If a particular task is scheduled to begin on July 1st and end on September 1st, it does not imply that the task will require 2 months of effort but that the task must start by the July 1st date and must complete by the September 1st date regardless of the amount of effort needed to complete it. Critical Path: All tasks on CityView schedules will also indicate whether the particular task is critical path or not. Critical path tasks are those that will cause a delay in the entire project if the individual task is delayed or any reason. CityView will work hard to avoid delay of critical path tasks because of the cascading effects to the other steps in the implementation. The CityView Manager has primary responsibility for communication management during a CityView PreBuilts implementation. However, since each project has unique stakeholders and communications challenges the communication management approach is adjusted or tuned in each project to ensure the timely and complete transfer of information. Steering Committees: We suggest the customer creates a project steering committee made up of senior managers or executive stakeholders to track and facilitate the progress of the project. CityView project managers have participated in many of these committees as technical resources, members and/or even as the chair of the committee. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 86 Status Calls with the Project Manager: Each project manager is required to schedule and conduct status calls with their clients at least once every two weeks to discuss accomplishments, upcoming tasks and outstanding issues. These calls last anywhere from 30 minutes to an hour depending on the number of issues to discuss and the current stage of the project. Status Reports and Schedule updates: Each project manager is required to send a bi-weekly status report to their customers with accomplishments, upcoming tasks and outstanding issues identified. Time Management Time management for a CityView PreBuilts implementation is primarily managed through the project schedule and work breakdown structure located in our OnTime task management application. Work Breakdown Structure: CityView uses a tool called OnTime to break projects down (decompose) into individual work modules that can be assigned to an individual Developer, Implementation Specialist or other CityView staff member. The OnTime application provides a communication mechanism to the project team members, tracks progress, history and completion of each individual task. Tasks can be entered with dependencies on other tasks and attachments can be added in OnTime to fully describe the requirements for a particular work item. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 87 Figure # 5.5.b Sample Work Breakdown Structure Note: hours in the above diagram are only for demonstration purposes and are not representative of estimates associated with this proposal. Project Schedule: CityView PreBuilts implementations have all tasks identified and scheduled in a Microsoft Project file provided to our customers. Each task has one or more resources assigned to it and dates for the required start and end times for the task. The project schedule is updated and provided to the customer at regular intervals. A sample project plan for the City is provided in section 5.10. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 88 5.6 Change Management Methodology Change Management Throughout the Process CityView’s implementation methodology has been designed with cognizance given to the difficulties many organizations and end-users face in making a change from the business critical system that they have grown accustomed to. Our implementation approach defines key activities designed to involve the City as much as possible in helping contribute to the change and therefore owning it. This does not entirely replace the need for the City to have an internal change management plan and the City’s active role in enforcing the change management initiative is critical; however, we do recognize that we implement systems every day so we are in a very good position to make recommendations and assist in this process. Our corporate roots are in the development of custom application software on the CityView platform. We did this for 18 years before we productized local government best practices through the CityView PreBuilts. As such, our culture is one where we determine what the needs are and deliver according to the requirements, rather than work to constrain customers into a fixed and inflexible system that introduces not just substantial change in the look and feel of the software compared to what they used before, but change also to business processes they are familiar with. Because of this culture, when we developed the CityView PreBuilts, we built them with a substantial amount of flexibility delivered through comprehensive configuration tools. Our implementation process is defined to maximize the use of these configuration tools to deliver a system which minimizes the need for process change but delivers those customer processes within a framework that enables significant gains in efficiency, principally through the use of workflow. The following steps in our implementation methodology contain elements for change facilitation: PreBuilt walkthroughs and Data Collection – this step is designed to familiarize the Subject Matter Experts from the City with the fundamentals of the PreBuilts, the user interface for data capture and the conceptual workings of the systems, so that SMEs can begin to understand how their processes will fit and look within the PreBuilts. Data entry, fee, activities-based workflow and document generation, task assignment and routing, automation are all covered. Our Implementation Specialists then provide a data collection package and work with the SMEs to define the data requirements, workflows, business rules, document needs, etc. that will ultimately populate the system. The process introduces early, to the key change agents at the City, what to expect from the change and coaches them through difficulties while providing comfort around the knowledge it is their processes and data we want to understand and use to populate the system. The deliverable from the Data Collection process is a scope document that contains the data and business rules that will be used to configure the PreBuilts. Both parties sign off on the scope document, cementing the expectations that the City’s project sponsor, project manager and SMEs can then communicate to the users. Configuration – the process of configuring the software according to the scope agreed to in the scope document is largely undertaken remotely by CityView. In order to assist the change management process, we create a Development environment at our site and provide the City SMEs with secure remote access to that environment, along with encouragement to access it regularly and examine the development of the system as it is happening. This creates buy-in. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 89 Validation Training and Validation – while the validation phase of the project is primarily a means for early acceptance testing, the process itself assists with change management as the SMEs undertake the majority of validation themselves. Moreover, we provide access to CityView electronic forms right within the Development Environment for SMEs to record their changes, so familiarizing them with the use of CityView in the process. End-user Training – one of the most important training deliverables is a course on the configuration tools contained within CityView. CityView has always maintained the philosophy that change is constant and that our customers need to be empowered with the tools to effect changes in their CityView environments without having to rely on the vendor. This obviously delivers value through cost-savings, but more importantly the staff members that learn how to configure the system become champions of change and they ensure the City, through the CityView system, stays current with workflow evolution, process change through legislation and customer needs. Refresher Training is optional (not included in proposal) but should be strongly considered by the City, to occur approximately 6 months after go-live. This is a great aid to the change management process. 5.7 User Acceptance Methodology and Quality Assurance CityView employs many quality management steps in the implementation process to ensure that our software meets customer requirements and to ensure a defect free product. Our processes can be broken down into four levels: 1. Platform quality process – as our core CityView platform evolves with additional features and functions, members of the Product Development team perform regression testing to ensure quality, and to detect and remove defects. 2. Development quality process – Each configuration or customization item required for an implementation is broken down in a work breakdown structure by the project manager and each is entered into an internal tracking system at CityView called OnTime. The OnTime system then manages the workflow, efforts and communications needed to complete the task. OnTime also requires each task to go through a quality assurance workflow step where an independent developer reviews the work product prior to releasing it for customer validation. 3. Validation and fine tuning process – Once a module (or modules) is configured, CityView will install them in a virtual environment at our company headquarters to allow remote validation testing by the customer. The customer will then use Terminal Services or VPN connection to login and test the configuration against customer-created test scripts (sample templates included below for reference). This is the customer’s opportunity to test the feature or configuration item to ensure that it meets the customer’s requirement and expectation. As issues are detected during the validation phase, CityView can quickly correct the issue in the virtual environment and re-deliver the feature for acceptance. 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 90 Figure – 5.7.a – Validation Phase 4. Formal user-acceptance testing – Formal user-acceptance testing by the customer usually follows validation testing as a last quality step prior to go-live. 5.7.1 Sample Test Plan and Test Script Please find embedded below a sample Test Plan and Test Script. We have provided the first 5 pages of each in hard copy beginning on the following page. In addition, we have provided electronic copies on the USB drive. 2_CityView Sample Test Plan.pdf 3_CityView Sample Test Script.pdf CITYVIEW TEST PLAN CityView Test Plan Page 2 CityView © 2012 <<DATE>> <<ClientName and ClientNumber>> General Information Purpose: To determine that the criteria for acceptance are met and to document that any deficiencies encountered have been addressed. All outstanding issues should be noted with agreed upon dispositions such as: x Pre-Go Live Fix with expected delivery date for each issue, allowing time for re-testing x Post Go Live Fix specifying anticipated number of days to resolve each issue x Future Product Enhancement listing expected release version for each issue x Change Order for Scope Changes In order to adequately evaluate the system, each of the components should be tested individually in addition to an overall assessment of the system as a whole. The system must be tested against agreed upon scripts to quantify whether it meets certain acceptance criteria. Those test scripts should be based against signed off scope documentation and data collection materials only. The parts of the system that will need to be reviewed are: x Application Test / Configuration Test – per Prebuilt x Data Conversion Test – per Data Source x Interface Test – per interface x Property Update x GIS / Mapping Test x Other Customizations Test (Exchange, Document Management, etc.) The testing will be conducted by the client staff after receiving Training; this is done to give the Subject Matter Experts practical experience with CityView. Each tester should have time set aside to perform the work necessary to check each test case and document their findings. The testers should use the CityView feedback feature to document the results of their tests and maintain a record of the information put into feedback. The feedback can be reported against to provide a status of each item. CityView software uses the feedback feature as the exclusive method of tracking issues, that way there is no confusion. Application Test / Configuration Test The CityView application should be tested against the configuration documented in the data collection and scope documents. Each PreBuilt will have a different configuration specified so separate test cases should be developed for each PreBuilt. In some circumstances several departments may use a single CityView PreBuilt and in those situations there could be more than one set of test cases per PreBuilt. The specific configuration items that need testing and acceptance, using the data collection as the basis for the test scenarios, are: CityView Test Plan Page 3 CityView © 2012 x Activity Workflow Diagrams x Fee Calculations x Attribute Fields (additional non-PreBuilt data fields) and Lookup Values x Letters x Business Rules and Automation A user will need to walk through each test scenario and evaluate the compliance off the application’s configuration against the test case specifications. Each test case should clearly state the expected outcome. The result of every testing scenario should be documented along with every discrepancy between data collection. Data Conversion Test The data conversion must be checked against the field mapping document. For every data field in the source database there must be a corresponding field in CityView. Since the PreBuilts have a standard set of data fields, there are typical situations where additional fields are necessary. CityView handles this with special fields called attributes. In either case, whether the source data is mapped to a PreBuilt field or an attribute, the data displayed in CityView should match the specified data in the field mapping document. Any exceptions must be noted and reported as feedback. Once a list of corrections to the conversion is completed then it can be run again and re-tested. The process must happen for every conversion source being imported into CityView. Interface Test Each interface should be verified to check that the output, typically a file, matches the specifications documented. There should be a field mapping document, similar to the Data Conversion and there should be a sample output file to gauge the quality of the file resulting from CityView’s batch process. A second pass needs to be done to run the outputs through a test instance of the target system. Usually, the file will be imported into that 3rd party application and the data reviewed therein. CityView staff will make corrections to the output where it doesn’t match the specification document, if the target system changes or can’t accept the file then a change may be required. Property Update Most customers receive regular updates from the local authority with respect to Property Ownership. CityView staff can create a set of scripts to update the CityView database for Addresses, Legal Owners and Parcels (but not for Zoning or Structures) from Assessor / Appraiser information or from GIS. This must be verified as having correct location information and is typically mandatory in the PreBuilts. CityView Test Plan Page 4 CityView © 2012 After the update is run, a sample of locations should be checked for consistency. A list of test items needs to be made with original values from the source and compared against the resulting values in CityView Property. GIS / Mapping Test CityView supports integration with GIS software. The end user workstation must have the appropriate GIS software installed and connectivity to the GIS file. In order to test this, a user can simply select a property in CityView and open the map. When the map loads, the user should be focused on the parcel and be able to interact with the map using the tools provided. For instance, a user might select the information tool and look at the details provided. Some clients may have certain fields populated with GIS data after a property is selected, this is called a GIS Spatial query and those specifications should be included in a test case with a list of properties and expected results for those data fields. The results of the GIS testing need to be entered in the test acceptance, if any functionality isn’t working then that must be noted in feedback. In some cases the GIS field may need to be modified, in other cases the GIS query or map settings may have to be changed. Other Customizations Test For every custom item a test case should be run to determine if it is working as specified in the scope. For example, if a document management system was to be storing copies of files a user will have to add a file in CityView and verify that it exists in the DMS. On the following page is a Sample Test Results Matrix: CityView Test Plan Page 5 CityView © 2012 Sample Test Results Matrix PreBuilt Item Detail Expected Actual Pass Date / Feedback # Workflow 1 Activities Outcomes Next Activities Follows Diagram Fee Calculations 1 Fee QTY Fee AMT Fee Value Fee Work Items Fee Value Attribute 1 Name Position Data Type Look Up Values* Letters 1 (sample) Format Field Values Logo Embedded Object Data Conversion Item Detail Expected Actual Pass Date / Feedback # Data Source 1 Field Name Data Type Location in CV Value • • • • • • • • • • • • • • • • • • • • • 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 91 5.8 Data Conversion We undertake imports of historical data with virtually every implementation we do and our data conversion specialists have significant expertise and experience with importing and exporting local government land management data. Having this familiarity with the types of data tracked means they are knowledgeable not just of the science of data conversion but also the art of it. Typically we will develop custom scripts for data conversion based on a specific mapping of the legacy system to our data schema. On occasion, usually for cost- saving reasons, we will provide a data dictionary and ask for the data to be delivered to a precise specification and format for a simplified data-loading process. CityView data conversion specialists have experience converting DB2 V6R1M0 Data. The figure to the right outlines the typical data migration process followed by our specialists. During the data discovery phase, our specialists confer with you to become familiar with your data. This enables us to prepare for the migration process and leads to more accurate estimates. By providing data in a clean format, you can help to reduce the time and cost associated with the data discovery phase. Data is cleaned by ensuring that unique keys have not been duplicated, unique keys are not empty (i.e. NULL), dates are properly formatted, and data is consistent. In the data mapping phase, mockups are prepared to facilitate the process of mapping your data to the CityView data structure. CityView provides a data mapping template and facilitates the data mapping exercise, under the assumption the customer knows their data better than we do and we know our database schema better than the customer does. After assessing all of the data sources provided by the customer and undertaking the data mapping exercise we validate data conversion estimates provided in the proposal and complete the change control process if additional budget is warranted, before continuing with the conversion. Data conversion commences once both parties are comfortable with the output of the data mapping exercise, defined in the data conversion plan and signed off by the customer. In this phase our specialists create scripts that parse, derive, and translate the source data into the ideal format for CityView. To reduce the time and effort associated with this phase the City is required to provide data in one of the following formats: SQL Server, .mdb, .dbf, or .txt. After the initial data conversion run the database is provided to the customer for the validation phase with the opportunity to test and validate the correctness of the conversion, in accordance with the signed off data mapping documentation. Errors are corrected before a second conversion run prior to end user training, and the final data conversion of historic data the weekend before cut-over and go-live. Data Conversion Assumptions Data migration services are priced based on the following general assumptions:  Data has been cleaned according the suggested guidelines 2. Data Mapping 3. Data Conversi on 4. Data Validati on 1. Data Discover y 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 92  Data mapping has been reviewed and signed off by both parties before proceeding to data conversion  Data is provided in one of the preferred formats: SQL Server, .mdb, .dbf or .txt Non Electronic Data Hard copy data and information is not migrated into the system by CityView. This service is better undertaken by an imaging company in association with the City’s Electronic Document Management System (EDMS) provider. If this process is undertaken and assuming CityView integration with this provider through the standard CityView Document Management Integration Framework, then once that hard copy data is imaged and referenced in the EDMS through metadata to permits, projects etc., this will be accessible directly from CityView. 5.9 Documentation Documentation of your CityView solution is targeted to three main groups: business users, system administrators and (where applicable) application developers. Documentation is provided at every level of training, focused on the enabling objectives of the training in question. All documentation/training manuals are provided in electronic format for the City to create unlimited hard copies. The main source of documentation for live clients and at various points in the implementation is the CityView KnowledgeShare WIKI. The KnowledgeShare Wiki similar to the Wikipedia brand of software. The focus of the KnowledgeShare is to ensure up to date information is being maintained in one location, including details on new releases and the added functionality they contain. CityView offers the following documentation:  System technical documentation – system administrator manual  System end user’s documentation – user manual  Help Desk documentation – provided through CityView’s context sensitive help and the WIKI Knowledgeshare  System/Architecture diagrams – WIKI Knowledgeshare  Data Dictionary – under Non-disclosure Agreement  Scope Documentation including signed-off data collection spreadsheets and Activity Map Diagrams.  System development documentation - CityView Configuration and Application Builder (if purchased) user manuals On the following pages are sample training plans. In addition, in section 8.4 an excerpt of a sample training manual is provided 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 93 5.9.1 Sample Validation Training Plan 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 94 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 95 5.9.2 Sample Basics Training Plan 5. Implementation Approach Permitting System Software and Implementation Services June 28, 2013 96 5.10 Detailed Task/Activity Listing A standard/typical project management plan with detailed task/activities follows. Please note this is a draft plan and a final plan will be discussed and accepted by both CityView and the City as an initial stage of the implementation. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 97 6. Other Requirements 6.1 Ongoing Support and Maintenance CityView has leveraged the advances in technology to provide a varied and comprehensive array of support options with the common goal of ensuring our clients are maximizing the benefit from their investment in CityView. Here all the measures we take to this end are described and a table detailing our standard Service Level Agreement is presented. Annual Software Maintenance Agreement CityView is constantly evolving. The nature of our relationship with our clients is an integral part of that development. The relationship begins with the mandatory Annual Software Maintenance Agreement (ASM). This agreement provides not only unlimited support to your System Administrators through our toll free lines but also includes all new releases, updates and enhancements to CityView at no extra charge. The development of CityView is funded directly from the ASM program. In addition, we rely on our clients to provide guidance in the area of future development for CityView. We maintain a comprehensive database of features that are requested by our clients and by our own staff and we base future versions of CityView on these suggestions. Suggestions for software enhancements are considered and may be incorporated into the software at no charge as part of the ASM. The scheduling and priority for the development of the enhancements are determined by the degree of benefit the enhancement will provide the entire user base. Software Maintenance New releases of CityView are developed using our internal Research and Development Department. Each new release of CityView contains all the features included in previous releases. All releases are supplied as part of your mandatory Annual Software Maintenance Agreement (ASM). New releases and maintenance updates to CityView are “backwards-compatible” with previous versions and have no effect on your existing tables, forms, reports or workflow. This is a clear advantage over the competition because it means you will never have to start from scratch again, re-purchasing new software or paying a vendor to make changes. CityView releases and updates only affect the CityView program code, providing new features and functionality to the core product. Once your CityView software has been installed, you will have full access to these new features and functionality and can, at your discretion, make use of them with your existing tables, forms and reports without needing to alter your workflow in any way. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 98 CityView also offers additional services through different level agreements in addition to the standard Bronze Software Maintenance. Table 6.1.a – Service Level Options Services Offered Silver Gold Platinum Application Performance Reviews (per year) NA 1 2 Remote Installation Service (per year) 2 4 6 Prepaid Services. (hours annually - to be used within the ASM period) 8 20 40 Security Service Administration (hours annually) NA 6 12 Personal Web Training Session (hours per year) 1 2 3 Web Access Support Free Free Free User Conference Registration Pass (Value = $900 each.) NA 1 2 Price in addition to standard Software Maintenance $1,995 $7,795 $12,975 CityView KnowledgeShare WIKI Documentation of your CityView solution is targeted to three main groups: business users, system administrators and application developers. Documentation is provided at every level of training, focused on the enabling objectives of the training in question. The content is available through several formats. Traditionally we employ the use of soft copies of the user documentation for conservation reasons, to control costs, and to offer the customer maximum flexibility about how they wish to present and store the materials and to facilitate the use as reference materials. We make these available in PDF format. The main source of documentation for live clients and at various points in the implementation is the CityView KnowledgeShare WIKI. The KnowledgeShare Wiki similar to the Wikipedia brand of software. The focus of the KnowledgeShare is to ensure up to date information is being maintained in one location, including details on new releases and the added functionality they contain. This information is further extended within the dynamic help feature of CityView desktop. This context sensitive help functionality provides the user with instant access to help features from within the application. Dynamic help links to the CityView KnowledgeShare allowing users to get additional information to help understand or expand their knowledge base. With each CityView release, detailed Release Notes documents the changes to the release both for new features, feature changes, and bug fixes. Any exceptions or changes for installation and upgrade are also noted. Client Support Support and maintenance for your system is handled from our head office in Victoria, British Columbia, Canada which serves all of our 130 CityView customers. You receive unlimited client support as part of your Annual Software Maintenance Agreement (ASM). Additional support packages can be negotiated should there be a need. CityView offers several methods of accessing support described below: 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 99 Web Support: Our web portal, (www.harriscomputer.com), provides resources for customer self- service, and is comprised of an online searchable knowledgebase, downloadable updates, and a web-enabled CRM that allows users to log new support incidents and check the status of previously submitted incidents on a 24 x 7 basis. Telephone Support: Telephone technical support is available between the hours of 6:00 a.m. and 5:30 p.m. PDT on regular business days. In addition, upon your request, we will provide telephone technical support 24 hours a day, 7 days a week for Priority 1 cases (there is an additional charge for this service). Customers can contact us toll-free at 1.866.988.8324. E-mail Support: Customers may request assistance from CityView technical support via e-mail at support@harriscomputer.com. All e-mail incident reports are logged into the CityView support CRM database and are addressed based upon the priority of the issues. Hours of Coverage: Coverage hours are 6:00 a.m. and 5:30 p.m. PDT from Monday through Friday, excluding CityView Technical Support observed holidays. (Only those statutory holidays that coincide between Canada and the United states are observed by CityView Technical Support.) Auto Acknowledgement: We will send a computer-generated message that acknowledges receipt of the report that you filed electronically. This message will contain the details of your problem report as well as the support request tracking number. Whenever the status of your incident changes, a notification will automatically be sent to the individual that opened the call. Request Response Time: We process requests in the order of their priority followed by order of submission. Resolution of Bug-Related Requests: We will keep your request open and follow up when a fix is available in a production release. We will also contact you if we post an experimental build that will help with your problem. Software Updates: For Applications created on the CityView platform, upgrades released are picked up by end users automatically on login, without any required intervention by the user. When a CityView Smart Client upgrade is made available, end users install it using a double-click installer. The Smart Client automatically detects when an upgrade is required. An existing installation of the server components of CityView can be executed by a client System Administrator in minutes. This is usually done during a maintenance window, but can be forced to occur at any time. Warranty: CityView provides a 90-day warranty period from go-live, after which defects are handled by our Support team through your Annual Support and Maintenance agreement with us. Your CityView project team will be directly involved in resolving any warranty issues until these can be formally transitioned to our Technical Support team for resolution. Beyond the warranty period, through your maintenance contract with us, resolution to software defects, accessibility to upgrades and ongoing support is provided by our Technical Support team. Support is provided through Helpdesk, User Conferences and user group meetings, periodic, scheduled WebEx training sessions and through upgrades that continuously enhance the product. The following are relevant items included in our warranty agreement: • That the software functions and performs in accordance with the documentation and will function and perform in accordance with the documentation for the warranty 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 100 period when installed in accordance with the Technical Requirements. • The Software is designed and developed in a proper and professional manner. • The Software is delivered free of any and all viruses or similar disabling devices. • At the date of delivery of the Software (or any portion thereof delivered in accordance with this Agreement) it is the most recent version and release available from CityView to any user. • The Software is provided to the customer free of all liens, security interests, charges, encumbrances and all other similar third party interests. • In the event the Software does not conform to the applicable documentation, CityView’s warranty includes the repair or replacement of the Software. The customer is to allow CityView the opportunity to make repeated efforts within a reasonable time to correct programming errors or malfunctions as warranted in the agreement. Standard Service Level Agreement The table below details our Standard Service Level Agreement. 6.1.b - Standard Service Level Agreement Priority Definition Initial Response Time* Commitment (CityView and Customer) Examples 1 High Operation/Service down or critically impacted. Business process impacted. No known workaround. 2 Hours CityView and Customer will commit necessary resources to fix problem or obtain a workaround.  Users cannot login  Business process halted 2 Medium Operation affected, but not down. Business process is not affected. Workaround may be available. 4 Hours CityView and Customer will commit resources during normal business hours to resolve issue or obtain workaround.  Cannot print  Cannot process payments  Application response is exceptionally slow 3 Normal Moderate to negligible impact. No impact to business. 24 Hours CityView and Customer will commit necessary resources during normal business hours to restore operation to satisfactory levels.  Non-critical feature not working  Feature works but requires user intervention 4 Info. Request for information, documentation issues, and enhancement requests. 48 Hours Request-dependent.  Help file clarification  Form design not in production 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 101 6.2 User Groups and/or User Conferences Harris/CityView hosts an annual User Conference. This conference is an opportunity for users to talk about their implementation strategies and processes. It is a forum for sharing information, troubleshooting advice and peer interaction. It consists of workshops, open discussion and interactive presentations by other CityView users. It also provides an opportunity for CityView users to suggest new features that would benefit all clients. Local User groups are administered and organized by clients with some support from CityView. 6.3 Ongoing Training Resources Available Training is typically provided on City-provided hardware. Ongoing Training Regular, Free, Web-based training is provided to our customers by our Support group, on a pre- scheduled basis. The training schedule is posted on our Website at the beginning of each year. This training is at no cost to our clients and it focuses on specific areas of need and interest. These classes help your organization continue to obtain the full value from your investment. Our support measures are designed to solve immediate issues and to provide knowledge transfer on the most effective ways to use the CityView Solution in customers’ business practice. Quality training will have the most impact on the long-term utilization of your new CityView system. To make certain that you and your employees operate the system at full capacity, our proposal includes a detailed on-site training program that helps minimize employee stress and increase employee usage of the applications. Please find in section 5.4 detailed information regarding our training approach and methodology. We are committed to helping your organization achieve full utilization of your systems investment long-term. We provide the following additional training opportunities to ensure a smooth implementation and a successful post go-live experience. 6.4 User and Administration Documentation Documentation of your CityView solution is targeted to three main groups: business users, system administrators and (where applicable) application developers. Documentation is provided at every level of training, focused on the enabling objectives of the training in question. All documentation/training manuals are provided in electronic format for the City to create unlimited hard copies. The main source of documentation for live clients and at various points in the implementation is the CityView KnowledgeShare WIKI. The KnowledgeShare Wiki similar to the Wikipedia brand of software. The focus of the KnowledgeShare is to ensure up to date information is being maintained in one location, including details on new releases and the added functionality they contain. CityView offers the following documentation:  System technical documentation – system administrator manual  System end user’s documentation – user manual  Help Desk documentation – provided through CityView’s context sensitive help and the WIKI Knowledgeshare 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 102  System/Architecture diagrams – WIKI Knowledgeshare  Data Dictionary – under Non-disclosure Agreement  Scope Documentation including signed-off data collection spreadsheets and Activity Map Diagrams.  System development documentation - CityView Configuration and Application Builder (if purchased) user manuals In section 8.4 an excerpt of user and administration documentation is provided. 6.5 Recommended Hardware Configuration and Specifications The table on the following page outlines the hardware and software requirements to operate CityView. This is followed by a diagram depicting a typical installation. Additional information is provided in the following pages regarding recommended servers, database sizing considerations, third party software, and compliancy tables. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 103 Table 6.5.a - Hardware and Software Requirements Clients CityView Servers Hardware Software Hardware Software Windows PC with 2GHz clock speed recommended 2 gigabytes (GB) of RAM or higher recommended 400 megabytes (MB) of available hard disk space Operating System: Microsoft Windows XP SP3 or higher supported Microsoft .Net 4 framework must be installed on each client workstation (Client and Extended). Map components: ArcEngine or ArcReader 9.2\9.3\9.3.1 supported. ArcGIS Server 9.3\9.3.1\10 supported Windows PC with 2GHz Xeon processor recommended 2 Gigabytes (GB) of RAM or higher recommended 300 megabytes (MB) of available hard disk space Installation of CityView server components is not supported on domain controllers Operating System: Microsoft Windows 2003 Server w/ SP2 or higher Microsoft .Net 4 framework is required for Application, Management, and Web Servers IIS: Internet Information Services 6 or greater is required for CityView Management and CityView Web Servers Database Server Supported RDBMS Hardware Microsoft SQL Server 2005 w/SP1 Microsoft SQL Server 2008 Microsoft SQL Server 2008 R2 Windows PC with 2GHz Xeon processor recommended 2 GB of RAM 2 GB to 5 GB hard drive space, dependent on database size. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 104 6.5.b - Network Diagram for Typical Installation 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 105 6.5.c - CityView Recommended Technical Design Note: CityView Desktop can work over T1, however latency should remain under 80ms if possible. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 106 Data Sizing Projections There are five services that are typical in our deployment strategy: 1. SQL Server – can be scaled to include failover clusters. Typical day to day operation of CityView will not tax the server as most queries will pull less than 10 records per table at a time. This service works directly with Management Server, Application Server and Portal server processes. Typical permit applications require 1MB of disk space. 2. CityView Management Server – this is a service that runs in IIS, typically processing login requests, and configuration settings for the software. The only time where the service impacts performance on a server is when a build of the application occurs, typically during maintenance periods. All services need to be able to communicate with this server. 3. CityView Application Server – all Desktop client machines communicate with this service to access the infrastructure (MS SQL Server, CityView Management Server, document management, etc.) The server will also handle scheduled processes, e.g. when being used for batch letter (PDF) generation. This service is processor intensive, but is multithreaded. This service will operate virtually in a VMWare instance, and CPU is monitored to determine hardware resources needed. 4. CityView Portal Server – Portal server IIS service acts as a gateway to the software for browser and mobile users, and directly queries SQL Server during operation. There is an extremely small footprint for the service, and small memory/CPU overhead. If performance is not ideal, it is certainly possible to have multiple portal servers deployed to handle load balance or latency concerns. 5. Document Management/Content Management Server – often handled by third party services, e.g. SharePoint, Laserfiche, TRIM, etc. This can also be defined as a Windows file share (SMB) where we typically recommend 5MB of space per permit for file storage (PDF, DOC, JPG). 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 107 Recommended Server Requirements The following provides the recommended Server Requirements. These server configurations have been developed to meet the performance requirements and provide a reasonable level of hardware fault tolerance and growth: Table 6.5.d – Recommended Servers Recommended servers: Database Server Configuration Module Description Processor 2+ Ghz Dual Core processor (Intel Xeon or AMD Opteron) Memory 4GB Storage RAID-5, 4 (3 + 1 Hot Spare) x 73GB 15K RPM Ultra 320 SCSI Network Adapter Gigabit Ethernet Adapter Power Supply Redundant Power Supplies Operating System Windows 2003\2008 Server, Standard Edition Storage Configuration: Drives would be configured with three drives in a single RAID-5 set with the fourth drive as a hot spare. This will provide a total of 140Gb of storage which should be adequate. If additional storage is required, adding more drives is more cost effective than increasing the capacity of all drives. A multiple processor capable server is recommended to provide immediate scale-up potential. The CityView system can be scaled out with the addition of more servers and distributing the CityView components to dedicated servers. CityView Management and Application Server Configuration Module Description Processor 2+ Ghz Dual Core processor (Intel Xeon or AMD Opteron) Memory 2 - 4 GB Storage RAID-1 or RAID-5, Storage requirements < 1Gb Network Adapter Gigabit Ethernet Adapter Power Supply Redundant Power Supplies Operating System Windows 2003\2008 Server, Standard Edition 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 108 CityView Portal Server Configuration Module Description Processor 2 Ghz Dual Core processor (Intel Xeon or AMD Opteron) Memory 2 GB Storage3 RAID-1, 2 x 80GB 7200 RPM SATA Network Adapter Gigabit Ethernet Adapter Power Supply Redundant Power Supplies Operating System Windows 2003\2008 Server, Standard Edition Note this server will require firewall port availability, Port 80 TCP to CityView Management Server, and Port 1433 for communication to SQL Server. CityView Test Server Configuration Module Description Processor 2 Ghz P4 (or equivalent Virtual Machine) Memory 1 GB Storage3 80GB 7200 RPM SATA or ATA-133 Network Adapter Gigabit Ethernet Adapter Operating System Windows 2003\2008 Server, Standard Edition CityView Mobile Configuration Mobile devices – this is a Web, browser-based interface that can be utilized by a very large array of devices. Please note that for tablets and smartphones, the browsers themselves can have different navigational methods of handling file attachments (Upload and download). Ideally, lower latency works best when handling upload/download of large file attachments with our product. 3G network connectivity is adequate however. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 109 Required 3rd Party Components - Table 6.5.e Aside from Excel, all of the below come as part of CityView, or are downloadable (IIS). Alternate versions are not supported.  Required  Supported Product CityView Desktop CityView Manager CityView Application Builder CityView Management Server CityView Application Server CityView Portal Syncfusion Essential Studio for .Net 9    Data Dynamics Active Reports 4.3    Keyoti RapidSpell 4.6  TxText Control for .Net 15.1     Microsoft C++ MFC 9.0 (redistributable)  MSXML 4.0 (redistributable)  Wintertree Spell Checking Engine 5.14.12.0  Microsoft MVC 3.0  jQuery 1.3.2  Excel 2003, 2007, 2010 (for exporting Grids, Activity Calendar)  Windows Presentation Foundation (WPF)  Silverlight  IIS   IIS 7 (Integrated Mode)   IIS 6   IIS 5.1   IIS 5.0.2195.x with all security patches   IIS prior version   6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 110 Supported Technologies – Table 6.5.f Database Support Microsoft Exchange (for Calendaring) CityView Mobile, Device Support 32-Bit  Exchange 2010  Blackberry 8310 or higher  64-Bit  Exchange 2007  iOS 4 or higher (iPhone, iPad, iPod)  Sql Server 2012  Exchange 2003  Android 2.3 or higher  Sql Server 2008 R2  Exchange Prior Versions ? Windows phone 7  Sql Server 2008  Palm Pre  Sql Server Express 2008  Other devices ? Sql Server 2005 + SP2 1 Email Support Web Service API Sql Server 2005 1 SMTP  Soap Toolkit 3.0 2 Sql Server Express 2005 1 mail to:  Soap/XML Version 1.2 2,3 Sql Server prior versions  CDO  Office XP Web Services Toolkit 3 Document Management System Support CityView Portal Browser Support CityView Mapping Support SharePoint 2010  IE7 to IE9  ArcGIS Server, Standard or Advanced Edition v10.1 with SP2  HP Trim v7  Firefox 4.0 or higher  ArcGIS Server, Standard or Advanced Edition v10.0  Laserfiche 8.3  Chrome 3.0 or higher  ArcGIS Server Standard or Advanced Edition v9.31  Laserfiche Weblink 8.2  Safari v?  ArcGIS Server Basic Edition  Fortis 2.4.1  Opera v?  ArcGIS Server prior versions  Oracle IBPM (Stellent)  Prior versions, Other browsers  Hosted Platforms Support Payment Processor Support Virtual Hosting Support Terminal Services (Windows 2003) 64bit  PayPal’s PayFlow Pro v 4.3  Microsoft Hyper-V  Terminal Services (Windows XP)  PayPal’s PayFlow Link v 4.3  Microsoft Virtual Server 2005  Citrix 1.80 and Above  PayGOV  VM Ware  iTransact  Microsoft Outlook Add-in Support Moneris eSELECTplus Outlook 2010  Outlook 2013  Outlook prior versions   In testing  Planned 1 Sql Server 2008 client components are required for merges 2 Supported with Web Services API ? Not tested 3 Supported with WebDAV API 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 111 6.6 New System Client Please refer to Section 6.5 for detailed new system client and desktop requirements. 6.7 Test and Production Environments A Test environment is installed at the customer site during the implementation, primarily for purposes of testing the hardware infrastructure but also to provide a sandbox database for customer use if desired and as training for the customer administrators. This test database is overridden with the production-ready environment prior to go-live. As part of the go-live efforts our Support team ensures the customer has at least a Test environment and a Production environment installed and configured. Sometimes, customers will also run a Training environment post go-live. CityView validation testing provides users with the skills required to test and validate their CityView solution prior to go-live and provide hands on experience with CityView’s configuration tools. Users are able to:  Navigate the system through their specific processes and workflow  Generate and test fees  View and validate look up tables  Generate and test letters and documentations which have been configured  Use scenario-based examples to test and validate automated business rules 6.8 Patches and Releases The Annual Software Maintenance Agreement provides not only unlimited technical support to your System Administrators through our toll free lines but also includes all new software releases/updates to CityView at no extra charge. New releases of CityView are developed using our internal Research and Development Department. Each new release of CityView contains all the features included in previous releases. All releases are supplied as part of your mandatory Annual Software Maintenance Agreement (ASM). One (1) Platform release every six to twelve weeks. One (1) Application (PreBuilt modules) release per quarter. For Applications created on the CityView platform, upgrades released are picked up by end users automatically on login, without any required intervention by the user. When a CityView Smart Client upgrade is made available, end users install it using a double-click installer. The Smart Client automatically detects when an upgrade is required. An existing installation of the server components of CityView can be executed by a client System Administrator in minutes. This is usually done during a maintenance window, but can be forced to occur at any time. 6. Other Requirements Permitting System Software and Implementation Services June 28, 2013 112 6.9 Document Management System CityView makes use of Application Programming Interfaces (APIs), Web Services, and batch files to link to other systems. CityView is ODBC and OLE DB compliant allowing it to integrate with database both internal and external data sources. Integrations include ArcGIS Server and frameworks to consume third party APIs (e.g. for Electronic Document Management systems such as Laserfiche, Financial Management Systems, SharePoint, etc.) CityView's Professional Development Partnership with Laserfiche stems from the natural symbiosis between the roles they fulfill for Municipalities. A necessary output of customer service in Community Development departments is documents, images and correspondence, the recording and storage of which is critical. The business processes tracked and automated in CityView on behalf of customers generate such documentation and the need to relate document records to applications, permits, cases and licenses. Laserfiche provides a structured and safe method for storing and archiving such records. The integration achieved between the two products is seamless. 6.10 Ongoing Research and Development Harris’ commitment to Research and Development is evident through the dollars and resources expended. A total of 525+ Harris’ specialists are involved in product development. For 2012, in the Harris Public Sector Division of which CityView is a member, 20% of total revenue was invested in Research and Development. CityView has always placed an extremely high importance on research and development. One of the major functions of the Annual Software Maintenance fees that we collect from our customers is to fund our research and development team and fuel product development. Our Research and Development department is comprised of two functional groups: Software Development and Application Development. The Software Developers are fully focused on evolving the CityView platform, ensuring that it stays current with technology advancements as well as delivering the functionality that is expected by the market. The Application Developers specialize in the business process aspects of the software, using their extensive domain expertise to create user-friendly data entry forms, reports, as well as addressing customer-specific customizations. The distribution of annual maintenance fees ensures that both of these teams are well funded and able to scale as our customer base increases. There are no major rewrites or fundamental changes planned in the next 5+ years. We are exploring alternate delivery models, such as SaaS as our product is already fully web- capable. We host many of our customer environments while they are in implementation, which gives us confidence in our ability to operate in a remote server scenario. Upcoming features include, but are not limited to, more use of mapping in the field (route planning, location awareness, etc.), ongoing work on reporting and dashboard capabilities, browser and device-agnostic forms, replacement of our SOAP-based web services with a more modern REST web service interface, addition of new business processes so that we can continue delivering added value to our customer base (e.g. Parking Management), etc. 7. Pricing Permitting System Software and Implementation Services June 28, 2013 113 7. Pricing City of La Quinta Software License and Maintenance Price Sheet Proposer Name: CityView Description # of Licenses One-Time License Cost Annual Maintenance Fee Vendor Notes and/or Assumptions Year 1 Year 2 Year 3 Year 4 Permitting System Modules CityView Property Information PreBuilt 1 $ - $ - $ - $ - $ - No Charge for Property Information PreBuilt CityView Permits & Inspections PreBuilt 1 $ 8,500 $ 1,870 $ 1,945 $ 2,023 $ 2,103 CityView Planning PreBuilt 1 $ 8,500 $ 1,870 $ 1,945 $ 2,023 $ 2,103 Concurrent Read/Write User Licenses 12 $ 22,500 $ 4,950 $ 5,148 $ 5,354 $ 5,568 CityView Server (required) 1 $ 7,500 $ 1,650 $ 1,715 $ 1,785 $ 1,857 - $ - $ - $ - $ - $ - - $ - $ - $ - $ - $ - - $ - $ - $ - $ - $ - - $ - $ - $ - $ - $ - Subtotal - Permitting Modules $ 47,000 $10,340 $10,753 $11,185 $11,631 7. Pricing Permitting System Software and Implementation Services June 28, 2013 114 Other Modules (i.e. system tools, reporting, etc.) - $ - $ - $ - $ - $ - CityView GIS/Mapping Extension (unlimited users) 1 $ 5,000 $ 1,100 $ 1,144 $ 1,190 $ 1,238 CityView supports ArcGIS Server 9.3 and beyond. For ArcGIS Desktop CityView supports 9.1 to 9.3.1 but not beyond. CityView Supported EDMS Extension 1 $ 3,500 $ 770 $ 801 $ 832 $ 866 Laserfiche is a supported Electronic Document Management System for CityView's EDMS Extension CityView MS Outlook Add-in 1 $ 3,500 $ 770 $ 801 $ 832 $ 866 Unlimited users for the Outlook Add-in. Subtotal - Other Modules $ 12,000 $ 2,640 $ 2,746 $ 2,854 $ 2,970 Total Application Licensing Fees $59,000 $12,980 $13,499 $14,039 $14,601 7. Pricing Permitting System Software and Implementation Services June 28, 2013 115 Proposer Name: CityView Permitting Application Service Category Hours Rate Implementation Fee Notes / Assumptions Project Management 93 $ 120.00 $ 11,134 Ongoing project facilitation, billing, status reports, issues resolution, escalation, resource allocation, scheduling, budget management, change orders etc. Infrastructure Review (remote service) 8 $ 120.00 $ 960 Remote review of hardware and software infrastructure Data Collection (on site & remote) 68 $ 120.00 $ 8,160 Collection of all data required to configure the CityView PreBuilts. Includes 3 person days on-site plus appropriate offsite time. Data Mapping 48 $ 120.00 $ 5,760 Data Mapping for data conversion and property interface. Mapping of Assess & Address Views to corporate property data source. Assumes one data source. Data mapping for historic data conversion. Data requirements for creation of interfaces. Customizations & Integrations + non-standard configuration 82 $ 120.00 $ 10,903 CityView Customizations and/or Integrations with 3rd party applications (incudes project management and quality assurance.) 3rd Party application integration include: 1) an interface to validate business license information to HTE (integration estimate to HTE is subject to understanding the full requirements), 2) GoRequest interface for on-line Citizens request solution and 3) Digital Map Products in previous implementations. This uses a button to launch the DigiMap url, placing the user in context with the property they were positioned on in CityView. 4) During the CityView Demo to La Quinta the City requested a unique numbering system for their Permit project records which would match the system presently used. This is part of our proposal. 5) One modified inspection report. 7. Pricing Permitting System Software and Implementation Services June 28, 2013 116 Initial Configuration of PreBuilts 147 $ 120.00 $ 17,629 Lookups, fees, custom data fields, security org. roles, workflows, business rules, letter templates etc for all PreBuilts licensed. training). Configuration of up to 10 tailor-configured letters (assumption is Customer creates the balance of letters required with knowledge from advanced configuration training). Configuration of business rules for system automation. Configuration of 2 distinct workflows with for Building & Inspections and Public Works to utilize one due to requirements being identical and Planning to use one. Validation Refinements 80 $ 120.00 $ 9,622 Post-validation in-scope refinements to configuration, business rules etc. Final Data Update/install (remote) & Go-live 8 $ 120.00 $ 960 Final data update/conversion to get current data into client database for go-live. Must be the same scripts used in initial data conversion. Data must be verified by both CityView and Client before go-live. Sign off required. Installation (remote) & Environment Management 32 $ 120.00 $ 3,840 Production and test environments set up and tested, includes up to 3 installs during the project CityView Validation Training (onsite) 24 $ 140.00 $ 3,360 Max students per session - 6 - Three days. CityView End User Training (onsite) 24 $ 180.00 $ 4,320 Max students per session - 10 - Three days. Go-live facilitation & Assistance (onsite) 16 $ 180.00 $ 2,880 Two days Configuration & Maintenance Training (onsite) 16 $ 180.00 $ 2,880 Max students per session - 6 - Two days. CityView Reporter Training (onsite) 8 $ 180.00 $ 1,440 Max students per session - 4 - one day. CityView System Administrator Training (remote) 8 $ 180.00 $ 1,440 Max students per session - 4 - one day. Subtotal - Project Management 661 $ 2,120.00 $ 85,288 7. Pricing Permitting System Software and Implementation Services June 28, 2013 117 Other Modules Service Category Hours Rate Implementation Fee Notes / Assumptions Project Management - $ - $ - Training - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - Subtotal - Other Modules - $ - $ - Total - Implementation Services - $ 2,120.00 $ 85,288.00 7. Pricing Permitting System Software and Implementation Services June 28, 2013 118 Proposer Name: CityView Category Hours / Module Rate Conversion Fee Conversion Assumptions CityView Property Information PreBuilt 32 $ 120.00 $ 3,840 Assumes one data source. CityView Permits & Inspections PreBuilt 24 $ 120.00 $ 2,880 Assumes one Data source. CityView Planning PreBuilt 24 $ 120.00 $ 2,880 Assumes one Data source. - $ - $ - - $ - $ - - $ - $ - Total - Conversion 80 $ 360.00 $ 9,600 7. Pricing Permitting System Software and Implementation Services June 28, 2013 119 Proposer Name: CityView 3rd Party Product Description Cost Notes / Assumptions Bluebeam Licensing for 10 users $ 2,240 Licenses required to be used with CityView Electronic Plans Review under Optional Offerings. $ - $ - $ - $ - $ - $ - $ - $ - $ - Total - 3rd Party Products $ 2,240 7. Pricing Permitting System Software and Implementation Services June 28, 2013 120 Proposer Name: CityView Product/Solution Description Cost Notes / Assumptions CityView Electronic Plans Review $ 35,000.00 Includes License for Electronic Plans Review, (Bluebeam Mark Up solution licensing under 3rd Party Products Tab), Implementation, Training and 1st year of Support and Maintenance. CityView Cashiering PreBuilt $ 20,700.00 Includes PreBuilt License, 2 users to be trained, Implementation and 1st year of Support and Maintenance. CityView Licensing PreBuilt $ 47,860.00 Includes PreBuilt License, 10 users to be trained, Implementation and 1st year of Support and Maintenance. CityView Mobile $ 8,080.00 Includes License for Mobile for 9 Permit Inspectors, Training, Implementation and 1st year of Support and Maintenance. CityView Portal $ 37,035.00 Includes Portal License for unlimited users, Implementation for Permitting and Planning and 1st year of Support and Maintenance. $ - $ - $ - $ - $ - Total - Optional Offerings $ 148,675.00 NOTE: Above are present day estimates. If demands for concurrent use licenses or requirements change in the future for the City, additional implementation details may be needed for an accurate proposal. 7. Pricing Permitting System Software and Implementation Services June 28, 2013 121 Proposer Name: CityView Trip Descriptions # of Trips Cost Per Trip Total Notes / Assumptions Training, Data Collection and Go-Live Facilitation 3 $2,900.00 $ 8,700 3 Person Trips including 12 Onsite days - $ - $ - - $ - $ - - $ - $ - - $ - $ - Total Travel Expenses 3 $2,900.00 $ 8,700 7. Pricing Permitting System Software and Implementation Services June 28, 2013 122 Proposer Name: CityView Resource Category Hourly Rate Notes / Assumptions Project Management $ 150.00 Trainer $ 150.00 Conversion Support $ 150.00 Programmer $ 150.00 Business/Systems Analyst $ 150.00 $ - $ - $ - $ - $ - $ - 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 123 8. Additional Information Additional Product Information – Supplement to Requirement Template 8.1 CityView Product Overview Information CityView is a product of 31 years of vision, creation, innovation, and experience. Since the first released marketable product in 1986 CityView has retained its position as a market leader, often the market leader, in the Local Government community development marketplace. The CityView 2013 technology can be summarized as follows:  100% Microsoft .NET, created with C#, Visual Studio.NET and HTML 5 JQueryMobile,  Multi-Tier, for development, deployment and upgrade ease, as well as scalability,  Leading edge, rich, Microsoft Smart Client supporting connected, disconnected and slow connection modes and providing maximum functionality,  Browser-agnostic interface for constituent and field access, for maximum reach and accessibility,  Microsoft Ribbon, Windows Presentation Foundation (WPF) and Browser interfaces,  Microsoft ClickOnce deployment for ease of administration and deployment,  Microsoft SQL Server database technology,  SQL Server Reporting Services (SSRS) reporting technology,  Enterprise ArcGIS Server integration, employing WPF and Silverlight-based viewers,  HTML 5 Mobile application for device-agnostic field access,  Web Services and ODBC connectivity,  Configurable, fully integrated, workflow-based business applications leveraging core technologies and employing multiple frameworks for interfacing with third party applications. 8.1.1 Product Overview We provide easily installed, flexible software solutions that are engineered for the long-term. The information in this section is considered Proprietary and Confidential, because it contains specific product architectural and functional descriptions. The following Product Overview is considered a trade secret for CityView. The CityView solution is an upgradeable platform, built on state of the art technology, making it more efficient and cost effective to develop, deploy, and manage solutions that scale with your evolving needs. The CityView PreBuilts are a set of integrated and configurable applications designed to address the unique requirements of local government. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 124 The Complete CityView Solution The CityView platform contains easy to use Configuration Tools and the ability to seamlessly integrate with third party systems. CityView Property Information is the backbone of the system, providing the context and information for each component of the solution. The CityView PreBuilts in their totality, contain the forms, reports, letters, and workflow to administer the business processes surrounding Permits and Inspections, Planning, Code Enforcement, Business Licensing, Animal Licensing, Service Requests, Rental Housing, Cemetery Management and Parking Management. The payment of fees generated by the system is managed with CityView Cashiering. The CityView extensions offer service, productivity and data integration value-adds such as public access, field inspections solutions, electronic plans review, Microsoft office add-ins and third party integrations to provide a one-stop land management enterprise solution. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 125 8.2 The CityView Platform The CityView platform is continually evolving to stay current with the latest technology; and, it is designed to improve the long term functionality of the product without increasing total cost of ownership. The product roadmap is driven by input from a variety of sources including clients, technology, and industry. The rationale for incorporating features is based on an understanding of the local government industry and is coordinated and managed by our Research and Development team. Advances and improvements to CityView are funded through the Annual Software Maintenance Agreement that we have with each of our clients, and ongoing License sales. This strategy enabled us to be an early adopter of the .NET platform and winner of the Worldwide Microsoft Certified Partner Award in the Packaged Application category. The key features of the CityView Platform include: CityView Desktop – a feature-rich user interface based on Microsoft Smart Client technology, combining the benefits of Web-based solutions and installed desktop applications to improve the productivity of end-users and reduce overhead for IT departments. CityView Desktop is built using Microsoft’s latest and most sophisticated graphical user interface technology, Windows Presentation Foundation (WPF). The Microsoft ribbon interface is used to increase discoverability of features, enable quicker learning of the program, and put users more in control of their experience. Users can save searches, bookmark and retrieve interrupted work, change personal settings to suit their specific needs, and define shortcuts to frequently used screens. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 126 CityView Configuration Tools – a set of tools that provide a means of adapting your CityView solution to your unique environment. CityView Integrations – our architecture allows seamless interfaces to external systems to streamline multi-department use and eliminate data silos. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 127 8.2.1 CityView Configuration Tools A common frustration felt by local governments is that when changes are required to installed software after the go-live date, there is a need to re-engage the vendor or allocate internal IT resources, which often has an impact on the product’s upgradability. The time and expense associated with these efforts often leads local governments to maintain the status quo, resulting in outdated systems that no longer meet the needs of the business units or the IT department’s strategic plan. CityView address these concerns by providing a highly configurable environment and all of the Configuration Tools necessary to maintain and enhance the behavior of the system with minimal need for customization or programming knowledge. Using these tools, designated users can populate the contents of lookup tables, configure workflow, define ”custom” database fields, produce letter templates, define business rules, provide scheduling options, and define the parameters for fee calculations. These tools are designed to be used by reasonably capable users within the business domain, resulting in the following benefits:  A reduced reliance on outside vendors and internal IT staff that lowers expenses and decreases the total cost of ownership.  Streamlined processes based on your unique business workflow. This increases staff efficiency, reduces data entry errors and ensures critical business decisions are based on accurate information.  Configuration changes are carried forward through upgrades and enhancements to the system allowing the utilization of the latest technology without additional cost or effort.  Configurations are based upon your defined business processes and staff input. This creates a familiarity that increases user buy-in and decreases training costs.  Reduced errors and user frustration through the removal of outdated processes. 8.2.1.1 Lookup Table Maintenance The “Data Table Maintenance” feature ensures that all pick lists (lookup tables) are updated with relevant data, thereby reducing the occurrences of errors and streamlining data entry. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 128 8.2.1.2 Workflow Configuration CityView is an activities-based workflow system providing users with a consistent path through the system, facilitating the training of new employees, and ensuring that employees and departments are aware when tasks have been assigned to them. Whatever your current business practices are, a suitable workflow of activities and outcomes can be created, making it clear to users which steps are part of a particular process, when those tasks become due, and who is responsible for them. 8.2.1.3 Custom Database Fields Custom database fields allow for the capture of client-specific data and dynamically appear on screens without the need for custom development. They allow the same data entry screens to be used to capture data appropriate for all your permit types, without resulting in overly complex entry forms. You can capture, maintain and report on the information that is specific to your business process and continue to add new data fields as your requirements change. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 129 8.2.1.4 Batch Processes and Scheduled Events The system can be configured to routinely (at predefined intervals) search the database and perform a set of pre-defined actions on any records that match the specified criteria. This is a very common approach for handling events like permit expirations and business license renewals. Scheduled processes can be run in “test” mode without affecting the underlying data. 8.2.1.5 Resource Group Administration Facilitates appropriate assignment of tasks based on geographic location, business function, or skills/qualifications, e.g. a plumbing inspection at 123 Main Street requires an inspector from the “East Side Plumbing Inspector” resource group. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 130 8.2.1.6 Holiday Configuration This tool provides the ability to continuously update the system’s calendar to reflect holidays and other non-working times, so that due dates and assignments can be accurately automated. 8.2.1.7 Business Rule Configuration CityView’s powerful rules engine comes with an intuitive user interface that enables trained users from either the IT department or the business domain to take ownership over the ongoing maintenance of much of the automated behavior of the system, as the needs of the business units evolve. Rules can have various conditions under which they will perform a set of actions, e.g. to automatically populate a set of values based on the Permit Type. Outcomes (i.e. actions) can then be created that affect virtually any field in the database with a wide variety of options to fit any circumstance. Rule properties are selectable from defined pick lists to reduce error and enable even notice users to create rules successfully. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 131 The steps to create new rules are very straightforward – users with no prior programming experience can become masters of this tool quite easily. Moreover, this tool maximizes efficiency by providing many other useful features, such as the ability to bulk-create conditions and outcomes, automatic detection of poorly constructed rules, ability to easily cleanup old and unwanted configuration, hyperlinks for easy navigation, and a runtime debugger for troubleshooting issues. 8.2.1.8 Letter Administration Letter Administration allows document templates of any kind to be created in a user-friendly, rich-text editor (compatible with Microsoft Word.) This ensures communications with key stakeholders contains the required information in a professional format. Letters and other CityView-generated documents can be printed individually or placed in a queue for printing as a batch job. Using CityView's powerful configuration tools, letters are easily modified to reflect your unique requirements. The screenshot below details how easy it is to create, alter and print letters and notices without reliance on IT resources. Now your correspondences will communicate your current and relevant information, increasing client satisfaction and reducing total cost of ownership. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 132 8.2.1.9 CityView Flex Fees CityView’s “Flex Fee” system ensures that appropriate fees are always charged by enabling the ongoing maintenance of fee schedules and valuation tables. CityView supports flat, incremental, percentage and range percentage based calculations. Fees will be automatically calculated and business rules will automate which fees get added to each application. If CityView Cashiering is being used, fees can be configured so that payment amounts will be distributed to appropriate general ledger accounts based on the fee definition. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 133 8.2.2 The Smart Client Desktop Application The CityView Desktop is built using Microsoft’s Smart Client technology. Smart Clients combine the benefits of web browsers and traditional desktop applications to form one solution that improves the productivity of users and reduces overhead for IT departments. Smart Clients provide better options for connecting applications to networks and the Internet—and for working with applications even when disconnected from the network. They are designed to get better speed and performance from applications while making them easier to maintain and deploy, which in the long term increases staff efficiency. Smart Clients provide: An intuitive, rich user experience, reducing the time required to find pertinent information and leading to efficient customer service. The user can customize the work environment with panels that can be moved or hidden to maximize screen space which makes it easier for staff to focus on the task at hand. In short, it's the proper tool do to the proper job. The best aspects of Web clients, including a small install footprint, economical use of computing resources such as processors and memory, ease of deployment with ClickOnce installers, and simple manageability. Unlike a Web browser, a Smart Client can be used very effectively even when disconnected from the Internet. This allows inspectors in the field to continue using CityView even when wireless connectivity is lost, e.g. in different areas of the City or parts of a building. When the network connection is re-established, any cached data is automatically synchronized, eliminating the need for full data replication. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 134 A Smart Client does not have to make as many round trips to the server as a Web browser resulting in faster performance, a more responsive application for the end user and lower bandwidth usage. 8.2.3 CityView Desktop User Interface CityView employs the Microsoft ribbon interface – a command bar that organizes program features into a series of tabs at the top of the screen, replacing the traditional menu bar and toolbars. Using the ribbon increases discoverability of features, enables quicker learning of the program, and makes users feel more in control of their experience. Benefits of the ribbon interface: It is highly visual and it is efficient. Features are easier to find because they are not buried in complex menu systems; gives users a better way to learn, and ultimately master, the software as a whole Allows screen real-estate to be managed in a scalable way; many commands can be presented in a small space, in a way that users can understand. Some tabs are hidden and only appear when the commands are appropriate for use, based on where the user is in the application. Powerful search tool allows users to easily find the feature they’re looking for, even when they don’t know which Tab of the ribbon that command is found on. Formatted, content-rich tooltips further help users identify and learn the many capabilities of the software. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 135 8.2.4 CityView Integration Capabilities CityView makes use of Application Programming Interfaces (APIs), Web Services, and batch files to link to other systems. CityView is ODBC and OLE DB compliant allowing it to integrate with database both internal and external data sources. Details on common CityView Integrations are described below. 8.2.4.1 GIS Integration CityView’s Integration with Esri’s ArcGIS Server allows maps to be easily accessed and viewed from the CityView Desktop, Portal and Mobile – seamlessly incorporated into all the CityView business processes. The deeply integrated GIS capabilities allow even non-GIS staff to quickly locate a job location on a map; measure distance, boundaries and areas, create adjacent and buffered spatial queries for mailing lists and export information to other departmental systems. By simply clicking on a property displayed in the map users are able to view the corresponding data in CityView. As users move between records in CityView the map selections automatically synchronize. While the integration requires an ArcGIS Server license, CityView users do not consume additional individual Esri user licenses. The integrated mapping capability is available to all CityView users but can be controlled through the permissions and role capabilities of the CityView security model. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 136 Maps can be utilized to:  Embed maps in reports, letters and forms, e.g. so that inspectors can see where their inspections for the day are located throughout the municipality  Allow users to select properties based on GIS information and then use the selection to send notices, updates or other letters to the contacts on the properties.  View search results on a map  Run spatial queries to automate the business process, e.g. inspector scheduling can use a spatial query to determine which inspector to assign based on the area the property is located in.  View publically accessible Web Map Services created by external agencies Using CityView Application Builder, map controls can be added to custom data entry screens to provide seamless mapping functionality within the business process. Mapping data can also be configured to display CityView-generated data (such as permit, code, license, and planning activities) as attributes on GIS maps (as shown above.) CityView is committed to continuously improving and leveraging the advancements made by our partners, such as Esri. 8.2.4.2 Integrated Voice Response (IVR) CityView has successfully integrated with a number of third-party Integrated Voice Response (IVR) systems and forged a relationship with Tele-Works in order to ensure our clients receive the maximum benefit from the integration of their IVR selection and CityView. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 137 8.2.4.3 Financial Management Systems (FMS) CityView has extensive experience interfacing with Financial Management Systems (FMS). In a typical implementation, fees paid within CityView are submitted to the FMS through a batch file export process or API (if available.) CityView integrates with Class POS and Diamond MS Dynamics cash receipting systems. 8.2.4.4 311 Services CityView has implemented 311 interfaces with other clients via Web Services. Requests get entered into CityView via a Web Service call from the 311 system; and, updates to cases are made available to the 311 system and picked up by Web Service calls from the 311 service. 8.2.4.5 Electronic Document Management Systems CityView’s distinctive framework for integrating with Document Management Systems (EDMS) has been used extensively with industry leading EDMS products such as Laserfiche, Fortis, SharePoint, Oracle IBPM, eB, and HP Trim. Documents are dynamically retrieved from the EDMS based on related metadata. This means that regardless of how (or when) a document gets added to the document management system, provided it is indexed with metadata like a permit/case number or address, CityView will be able to retrieve it later. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 138 8.3 CityView PreBuilts CityView PreBuilts are out-of-the-box software solutions that include the automation you need to manage Property Information, Permits and Inspections, Planning, Code Enforcement, Licensing, Animal Licensing, Service Requests, Rental Housing, Cemetery Management, Parking Management, and Cashiering. PROPERTY INFORMATION PERMITS & INSPECTIONS PLANNING CODE ENFORCEMENT BUSINESS LICENSING ANIMAL LICENSING SERVICE REQUESTS RENTAL HOUSING CASHIERING CEMETERY MANAGEMENT PARKING MANAGEMENT Based on 31 years of experience automating business processes of leading jurisdictions from across North America, the CityView PreBuilts are designed to have your departments up and running in minimal time while making use of industry-wide best practices. A central property database is managed through CityView Property Information and that serves property-related data to all of the other applications. This data can reside in the CityView database, itself, or in an external database accessed, e.g. a GIS database. The CityView PreBuilts are able to be implemented incrementally, providing the flexibility to apply resources and budget as they become available. They can also be integrated with third party solutions, adding value to the information collected across the organization and eliminating data silos. Thanks to intuitive and logical forms, reports and automation, you are assured of accurate and clean data on which to base your critical decisions. All CityView PreBuilts include support and training and can be used with other CityView PreBuilts to create a total enterprise system. The power of the PreBuilts:  Automate business processes – increase user productivity by streamlining workflow and business processes  Workflow – automate common business processes related to Community Development activities with predefined workflows that save time by providing you with the tools to manage and track assignments; define deadlines; automatically generate subsequent activities and create a record of your business processes; and ensure accountability.  Accurate information capture – intuitive, easy-to-use forms that prompt the end- user for required data. Data validation tools, like drop down menus, business rules and 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 139 spell check reduce errors and duplication of effort. This ensures decisions are based on correct, relevant information.  Increase revenue – eliminate inaccurate fee collection with an integrated fees module that enables you to automatically configure, calculate and collect fees using even the most complex fee structure.  Centralize access – allows all staff to view all information associated with an application, case or plan including documents and images instantly.  Easily navigate – powerful search and sorting capabilities save users time by quickly finding everything related to a case or permit. User-defined searches can be saved to ensure that users are able to repeat searches pertinent to their particular business activities again and again.  Access date wherever you are – a number of remote and disconnected options allow users to access information from the office, home, or in the field, reducing commute times and data entry duplication. Allow your constituents to access Community Development services – inspection scheduling, permit applications and property information - on the web; reducing your frontline staff’s workload and ensuring that your citizens’ service demands are met. 8.3.1 CityView PreBuilts Overview 8.3.1.1 Map your Way Integrated GIS capabilities allow even non-GIS staff to quickly locate a job location on a map; measure distance, boundaries and areas, create adjacent and buffered spatial queries for mailing lists and export information to other departmental systems. GIS information can be accessed from within CityView’s map viewer or through a third party mapping viewer. Using CityView’s Esri integration, mapping information can be embedded directly into reports and forms, e.g. so an inspector can see a map corresponding to his day’s inspections. 8.3.1.2 Meet Changing Business Needs Built-in process and automation based on best practices ensure immediate ROI. CityView’s configuration tools allow you to configure permits, letters, referrals, inspections, data fields, auditing, business rules etc. to suit your exact needs ensuring that your CityView solution always matches your real-life processes. Intuitive development tools allow you to grow your CityView PreBuilts as your organization grows and to create your own unique applications. If you can conceive it, you can build it with CityView Application Builder. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 140 8.3.1.3 Out of the Box and Ad-hoc Reporting Detailed out-of-the-box reports provide immediate visibility on daily business activities such as the status of all Building Permits, while statistical and summary reports allow you to track performance metrics such as the number of cases assigned to each Inspector. End-user ad hoc needs are met through CityView’s Desktop Reporter, which provides for Pivot table reports, Detail reports and Charts and graphs. This reporting tool is a drag and drop ad hoc reporter allowing end-users to drag and drop fields into Rows and Columns, add filter criteria, select the content (e.g. Counts, Averages, Variances, Sums, Max, Min, Standard Deviations, Running values etc.), select how to group the data and label the groups and render the reports in CityView Desktop very quickly and professionally. Reports are rendered in Microsoft SQL Server Reporting Services (SSRS), right within the CityView product. Reports can be saved for future repetitive use, exported to Excel, PDF and Word and printed. Charts can also be quickly generated, using drag and drop tools to drop fields into X and Y axes, Series and categories to create line graphs, Pie charts, bar graphs, areas, doughnuts and column graphs. CityView Desktop reports can be pulled into the dashboard to run dynamically. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 141 8.3.2 CityView Property Information CityView Property Information is the backbone of CityView PreBuilts, letting you see all activity, present and historical, on a given parcel of land. With CityView Property Information you can add or track unlimited addresses, ownership and structure information for each land parcel. You can subdivide parcel records and track the history of parent parcels after subdivisions. Combined with GIS data, CityView Property Information gives you a powerful inventory of your organization's property base. PROPERTY INFORMATION FORMS  Properties, Addresses and Owners  Instant access to key parcel details including Zoning information, related Structures (Buildings), Restrictions, and Alerts.  View all contacts and address information associated with a parcel  Owners (or other contacts) can be maintained  Client-defined custom fields allow pertinent, business process data to be captured. ACCESS TO INFORMATION  Easily view current and historical development permits, zoning applications, code enforcement cases, building and engineering permits associated with a parcel of land.  Parcel information is immediately available  Drop down menus expedite data entry and reduce errors  Cohesively track and manage all your land use and community development activities in a central location  Search for a property using multiple parameters, using our powerful Search and Navigation Panel  Select properties visually, using our embedded map viewer, reducing data entry errors and making it easy for everyday users to locate properties; measure distances, boundaries and areas, create buffer selections, etc. RELATED DATA  Provides details on all activity related to a parcel, e.g. open and historic permits, code cases, planning applications, etc.  Enrich your parcel data to include the level of detail you need to complete your business processes with multiple address, ownership and structure information readily available. AUTOMATION  Automate daily business processes like parcel selection and subdivision creation and eliminate time-consuming manual activities, repetitive data entry and inaccurate information.  Subdivide parcels PROPERTY BASED ALERTS  Inform users of potential issues with respect to a property  Customers can be informed of potential delays and what is required to remove alert. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 142 8.3.2.1 CityView Permits and Inspections CityView Permits and Inspections simplify the process of issuing and tracking permits, automating the entire process from initial application to the issuance of the Certificate of Occupancy. Everything you need to know about a building permit is instantly available, from owner and contractor information to sub- permits, utility releases and expiration dates. With CityView Permits and Inspections you can manage inspection scheduling and workflow, including your daily inspection roster, which aides in eliminating time-consuming manual scheduling which leads to increased productivity and efficiency in the workplace. PERMITS AND INSPECTIONS ACCESS TO INFORMATION  Track your permits in a central location  Instant access to Permit Details, Contact s, Fees, Deposits/Bonds, and Documents/Images.  Workflow specific data is available to users with drop-down menus to streamline data entry and reduce the chance of errors.  Custom data fields, related parcel information and locations are easily added.  Users are able to reference the entire status history of the application from the first page.  Save time by automatically assigning and scheduling inspections based on geography, inspection type and inspector availability.  Improve customer service with real-time, up-to-date inspection schedules accessible by staff or on-line via the CityView Portal to provide applicants with the most current information.  Predefined workflows allow you to identify deadlines and automatically create next steps like plan checks and inspections. AUTOMATION  Auto-generate permit numbers  Determine plan checks and route workflow  Add required inspections based on permit type  Generate inspection assignments based on geography and/or inspection type or manually  Integrated fees module allows you to configure fee calculations and assess fees at the appropriate point in the business process.  Maximize efficiency by quickly creating multiple copies of an existing application. REPORTS AND LETTERS  Standard document templates with letters configured to your specifications  Ability to modify generated letters, on- the-fly, using an intuitive rich-text format interface (MS Word-like formatting options.)  Make informed decisions with intuitive reports that allow you to quickly determine the status of all permits and inspections.  Pre-configured reports including: Outstanding Fees, Fee Payment, Inspection Outcome, Inspection Schedule, Inspections by Inspector, Average Daily Inspections, Inspections To Do, Permit Status Summary (By Status), Permit Status Summary (By Type), Permit Status Summary (By Contractor), Permit Value, Permit Turn- Around, Deposits and Bonds Summary, Escrow (By Revenue Account #), Permit Locator, Permit Turn-Around Detailed Report, and Permit Time Spent 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 143 8.3.2.2 CityView Planning With CityView Planning you can easily track and manage all types of planning applications and processes from beginning to end, reviewing project milestones along the way. You can track meeting agendas, external reviews and land use restrictions for each application. CityView Planning provides you with the actual time spent on reviews, not just the start and finish dates. PLANNING ACCESS TO INFORMATION  Users are able to access all the information with respect to a project, including application details, contacts, hearings, fees, the documents and images associated with the planning application along with deposits and bonds  Ability to apply unlimited free form comments to the application  The current status and the complete status history is available so users can quickly update clients with current information  Create a project record history by attaching site plans, digital photos, aerial photos and all other related documents to the application to create a permanent record of the project’s activities.  Manage the plan review process and coordinate meetings with a scheduling tool that constrains the number of applications to be reviewed on the agenda and generates related notices and attendance lists.  Track Submittal Requirements and Conditions of Approval  Make informed decisions by easily viewing spatial information, e.g. zoning and demographic data  Track associated permits and code cases as part of the overall project footprint AUTOMATION  Auto-generate approval track, plan reviews, meeting reminders, process milestones, submittal requirements, and fees  Email notifications for planning meetings, departmental reviews, and past due notices  Auto generate attendance lists for hearings, and Agenda  Automate and monitor complex business processes to ensure that projects follow the guidelines set out for your jurisdiction  Meet all your deadlines with a workflow- based system and a series of useful and relevant reports. REPORTS & LETTERS  Generate all your Planning correspondence quickly and easily, e.g. Incomplete Submittal letters,  Preconfigured reports including: Project Applications, Planner Projects, Outstanding Plan Reviews, Project Fees, Expired Projects, Planning Activities, Plan Review Time, Scheduled Hearings, Project Locator  Standard document templates with letters configured to your specification 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 144 8.3.3 Microsoft Outlook Add-in The CityView Outlook Add-in allows data from CityView and Outlook to be easily shared between the two applications with minimal user intervention. Emails can be attached to permits/cases/projects/contractors from Outlook so that all communications involving properties and cases are recorded with their associated data in CityView, for future reference. User’s CityView To-Do lists are displayed in Outlook and Activities can be added as appointments to the Outlook Calendar as well as Tasks within Outlook, for pop-up reminders. Linking from these Activities will take the users directly to the specific record in CityView. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 145 8.4 Sample User and Administrative Manuals All CityView Sample Documentation provided in Section 8.4 should be considered as Proprietary and Confidential as they are trademark documents. Sample excerpts from our Property Information User/Training Manual and a sample Administrative Document excerpt of our Release Notes are found on the following pages. 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 146 8.4.1 CityView Property Information Manual 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 147 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 148 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 149 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 150 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 151 8.4.2 CityView System Administrative Documentation 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 152 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 153 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 154 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 155 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 156 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 157 8.5 Standard Software Licensing and Maintenance Agreements Please find on the following page standard Harris Software Licensing and Maintenance Agreements. Contractual Services Agreement January 21, 2013 1 CONTRACTUAL SERVICES AGREEMENT THIS AGREEMENT (hereinafter the "Agreement") is made this day of <date> (the "Effective Date") by and between the <Customer>, a municipal organization, (hereinafter the “City”), and CityView, a division of N. Harris Computer Corporation, an Ontario Corporation and wholly owned subsidiary of Constellation Software, Inc., with its place of business at 4464 Markham Street, Suite 2307, Victoria, BC, V8Z 7X8 (hereinafter the "Vendor"). The City and the Vendor are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." RECITALS A. The Vendor desires to perform and assume responsibility and obligation for the provision of certain professional services, as hereinafter described, on the terms and conditions set forth herein. Vendor represents that it is experienced in providing business process automation and implementation services to public clients and is familiar with the scope of work of the City. B. The City desires to engage Vendor to render such services, as hereinafter described, for the Implementation of an <Project Title> (the “Project”) on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, the City and the Vendor agree as follows: OPERATIVE PROVISIONS SECTION I ENGAGEMENT AND SERVICES OF THE VENDOR 1. Engagement of Vendor. The City hereby engages the Vendor and the Vendor promises and agrees to furnish to the City, subject to the terms and conditions set forth in this Agreement, all labour, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional services necessary for the Project (the "Services"). The Services are more particularly described in Schedule "A” and Schedule “E” attached hereto and incorporated herein by reference. The Vendor agrees to perform the Services in accordance with the terms and conditions of this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, provincial and federal laws, rules and regulations in effect at the time the Services are provided. 2. Performance of the Vendor; Standard of Care. The Vendor accepts the relationship of trust and confidence established between the City and the Vendor by the terms of this Agreement. The Vendor covenants with the City to perform all Services under this Agreement in a skillful and competent manner, consistent with or in excess of the standards of skill, quality and care adhered to by recognized professionals in the same discipline in the State of XX while performing services of a like or similar nature under like or similar circumstances. Vendor represents and maintains that it is skilled in the professional calling necessary to perform the Services, and that it shall consider all recent proven and tested methods known and successfully employed by recognized professionals in the same discipline in the State of XX. Vendor shall also cooperate with the City and any other consultants or contractors engaged by or on behalf of the City in performance of the Project. The Vendor covenants to use its commercially reasonable efforts to perform its duties and obligations under this Agreement in an efficient, expeditious and economical manner, consistent with the best interests of the City and the professional standard of care set forth in this Agreement. Contractual Services Agreement January 21, 2013 2 SECTION II RESPONSIBILITIES OF THE VENDOR 1. The Vendor's Responsibilities for Costs and Expenses. Except as otherwise expressly stated herein, the Vendor shall be solely responsible for all costs and expenses incurred relative to the Vendor, personnel of the Vendor and sub-Vendors of the Vendor in connection with the performance of the Services, including, without limitation, payment of salaries, fringe benefits contributions, payroll taxes, withholding taxes and other taxes or levies, office overhead expense, telephone and other telecommunication expenses, and document reproduction expenses. 2. Independent Contractor. The Services shall be performed by Vendor or under its supervision. Vendor shall determine the means, methods and details of performing the Services subject to the requirements of this Agreement. The Vendor represents that it possesses the professional and technical personnel required to perform the Services. The City retains Vendor on an independent contractor basis and not as an employee of the City. Vendor retains the right to perform similar or different services for others during the term of this Agreement. The personnel performing the Services on behalf of the Vendor shall at all times be under the Vendor's exclusive direction and control. The Vendor shall pay all expenses, including, without limitation, all wages, salaries, fringe benefit contributions, payroll taxes, withholding taxes, other taxes or levies and all other amounts due such personnel for the Services or due others as a result of the performance by such personnel of the Services. Vendor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to, all reports for social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3. Vendor’s Project Manager. The Vendor shall designate and assign a project manager ("Project Manager"), who shall coordinate all phases of the Services and act as the Vendor’s representative for performance of this Agreement. The Project Manager shall have full authority to represent and act on behalf of the Vendor for all purposes under this Agreement, and shall be available to the City at all reasonable times. The Project Manager shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures employed by Vendor’s personnel, as well as the satisfactory coordination of all portions of the Services under this Agreement. 4. Time of Performance. Vendor shall undertake commercially reasonable efforts to complete the Services to be performed by Vendor under and pursuant to this Agreement by a date mutually agreed to in the accepted project plan. This targeted completion date may be modified by mutual written agreement as a result of the fine tuning of the plan during the first two months after project start. Vendor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with any schedule of services mutually acceptable to the Parties. 5. Software License and Support Agreement. The vendor will provide the software licenses identified in Schedule “A” for the City’s use as governed by its Software License and Support Agreement, a copy of which is attached as Schedule “B”. 6. Conformance to Applicable Requirements. All aspects of the provision of the Services by Vendor shall conform to all applicable City, district, province, and federal laws, rules and regulations in effect at the time the services are provided. 7. Insurance. Vendor currently carries insurance coverage for commercial general liability, non-owned automobile coverage, workers’ compensation, and errors and omissions policies. Vendor shall supply City with Certificates of Insurance for insurance requirements that fall within the general scope of the present policies that Vendor carries. City has no rights to review the Vendor’s policies. 8. Prohibition Against Transfers The Vendor shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest therein, without the prior written consent of the City, such consent not to be unreasonably withheld, except that either the Vendor may assign to a successor entity in the event of its dissolution, acquisition, sale of substantially all of its assets, merger or other change in legal status. The Contractual Services Agreement January 21, 2013 3 Agreement shall inure to the benefit of and be binding upon the Parties to this Agreement and their respective successors and permitted assigns. 9. Progress. The Vendor is responsible to keep the City Project Manager and/or his or her duly authorized designee informed on a regular basis regarding the status and progress of the Services, activities performed and planned, and any meetings that have been scheduled or are desired relative to the Services or this Agreement. The frequency and form of the updates will be mutually agreed on during the fine tuning of the plan in the first two months after project start. 10. Confidentiality. Owed to the City - The parties each acknowledge that they may receive information from the other party or otherwise in connection with this Agreement or the performance of the Services. Except for information in the public domain, unless such information falls into the public domain by disclosure or other acts of the disclosing party or through the fault of the receiving party, the receiving party agrees: (i) to maintain this information in confidence; (ii) not to use this information other than in the course of this Agreement; (iii) not to disclose or release such information except on a need to know only basis; (iv) not to disclose or release such information to any third person without the prior written consent of the disclosing party, except for authorized employees or agents of the receiving party; and (v) to take all appropriate action, whether by instruction, agreement or otherwise, to ensure that third persons with access to the information under the direction or control or in any contractual privity with the receiving party, do not disclose or use, directly or indirectly, for any purpose other than for performing the Services during or after the term of this Agreement, any material or information, including the information, without first obtaining the written consent of the disclosing party. All Report Materials, either created by or provided to Vendor in connection with the performance of this Agreement, shall be held confidential by Vendor. Such materials shall not, without the prior written consent of City, be used by Vendor for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. 11. No Set Hours/Right to Contract. The Vendor's obligation hereunder is to complete the Services in accordance with this Agreement and to meet any deadlines established pursuant to this Agreement. The Vendor has no obligation to work any particular schedule, hours or days, or any particular number of hours or days. However, the Vendor shall coordinate with the City in achieving the results and meeting the goals established pursuant to this Agreement. 12. Accounting Records. Vendor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Vendor shall allow a representative of City during normal business hours and with reasonable notice (not less than 7 business days) to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Vendor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. Safety. Vendor shall execute and maintain its Services so as to avoid injury or damage to any person or property. In carrying out its Services, the Vendor shall at all times be in compliance with all applicable local, provincial and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. SECTION III RESPONSIBILITIES OF THE CITY 1. Cooperation. The City shall cooperate with the Vendor relative to the provisions of those Services for which the vendor is responsible. To the extent permitted by applicable law, the City shall provide criteria and information in its possession, or reasonably obtainable by it, as requested by Vendor, and shall make Contractual Services Agreement January 21, 2013 4 that information and related data available for Vendor’s use during the performance of this Agreement. The City shall render decisions required by this Agreement within the time indicated, or if not specifically stated, with reasonable promptness so as not to unduly delay the progress of Vendor’s Services. 2. City’s Project Manager and Project Staff. The City shall designate and assign a City project manager ("City Project Manager") who shall have full authority to represent and act on behalf of the City for all purposes under this Agreement. The City Project Manager, or his/her designee, shall be the principal officer of the City for liaison with the Vendor, and shall review and give approval to the details of the Services as they are performed, in particular, but not exhaustively, Project Plan, Scope of Work, Acceptance Plans, Statements of Completion, Change Order Requests as they may be required during project implementation. In addition, the City Project Manager shall ensure proper and timely availability of all City personnel required by the Vendor for successful completion of project tasks, in particular, but not exhaustively, Business and Systems Analysts, IT staff, Subject Matter Experts, Users. The City designates <name> to be its City’s Project Manager, but reserves the right to appoint another person as City Project Manager upon written notice to the Vendor. 3. Project Plan. The City shall be responsible for meeting specific milestones and providing specific deliverables that will be defined and mutually agreed to in the Project Plan. In addition, the City covenants to meet any turnaround or review times specified in the Project Plan. Should the City fail to meet the agreed milestones or to provide the agreed deliverables or to meet the specified turnaround or review times, the Vendor will inform the City of the consequences thereof and reserves the right to modify the project plan accordingly. This Project Plan will become binding on both parties after fine tuning during the first two months after project start. 4. Formal completion statement. No later than thirty days past go-live of the software solution, the City shall provide the Vendor with a written statement of completion certifying that the solution has been implemented successfully. In case of a partial go-live this shall refer to the part of the solution that has gone live. 5. Applicable Taxes and Exemptions. The City shall be responsible for any sales tax due on fees associated with this Project. If the City is exempt from sales tax on fees associated with the Project an exempt certificate will be provided to the Vendor prior to the execution of this contract. 6. Allowance for Suspension or Delay due to City. In the event that the City shall suspend the performance of Services, delay any deliverable date, or cause a delay in performance by failing to fulfill any of its obligations under this Section III then the following shall apply: Any applicable delivery schedule shall be extended by a period of time equal to the time lost because of any such delay. For this section to apply, the City must be the cause of the delay or the suspension of Services without any fault on the part of Vendor. The City acknowledges that the Vendor has anticipated that the schedules as laid out in the [STATEMENT OF WORK] shall be adhered to, that the Vendor has scheduled resources to ensure that the Vendor adheres to the schedules and that all Services (including all non-refundable fees) shall be paid for in full regardless of whether or not a milestone is the cause of the payment where a delay of greater than two (2) weeks results from the City’s delay or suspensions. The Vendor shall have the right to amend the Schedules in the Statement of Work without the consent of the City whereby the due date for any deliverable that is dependent on such performance by the City shall be deemed adjusted equitably taking into account Vendor’s obligations to other parties, the availability of Vendor’s resources and the timely payment of all fees by City as otherwise required by this Agreement. The result of any such adjustment is primarily to allow the Vendor to supply or perform such deliverable without compromising the quality of the deliverable. Contractual Services Agreement January 21, 2013 5 SECTION IV COMPENSATION 1. Compensation. In consideration of the performance by Vendor of the Services, the City shall pay to the Vendor compensation at the rates set forth in Schedule "A" attached hereto and incorporated herein by reference. Total compensation under this Agreement shall not exceed $XX (plus travel, HST and Annual Maintenance without written approval of the City’s Project Manager (the "Compensation"). 2. Extra Service. The Vendor shall not receive additional compensation for any extra service unless such extra service has been authorized in writing by the City prior to the commencement of the extra service. The City shall pay the Vendor for extra service in accordance with the Vendor’s then current services rates. As used herein, "Extra Service" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement or for which initial assumptions driving estimated efforts are no longer valid. 3. Payment of Compensation. The Vendor shall submit invoices to the City in accordance with the payments milestones specified in Schedule A. The City shall make payments to the Vendor thirty (30) days following the date of receipt of the invoice, unless the City disputes the amount of the Compensation the Vendor claims it is owed under this Agreement. Any disputed amount shall be handled as discussed herein. 4. Reimbursements. City shall reimburse the Vendor for its direct expenses, including, but not limited to, all reasonable travel and accommodation costs, meal expenses of not more than $50.00 per diem (no receipts provided), and all other reasonable expenses incurred in the performance of the Consultant's duties pursuant to the budget for “travel and expenses” described in Schedule “A” attached hereto. Reimbursement for expenses beyond the “travel and expenses” line item in Schedule “A” shall occur only if such additional expenses are agreed upon in writing by the Parties. 5. Mediation. The parties agree to submit any claim, controversy or dispute arising out of or relating to this Agreement or the relationship created by this Agreement to non-binding mediation before bringing a claim, controversy or dispute in a court or before any other tribunal. The mediation is to be conducted by either an individual mediator or a mediator appointed by mediation services mutually agreeable to the parties. The mediation shall take place at a time and location which is also mutually agreeable; provided; however, in no event shall the mediation occur later than ninety (90) days after either party notifies the other of its desire to have a dispute be placed before a mediator. Such mediator shall be knowledgeable in software system agreements. The costs and expenses of mediation, including compensation and expenses of the mediator (and except for the attorney’s fees incurred by either party), is to be shared by the parties equally. If the parties are unable to resolve the claim, controversy or dispute within ninety (90) days after the date either party provides the other notice of mediation, then either party may bring and initiate a legal proceeding to resolve the claim, controversy or dispute unless the time period is extended by a written agreement of the parties. Contractual Services Agreement January 21, 2013 6 SECTION V REMEDIES AND LIABILITIES 1. Remedies and Liability. A. The City and the Vendor recognize that circumstances may arise entitling the City to damages for breach or other fault on the part of the Vendor arising from this Agreement. The parties agree that in all such circumstances the City’s remedies and the Vendor’s liabilities will be limited as set forth below and that these provisions will survive notwithstanding the termination or other discharge of the obligations of the parties under this Agreement. (1) EXCEPT FOR DAMAGES ARISING OUT OF (a) INJURY OR DAMAGE TO PEOPLE, TANGIBLE PROPERTY OR INTANGIBLE PROPERTY OR (b) THE VENDOR’S INTENTIONAL MISREPRESENTATION, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, BOTH PARTIES AGREE THAT THE VENDOR’S LIABILITY (UNDER BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE), IF ANY, FOR ANY DAMAGES RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE SERVICE FEES PAID TO VENDOR BY CITY UNDER THIS AGREEMENT. (2) IN ADDITION TO THE FOREGOING NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR OTHER DAMAGES OF ANY KIND, INCLUDING BUT NOT LIMITED TO LOST REVENUE OR LOSS OF PROFITS, EVEN IF SUCH OTHER PARTY HAS BEEN ADVISED OF THE LIKELIHOOD OF THE OCCURRENCE OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. (3) CLAUSES (i) AND (ii) SHALL APPLY IN RESPECT OF ANY CLAIM, DEMAND OR ACTION BY A PARTY IRRESPECTIVE OF THE NATURE OF THE CAUSE OF ACTION UNDERLYING SUCH CLAIM, DEMAND OR ACTION, INCLUDING, BUT NOT LIMITED TO, BREACH OF CONTRACT OR TORT. 2. Intent. The parties hereby confirm that the waivers and disclaimers of liability, releases from liability, limitations and apportionments of liability, and exclusive remedy provisions expressed throughout this Agreement shall apply even in the event of default, negligence (in whole or in part), strict liability or breach of contract of the person released or whose liability is waived, disclaimed, limited, apportioned or fixed by such remedy provision, and shall extend to such person’s affiliates and to its shareholders, directors, officers, employees and affiliates. 3. Remedies. Where remedies are expressly afforded by this Agreement, such remedies are intended by the parties to be the sole and exclusive remedies of the City for liabilities of the Vendor arising out of or in connection with this Agreement, notwithstanding any remedy otherwise available at law or in equity. 4. Indemnities. Vendor agrees to indemnify, defend and hold harmless the City, its directors and officers, and its employees and agents (collectively, the “Customer Indemnified Parties”) from any and all claims, costs, expenses (including reasonable attorneys’ fees), damages, liabilities or judgments, relating to injuries to persons or damage to property to the extent that the same arise out of the work or activities of Vendor or its employees, subcontractors, or agents in connection with the Project. Notwithstanding the foregoing, the Vendor shall have no obligation under the foregoing sentence if the claim, cost or other item was due to the negligence of the City or any of the other Customer Indemnified Parties. Notwithstanding anything in this Agreement to the contrary, the total liability under this section V.4 shall be limited to the amount of insurance coverage available to Vendor under its insurance policy. Contractual Services Agreement January 21, 2013 7 SECTION VI EXPIRATION AND TERMINATION 1. Events of Default. Each of the following events shall constitute an "Event of Default": A. The Vendor shall fail to observe, perform or comply with any material term, covenant, agreement or condition of this Agreement which is to be observed, performed or complied with by the Vendor, if such failure continues uncured for thirty (30) calendar days after the City gives the Vendor written notice of the failure and the specific nature of such failure. B. The Vendor shall commit any fraud, misrepresentation, breach of fiduciary duty, willful misconduct, or intentional breach of any material provision of this Agreement. 2. Termination Upon Event of Default. In addition to any other available legal or equitable rights or remedies, upon an Event of Default by the Vendor, the City shall have the right to terminate this Agreement upon written notice to the Vendor. 3. Expiration. Unless extended as provided for herein, this Agreement shall naturally expire on receipt of the Completion Statement from the City. The expiration of this Agreement under this term shall neither affect nor require the termination of the License and Support Agreement. 4. Payment Upon Termination. Upon a termination of this Agreement, the City shall pay to the Vendor the part of the Compensation which would otherwise be payable to the Vendor with respect to the Services which had been adequately completed as of the date of termination, less the amount of all previous payments with respect to the Compensation. 5. Termination by Vendor. Vendor may terminate this Agreement only upon the breach by the City of a material provision of this Agreement such as the City withholding payment for more than 30 days beyond due date. SECTION VII GENERAL PROVISIONS 1. Nondiscrimination by the Vendor. The Vendor represents and agrees that the Vendor, its affiliates, subsidiaries, or holding companies do not and will not discriminate against any subcontractor, Vendor, employee, or applicant for employment because of race, religion, color, sex, handicap, national origin or any other protected classification under federal or provincial law. Such nondiscrimination shall include, but not be limited to, the following: employment, upgrading, demotion, transfers, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 2. Rights to Employ Other Vendors. The City reserves the right to employ other Vendors in connection with this Project. 3. Conflicts of Interest; Prohibited Interests. A. Vendor maintains and warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for Vendor, to solicit or secure this Agreement. Further, Vendor warrants that it has not paid or agreed to pay any company or person, other than a bona fide employee working solely for Vendor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contractual Services Agreement January 21, 2013 8 Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 4. Subcontracting. The Vendor shall not subcontract any portion of the Services except as expressly stated herein, without prior written consent of the City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 5. Waiver. No waiver of any default shall constitute a waiver of any other breach or default, whether of the same or any other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by other parties shall give the other any contractual right by custom, estoppel, or otherwise. 6. Notices. All notices required hereunder shall be given in writing to the following addresses or such other addresses as the parties may designate by written notice: To the City: <Customer> <Address> To the Vendor: CityView Suite 2307, 4464 Markham Street Victoria, BC V8Z 7X8 Attention: Susan McCormick, Executive Vice President Notice shall be deemed received as follows, depending upon the method of transmittal: by facsimile, as of the date and time sent; by messenger, as of the date delivered; and by Canada Mail, certified, return receipt requested, as of five (5) days after deposit in the Canada Mail. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 7. Authority to Enter Agreement. The Vendor has all requisite power and authority to conduct its business and to execute, deliver and perform all of its obligations under this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to enter into this Agreement so as to bind each respective Party to perform the conditions contemplated herein. 8. Severability. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect. 9. Time is of the Essence. Time is of the essence in this Agreement, and all parties agree to execute all documents and to proceed with due diligence to complete all covenants and conditions set forth herein. 10. Governing Law and Venue. This Agreement shall be construed in accordance with, and governed by, the laws of the State of XX. Any lawsuit brought to enforce this Agreement shall be brought in the appropriate court in State of XX. 12. Days. Any term in this Agreement referencing time, days, or period for performance shall be deemed to be calendar days and not work days. 13. Entire Agreement. This Agreement contains the entire agreement of the City and the Vendor, and supersedes any prior or written statements or agreements between the City and the Vendor. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by both Parties. Provisions of a City purchase order or similar document are not applicable to the extent that they conflict with the terms of this Agreement. Under no circumstances shall the provisions of a purchase order supersede those of this Agreement. 14. Binding on Assigns. Each and all of the covenants and conditions of this Agreement shall be binding on, and shall inure to, the benefit of the successors and assigns of the respective parties. Contractual Services Agreement January 21, 2013 9 15. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument. 16. Captions. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment or describe the scope, content or intent of this Agreement. 17. Construction. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language in all parts of this Agreement shall be construed simply, according to its fair meaning and not strictly for or against any party. 18. Cooperation/Further Acts. The Parties shall fully cooperate with one another in attaining the purposes of this Agreement. In connection therewith, the Parties shall take any additional further acts and steps and sign any additional documents as may be necessary, appropriate and convenient to attain the purposes of this Agreement. 20. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 21. Incorporation of Recitals and Exhibits. A. The "Recitals" constitute a material part hereof, and are hereby incorporated into the Agreement by reference as though fully set forth herein. B. The "Exhibits" constitute a material part hereof, and are hereby incorporated into the Agreement by reference as though fully set forth herein. FOR CITY: CITYVIEW: By: _______________________ By: Susan McCormick <Customer> Executive Vice President Contractual Services Agreement January 21, 2013 10 Schedule “A” – Payment Milestones and Project Deliverables Schedule “B” – CityView Software License and Support Agreement Schedule “C” – CityView Service Level Agreement Schedule “D” – CityView Response dated <date> to the City’s Request for Proposal For <title> Schedule “E” – Statement of Work Contractual Services Agreement January 21, 2013 11 Schedule A Payment Milestones and Project Deliverables Contractual Services Agreement January 21, 2013 12 Schedule B CityView Software License and Support Agreement Under separate cover. Contractual Services Agreement January 21, 2013 13 Schedule C CityView Service Level Agreement The purpose of this Exhibit is to provide our customers with information on our standard coverage, the services which are included as part of your annual software support, a listing of call priorities, an outline of our escalation procedures and other important details. CITYVIEW reserves the right to make modifications to this document as required; provided, however, CITYVIEW shall not reduce the scope of support provided hereunder without the prior consent of the Customer. The Support includes the following: 1. CityView Standard Support Service Level Agreement 2. Contract Term: 1 Year (renewable annually) 3. Support Channels: Web, Telephone or Email 4. Support Requests Allowed: Unlimited 5. Remote diagnosis of operational issues related to the Software, provided that CITY has obtained, at its cost, the necessary software, hardware and instruction to allow CITYVIEW to provide such assistance. 6. Updates for the Software at no extra charge, these updates to include minor changes, enhancements, improvements and problem resolution, as well as Software Releases. 7. Who Can Report: Up to three users assigned by the CITY and registered with CITYVIEW can submit support requests. These individuals must be trained in the use of CityView and constitute the first line of support for the organization. 8. Hours of Coverage: Coverage hours are 8:00 a.m. to 7:30 p.m. Central Standard Time from Monday through Friday, excluding CITYVIEW Technical Support observed holidays. (Only those statutory holidays that coincide between Canada and the United states are observed by CITYVIEW Technical Support.) 9. Accessing Support: The preferred method of opening a support incident is to enter the problem details through CITYVIEW’s online support system. Telephone support requests should be preceded by filing an electronic support request on CITYVIEW’s Web site, including a detailed problem description. Telephone support requests will be answered live during business days, though staff may be involved serving other customers. If the call is not answered live, CITYVIEW asks that the Customer leaves a message, including the support request tracking number the Customer received from the electronic filing, the Customer’s name and phone or pager number. Messages are typically responded to within two hours. 10. Auto Acknowledgement: CITYVIEW will send a computer-generated message that acknowledges receipt of the report that the Customer filed electronically. This message will contain the details of the Customer’s problem report as well as the support request tracking number. Whenever the status of the incident changes, a notification will automatically be sent to the individual that opened the call. 11. Request Response Time: A technical support engineer will respond to all requests within the time frames specified in Table 1. Business hours are 8:00 a.m. to 7:30 p.m. Central Standard Time from Monday through Friday, excluding CITYVIEW Technical Support observed holidays. Only those statutory holidays that coincide between Canada and the United States are observed by CITYVIEW Technical Support. CITYVIEW processes requests in the order of their priority followed by order of submission. 12. What CITYVIEW will do if CITYVIEW does not hear back from the Customer: If CITYVIEW Support does not hear back from the Customer in ten business days, CITYVIEW will close the support request and mark it as "Closed / No response from customer." 13. Resolution of Bug-Related Requests: CITYVIEW will keep the Customer’s request open and follow up when a fix is available in a production release. CITYVIEW will also contact the Customer representative if Contractual Services Agreement January 21, 2013 14 CITYVIEW posts an experimental build that will help with the problem. 14. What CITYVIEW Needs from the Customer: CITYVIEW wants to be as responsive as possible to the Customer’s support needs. To accomplish this goal, the CITYVIEW customer support staff relies on the customer’s knowledge, self-sufficiency, and thoroughness during the troubleshooting process. The Customer will reap the benefits from this effort — it allows CITYVIEW to focus on the more difficult problems and make the product more robust. It also helps control the amount CITYVIEW charges for support. (a) Knowledge: The Customer should be experienced in the installation, operation, and maintenance of the hardware, desktop, and network operating systems, and applications in the Customer’s environment before the Customer installs CityView. (b) Self-sufficiency: CITYVIEW asks the Customer to be as self-sufficient as possible when the Customer encounters problems. The Customer can do this by referring to technical documentation for the Customer’s environment and by searching the CITYVIEW Web site to determine if the Customer’s issue is addressed before the Customer submits it to CITYVIEW’s customer support staff. (c) Complete information: As with any troubleshooting process, accurate and timely resolution depends on information. When the Customer requests support, please fill in all relevant fields in the request form, provide a detailed problem description, and attach any appropriate log files. Unfortunately, when the request information is incomplete, it will take longer to resolve the Customer’s issue. (d) Preparation: If the Customer calls CITYVIEW for support, be prepared to provide the same level of information as is requested on the request submission form. The Customer can help reduce the time to resolution by completing the online support request form and attaching files as directed. Then, simply provide CITYVIEW Support with the request number. CITYVIEW asks that the Customer provides immediate access to the computer(s) on which CITYVIEW products are running. 15. How to Access Support: CITYVIEW offers several methods of accessing support described below. Please note that for Priority 1 (see Table 1) issues, customers are encouraged to submit their incident online and then follow up via CITYVIEW’s toll-free phone number: (a) Web Support (preferred method): CITYVIEW’s web portal, (http://support.harriscomputer.com ), provides resources for customer self-service, and is comprised of an online searchable knowledgebase, downloadable updates, and a web-enabled CRM that allows users to log new support incidents and check the status of previously submitted incidents on a 24 x 7 basis. (b) Telephone Support: Telephone technical support is available between the hours of 8:00 a.m. and 5:30 p.m. PST on regular business days. Customers can contact CITYVIEW toll-free at 1.866.988.8324. CITYVIEW technical support will respond to telephone inquiries using the Service Level Agreement provided in Table 1 below. (c) Email Support: Customers may request assistance from CITYVIEW technical support via email at CityViewsupport@harriscomputer.com. All email incident reports are logged into the CITYVIEW support CRM database and are addressed based upon the priority of the issues. The response time guidelines for support are provided in Table 1 below. 16. Feature Requests: If the customer comes across an idea that the customer thinks might make a nice enhancement to CityView, the customer’s input is always welcome. Please submit suggestions through regular support channels. Unless additional information is needed, customer will not receive a personal response. Any suggestions for enhancements to CityView that the customer submits will become the property of CITYVIEW. CITYVIEW may use this information for any CITYVIEW business purposes, without restriction, including for product support and development. CITYVIEW will not use information in a form that personally identifies the customer. 17. Limitations: The following are not covered under this Support Service Level Agreement, but may be available as separate services on a time and materials basis: Contractual Services Agreement January 21, 2013 15 a) Services required due to misuse of CITYVIEW maintained software; b) Services required due to software corrections, customizations, or modifications not developed by CITYVIEW; c) Services required by the Customer to be performed by CITYVIEW outside of CITYVIEW’s regular business hours; d) Services required to resolve or work-around problems that cannot be reproduced in CITYVIEW’s support environment; e) Services which relate to tasks other than maintenance of the Customer’s existing implementation and configuration of CityView, including but not limited to, enhancing or adapting CityView for specific operating environments; f) Services requested by the Customer to implement software updates provided by CITYVIEW. Table 1. Service Level Agreement Priority Definition Initial Response Time* Commitment (CityView and Customer) Examples 1 (High) Operation/Service down or critically impacted. Business process impacted. No known workaround. 2 Hours CityView and customer will commit necessary resources to fix problem or obtain a workaround.  Users cannot login  Business process halted 2 (Medium) Operation affected, but not down. Business process is not affected. Workaround may be available. 4 Hours CityView and customer will commit resources during normal business hours to resolve issue or obtain workaround.  Cannot print  Cannot process payments  Application response is exceptionally slow 3 (Normal) Moderate to negligible impact. No impact to business. 24 Hours CityView and customer will commit necessary resources during normal business hours to restore operation to satisfactory levels.  Non critical feature not working  Feature works but requires user intervention 4 (Info.) Request for information, documentation issues, and enhancement requests. 48 Hours Request-dependent.  Help file clarification  Form design not in production * Response time targets are during business hours only. Contractual Services Agreement January 21, 2013 16 Schedule D CityView Proposal dated <date> in response to the <Customer> RFP<title> Under separate cover. Contractual Services Agreement January 21, 2013 17 Schedule E <Statement of Work> 8. Additional Information Permitting System Software and Implementation Services June 28, 2013 158 8.6 Annual Financial Statements Please find on the following page our parent company, Constellation Software, Inc.’s, Financial Statements that include the last three years. In addition, copies for electronic purposes are embedded below. CSI 2012 Financial Statement.pdf CSI 2011 Financial Statement.pdf For the years ended December 31, 2012 and 2011 Consolidated Financial Statements (In U.S. dollars) CONSTELLATION SOFTWARE INC. MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING December 31, 2012 The accompanying consolidated financial statements of Constellation Software Inc. ("Constellation") and its subsidiaries and all the information in Management's Discussion and Analysis are the responsibility of management and have been approved by the Board of Directors. The consolidated financial statements have been prepared by management in accordance with International Financial Reporting Standards ("IFRS"). The consolidated financial statements include certain amounts that are based on the best estimates and judgements of management and in their opinion present fairly, in all material respects, Constellation's financial position, results of operations and cash flows, in accordance with IFRS. Management has prepared the financial information presented elsewhere in the Management's Discussion and Analysis and has ensured that it is consistent with the consolidated financial statements, or has provided reconciliations where inconsistencies exist. Management of Constellation has developed and maintains a system of internal controls, which is supported by the internal audit function. Management believes the internal controls provide reasonable assurance that material transactions are properly authorized and recorded, financial records are reliable and form a basis for the preparation of consolidated financial statements and that Constellation's material assets are properly accounted for and safeguarded. The Board of Directors carries out its responsibility for the consolidated financial statements principally through its Audit Committee. This committee meets with management and the Company’s independent auditors to review the Company’s reported financial performance and to discuss audit, internal controls, accounting policies, and financial reporting matters. The consolidated financial statements were reviewed by the Audit Committee and approved by the Board of Directors. The consolidated financial statements have been audited by KPMG LLP, the external auditors, in accordance with Canadian generally accepted auditing standards on behalf of the shareholders. KPMG LLP has full and free access to the Audit Committee. March 6, 2013 "Mark Leonard" "John Billowits" President Chief Financial Officer KPMG LLP Chartered Accountants Yonge Corporate Centre 4100 Yonge Street, Suite 200 Toronto, Ontario M2P 2H3 Canada Telephone (416) 228-7000 Fax (416) 228-7123 Internet www.kpmg.ca ABCD KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. INDEPENDENT AUDITORS’ REPORT To the Shareholders of Constellation Software Inc. We have audited the accompanying consolidated financial statements of Constellation Software Inc., which comprise the consolidated statements of financial position as at December 31, 2012 and December 31, 2011, the consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2012 and December 31, 2011, and notes, comprising a summary of significant accounting policies and other explanatory information. Management’s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Page 2 ABCD Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Constellation Software Inc. as at December 31, 2012 and December 31, 2011, and its consolidated financial performance and its consolidated cash flows for the years ended December 31, 2012 and December 31, 2011 in accordance with International Financial Reporting Standards. Chartered Accountants, Licensed Public Accountants March 6, 2013 Toronto, Canada CONSTELLATION SOFTWARE INC. Consolidated Statements of Financial Position (In thousands of U.S. dollars) December 31, 2012 December 31, 2011 Assets Current assets: Cash 41,313$ 33,492$ Equity securities available-for-sale (note 5)470 21,222 Accounts receivable 126,987 96,259 Work in progress 36,926 26,244 Inventories 18,739 13,539 Other assets (note 7)29,178 29,772 253,613 220,528 Non-current assets: Property and equipment (note 8)21,300 14,591 Deferred income taxes (note 13)104,307 99,659 Other assets (note 7)31,104 28,005 Intangible assets (note 9)402,355 267,792 559,066 410,047 Total assets 812,679$ 630,575$ Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness (note 10)44,356$ ‐$ Accounts payable and accrued liabilities 147,559 114,952 Dividends payable (note 14)20,945 ‐ Deferred revenue 224,049 181,450 Provisions (note 11)6,396 3,555 Acquired contract liabilities 3,535 4,750 Acquisition holdback payments 20,635 11,378 Income taxes payable 5,066 4,751 472,541 320,836 Non-current liabilities: Deferred income taxes (note 13)29,283 11,259 Acquired contract liabilities 26,073 28,051 Acquisition holdback payments 5,973 2,474 Other liabilities (note 7)20,005 11,675 81,334 53,459 Total liabilities 553,875 374,295 Shareholders' equity (note 14): Capital stock 99,283 99,283 Accumulated other comprehensive income 1,621 6,961 Retained earnings 157,900 150,036 258,804 256,280 Subsequent events (notes 14, 16, 22, 26) Total liabilities and shareholders' equity 812,679$ 630,575$ See accompanying notes to the consolidated financial statements. 1 CONSTELLATION SOFTWARE INC. Consolidated Statements of Comprehensive Income (In thousands of U.S. dollars, except per share amounts) Years ended December 31, 2012 and 2011 2012 2011 Revenue (note 15)891,226$ 773,341$ Expenses Staff 469,677 401,379 Hardware 61,446 60,854 Third party license, maintenance and professional services 61,469 51,066 Occupancy 21,023 18,918 Travel 35,967 30,038 Telecommunications 10,996 9,992 Supplies 15,308 15,314 Professional fees 15,031 8,623 Other, net 14,358 8,479 Depreciation 7,643 7,868 Amortization of intangible assets (note 9) 85,142 76,650 798,060 689,181 Impairment of non-financial assets - 489 Foreign exchange loss 822 3,392 Equity in net loss of equity investees 839 - Finance income (note 16)(23,178) (7,267) Finance costs (note 16)4,001 5,575 (17,516) 2,189 Profit before income tax 110,682 81,971 Current income tax expense 23,626 18,615 Deferred income tax recovery (5,576) (93,818) Income tax expense (recovery) (note 12) 18,050 (75,203) Net income 92,632 157,174 Net change in fair value of available-for-sale financial assets during the period 13,968 5,773 Net unrealized foreign exchange gain (loss) on available-for-sale financial assets during the period 45 (31) Amounts reclassified to profit during the period related to realized gains on available-for-sale financial assets (21,735) (6,253) Foreign currency translation differences from foreign operations 1,164 (1,188) Current income tax recovery (expense)104 (34) Deferred income tax recovery 1,114 172 Other comprehensive loss for the period, net of income tax (5,340) (1,561) Total comprehensive income for the period 87,292$ 155,613$ Earnings per share Basic and diluted (note 17)4.37$ 7.42$ See accompanying notes to the consolidated financial statements. 2 CONSTELLATION SOFTWARE INC. Consolidated Statements of Changes in Equity (In thousands of U.S. dollars) Year ended December 31, 2012 Capital stock Total accumulated other comprehensive income/(loss) Retained earnings Total Cumulative translation account Amounts related to gains/losses on available- for-sale financial assets Balance at January 1, 2012 $ 99,283 $ 182 $ 6,779 $ 6,961 $ 150,036 $ 256,280 Total comprehensive income for the period Net income - - - - 92,632 92,632 Other comprehensive income (loss) Net change in fair value of available-for-sale financial assets during the period - - 13,968 13,968 - 13,968 Net unrealized foreign exchange adjustment gain (loss) on available-for-sale financial assets during the period - - 45 45 - 45 Amounts reclassified to profit during the period related to realized gains on available-for-sale investments - - (21,735) (21,735) - (21,735) Foreign currency translation differences from from foreign operations - 1,164 - 1,164 - 1,164 Current tax recovery - 104 - 104 - 104 Deferred tax recovery - - 1,114 1,114 - 1,114 Total other comprehensive income (loss) for the period - 1,268 (6,608) (5,340) - (5,340) Total comprehensive income (loss) for the period - 1,268 (6,608) (5,340) 92,632 87,292 Transactions with owners, recorded directly in equity Dividends to shareholders of the Company (note 14) - - - - (84,768) (84,768) Balance at December 31, 2012 $ 99,283 $ 1,450 $ 171 $ 1,621 $ 157,900 $ 258,804 See accompanying notes to the consolidated financial statements. Accumulated other comprehensive income/(loss) 3 CONSTELLATION SOFTWARE INC. Consolidated Statements of Changes in Equity (In thousands of U.S. dollars) Year ended December 31, 2011 Capital stock Total accumulated other comprehensive income/(loss) Retained earnings Total Cumulative translation account Amounts related to gains/losses on available- for-sale financial assets Balance at January 1, 2011 $ 99,283 $ 1,379 $ 7,143 $ 8,522 $ 35,246 $ 143,051 Total comprehensive income for the period Net income - - - - 157,174 157,174 Other comprehensive income (loss) Net change in fair value of available-for-sale financial assets during the period - - 5,773 5,773 ‐ 5,773 Net unrealized foreign exchange adjustment gain (loss) on available-for-sale financial assets during the period - - (31) (31) ‐ (31) Amounts reclassified to profit during the period related to realized gains on available-for-sale investments - - (6,253) (6,253) ‐ (6,253) Foreign currency translation differences from from foreign operations - (1,188) ‐ (1,188) ‐ (1,188) Current tax expense - (34) ‐ (34) ‐ (34) Deferred tax recovery - 25 147 172 ‐ 172 Total other comprehensive loss for the period - (1,197) (364) (1,561) - (1,561) Total comprehensive income (loss) for the period - (1,197) (364) (1,561) 157,174 155,613 Transactions with owners, recorded directly in equity Dividends to shareholders of the Company (note 14)‐ ‐ ‐ ‐ (42,384) (42,384) Balance at December 31, 2011 $ 99,283 $ 182 $ 6,779 $ 6,961 $ 150,036 $ 256,280 See accompanying notes to the consolidated financial statements. Accumulated other comprehensive income/(loss) 4 CONSTELLATION SOFTWARE INC. Consolidated Statements of Cash Flows (In thousands of U.S. dollars) Years ended December 31, 2012 and 2011 2012 2011 Cash flows from operating activities: Net income 92,632$ 157,174$ Adjustments for: Depreciation 7,643 7,868 Amortization of intangible assets 85,142 76,650 Impairment of non-financial assets - 489 Equity in net loss of equity investees 839 - Finance income (23,178) (7,267) Finance costs 4,001 5,575 Income tax expense (recovery)18,050 (75,203) Foreign exchange loss 822 3,392 Change in non-cash operating working capital exclusive of effects of business combinations (note 24) (17,390) (15,896) Income taxes paid (23,770) (15,249) Net cash flows from operating activities 144,791 137,533 Cash flows from (used in) financing activities: Interest paid (1,761) (4,979) Increase (decrease) in other non current liabilities (973) 3,720 Increase (decrease) in bank indebtedness, net 41,052 (47,877) Credit facility transaction costs (2,077) - Dividends paid (63,576) (42,384) Net cash flows used in financing activities (27,335) (91,520) Cash flows from (used in) investing activities: Acquisition of businesses, net of cash acquired (note 4)(121,154) (40,511) Post-acquisition settlement payments, net of receipts (17,445) (5,345) Purchases of equity securities available-for-sale (211) (5,944) Proceeds from sale of equity securities available-for-sale 34,977 14,268 Proceeds from sale of intangible assets 101 - Decrease in restricted cash - 557 Interest received 5 1,113 Property and equipment purchased (6,100) (7,350) Cash flows used in investing activities (109,827) (43,212) Effect of foreign currency on cash and cash equivalents 192 (220) Increase in cash and cash equivalents 7,821 2,581 Cash, beginning of period 33,492 30,911 Cash, end of period 41,313$ 33,492$ See accompanying notes to the consolidated financial statements. 5 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 6 Notes to the consolidated financial statements 1. Reporting entity 15. Revenues 2. Basis of presentation 16. Finance income and finance costs 3. Significant accounting policies 17. Earnings per share 4. Business acquisitions 18. Capital risk management 5. Equity securities available-for-sale 19. Financial risk management and financial instruments 6. Inventories 20. Operating leases 7. Other assets and liabilities 21. Operating segments 8. Property and equipment 22. Contingencies 9. Intangible assets 23. Guarantees 10. Bank indebtedness 24. Changes in non-cash operating working capital 11. Provisions 25. Related parties 12. Income taxes 26. Subsequent events 13. Deferred tax assets and liabilities 27. Comparative figures 14. Capital and other components of equity CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 7 1. Reporting entity Constellation Software Inc. ("Constellation") is a company domiciled in Canada. The address of Constellation's registered office is 20 Adelaide Street East, Suite 1200, Toronto, Ontario, Canada. The consolidated financial statements of Constellation as at and for the fiscal year ended December 31, 2012 comprise Constellation and its subsidiaries (together referred to as the "Company") and the Company's interest in associates. The Company is engaged principally in the development, installation and customization of software relating to the markets listed below, and in the provision of related professional services and support. Public Sector: Public transit operators Asset management Public safety Para transit operators Criminal justice Healthcare School transportation Law enforcement Public housing authorities Non-emergency medical Taxi dispatch Housing finance agencies Ride share Electric utilities Municipal treasury & debt systems Local government Water utilities Real estate brokers and agents Agri-business Municipal systems Court Rental School administration Marine asset management Collections management COBRA Billing & Administration Private Sector: Private clubs & daily fee golf courses Homebuilders Cabinet manufacturers Construction Lease management Made-to-order manufacturers Food services Winery management Window and other dealers Health clubs Buy here pay here dealers Multi-carrier shipping Moving and storage RV and marine dealers Supply chain optimization Metal service centers Pulp & paper manufacturers Multi-channel distribution Attractions Real estate brokers and agents Wholesale distribution Leisure centers Outdoor equipment dealerships Third party logistics Education Agriculture equipment dealerships Retail management and distribution Radiology & Laboratory Information Systems Window manufacturers Direct debit and collection management services Pharmaceutical and Biological manufacturing Consumer product licensing CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 8 2. Basis of presentation (a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), issued and outstanding as of March 6, 2013, the date the Board of Directors approved such financial statements. (b) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for available-for- sale financial assets, certain assets and liabilities initially recognized in connection with business combinations, and derivative financial instruments, which are measured at fair value. (c) Functional and presentation of currency The consolidated financial statements are presented in U.S. dollars, which is Constellation's functional currency. (d) Use of estimates and judgements The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect in profit or loss, when, and if, better information is obtained. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: Note 3(l) – Revenue recognition Note 3(a) - Business combinations Note 3(n) - Accounting for income taxes Note 3(j) - Impairment Note 3(d) - Intangible assets Note 22 – Contingencies Critical judgements that management has made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognized in the consolidated financial statements relates to the (i) determination of functional currencies for Constellation’s subsidiaries and, most notably, in respect of businesses acquired during the period; (ii) assessment as to whether certain customer contract obligations and deliverables related to multiple-element arrangements have stand-alone value to the customer; (iii) recognition of deferred tax assets; and (iv) recognition of provisions.  Functional currency - management applies judgement in situations where primary and secondary indicators are mixed. Primary indicators such as the currency that mainly influence sales prices are given priority before considering secondary indicators. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 9  Revenue recognition and separation of customer contract obligations and deliverables – management applies judgement when assessing whether certain deliverables in a customer arrangement should be included or excluded from a unit of account to which contract accounting is applied. The judgement is typically related to the sale and inclusion of third party hardware and licenses in a customer arrangement and involves an assessment that principally addresses whether the deliverable has stand-alone to the customer that is not dependent upon other components of the arrangement.  Deferred tax assets - The recognition of deferred tax assets is based on forecasts of future taxable profit. The measurement of future taxable profit for the purposes of determining whether or not to recognize deferred tax assets depends on many factors, including the Company's ability to generate such profits and the implementation of effective tax planning strategies. The occurrence or non-occurrence of such events in the future may lead to significant changes in the measurement of deferred tax assets.  Provisions - In recognizing provisions, the Company evaluates the extent to which it is probable that it has incurred a legal or constructive obligation in respect of past events and the probability that there will be an outflow of benefits as a result. The estimates used to recognize provisions are based on currently known factors which may vary over time, resulting in changes in the measurement of recorded amounts. 3. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements unless otherwise indicated. The accounting policies have been applied consistently by the Company‘s subsidiaries. (a) Basis of consolidation (i) Business combinations Acquisitions have been accounted for using the acquisition method required by IFRS 3. Goodwill arising on acquisition is measured as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, if any, less the net recognized amount of the estimated fair value of identifiable assets acquired and liabilities assumed (subject to certain exemptions to fair value measurement principles such as deferred tax assets or liabilities), all measured as of the acquisition date. When the excess of the consideration transferred less the assets and liabilities acquired is negative, a bargain purchase gain is recognized immediately in profit or loss. Transaction costs that the Company incurs in connection with a business combination are expensed as incurred. The Company uses its best estimates and assumptions to accurately value assets and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, and these estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. Upon conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to profit or loss. For a given acquisition, the Company may identify certain pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period in order to obtain sufficient information to assess these contingencies as part of acquisition accounting, as applicable. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 10 (ii) Consolidation methods Entities over which the Company has control are fully consolidated from the date that control commences until the date that control ceases. Entities over which the Company has significant influence (investments in "associates") are accounted for under the equity method. Significant influence is assumed when the Company's interests are 20% or more, unless qualitative factors overcome this assumption. Associates are those entities in which the Company has significant influence, but not control, over the financial and operating policies. Investments in associates are recognized initially at cost, inclusive of transaction costs. The Company's investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The consolidated financial statements include the Company's share of the income and expenses and equity movement of equity accounted investees, from the date that significant influence commences until the date that significant influence ceases. (iii) Transactions eliminated on consolidation Intra-company balances and transactions, and any unrealized income and expenses arising from intra-company transactions, are eliminated in preparing the consolidated financial statements. (b) Foreign currency translation (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of subsidiaries of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are re-measured to the functional currency at the exchange rate at that date. Foreign currency differences arising on re-measurement are recognized through profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments, which are recognized in other comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign currency gains and losses are reported on a net basis. The effect of currency translation adjustments on cash and cash equivalents is presented separately in the statements of cash flows and separated from investing and financing activities when deemed significant. (ii) Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to U.S. dollars using average exchange rates for the month during which the transactions occurred. Foreign currency differences are recognized in other comprehensive income in the cumulative translation account. Foreign currency differences are recognized and presented in other comprehensive income and in the foreign currency translation adjustment in equity. However, if the operation is a non-wholly owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interest when applicable. Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which its substance is CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 11 considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences. If, and when, settlement plans change or deemed likely to occur, then the accounting process in (b)(i) above is applied. When a foreign operation payable or receivable classified as a net investment is partially or fully disposed, the proportionate share of the cumulative amount in the translation reserve related to that foreign operation is transferred to profit or loss as part of the profit or loss on disposal. The Company has elected not to treat repayments of monetary items receivable or payable to a foreign operation as a disposition. (c) Financial Instruments The Company's financial instruments comprise cash, restricted cash, equity securities, accounts receivables, derivatives in the form of foreign exchange forward contracts, bank indebtedness, accounts payable and accrued liabilities, and holdback liabilities on acquisitions. Financial assets are recognized in the consolidated statement of financial position if we have a contractual right to receive cash or other financial assets from another entity. Financial assets, including accounts receivable, are derecognized when the rights to receive cash flows from the investments have expired or were transferred to another party and the Company has transferred substantially all risks and rewards of ownership. All financial liabilities are recognized initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. (i) Non-derivative financial assets Non-derivative financial assets are classified in the following categories at the time of initial recognition based on the purpose for which the financial assets were acquired: Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified within loans and receivables or financial assets at fair value through profit or loss. The Company’s investments in equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses which are recognized in profit or loss, are recognized in other comprehensive income and presented within equity in the fair value reserve. When an investment is derecognized, the cumulative gain or loss in other comprehensive income is transferred to profit or loss for the period. The fair value of the available-for-sale financial assets is determined by reference to their quoted closing bid price at the reporting date. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 12 Loans and receivables Loans and receivables, which comprise trade receivables, are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value inclusive of any directly attributable transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment losses. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date, which are classified as non-current assets. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss which comprise warrants, are classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value when the Company manages such investments and makes purchase and sale decisions based on their fair value and related investment strategy. Upon initial recognition, applicable transaction costs are recognized through profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (ii) Non derivative financial liabilities Financial liabilities consist of bank indebtedness, accounts payable and accrued liabilities, and holdbacks on acquisitions. Financial liabilities are recognized initially at fair value plus any directly attributable transaction costs and subsequently measured at amortized cost using the effective interest method. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expire. (iii) Capital Stock Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity, net of tax. (iv) Derivatives Derivatives are recognized initially at fair value; applicable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized immediately in profit or loss. (d) Intangible assets (i) Goodwill Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For measurement of goodwill at initial recognition, including the recognition of bargain purchase gains, refer to note 4. After initial recognition, goodwill is measured at cost less any accumulated impairment losses, with the carrying value being reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may be impaired. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity accounted investee. No such losses have been recognized during the year. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 13 The impairment test methodology is based on a comparison between the higher of fair value less costs to sell and value-in-use of each of the Company's business units (considered as the grouping of cash generating units ("CGU") at which level the impairment test is performed) and the net asset carrying values (including goodwill) of the Company's business units. Within the Company's reporting structure, business units generally reflect one level below the six operating segments (Volaris, Harris, Emphasys, Jonas, Homebuilder, and Friedman Operating Groups). In determining the recoverable amount, the Company applies an estimated market valuation multiple to the business unit's most recent annual recurring revenues, which are derived from combined software/support contracts, transaction revenues, and hosted products. Valuation multiples applied by management for this purpose reflect current conditions specific to the business unit and are assessed for reasonability by comparison to the Company's current and past experience of ranges of multiples required to acquire representative software companies. In addition, in certain instances, the recoverable amount is determined using a value-in-use approach which follows the same valuation process that is undertaken for the Company’s business acquisitions. An impairment is recognized if the carrying amount of a CGU exceeds its estimated recoverable amount. (ii) Acquired intangible assets The Company uses the income approach to value acquired technology and customer relationship intangible assets. The income approach is a valuation technique that calculates the estimated fair value of an intangible asset based on the estimated future cash flows that the asset can be expected to generate over its remaining useful life. The Company utilizes the discounted cash flow ("DCF") methodology which is a form of the income approach that begins with a forecast of the annual cash flows that a market participant would expect the subject intangible asset to generate over a discrete projection period. The forecasted cash flows for each of the years in the discrete projection period are then converted to their present value equivalent using a rate of return appropriate for the risk of achieving the intangible assets' projected cash flows, again, from a market participant perspective. The present value of the forecasted cash flows are then added to the present value of the residual value of the intangible asset (if any) at the end of the discrete projection period to arrive at a conclusion with respect to the estimated fair value of the subject intangible assets. Specifically, the Company relies on the relief-from-royalty method to value the acquired technology and the multiple-period excess earnings ("MEEM") method to value customer relationship assets. The underlying premise of the relief-from-royalty method is that the fair value of the technology is equal to the costs savings (or the "royalty avoided") resulting from the ownership of the asset by the avoidance of paying royalties to license the use of the technology from another owner. Accordingly the income forecast reflects an estimate of a fair royalty that a licensee would pay, on a percentage of revenue basis, to obtain a license to utilize the technology. The MEEM method isolates the cash flows attributable to the subject asset by utilizing a forecast of expected cash flows less the returns attributable to other enabling assets, both tangible and intangible. Other intangible assets that are acquired by the Company and have finite useful lives are measured at cost, being reflective of fair value, less accumulated amortization and impairment losses. Subsequent expenditures are capitalized only when it increases the future economic benefits that form part of the specific asset to which it relates and other criteria have been met. Otherwise all other expenditures are recognized in profit or loss as incurred. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are acquired and available for use, since this most closely CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 14 reflects the expected usage and pattern of consumption of the future economic benefits embodied in the asset. To determine the useful life of the technology assets, the Company considers the length of time over which it expects to earn or recover the majority of the present value of the related intangible assets. The estimated useful lives for the current and comparative periods are as follows: Technology assets 2 to 12 years Customer assets 5 to 12 years Backlog Up to 1 year Non-compete agreements Life of agreement Amortization methods, useful lives and the residual values are reviewed at least annually and are adjusted as appropriate. (iii) Research and development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized only if the product or process is technically and commercially feasible, if development costs can be measured reliably, if future economic benefits are probable, if the Company intends to use or sell the asset and the Company intends and has sufficient resources to complete development. To date, no material development expenditures have been capitalized. For the year ended December 31, 2012, $123,622 (2011 ‒ $101,750) of research and development costs have been expensed in profit or loss. These costs are net of investment tax credits, primarily arising from applicable activities in Canada, recognized as part of other, net expenses through profit or loss of $5,199 for the year ended December 31, 2012 (2011 ‒ $7,081). (e) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes initial and subsequent expenditures that are directly attributable to the acquisition of the related asset. When component parts of an item of property, and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment, where applicable. (ii) Depreciation Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property and equipment. The estimated useful lives for the current and comparative periods are as follows: CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 15 Asset Rate Computer hardware 3 Years Computer software 1 Year Furniture and equipment 5 Years Leasehold improvements Shorter of the estimated useful life and the term of the lease Building 50 Years Depreciation methods, useful lives and residual values are reviewed at each financial year end or more frequently as deemed relevant, and adjusted where appropriate. (f) Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in first-out principle, and includes expenditures incurred in acquiring the inventories, production and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. (g) Work in progress Work in progress represents the gross unbilled amount expected to be collected from customers for contract work performed to date. It is measured at cost plus profit recognized to date (see note 3(l)) less progress billings and recognized losses, if any. Work in progress is presented in the statement of financial position for all contracts in which costs incurred plus recognized profits exceed progress billings. If progress billings exceed costs incurred plus recognized profits, then this excess is presented as deferred revenue in the statement of financial position. (h) Acquired contract assets and liabilities Long term customer contracts acquired in a business combination are assigned a fair value at the date of acquisition based on the remaining amounts to be billed under the contract, reduced by the estimated costs to complete the contract and an allowance for normal profit related to the activities that will be performed after the acquisition. The resulting amount is recorded as an asset when billings are in excess of estimated costs plus the allowance for normal profit on uncompleted contracts as of the acquisition date. Conversely, the resulting amount is recorded as a liability when estimated costs plus the allowance for normal profit are in excess of billings on uncompleted contracts. Significant acquired contracts have been separately presented in the statement of financial position. Each period subsequent to the acquisition date of an applicable business, the asset (liability) is reduced (increased) by actual billings and increased (decreased) by revenue recognized in profit or loss. (i) Other non-current liabilities Other non-current liabilities consists of the non-current portion of lease incentives, non-compete obligations, deferred revenue and contingent consideration recognized in connection with business acquisitions to be settled in cash over the next three years, which were discounted for measurement purposes. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 16 (j) Impairment (i) Financial assets (including receivables) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, or indications that a debtor or issuer will enter bankruptcy. The Company considers evidence of impairment for receivables at both a specific and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired, together with receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. Impairment losses on available-for-sale equity securities are recognized by transferring the cumulative loss that has been recognized in other comprehensive income, and presented in unrealized gains/losses on available-for- sale financial assets in equity, to profit or loss. The cumulative loss that is removed from other comprehensive income and recognized through profit or loss is the difference between the acquisition cost, and the current fair value, less any impairment loss previously recognized through profit or loss. Any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognized in other comprehensive income. If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognized in profit or loss, then the impairment loss is reversed, with the amount of the reversal recognized in profit or loss. (ii) Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories (note 3(f)) and deferred tax assets (note 3(n)), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is estimated annually on December 31 of each fiscal year. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing the value in use, the Company uses discounted cash flows which are determined using a pre-tax discount rate specific to the asset or CGU. The discount rate used reflects current market conditions including risks specific to the assets. Significant estimates within the cash flows include recurring revenue growth rates and operating expenses. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets, which for the Company’s purposes is typically representative of the business unit level within the corporate and management structure. For the purposes of CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 17 goodwill impairment testing, goodwill acquired in a business combination is allocated to the CGU, or the group of CGUs, that is expected to benefit from the synergies of the combination. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU (group of units) on a pro rata basis. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately and, therefore, is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired. An impairment loss in respect of goodwill is not reversed. In respect of other non-financial assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been previously recognized. (k) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the estimated future cash flows required to settle the present obligation, based on the most reliable evidence available at the reporting date. The estimated cash flows are discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The amortization of the discount is recognized as part of finance costs. (l) Revenue recognition Revenue represents the fair value of consideration received or receivable from customers for goods and services provided by the Company, net of discounts and sales taxes. The Company reports revenue under four revenue categories being, License, Hardware, Professional Services, and Maintenance and other recurring revenue. Typically, the Company's software license agreements are multiple-element arrangements as they may also include maintenance, professional services, and hardware. Multiple-element arrangements are recognized as the revenue for each unit of accounting is earned based on the relative fair value of each unit of accounting as determined by an internal analysis of prices or by using the residual method. A delivered element is considered a separate unit of accounting if it has value to the customer on a standalone basis, and delivery or performance of the undelivered elements is considered probable and substantially under the Company's control. If these criteria are not met, revenue for the arrangement as a whole is accounted for as a single unit of accounting. The Company typically sells or licenses software on a perpetual basis, but also licenses software for a specified period. Revenue from short-term time-based licenses, which usually include support services during the license period, is recognized rateably over the license term. Revenue from multi-year time based licenses that include support services, whether separately priced or not, is recognized rateably over the license term unless a substantive support service renewal rate exists; if this is the case, the amount allocated to the delivered software is recognized as software revenue based on the residual approach once the revenue criteria have been met. In those instances where the customer is required to renew mandatory support and maintenance in order to CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 18 maintain use of the licensed software over the license term, the Company recognizes the consideration attributable to the license and support for the initial term of the arrangement attributable to the license and support over the initial one-year term and recognizes revenue for the support renewal fees in subsequent years over the respective renewal periods. Revenue from the license of software involving significant implementation or customization essential to the functionality of the Company's product, or from the sales of hardware where software is essential to its functionality, is recognized under the percentage-of-completion method of contract accounting based either on the achievement of contractually defined milestones or based on labour hours. Any probable losses are recognized immediately in profit or loss. In certain situations where the outcome of an arrangement cannot be estimated reliably, costs associated with the arrangement are recognized as incurred. In this situation, revenues are recognized only to the extent of the costs incurred that are probable of recovery. A portion of the Company's sales, categorized as hardware revenue, are accounted for as product revenue. Product revenue is recognized when the Company has an executed agreement, the product has been delivered and costs can be measured reliably, the amount of the fee to be paid by the customer is fixed and determinable, and the collection of the related receivable is deemed probable from the outset of the arrangement. If for any of the product or service offerings, the Company determines at the outset of an arrangement that the amount of revenue cannot be measured reliably, and the Company concludes that the inflow of economic benefits associated with the transaction is not probable, then the revenue is deferred until the arrangement fee becomes due and payable by the customer. If, at the outset of an arrangement, the Company determines that collectability is not probable, and the Company concludes that the inflow of economic benefits associated with the transaction is not probable, then revenue recognition is deferred until the earlier of when collectability becomes probable or payment is received. If collectability becomes unlikely before all revenue from an arrangement is recognized, the Company recognizes revenue only to the extent of the fees that are successfully collected unless collectability becomes reasonably assured again. If a customer is specifically identified as a collection risk, the Company does not recognize revenue except to the extent of the fees that have already been collected. Revenue related to the customer reimbursement of travel related expenses incurred during a project implementation is included in the hardware and other revenue category. Revenue is recognized as costs are incurred which is consistent with the period in which the costs are invoiced. Reimbursable travel expenses incurred for which an invoice has not been issued, are recorded as part of work in progress on the statement of financial position. Maintenance and other recurring revenue primarily consists of fees charged for customer support on software products post-delivery and also includes, to a lesser extent, recurring fees derived from combined software/support contracts, transaction revenues, managed services, and hosted products. Maintenance revenue remaining to be recognized in profit or loss is recognized as deferred revenue in the statement of financial position when amounts have been billed in advance. Professional Services revenue including implementation, training and customization of software is recognized by the stage of completion of the arrangement determined using the percentage of completion method noted above or as such services are performed as appropriate in the circumstances. The revenue and profit of fixed price contracts is recognized on a percentage of completion basis when the outcome of a contract can be estimated reliably. When the outcome of the contract cannot be estimated reliably, the amount of revenue recognized is limited to the cost incurred in the period. Losses on contracts are recognized as soon as a loss is foreseen by reference to the estimated costs of completion. Management exercises judgement in determining whether a contract's outcome can be estimated reliably. Management also applies estimates in the calculation of future contract costs and related profitability as it relates to labour hours and other considerations, which are used in determining the value of amounts recoverable on CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 19 contracts and timing of revenue recognition. Estimates are continually and routinely revised based on changes in the facts relating to each contract. Judgement is also needed in assessing the ability to collect the corresponding receivables. The timing of revenue recognition often differs from contract payment schedules, resulting in revenue that has been earned but not billed. These amounts are included in work in progress. Amounts billed in accordance with customer contracts, but not yet earned, are recorded and presented as deferred revenue. (m) Finance income and finance costs Finance income comprises interest income, gains on the disposal of available-for-sale financial assets, dividend income, and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognized as it accrues through profit or loss, using the effective interest method. Finance costs comprise interest expense on borrowings, amortization of the discount on provisions, fair value losses on financial assets at fair value through profit or loss, and impairment losses recognized on financial assets other than trade receivables. Transaction costs attributable to the Company’s line of credit are recognized in finance costs using the effective interest method. (n) Income taxes Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected taxes payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for temporary differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits, difference in tax bases in the purchaser's tax jurisdiction and its cost as reported in the consolidated financial statements as a result of an intra-group transfer of assets and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 20 (o) Investment tax credits The Company is entitled to both non-refundable and refundable Canadian investment tax credits for qualifying research and development activities in Canada. Investment tax credits are accounted for as a reduction of the related expenditure for items of a period expense nature or as a reduction of property and equipment for items of a capital nature when the amount is reliably estimable and the Company has reasonable assurance regarding compliance with the relevant objective conditions and that the credit will be realized. (p) Segment reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. The operating results of all operating segments are reviewed regularly by the Company’s President and Chairman of the Board of Directors to make decisions about resources to be allocated to the segment and assessing their performance. The Company has six operating segments, referred to as Operating Group's by the Company, being Volaris, Harris, Emphasys, Jonas, Homebuilder, and Friedman. The operating segments are aggregated by applying the aggregation criteria in IFRS 8, Operating Segments, into two reportable segments Public (Volaris, Harris, Emphasys Operating Groups) and Private (Jonas, Homebuilder, Friedman Operating Groups). Segment operating results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly interest-bearing borrowings and related expenses, and corporate assets and expenses and are included as part of the other segment when reconciling to the Company’s consolidated totals. Segment capital expenditures are the total cost incurred during the period to acquire segment assets, being property and equipment and intangibles that are expected to be used for more than one year. Corporate head office operating expenses, which exclude the unallocated items noted above, are allocated on a consistent basis to the Company's operating segments based on the operating segment's percentage of total consolidated revenue for the allocation period. (q) Earnings per share The Company presents basic and diluted earnings per share data for its ordinary shares, being common shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for treasury shares held. Diluted earnings per share is determined by adjusting the profit or loss attributable to shareholders of ordinary shares and the weighted average number of shares outstanding, adjusted for the effects of all dilutive potential ordinary shares. (r) Short-term employee benefits Short-term employee benefit obligations, including wages, benefits, incentive compensation, and compensated absences are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under the Company's employee incentive compensation plan if the Company has legal or constructive obligation to pay this amount at the time bonuses are paid as a result of past service provided by the employee, and the obligation can be estimated reliably. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 21 (s) Lease payments Payments made under operating leases are recognized in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense over the term of the lease. (t) New standards and interpretations not yet adopted A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2012, and have not been applied in preparing these consolidated financial statements. The relevant standards are listed below. IFRS 9 Financial Instruments IFRS 9 (2009) replaces the guidance in IAS 39 Financial Instruments: Recognition and Measurement, on the classification and measurement of financial assets. The Standard eliminates the existing IAS 39 categories of held to maturity, available-for-sale and loans and receivable. Financial assets will be classified into one of two categories on initial recognition: • financial assets measured at amortized cost; or • financial assets measured at fair value. Gains and losses on remeasurement of financial assets measured at fair value will be recognized in profit or loss, except that for an investment in an equity instrument which is not held-for-trading, IFRS 9 provides, on initial recognition, an irrevocable election to present all fair value changes from the investment in other comprehensive income (OCI). The election is available on an individual share-by-share basis. Amounts presented in OCI will not be reclassified to profit or loss at a later date. IFRS 9 (2010) supersedes IFRS 9 (2009) and is effective for annual periods beginning on or after January 1, 2015, with early adoption permitted. For annual periods beginning before January 1, 2015, either IFRS 9 (2009) or IFRS 9 (2010) may be applied. The Company intends to adopt IFRS 9 (2010) in its financial statements for the annual period beginning on January 1, 2015. The extent of the impact of adoption of IFRS 9 (2010) has not yet been determined. IFRS 10 Consolidated Financial Statements IFRS 10 replaces the guidance in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation – Special Purpose Entities. IAS 27 (2008) survives as IAS 27 (2011) Separate Financial Statements, only to carry forward the existing accounting requirements for separate financial statements. IFRS 10 provides a single model to be applied in the control analysis for all investees, including entities that currently are SPEs in the scope of SIC-12. In addition, the consolidation procedures are carried forward substantially unmodified from IAS 27 (2008). The Company intends to adopt IFRS 10 in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect IFRS 10 to have a material impact on the consolidated financial statements. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 22 IFRS 11 Joint Arrangements Under IFRS 11, joint arrangements are classified as either joint operations or joint ventures. IFRS 11 essentially carves out of previous jointly controlled entities, those arrangements which although structured through a separate vehicle, such separation is ineffective and the parties to the arrangement have rights to the assets and obligations for the liabilities and are accounted for as joint operations in a fashion consistent with jointly controlled assets/operations under IAS 31. In addition, under IFRS 11 joint ventures are stripped of the free choice of equity accounting or proportionate consolidation; these entities must now use the equity method. The Company intends to adopt IFRS 11 in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect IFRS 11 to have a material impact on the consolidated financial statements. IFRS 12 Disclosure of Interests in Other Entities IFRS 12 contains the disclosure requirements for entities that have interests in subsidiaries, joint arrangements (i.e. joint operations or joint ventures), associates and/or unconsolidated structured entities. Interests are widely defined as contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. The required disclosures aim to provide information in order to enable users to evaluate the nature of, and the risks associated with, an entity’s interest in other entities, and the effects of those interests on the entity’s financial position, financial performance and cash flows. The Company intends to adopt IFRS 12 in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect the amendments to have a material impact on the consolidated financial statements because of the nature and extent of the Company’s interests in other entities. IFRS 13 Fair Value Measurement IFRS 13 replaces the fair value measurement guidance contained in individual IFRSs with a single source of fair value measurement guidance. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, i.e. an exit price. The standard also establishes a framework for measuring fair value and sets out disclosure requirements for fair value measurements to provide information that enables financial statement users to assess the methods and inputs used to develop fair value measurements and, for recurring fair value measurements that use significant unobservable inputs (Level 3), the effect of the measurements on profit or loss or other. The Company intends to adopt IFRS 13 prospectively in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect IFRS 13 to have a material impact on the consolidated financial statements. Amendments to IAS 28 Investments in Associates and Joint Ventures IAS 28 (2011) carries forward the requirements of IAS 28 (2008), with the following limited amendments: Associates and joint ventures held for sale. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations applies to an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale. For any retained portion of the investment that has not been classified as held for sale, the equity method is applied until disposal of the portion held for sale. After disposal, any retained interest is accounted for using the equity method if the retained interest continues to be an associate or a joint venture. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 23 The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect the amendments to IAS 28 to have a material impact on the consolidated financial statements. Amendments to IAS 1 Presentation of Financial Statements The amendments require that an entity present separately the items of OCI that may be reclassified to profit or loss in the future from those that would never be reclassified to profit or loss. Consequently an entity that presents items of OCI before related tax effects will also have to allocate the aggregated tax amount between these categories. The existing option to present the profit or loss and other comprehensive income in two statements has remained unchanged. The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2013. As the amendments only require changes in the presentation of items in other comprehensive income, the Company does not expect the amendments to IAS 1 to have a material impact on the consolidated financial statements. Amendments to IAS 19 Employee Benefits The amendments require the following:  Recognition of actuarial gains and losses immediately in other comprehensive income  Full recognition of past service costs immediately in profit or loss  Recognition of expected return on plan assets in profit or loss to be calculated based on the rate used to discount the defined benefit obligation  Additional disclosures that explain the characteristics of the entity’s defined benefit plans and risks associated with the plans, as well as disclosures that describe how defined benefit plans may affect the amount, timing and uncertainty of future cash flows, and details of any asset-liability match strategies used to manage risks. The amendments also impact termination benefits, which would now be recognized at the earlier of when the entity recognizes costs for a restructuring within the scope of IAS 37 Provisions, and when the entity can no longer withdraw the offer of the termination benefits. The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect the amendments to IAS 19 to have a material impact on the consolidated financial statements. Amendments to IAS 32 and IFRS 7, Offsetting Financial Assets and Liabilities The Company intends to adopt the amendments to IFRS 7 in its financial statements for the annual period beginning on January 1, 2013, and the amendments to IAS 32 in its financial statements for the annual period beginning January 1, 2014. The Company does not expect the amendments to have a material impact on the consolidated financial statements. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 24 4. Business acquisitions During the year ended December 31, 2012, the Company closed thirty-five acquisitions for aggregate cash consideration of $141,178 plus cash holdbacks of $28,646 and contingent consideration with an estimated fair value of $10,440 resulting in total consideration of $180,264. The contingent consideration is payable on the achievement of certain financial targets in the post-acquisition period. The obligation for contingent consideration for acquisitions during the year ended December 31, 2012 has been recorded at its estimated fair value, which has been determined to be $10,440 at the various acquisition dates. Estimated fair value of the contingent consideration is calculated using the weighted probability of the expected contingent consideration and inclusion of a discount rate as appropriate. As part of these arrangements, which included both maximum, or capped, and unlimited contingent consideration amounts, the estimated increase to the initial consideration is not expected to exceed a maximum of $15,745. Aggregate contingent consideration of $15,209 (December 31, 2011 - $7,166) has been reported in the statement of financial position at its estimated fair value relating to applicable acquisitions completed in the current and prior periods. Changes made to the estimated fair value of contingent consideration are included in other expenses in the statement of comprehensive income. A credit of $973 has been recorded for the year ended December 31, 2012 as a result of such changes (2011: nil). There were no acquisitions during the period that were deemed to be individually material. Of the thirty-five acquisitions, the Company acquired 100% of the shares of 23 companies and acquired the net assets of the other 12 companies. The cash holdbacks are payable over periods ranging from six months to three years and are adjusted, as necessary, for such items as working capital or net tangible asset adjustments and claims under the respective representations and warranties of the agreements. The acquisitions during the year include software companies catering to the following markets; health clubs, school administration, asset management, radiology and laboratory information systems, utilities, lease management, local government, rental, real estate brokers and agents, public transit operators, construction, agriculture equipment dealerships, retail management and distribution, marine asset management, education, consumer product licensing, direct debit and collection management services, collections management, healthcare, pharmaceutical and biological manufacturing, and COBRA billing and administration, all of which are software businesses similar to existing businesses operated by the Company. The acquisitions have been accounted for using the acquisition method with the results of operations included in these consolidated financial statements from the date of each acquisition. Seventeen of the acquisitions have been included in the Private reportable segment and eighteen have been included in the Public reportable segment. The goodwill recognized in connection with these acquisitions is primarily attributable to the application of Constellation’s best practices to improve the operations of the companies acquired, synergies with existing businesses of Constellation, and other intangibles that do not qualify for separate recognition including assembled workforce. Goodwill in the amount of $14,660 is expected to be deductible for income tax purposes. The gross contractual amounts of acquired receivables was $28,907 however the Company has set up an allowance of $1,819 as part of the acquisition accounting to reflect contractual cash flows that are not expected to be collected. Due to the complexity and timing of certain acquisitions made in the fourth quarter of the year ended December 31, 2012, the Company is in the process of determining and finalizing the estimated fair value of the net assets acquired as part of the acquisitions. The amounts determined on a provisional basis generally relate to net tangible asset assessments and measurement of the assumed liabilities, including acquired contract liabilities. The cash consideration associated with these provisional estimates totals $61,792. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 25 (a) Includes acquired contract liabilities of $13,281. The 2012 business acquisitions contributed revenue of $81,111 and net loss of $4,071 during the year ended December 31, 2012. Revenue and net loss amounts from acquisitions included in the Public sector were $58,870 and $6,199, respectively. Revenue and net income amounts from acquisitions included in the Private sector were $22,241 and $2,128, respectively. If these acquisitions would have occurred on January 1, 2012, management estimates that consolidated revenue would have been $1,039,416 and consolidated net income for the year would have been $92,292 as compared to the amounts reported in the statement of comprehensive income for the same period. In determining these amounts, management has assumed that the fair value adjustments that arose on the dates of acquisition would have been the same if the acquisitions had occurred on January 1, 2012. The net income from acquisitions includes the associated amortization of acquired intangible assets recognized as if the acquisitions had occurred on January 1, 2012. 5. Equity securities available-for-sale At December 31, 2012, the Company held an investment in one (December 31, 2011 – three) public company listed in the U.S., which develops and sells software solutions. The investment has been designated as available- for-sale. The Company sold 100% of two investments during the year ended December 31, 2012 for cash consideration totalling $34,977 that were previously held as of December 31, 2011 and, accordingly, an aggregate gain on sale of $21,735 was recognized in profit or loss. Public Sector Private Sector Consolidated Assets acquired: Cash 10,351$ 9,673$ 20,024$ Accounts receivable 21,450 5,638 27,088 Other current assets 12,801 2,671 15,472 Property and equipment 6,998 1,279 8,277 Other long term assets 253 - 253 Deferred income taxes 1,264 - 1,264 Technology assets 91,232 42,286 133,518 Customer assets 33,167 16,433 49,600 Backlog 1,764 - 1,764 179,280 77,980 257,260 Liabilities assumed: Bank indebtedness 4,948 - 4,948 Current liabilities 23,478 6,879 30,357 Deferred revenue (a) 33,765 8,051 41,816 Deferred income taxes 13,466 7,517 20,983 Other non-current liabilities 8,627 640 9,267 84,284 23,087 107,371 Goodwill 18,439 11,936 30,375 Total consideration 113,435$ 66,829$ 180,264$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 26 December 31, 2012 December 31, 2011 Cost Fair Value Cost Fair Value Common shares $ 300 $ 470 $ 13,330 $ 21,222 6. Inventories No inventories were carried at fair value less cost to sell, and the carrying amount of inventories subject to retention of title clauses was nil as at December 31, 2012 and 2011. Raw materials and changes in finished goods and work in progress recognized as hardware expenses amounted to $58,673 (2011: $57,850). The write-down of inventories to net realizable value amounted to $1,477 (2011: $157). The reversal of write-downs amounted to nil (2011: $764). Write-downs and reversals of write-downs are based on the Company’s projected usage. The write-down and reversal are included in hardware expenses. 7. Other assets and liabilities (a) Other assets December 31, 2012 December 31, 2011 Raw materials 12,533$ 9,726$ Work in progress 268 429 Finished goods 5,938 3,384 Total 18,739$ 13,539$ December 31, 2012 December 31, 2011 Prepaid assets 19,961$ 22,432$ Investment tax credits recoverable 3,726 3,201 Acquired contract assets 1,586 - Sales tax receivable 414 621 Other receivables 3,491 3,518 Total current 29,178$ 29,772$ Investment tax credits recoverable 8,316$ 8,271$ Non-current trade and other receivables 9,013 2,508 Equity accounted investees (i) 13,456 14,534 Acquired contract assets 319 2,692 Total non-current 31,104$ 28,005$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 27 (i) Equity accounted investees The Company’s share of net loss in its investments currently being accounted for as equity investees was $839 (2011: nil). Dividends received for the year totalled $240 (2011: $164). The market value of the publicly traded equity held in the equity accounted investee is $10,694. Summary financial information for equity accounted investees, not adjusted for the percentage ownership held by the Company is as follows: Note 1: Based on most recently published financial information for one of the Company’s equity investee’s. (b) Other liabilities June 30, 2012 December 31, 2011 Note 1 Total assets 79,708 80,610 Total liabilities 27,244 28,159 Six months ended June 30, 2012 Fiscal year ended December 31, 2011 Note 1 Revenue 27,500 58,962 Expenses 27,221 62,025 Net income (loss) 279 (3,063) December 31, 2012 December 31, 2011 Contingent consideration 12,175$ 5,340$ Other long liabilities 7,830 6,335 Total non-current liabilities 20,005$ 11,675$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 28 8. Property and equipment Computer hardware Computer software Furniture and equipment Leasehold improvements Building Total Cost Balance at January 1, 2011 23,195$ 10,881$ 9,984$ 4,696$ 1,960$ 50,716$ Additions 2,640 1,998 1,224 1,488 - 7,350 Acquisitions through business combinations 995 226 391 63 - 1,675 Disposals / retirements (909) (83) (356) (35) - (1,383) Effect of movements in foreign exchange (161) (55) (27) (37) (2) (282) Balance at December 31, 2011 25,760$ 12,967$ 11,216$ 6,175$ 1,958$ 58,076$ Balance at January 1, 2012 25,760$ 12,967$ 11,216$ 6,175$ 1,958$ 58,076$ Additions 2,221 2,030 1,335 514 - 6,100 Acquisitions through business combinations 2,869 180 1,800 105 3,170 8,124 Disposals / retirements (1,297) (93) (328) (164) (250) (2,132) Effect of movements in foreign exchange 222 191 267 47 120 847 Balance at December 31, 2012 29,775$ 15,275$ 14,290$ 6,677$ 4,998$ 71,015$ Depreciation and impairment losses Balance at January 1, 2011 17,973$ 9,037$ 7,487$ 2,682$ 68$ 37,247$ Depreciation charge for the year 3,319 2,760 1,111 678 - 7,868 Disposals / retirements (908) (83) (352) (35) - (1,378) Effect of movements in foreign exchange (143) (76) (22) (11) - (252) Balance at December 31, 2011 20,241$ 11,638$ 8,224$ 3,314$ 68$ 43,485$ Balance at January 1, 2012 20,241$ 11,638$ 8,224$ 3,314$ 68$ 43,485$ Depreciation charge for the year 3,386 1,902 1,466 754 135 7,643 Disposals / retirements (1,297) (93) (328) (164) (83) (1,965) Effect of movements in foreign exchange 165 150 210 17 10 552 Balance at December 31, 2012 22,495$ 13,597$ 9,572$ 3,921$ 130$ 49,715$ Carrying amounts: At January 1, 2011 5,222$ 1,844$ 2,497$ 2,014$ 1,892$ 13,469$ At December 31, 2011 5,519$ 1,329$ 2,992$ 2,861$ 1,890$ 14,591$ At January 1, 2012 5,519$ 1,329$ 2,992$ 2,861$ 1,890$ 14,591$ At December 31, 2012 7,280$ 1,678$ 4,718$ 2,756$ 4,868$ 21,300$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 29 9. Intangible assets and goodwill Impairment testing for cash-generating units containing goodwill The annual impairment test of goodwill was performed as of December 31, 2012 and 2011 and did not result in any impairment loss. For the purpose of impairment testing, goodwill is allocated to the Company’s business units which represent the lowest level within the Company at which goodwill is monitored for internal management purposes, which is not higher than the Company’s operating segments. There was no goodwill allocated to the Technology Assets Customer Assets Backlog Non-compete agreements Goodwill Total Cost Balance at January 1, 2011 327,705$ 110,939$ 12,977$ 2,680$ 50,145$ 504,446$ Acquisitions through business combinations 43,057 22,407 - 17 9,296 74,777 Effect of movements in foreign exchange (550) (197) - (12) 50 (709) Balance at December 31, 2011 370,212$ 133,149$ 12,977$ 2,685$ 59,491$ 578,514$ Balance at January 1, 2012 370,212$ 133,149$ 12,977$ 2,685$ 59,491$ 578,514$ Acquisitions through business combinations 134,570 49,345 1,764 - 31,076 216,755 Effect of movements in foreign exchange 3,267 593 57 41 658 4,616 Balance at December 31, 2012 508,049$ 183,087$ 14,798$ 2,726$ 91,225$ 799,885$ Amortization and impairment losses Balance at January 1, 2011 172,471$ 49,135$ 10,656$ 2,197$ -$ 234,459$ Amortization for the year 52,952 21,125 2,329 244 - 76,650 Impairment charge 376 113 - - - 489 Effect of movements in foreign exchange (687) (165) (12) (12) - (876) Balance at December 31, 2011 225,112$ 70,208$ 12,973$ 2,429$ -$ 310,722$ Balance at January 1, 2012 225,112$ 70,208$ 12,973$ 2,429$ -$ 310,722$ Amortization for the year 60,172 24,205 565 200 - 85,142 Impairment charge - - - - - - Effect of movements in foreign exchange 1,235 357 60 14 - 1,666 Balance at December 31, 2012 286,519$ 94,770$ 13,598$ 2,643$ -$ 397,530$ Carrying amounts At January 1, 2011 155,234$ 61,804$ 2,321$ 483$ 50,145$ 269,987$ At December 31, 2011 145,100$ 62,941$ 4$ 256$ 59,491$ 267,792$ At January 1, 2012 145,100$ 62,941$ 4$ 256$ 59,491$ 267,792$ At December 31, 2012 221,530$ 88,317$ 1,200$ 83$ 91,225$ 402,355$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 30 Company’s business units that was deemed to be significant in comparison to the carrying amount of goodwill as at December 31, 2012. 10. Bank indebtedness On March 13, 2012, Constellation entered into a new credit facility with a syndicate of Canadian chartered banks and U.S. banks in the amount of $300,000 (December 31, 2011 - $160,000). The revolving line-of-credit bears a variable interest rate and is due in full on February 29, 2016 with no fixed repayments required over the term to maturity. Interest rates are calculated at prime or LIBOR plus interest rate spreads based on a leverage table that considers Constellation’s indebtedness at that time. The line-of-credit is secured by a general security agreement covering the majority of Constellation’s and its subsidiaries’ present and future real and personal property, assets and undertaking, including all shares, partnership interests and other equity interests held in the capital of any other company; and is subject to various debt covenants. As at December 31, 2012, $46,000 (December 31, 2011 - nil) had been drawn from this credit facility, and letters of credit totalling $280 (December 31, 2011 - $385) were issued, which limits the borrowing capacity on a dollar-for-dollar basis. Transaction costs associated with the new line-of-credit have been included as part of the carrying amount of the liability and are being amortized through profit or loss using the effective interest rate method. Amortized costs recognized in the year ended December 31, 2012 relating to this line-of-credit amounted to $433. As at December 31, 2012, the carrying amount of such costs totalling $1,644 has been classified as part of bank indebtedness in the statement of financial position. Capitalized costs relating to the operating line-of-credit in place at December 31, 2011 amounted to $644, and have been expensed to finance costs during the year. 11. Provisions The provisions balance is comprised of various individual provisions for onerous contracts and other estimated liabilities of the Company of uncertain timing or amount. At January 1, 2012 3,555$ Reversal (221) Provisions recorded during the period 4,869 Provisions used during the period (1,970) Effect of movements in foreign exchange 163 At December 31, 2012 6,396$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 31 12. Income taxes (a) Tax recognized in profit or loss 2012 2011 Tax recognized in profit or loss Current tax expense Current year 23,324$ 17,942$ Adjustment for prior years 302 673 23,626 18,615 Deferred tax recovery Origination and reversal of temporary differences 4,120 (90,104) Effect of change in future tax rates (3,259) (2,563) Change in recognized deductible temporary differences and prior year losses (3,035) 576 Recognition of previously unrecognized losses (3,402) (1,727) (5,576) (93,818) Income tax expense (recovery) 18,050 (75,203) CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 32 (b) Reconciliation of effective tax rate The significant change in the effective tax rate during the year was due to the recognition of a deferred tax recovery related to inter-jurisdictional transfers of certain intangible assets within the Company during the prior year. The change in the company's statutory tax rate from the prior year arises as a result of tax rate changes in Canada becoming enacted during the year. 13. Deferred tax assets and liabilities (a) Unrecognized deferred tax liabilities The aggregate amount of temporary differences associated with investments in subsidiaries for which we have not recognized deferred tax liabilities is $165,599 (2011: $189,000) as the Company ultimately controls whether the liability will be incurred and it is satisfied that it will not be incurred in the foreseeable future. The temporary differences relate to undistributed earnings of that Company's subsidiaries. Dividends declared would be subject to withholding tax in the range of 0-5% depending on the jurisdiction of the subsidiary. Net income for the year 92,632$ 157,174$ Income tax expense 18,050 (75,203) Net income before tax 110,682 81,971 Income tax expense using Constellation's statutory tax rate of 26.5% (2011 - 28.25%) 29,331 23,157 Impact on taxes from: Foreign tax rate differential (2,824) (3,993) Other, including non deductible expenses and non taxable income 945 (1,530) Change in recognized deductible temporary differences (3,464) (89,746) Effect of change in future tax rates (3,259) (2,563) Recognition of prior year tax losses (3,402) (1,727) Current year tax losses for which no deferred tax recognized 421 526 Under (over) provisions in prior years 302 673 18,050 (75,203) 2012 2011 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 33 (b) Unrecognized deferred tax assets $5,810 of the non capital tax losses expire between 2013 and 2032 and $10,066 can be carried forward indefinitely. The deductible temporary differences and capital losses do not expire under current tax legislation. Deferred tax assets have not been recognized in respect of those items because it is not probable that future taxable profit will be available in those jurisdictions against which the Company can utilize these benefits. (c) Recognized deferred tax assets and liabilities This reclassification relates to the offsetting of deferred tax assets and deferred tax liabilities to the extent that they relate to the same taxing authorities and there is a legally enforceable right to do so. 2012 2011 Deductible temporary differences, including capital losses $ 20,697 $ 20,400 Non capital tax losses $ 15,876 $ 12,200 2012 2011 2012 2011 2012 2011 Property, plant and equipment 20,528 3,551 (1,972) (4,036) 18,556 (485) Intangible assets 76,265 106,119 (42,037) (35,742) 34,228 70,377 Reserves 4,191 2,649 - - 4,191 2,649 Non capital loss carryforwards 13,991 5,365 - - 13,991 5,365 SR&ED expenditure pool 1,712 4,074 (2,774) (2,903) (1,062) 1,171 Deferred revenue 2,327 1,678 - - 2,327 1,678 Foreign and other tax credits 1,439 2,207 - - 1,439 2,207 Contract asset 2,856 3,427 - (107) 2,856 3,320 Other, including capital losses 3,193 2,470 (4,695) (352) (1,502) 2,118 - - Tax assets (liabilities)126,502 131,540 (51,478) (43,140) 75,024 88,400 Reclassification (22,196) (31,881) 22,196 31,881 - Net tax assets (liabilities)104,306 99,659 (29,282) (11,259) 75,024 88,400 Assets Liabilities Net CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 34 (d) Movement in deferred tax balances during the year Balance January 1, 2012 Recognised in profit or loss Recognised in other comprehensive income Acquired in business combinations Other Balance December 31, 2012 Property, plant and equipment (485) 19,041 - - - 18,556 - - - Intangible assets 70,377 (15,166) - (20,983) - 34,228 Reserves 2,649 1,542 - - - 4,191 Non-capital loss carryforwards 5,365 7,362 - 1,264 - 13,991 SR&ED expenditure pool 1,171 (2,233) - - - (1,062) Deferred revenue 1,678 649 - - - 2,327 Tax credits 2,207 (768) - - - 1,439 Contract assets 3,320 (464) - - - 2,856 Other, including capital losses 1,851 (4,387) 1,114 - (347) (1,769) Other 267 - - - - 267 88,400 5,576 1,114 (19,719) (347) 75,024 Balance January 1, 2011 Recognised in profit or loss Recognised in other comprehensive income Acquired in Business combinations Other Balance December 31, 2011 Property, plant and equipment (1,464) 979 - - (485) - Intangible assets (19,840) 93,522 - (3,305) 70,377 Reserves 3,162 (513) - - 2,649 Non-capital loss carryforwards 8,331 (2,966) - - 5,365 SR&ED expenditure pool 808 363 - - 1,171 Deferred revenue 2,392 (714) - - 1,678 Tax credits 1,938 269 - - 2,207 Contract assets 2,293 1,027 - - 3,320 Other, including capital losses - 1,851 - - 1,851 Other (61) 172 - 156 267 (2,441) 93,818 172 (3,305) 156 88,400 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 35 14. Capital and other components of equity Capital Stock At December 31, 2011, the authorized share capital of Constellation consisted of an unlimited number of common shares and an unlimited number of Class A non-voting shares. The rights and privileges of the Class A non-voting shares entitled the holders of such shares to distributions, if and when declared by the Board of Directors provided an equivalent dividend was paid rateably on the common shares at the same time. The holders of the common shares would participate rateably with the holders of the Class A non-voting shares in any distribution of assets, or liquidation, dissolution or winding up of the Company’s assets. The holders of the Class A non-voting shares were entitled to convert such shares, at any time into common shares, on a one-for-one basis. On April 3, 2012, 100% of the Class A non-voting shares were converted to common shares, on a one-for-one basis. Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss) is comprised of the following separate components of equity: Cumulative translation account The cumulative translation account comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as foreign exchange gains and losses arising from monetary items that form part of the net investment in the foreign operation. Amounts related to available-for-sale financial assets Available-for-sale differences comprise the cumulative net change in the fair value of available-for-sale financial assets until the investments are sold/derecognized or impaired. Dividends During the year ended December 31, 2012 the Board of Directors approved and the Company declared dividends of $4.00 per common and class A non-voting share, up to April 3, 2012 (2011 - $2.00 per share). A dividend of $1.00 per share representing $21,192 was paid and settled on April 2, 2012, a second dividend of $1.00 per share representing $21,192 was paid and settled on July 4, 2012, a third dividend of $1.00 per share representing $21,192 was paid and settled on October 3, 2012, and a fourth dividend of $1.00 per share representing $21,192 was accrued as at December 31, 2012 and subsequently paid and settled on January 4, 2013. Number Amount Number Amount Number Amount December 31, 2011 17,503,530 86,794$ 3,688,000 12,489$ 21,191,530 99,283$ December 31, 2012 21,191,530 99,283$ ‐ ‐$ 21,191,530 99,283$ Common Shares Class A non‐voting Total CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 36 15. Revenue The Company sub-classifies revenue within the following components: license revenue, professional services revenue, hardware and other revenue, and maintenance and other recurring revenue. Software license revenue is comprised of license fees charged for the use of software products licensed under multiple-year or perpetual arrangements in which the fair value of maintenance and/or professional service fees are determinable. Professional service revenue consists of fees charged for implementation services, custom programming, product training and consulting. Hardware and other revenue includes the resale of third party hardware as part of customized solutions, as well as sales of hardware assembled internally. Maintenance and other recurring revenue primarily consists of fees charged for customer support on software products post-delivery and also includes recurring fees derived from combined software/support contracts, transaction revenues, managed services, and hosted products. Revenues from the application of contract accounting are typically allocated to license revenue, professional service revenue and hardware revenue based on their relative fair values when the amount recognized in the period is determined using the percentage of completion method under contract accounting. During the year ended December 31, 2012 $208,563 (December 31, 2011 - $194,749) of contract revenue was recognized. Advances from customers for which the related work has not yet started and billings in excess of costs incurred and recognized profits are recognized as deferred revenue. 2012 2011 License revenue 72,407$ 63,107$ Professional services revenue 197,150 181,166 Hardware and other revenue 111,359 108,716 Maintenance and other recurring revenue 510,310 420,352 Total 891,226$ 773,341$ Years ended December 31, CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 37 16. Finance income and finance costs The Company enters into forward foreign exchange contracts from time to time with the objective of mitigating volatility in profit or loss in respect of financial liabilities. During the period, the Company purchased contracts of this nature totaling approximately $56 million. At December 31, 2012 a single contract remains unsettled with a value of $19 million and the Company has recorded its fair value at December 31, 2012 based on foreign exchange rates relative to the stated rate in the contract. The fair value loss through profit or loss of $233 has been recorded as part of finance costs. The contract was settled on January 3, 2013. 17. Earnings per share Basic and diluted earnings per share 2012 2011 Gain on sale of available-for-sale financial (21,735)$ (6,253)$ assets transferred from other comprehensive income Gain on sale of intangible assets (321) - Other finance income (1,122) (1,014) Finance income (23,178)$ (7,267)$ Interest expense on bank indebtedness 1,589$ 4,448$ Amortization of debt related transaction costs 1,077 596 Other finance costs 1,335 531 Finance costs 4,001$ 5,575$ Years ended December 31, 2012 2011 Numerator: Net income 92,632$ 157,174$ Denominator: Basic and diluted shares outstanding 21,191,530 21,191,530 Earnings per share Basic and diluted 4.37$ 7.42$ Years ended December 31, CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 38 18. Capital risk management The Company's objectives in managing capital are to ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions and to provide returns to its shareholders. The Company manages its capital with the objective of ensuring that there are adequate capital resources while maximizing the return to shareholders through the optimization of the debt and equity balance. The capital structure of the Company consists of cash, credit facilities and components of shareholders' equity including retained earnings and capital stock. The Company is subject to certain covenants on its credit facilities. The covenants include a leverage ratio and an interest coverage ratio, as well as a minimum level of earnings for entities over which the lenders have security. The Company monitors the ratios on a quarterly basis. Other than the covenants required for the credit facilities, the Company is not subject to any externally imposed capital requirements. The Board of Directors determine if and when dividends should be declared and paid based on all relevant circumstances, including the desirability of financing further growth of the Company and its financial position at the relevant time. The Board of Directors has adopted a policy to pay quarterly dividends, which commenced in 2012. Constellation intends to declare a regular quarterly dividend to allow shareholders to participate in its free cash flow, while retaining sufficient capital to invest in acquisitions and organic growth. There is no guarantee that dividends will continue to be declared and paid in the future. The Company makes adjustments to its capital structure in light of general economic conditions, the risk characteristics of the underlying assets and the Company's working capital requirements. In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may increase or decrease dividends, increase or decrease the line of credit or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors reviews and approves any material transactions not in the ordinary course of business, as well as significant acquisitions and other major investments above pre-determined quantitative thresholds. 19. Financial risk management and financial instruments Overview The Company is exposed to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth. The main objectives of the Company's risk management process are to ensure that risks are properly identified and that the capital base is adequate in relation to those risks. The principal financial risks to which the Company is exposed are described below. Market risk Market risk is the risk that changes in market prices, such as fluctuations in the equity prices of the Company's publicly traded investments, foreign exchange rates and interest rates, will affect the Company's income or the value of its financial instruments. The Company manages risk related to fluctuations in the market prices of its publicly traded investments by regularly conducting financial reviews of publicly available information to ensure that any risks are within CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 39 established levels of risk tolerance. The Company does not routinely engage in risk management practices such as hedging, derivatives or short selling with respect to its publicly traded investments. The Company is exposed to interest rate risk on the utilized portion of its line of credit and does not currently hold any financial instruments that mitigate this risk. Management does not believe that the impact of interest rate fluctuations relative to the variable interest rate attached to the line of credit and in consideration of the current and expected level of borrowings will be significant and, therefore, has not provided a sensitivity analysis of the impact of fluctuations on net and comprehensive income. The Company operates internationally, giving rise to exposure to market risks from changes in foreign exchange rates which impact sales and purchases that are denominated in a currency other than the respective functional currencies of certain of its subsidiaries. The Company currently does not typically use derivative instruments to hedge its exposure to those risks. Most of the Company's businesses are organized geographically so that many of its expenses are incurred in the same currency as its revenues thus mitigating some of its exposure to currency fluctuations. The Company enters into forward foreign exchange contracts from time to time with the objective of mitigating volatility in profit or loss in respect of monetary liabilities. During the year, the Company purchased three contracts of this nature and has recorded the one unsettled contract at its fair value at December 31, 2012 based on foreign exchange rates relative to the stated rate in the contract. The fair value adjustment has been recorded in finance costs in net income. Foreign currency sensitivity analysis: The Company is mainly exposed to fluctuations in the Canadian dollar, British pound, Swiss franc, Euro, and Australian dollar. The major currency exposures, as of December 31, 2012, are summarized in U.S. dollar equivalents in the following table. The local currency amounts have been converted to U.S. dollar equivalents using the period end exchange rates. The following table details the Company's sensitivity, with regards to the above net asset position, to a 1% strengthening of the Canadian dollar, British pound, Swiss Franc, Euro, and Australian dollar against the U.S. dollar. The sensitivity analysis includes foreign currency denominated monetary assets and liabilities and non- monetary assets and liabilities of non-USD functional subsidiaries, and adjusts their translation at period end for a 1% change in foreign currency rates. For a 1% weakening against the U.S. dollar, there would be an equal and opposite impact on net and comprehensive income. Canadian Dollar British Pound Swiss Franc Euro Australian Dollar Current assets 29,493$ 21,687$ 20,959$ 16,506$ 7,806$ Non-current assets 74,328 56,747 2,263 29,467 21,301 Current liabilities (39,294) (30,493) (25,795) (11,481) (10,829) Non-current liabilities (7,299) (12,013) (9,742) (7,550) (890) Net financial assets 57,228$ 35,928$ (12,315)$ 26,942$ 17,388$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 40 Liquidity risk Liquidity risk is the risk that the Company is not able to meet its financial obligations as they fall due or can do so only at excessive cost. The Company manages liquidity risk through the management of its capital structure and financial leverage, as outlined in note 18 to the consolidated financial statements. The Company's growth is financed through a combination of cash flows from operations and borrowing under the existing credit facilities. One of management's primary goals is to maintain an optimal level of liquidity through the active management of the assets and liabilities as well as the cash flows from operations. The details of the Company's credit facilities are disclosed in note 10 to the consolidated financial statements. As at December 31, 2012, available credit in respect of the Company's bank credit facility was $253,720. The majority of the Company's financial liabilities recorded in accounts payable and accrued liabilities are due within 60 days. Holdbacks payable related to business acquisitions are due within six months to three years. Given the Company's available liquid resources as compared to the timing of the payments of liabilities, management assesses the Company's liquidity risk to be low. Credit risk Credit risk represents the financial loss that the Company would experience if a counterparty to a financial instrument, in which the Company has an amount owing from the counterparty failed to meet its obligations in accordance with the terms and conditions of its contracts with the Company. The carrying amount of the Company's financial assets, including receivables from customers, represents the Company's maximum credit exposure. The majority of the accounts receivable balance relates to maintenance invoices to customers that have a history of payment. In addition, a large proportion of the Company's accounts receivable is with public sector government agencies where the credit risk has historically been assessed to be low. The maximum exposure to credit risk for accounts receivables at the reporting date by geographic region was: Canadian Dollar British Pound Swiss Franc Euro Australian Dollar Net and comprehensive income 572$ 359$ (123)$ 269$ 174$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 41 The maximum exposure to credit risk for accounts receivable at the reporting date by reportable segment was: December 31, 2012 December 31, 2011 United States 70,916$ 53,332$ Canada 23,401 20,229 United Kingdom 12,139 10,987 Europe 14,614 9,585 Other 5,917 2,126 126,987$ 96,259$ December 31, 2012 December 31, 2011 Public 95,005 70,400 Private 31,982 25,859 126,987$ 96,259$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 42 The aging of accounts receivables at the reporting date was: An allowance account for accounts receivable is used to record impairment losses unless the Company is satisfied that no recovery of the amount owing is possible; at which point the amounts are considered to be uncollectible and are written off against the specific accounts receivable amount attributable to a customer. The number of days outstanding of an individual receivable balance is the key indicator for determining whether an account is at risk of being impaired. The movement in the allowance for impairment in respect of accounts receivable during the year ended: There is no concentration of credit risk because of the Company's diverse and disparate number of customers with individual receivables that are not significant to the Company on a consolidated basis. In addition the Company typically requires up front deposits from customers to protect against credit risk. The Company manages credit risk related to cash by maintaining bank accounts with Schedule 1 banks. December 31, 2012 December 31, 2011 Current 91,475 44,945 61-120 days Gross 19,553 29,585 Impairment (959) (77) Net 18,594 29,508 More than 120 days Gross 24,528 28,505 Impairment (7,610) (6,699) Net 16,918 21,806 Total accounts receivable Gross 135,556 103,035 Impairment (8,569) (6,776) Net 126,987 96,259 2012 2011 Balance at January 1 6,776$ 8,287$ Impairment loss recognized 6,936 3,737 Impairment loss reversed (3,198) (3,834) Amounts written off (1,945) (1,414) Balance at December 31 8,569$ 6,776$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 43 In the ordinary course of business the Company and its subsidiaries have provided performance bonds and other guarantees for the completion of certain customer contracts. The Company has not experienced a loss to date and future losses are not anticipated; therefore, no liability has been recorded in the consolidated statements of financial position related to these types of indemnifications or guarantees at December 31, 2012. Fair values versus carrying amounts The carrying values of accounts receivable, accounts payable, accrued liabilities, the majority of acquisition holdbacks and bank debt, approximate their fair values due to the short-term nature of these instruments. Bank debt is subject to market interest rates. The Company has capitalized transaction costs associated with its current line of credit. As a result at December 31, 2012, the fair value of the line of credit is $46,000 and the carrying value $44,356. (December 31, 2011: fair value nil, carrying value $644 – included as part of other assets). The fair values of available-for-sale equity investments at the reporting date are determined by the quoted market values for each investment (note 5). Fair value hierarchy The table below analyzes financial instruments carried at fair value, by valuation method.  level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;  level 2 inputs are inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly (i.e. prices) or indirectly (i.e. derived from prices); and  level 3 inputs are inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs). In the table below, the Company has segregated all financial assets and liabilities that are measured at fair value into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. The Company has no financial assets or liabilities measured using level 3 inputs. Financial assets and financial liabilities measured at fair value as at December 31, 2012 and December 31, 2011 in the financial statements are summarized below. The Company has no additional financial liabilities measured at fair value initially other than those recognized in connection with business combinations. December 31, 2012 December 31, 2011 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities $ 470 $ - $ 470 $ 21,222 $ - $ 21,222 Foreign exchange - - - 443 - 443 forward contract $ 470 $ - $ 470 $ 21,665 $ - $ 21,665 Liabilities: Foreign exchange $ 233 $ - $ 233 $ - $ - $ - forward contract $ 233 $ - $ 233 $ - $ - $ - CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 44 There were no transfers of fair value measurements between level 1 and level 2 of the fair value hierarchy in 2012 and 2011. 20. Operating leases The Company leases premises and certain equipment and automobiles under operating leases. The operating rental expense for the year ended December 31, 2012 was $16,472 (2011 - $14,849). The annual minimum lease commitments are as follows: December 31, 2012 December 31, 2011 Less than 1 year $ 19,749 $ 14,921 Between 1 and 5 years 37,488 27,354 More than 5 years 9,032 7,044 Total $ 66,269 $ 49,319 21. Operating segments Segment information is presented in respect of the Company's business and geographical segments. The accounting policies of the segments are the same as those described in the significant accounting policies section of these consolidated financial statements. Reportable segments The Company has six operating segments, which have been aggregated into two reportable segments in accordance with IFRS 8 Operating Segments. The Company‘s Public Sector segment develops and distributes software solutions primarily to government and government-related customers. The Company‘s Private Sector segment develops and distributes software solutions primarily to commercial customers. The determination that the Company has two reportable segments is based primarily on the assessment that differences in economic cycles and procedures for securing contracts between our governmental clients and commercial, or private sector clients, are significant, thus warranting distinct segmented disclosures. Corporate head office operating expenses are allocated to the Company’s segments based on the segment’s percentage of total consolidated revenue for the allocation period. Intercompany expenses (income) represent Constellation head office management fees and intercompany interest charged to the reportable segments. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 45 Fiscal year ended December 31, 2012 Public Sector Private Sector Other Consolidated Total Revenue 635,991$ 255,235$ -$ 891,226$ Expenses Staff 331,027 138,650 - 469,677 Hardware 53,269 8,177 - 61,446 Third party licenses, maintenance and professional services 39,509 21,960 - 61,469 Occupancy 14,734 6,289 - 21,023 Travel 28,627 7,340 - 35,967 Telecommunications 7,258 3,738 - 10,996 Supplies 11,545 3,763 - 15,308 Professional fees 11,147 3,884 - 15,031 Other, net 7,548 6,810 - 14,358 Depreciation 5,389 1,867 387 7,643 Amortization of intangible assets 58,909 26,233 - 85,142 568,962 228,711 387 798,060 Foreign exchange (gain) loss 2,339 (247) (1,270) 822 Equity in net loss of equity investees - - 839 839 Finance income (1,394) (109) (21,675) (23,178) Finance costs 332 734 2,935 4,001 Inter-company expenses (income) 19,439 8,172 (27,611) - 20,716 8,550 (46,782) (17,516) Profit before income tax 46,313 17,974 46,395 110,682 Current income tax expense (recovery) 18,692 7,865 (2,931) 23,626 Deferred income tax expense (recovery) (3,374) (3,317) 1,115 (5,576) Income tax expense (recovery) 15,318 4,548 (1,816) 18,050 Net income 30,995 13,426 48,211 92,632 December 31, 2012 Public Sector Private Sector Other Consolidated Total Current assets 179,512 58,938 15,163 253,613 Current liabilities 283,869 113,514 75,158 472,541 Goodwill 56,754 34,471 - 91,225 Other Intangible assets 196,608 114,522 - 311,130 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 46 Fiscal year ended December 31, 2011 Public Sector Private Sector Other Consolidated Total Revenue 571,651$ 201,690$ -$ 773,341$ Expenses Staff 288,919 112,460 - 401,379 Hardware 53,665 7,189 - 60,854 Third party licenses, maintenance and professional services 35,581 15,485 - 51,066 Occupancy 13,328 5,590 - 18,918 Travel 24,113 5,925 - 30,038 Telecommunications 6,762 3,230 - 9,992 Supplies 12,437 2,877 - 15,314 Professional fees 6,037 2,586 - 8,623 Other, net 3,349 5,130 - 8,479 Depreciation 5,806 1,654 408 7,868 Amortization of intangible assets 56,926 19,724 - 76,650 506,923 181,850 408 689,181 Impairment of non-financial assets 489 - - 489 Foreign exchange (gain) loss 1,250 (610) 2,752 3,392 Finance income (318) (64) (6,885) (7,267) Finance costs 222 188 5,165 5,575 Inter-company expenses (income) 20,205 9,380 (29,585) - 21,848 8,894 (28,553) 2,189 Profit before income tax 42,880 10,946 28,145 81,971 Current income tax expense (recovery) 14,843 5,985 (2,213) 18,615 Deferred income tax expense (recovery) (56,380) (37,584) 146 (93,818) Income tax recovery (41,537) (31,599) (2,067) (75,203) Net income 84,417 42,545 30,212 157,174 December 31, 2011 Public Sector Private Sector Other Consolidated Total Current assets 140,517 43,649 36,362 220,528 Current liabilities 232,410 87,540 886 320,836 Goodwill 37,827 21,664 - 59,491 Other Intangible assets 128,405 79,896 - 208,301 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 47 Geographical segments The public and private sector segments are managed on a worldwide basis, but operate in three principal geographical areas, Canada, USA, and UK/Europe. In presenting information on the basis of geographical segments, segment revenue is based on the region in which the revenue is transacted and intellectual property is located. Segment assets are based on the geographic locations of the assets. Major customers No customer represents revenue in excess of 10% of total revenue in both 2012 and 2011. Year ended December 31, 2012 Canada USA UK/Europe Other Total Revenue 172,171$ 517,787$ 172,081$ 29,187$ 891,226$ Total assets 158,103 434,012 186,515 34,049 812,679 Property and equipment 5,788 6,433 8,177 902 21,300 Acquired contract assets - 1,740 165 - 1,905 Intangible assets 53,587 242,333 84,762 21,673 402,355 Year ended December 31, 2011 Canada USA UK/Europe Other Total Revenue 131,951$ 467,202$ 165,251$ 8,937$ 773,341$ Total assets 268,484 250,251 96,415 15,425 630,575 Property and equipment 5,573 4,841 3,608 569 14,591 Acquired contract assets - 1,052 1,640 - 2,692 Intangible assets 113,051 104,929 39,809 10,003 267,792 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 48 22. Contingencies In the normal course of operations, the Company is subject to litigation and claims from time to time. The Company may also be subject to lawsuits, investigations and other claims, including environmental, labour, product, customer disputes and other matters. Management believes that adequate provisions have been recorded in the accounts where required. Although it is not always possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of such contingencies will not have a material adverse impact on the results of operations, financial position or liquidity of the Company. On September 30, 2008, Constellation acquired certain assets and liabilities of Maximus Inc.’s Asset, Justice, and Education Solutions businesses ("MAJES"). As part of the acquisition, the Company also acquired certain long- term contracts that contain contingent liabilities which may, but are unlikely to, exceed $15 million in the aggregate. The contingent liabilities relate to liquidated damages contractually available to customers for breaches of contracts by MAJES and for estimated damages available to customers for breaches of such contracts by MAJES where such contracts did not contain specified penalties. The contingent liabilities represent the difference between the maximum financial liabilities potentially due to customers less the amounts accrued in connection with the contracts assumed on acquisition. In February 2011, MAXIMUS Inc. (“Maximus”) and a subsidiary of Constellation received a letter from a customer initiating a dispute resolution process under the customer’s contract. The customer alleged that the subsidiary of Constellation and Maximus failed to observe the most favoured customer pricing terms of the contract. The subsidiary of the Company, Maximus, and the customer have resolved the issues relating to the most favoured customer pricing terms of the contract without liability to the Company. The customer also alleged that the subsidiary of Constellation and Maximus failed to provide the services and products required to be delivered under the contract. The subsidiary of the Company, Maximus, and the customer, pursuant to the terms of the contract, entered into arbitration proceedings in respect of the customer’s claims. The potential liability was undefined with respect to the claims in arbitration, however, the contract with the customer has a $9 million limitation of liability clause that the Company believes will apply to all of the claims in arbitration, should there be an unfavourable outcome to the Company. In October 2012, the customer filed a claim in court alleging no contract existed between the customer and the subsidiary of Constellation and was seeking restitution of a minimum of $12 million. In December 2012, the subsidiary of Constellation obtained an arbitration ruling in relation to the customer dispute. The arbitration ruling concluded that no amounts were owed by the subsidiary to the customer for the various claims made by the customer and that the customer owes the subsidiary approximately $10 million in fees for services provided under the contract and for amounts owing due to a breach of contract by the customer. Constellation is seeking to obtain a court judgement to enforce the arbitration ruling. The gains based on this ruling have deemed to be contingent and, accordingly, have not been recognized in these consolidated financial statements. On November 2, 2009, the Company acquired certain assets and liabilities of the Public Transit Solutions ("PTS") business of Continental Automotive AG. The Company also acquired contingent liabilities related to certain long- term contracts that may, but are unlikely to, exceed $1 million in the aggregate. The contingent liabilities relate to liquidated damages contractually available to customers for breaches of contracts by PTS. The contingent liabilities represent the difference between the maximum financial liabilities potentially due to customers less the estimated fair value amounts accrued in connection with the contracts assumed on acquisition. In July 2012, a subsidiary of Constellation received a notice of reassessment for the 2004 taxation year from the Canadian tax authorities (“CRA”) which increased taxable income of the subsidiary by approximately $20 million relating to a gain on the sale of property between entities under common control. As a result of the notice of reassessment, the CRA has determined that the subsidiary owes approximately $6 million in federal tax and interest and approximately $5 million in provincial tax and interest. In order to appeal the reassessment, the subsidiary paid $8 million in September 2012 representing 50% of the amount owing from the federal CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 49 reassessment and 100% of the amount owing from the provincial reassessment. At this stage, the Company believes the proposed reassessment is without merit and is challenging the reassessment. In Q1, 2013, the Company filed an appeal with the Tax Court of Canada. The Company believes that it has adequately provided for the probable outcome in respect of this matter and as such no additional provision has been recorded in these financial statements during the year. There is no assurance, however, that the Company’s appeal will be successful and, if unsuccessful, the Company’s future financial results and tax provisions could be adversely affected. The $8 million payment made in September 2012 has been recorded in other non-current assets. 23. Guarantees (a) In the ordinary course of business the Company and its subsidiaries have provided performance bonds and other guarantees for the completion of certain customer contracts. The total obligations of the Company pursuant to such bonds and related contingencies total $38,279 (2011 - $30,077). No liability has been recorded in the consolidated financial statements. (b) As at December 31, 2012, in the normal course of business, the Company and its subsidiaries have outstanding letters of credit totalling $280 (2011 - $385). (c) In the normal course of business, some of the Company's subsidiaries entered into lease agreements for facilities. As the joint lessees, the subsidiaries agree to indemnify the lessor for liabilities that may arise from the use of the leased facility. The maximum amount potentially payable under the foregoing indemnity cannot be reasonably estimated. The subsidiaries have liability insurance that relates to the indemnifications. (d) The Company and its subsidiaries have provided routine indemnifications to some of its customers against liability if the Company's product infringes on a third party's intellectual property rights. The maximum exposure from the indemnifications cannot be reasonably estimated. 24. Changes in non-cash operating working capital 2012 2011 Increase in accounts receivable (3,786)$ (4,420)$ Increase in work in progress (6,758) (1,282) Decrease in other current assets 4,215 1,611 Decrease in inventory 2,812 2,610 Increase in non-current assets (3,635) (5,403) Change in acquired contract assets and liabilities (4,585) (14,150) Decrease in other non-current liabilities (9,921) (1,002) Increase (decrease) in accounts payable and accrued liabilities excluding holdbacks from acquisitions 4,707 (793) (Decrease) increase in deferred revenue (877) 5,618 Increase in provisions 438 1,315 (17,390)$ (15,896)$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 50 25. Related parties Key management personnel compensation The key management personnel of the Company, inclusive of the operating segments, are the members of the Company’s executive management team at the Company operating segments and head office and Board of Directors, and control approximately 13% of the outstanding shares of Constellation. Years ended December 31, 2012 2011 Salaries, bonus and employee benefits $ 13,087 $ 11,812 Total $ 13,087 $ 11,812 If terminated for other than just cause, each executive officer, is entitled to either up to 12 months prior written notice or payment in an amount equal to up to 12 months salary (or in the case of the Chief Operating Officer, 12 months total compensation) at the rate in effect at the time of his or her termination. There were no post- employment benefits, other long-term benefits, or share-based payments attributed to the key management personnel in 2012 and 2011. 26. Subsequent events On March 6, 2013 the Company declared a $1.00 per share dividend that is payable on April 4, 2013 to all common shareholders of record at close of business on March 18, 2013. On March 6, 2013 the Company’s board of directors approved an employee share purchase plan that is expected to be made available to employees in the second quarter of 2013. The purpose of the plan is to enable employees of the Company to acquire shares of Constellation in the market through payroll deduction contributions. The participation of an employee in the plan is entirely voluntary and not obligatory. On February 14, 2013, the Company sold the Technology and Cloud solution assets of the previously acquired Computer Software Innovations, Inc. (“CSWI”) to Encore Technology Group. Subsequent to December 31, 2012, the Company acquired the net assets of two entities and acquired 100% of the shares of four additional entities for aggregate cash consideration of $35,463 on closing plus cash holdbacks of $3,154 and contingent consideration with an estimated fair value of $650 resulting in total consideration of $39,267. The contingent consideration is payable on the achievement of certain financial targets in the post- acquisition period. The business acquisitions include companies catering to the healthcare, glass and fenestration, transit, school administration, financial services, and radiology & laboratory information systems markets, and are all software companies similar to the existing business of the Company. Three of the businesses will be included in the Company’s Public Sector segment, and three in the Private Sector segment. Due to the complexity and timing of certain acquisitions completed subsequent to December 31, 2012, the Company is unable to provide additional disclosure as the accounting for these business combinations is incomplete. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2012 and 2011 51 27. Comparative Figures Certain comparative figures included in the consolidated statement of cash flows, and current assets, as disclosed in note 7, have been reclassified to conform to the current period’s presentation. For the years ended December 31, 2011 and 2010 Consolidated Financial Statements (In U.S. dollars) CONSTELLATION SOFTWARE INC. MANAGE Decembe The acco its subsid managem The cons Internatio certain am opinion pr cash flow elsewhere consolida Managem supported assurance and form assets are The Boar through it auditors t accountin by the Au The cons accordanc LLP has f February "Mark Leo President EMENT'S RES er 31, 2011 mpanying co iaries and all ment and have solidated fina nal Financial mounts that resent fairly, ws, in accorda e in the Mana ted financial s ment of Cons d by the inter e that materia a basis for th e properly acc rd of Director ts Audit Com o review the g policies, an dit Committee solidated fina ce with Cana full and free a 29, 2012 onard" SPONSIBILIT nsolidated fin the informati e been approv ancial statem l Reporting S are based o in all materia ance with IFR agement's Di statements, o stellation has nal audit func al transaction he preparation counted for a s carries out mittee. This c Company’s r nd financial re e and approv ancial statem adian generall access to the A TY FOR FINA nancial statem ion in Manag ved by the Bo ments have Standards ("I on the best e al respects, C RS. Manage iscussion and or has provide s developed ction. Manag ns are proper n of consolida nd safeguard its responsib committee m reported finan eporting matte ed by the Boa ments have b ly accepted a Audit Commit ANCIAL REP ments of Cons ement's Disc oard of Direct been prepa IFRS"). The estimates and Constellation's ement has pr d Analysis an ed reconciliati and maintain gement believ ly authorized ated financial ded. bility for the c eets with ma ncial performa ers. The cons ard of Directo been audited auditing stand ttee. PORTING stellation Sof cussion and A tors. ared by man e consolidate d judgements s financial pos repared the nd has ensur ions where in ns a system ves the intern and recorde statements a consolidated anagement an ance and to solidated fina ors. by KPMG dards on beh "John Bill Chief Fin ftware Inc. ("C Analysis are th nagement in ed financial s s of manage sition, results financial info red that it is c consistencies of internal nal controls p ed, financial re and that Cons financial stat nd the Comp discuss audit ncial stateme LLP, the ex alf of the sha lowits" ancial Officer Constellation" he responsib accordance statements in ement and in s of operation ormation pres consistent wit s exist. controls, wh provide reaso ecords are re stellation's ma tements princ pany’s indepe t, internal con ents were rev xternal audito areholders. K r ") and ility of e with nclude n their ns and sented th the ich is onable eliable aterial cipally endent ntrols, iewed ors, in KPMG KPMG LLP Chartered Accountants Yonge Corporate Centre 4100 Yonge Street, Suite 200 Toronto, Ontario M2P 2H3 Canada Telephone (416) 228-7000 Fax (416) 228-7123 Internet www.kpmg.ca ABCD KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. INDEPENDENT AUDITORS’ REPORT To the Shareholders of Constellation Software Inc. We have audited the accompanying consolidated financial statements of Constellation Software Inc., which comprise the consolidated statements of financial position as at December 31, 2011, December 31, 2010 and January 1, 2010, the consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2011 and December 31, 2010, and notes, comprising a summary of significant accounting policies and other explanatory information. Management’s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Page 2 ABCD Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Constellation Software Inc. as at as at December 31, 2011, December 31, 2010 and January 1, 2010, and its consolidated financial performance and its consolidated cash flows for the years ended December 31, 2011 and December 31, 2010 in accordance with International Financial Reporting Standards. Chartered Accountants, Licensed Public Accountants February 29, 2012 Toronto, Canada CONSTELLATION SOFTWARE INC. Consolidated Statements of Financial Position (In thousands of U.S. dollars) December 31, 2011 December 31, 2010 January 1, 2010 Assets Current assets: Cash 33,492$ 30,911$ 33,249$ Equity securities available-for-sale (note 5)21,222 23,723 22,323 Accounts receivable 100,398 90,898 95,431 Work in progress 26,244 25,607 23,077 Inventories (note 6)13,539 15,945 14,320 Other assets (note 7)25,633 26,463 26,261 220,528 213,547 214,661 Non-current assets: Property and equipment (note 8)14,591 13,469 8,226 Deferred income taxes (note 13)99,659 15,368 4,779 Other assets (note 7)28,005 23,548 13,879 Intangible assets (note 9)267,792 269,987 222,239 410,047 322,372 249,123 Total assets 630,575$ 535,919$ 463,784$ Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness (note 10)‐$ 46,041$ 41,153$ Accounts payable and accrued liabilities 114,952 104,905 86,640 Deferred revenue 181,450 158,025 135,299 Provisions (note 11)3,555 2,253 8,312 Acquired contract liabilities 4,750 10,908 7,652 Acquisition holdback payments 11,378 6,920 3,587 Income taxes payable 4,751 1,424 3,757 320,836 330,476 286,400 Non-current liabilities: Deferred income taxes (note 13)11,259 17,809 16,321 Acquired contract liabilities 28,051 35,633 41,482 Acquisition holdback payments 2,474 2,744 2,537 Other liabilities 11,675 6,206 4,018 53,459 62,392 64,358 Total liabilities 374,295 392,868 350,758 Shareholders' equity (note 14): Capital stock 99,283 99,283 99,283 Accumulated other comprehensive income 6,961 8,522 3,003 Retained earnings 150,036 35,246 10,740 256,280 143,051 113,026 Subsequent events (note 26) Total liabilities and shareholders' equity 630,575$ 535,919$ 463,784$ See accompanying notes to the consolidated financial statements. 1 CONSTELLATION SOFTWARE INC. Consolidated Statements of Comprehensive Income (In thousands of U.S. dollars, except per share amounts) Years ended December 31, 2011 and 2010 2011 2010 Revenue (note 15)773,341$ 633,965$ Expenses Staff 401,379 356,539 Hardware 60,854 45,109 Third party license, maintenance and professional services 51,066 37,669 Occupancy 18,918 16,840 Travel 30,038 23,094 Telecommunications 9,992 9,177 Supplies 15,314 11,125 Professional fees 8,623 8,219 Other 8,479 9,775 Income before the undernoted 168,678 116,418 Depreciation 7,868 6,756 Amortization of intangible assets 76,650 67,926 Impairment of non-financial assets 489 - Foreign exchange loss 3,392 4,526 Finance income (note 16)(7,267) (1,241) Finance costs (note 16)5,575 5,783 Bargain purchase gain - (1,745) 86,707 82,005 Profit before income tax 81,971 34,413 Current income tax expense 18,615 16,961 Deferred income tax recovery (93,818) (12,564) Income tax expense (recovery) (note 12) (75,203) 4,397 Net income 157,174 30,016 Net change in fair value on available-for-sale financial assets during the period 5,773 6,071 Net unrealized foreign exchange adjustment gain (loss) on available-for-sale financial assets during the period (31) 61 Reclassification of unrealized gain upon derecognition of available-for-sale investments - (733) Amounts reclassified to profit during the period related to realized gains on available-for-sale investments (6,253) - Foreign currency translation differences from foreign operations (1,188) 1,607 Current tax expense (34) - Deferred tax recovery (expense)172 (1,487) Other comprehensive income for the period, net of income tax (1,561) 5,519 Total comprehensive income for the period 155,613$ 35,535$ Earnings per share Basic and diluted (note 17)7.42$ 1.42$ See accompanying notes to the consolidated financial statements. 2 CONSTELLATION SOFTWARE INC. Consolidated Statements of Changes in Equity (In thousands of U.S. dollars) Year ended December 31, 2011 Capital stock Total accumulated other comprehensive income/(loss) Retained earnings Total Cumulative translation account Amounts related to gains/losses on available- for-sale financial assets Balance at January 1, 2011 $ 99,283 $ 1,379 $ 7,143 $ 8,522 $ 35,246 $ 143,051 Total comprehensive income for the period Net income 157,174 157,174 Other comprehensive income (loss) Net change in fair value on available-for-sale financial assets during the period 5,773 5,773 ‐ 5,773 Net unrealized foreign exchange adjustment gain (loss) on available-for-sale financial assets during the period (31) (31) ‐ (31) Amounts reclassified to profit during the period related to realized gains on available-for-sale investments (6,253) (6,253) ‐ (6,253) Foreign currency translation differences from foreign operations (1,188) (1,188) ‐ (1,188) Current tax expense (34) (34) (34) Deferred tax recovery 25 147 172 ‐ 172 Total other comprehensive income (loss) for the period (1,197) (364) (1,561) - (1,561) Total comprehensive income for the period (1,197) (364) (1,561) 157,174 155,613 Transactions with owners, recorded directly in equity Dividends to owners of the Company (note 14)(42,384) (42,384) Balance at December 31, 2011 $ 99,283 $ 182 $ 6,779 $ 6,961 $ 150,036 $ 256,280 See accompanying notes to the consolidated financial statements. Accumulated other comprehensive income/(loss) 3 CONSTELLATION SOFTWARE INC. Consolidated Statements of Changes in Equity (In thousands of U.S. dollars) Year ended December 31, 2010 Capital stock Total accumulated other comprehensive income/(loss) Retained earnings Total Cumulative translation account Amounts related to gains/losses on available- for-sale financial assets Balance at January 1, 2010 $ 99,283 -$ $ 3,003 $ 3,003 $ 10,740 $ 113,026 Total comprehensive income for the period Net income 30,016 30,016 Other comprehensive income (loss) Net change in fair value on available-for-sale financial assets during the period 6,071 6,071 ‐ 6,071 Net unrealized foreign exchange adjustment gain (loss) on available-for-sale financial assets during the period 61 61 ‐ 61 Reclassification of unrealized gain from prior periods upon derecognition of available-for-sale investments (733) (733) ‐ (733) Foreign currency translation differences from foreign operations 1,607 ‐ 1,607 ‐ 1,607 Deferred tax expense (227) (1,260) (1,487) ‐ (1,487) Total other comprehensive income (loss) for the period 1,380 4,139 5,519 - 5,519 Total comprehensive income for the period 1,380 4,139 5,519 30,016 35,535 Transactions with owners, recorded directly in equity Dividends to owners of the Company (note 14)(5,510) (5,510) Balance at December 31, 2010 $ 99,283 $ 1,380 $ 7,142 $ 8,522 $ 35,246 $ 143,051 See accompanying notes to the consolidated financial statements. Accumulated other comprehensive income/(loss) 4 CONSTELLATION SOFTWARE INC. Condensed Consolidated Statements of Cash Flows (In thousands of U.S. dollars) 2011 2010 Cash flows from operating activities: Net income 157,174$ 30,016$ Adjustments for: Depreciation 7,868 6,756 Amortization of intangible assets 76,650 67,926 Impairment of non-financial assets 489 - Finance income (7,267) (1,241) Finance costs 5,575 5,783 Bargain purchase gain - (1,745) Income tax expense (recovery) (75,203) 4,397 Foreign exchange loss 3,392 4,526 Change in non-cash operating working capital (note 24) (15,896) 10,550 Income taxes paid (15,249) (19,695) Net cash flows from operating activities 137,533 107,273 Cash flows from financing activities: Interest paid (4,979) (4,558) Decrease in other non current liabilities 3,720 326 Decrease in bank indebtedness, net (47,877) 4,191 Dividends paid (42,755) (5,510) Net cash flows from financing activities (91,891) (5,551) Cash flows from investing activities: Acquisition of businesses, net of cash acquired (note 4)(40,511) (90,627) Post-acquisition settlement payments, net of receipts (5,345) 7,697 Purchases of available-for-sale equity securities (5,944) (20,035) Proceeds from sale of available-for-sale equity securities 14,268 - Repayment of notes receivable - 4,085 Decrease in restricted cash 557 1,372 Interest and dividends received 1,113 838 Property and equipment purchased (7,350) (7,092) Cash flows provided for (used in) investing activities (43,212) (103,762) Effect of currency translation adjustment on cash and cash equivalents 151 (298) Decrease in cash and cash equivalents 2,581 (2,338) Cash, beginning of period 30,911 33,249 Cash, end of period 33,492$ 30,911$ See accompanying notes to the consolidated financial statements. 5 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 6 Notes to the consolidated financial statements 1. Reporting entity 15. Revenue 2. Basis of presentation 16. Finance income and finance costs 3. Significant accounting policies 17. Earnings per share 4. Business acquisitions 18. Capital risk management 5. Equity securities available-for-sale 19. Financial risk management and financial instruments 6. Inventories 20. Operating leases 7. Other assets 21. Operating segments 8. Property and equipment 22. Contingencies 9. Intangible assets 23. Guarantees 10. Bank indebtedness 24. Changes in non-cash operating working capital 11. Provisions 25. Related parties 12. Income tax expense 26. Subsequent events 13. Deferred tax assets and liabilities 27. Explanation of transition to IFRSs 14. Capital and other components of equity CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 7 1. Reporting entity Constellation Software Inc. ("Constellation") is a company domiciled in Canada. The address of Constellation's registered office is 20 Adelaide Street East, Suite 1200, Toronto, Ontario, Canada. The consolidated financial statements of Constellation as at and for the fiscal year ended December 31, 2011 comprise Constellation and its subsidiaries (together referred to as the "Company") and the Company's interest in associates. The Company, through its operating groups, is engaged principally in the development, installation and customization of software relating to the markets listed below, and in the provision of related professional services and support. People transportation Healthcare Moving & storage Taxi dispatch School food services Education (UK) Agri-business Public housing Homebuilders Fleet management Housing finance agencies Lease management Facility management Municipal treasury Winery management Rental Real estate brokers/agencies Auto, RV, marine & equipment dealers Justice Club management Pulp & paper Utilities Food services Manufacturing ERP Public safety Construction Shipping & logistics Local government Health & leisure clubs Supply chain management School administration Attractions Wholesale & distribution Property tax management Metal service centers 2. Basis of presentation (a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs). These are the Company’s first consolidated financial statements prepared in accordance with IFRSs and IFRS 1 First-time Adoption of International Financial Reporting Standards has been applied. An explanation of how the transition to IFRS has affected the reported financial position, financial performance and cash flows of the Company is provided in note 26. This note includes reconciliations of equity and comprehensive income of the comparative year and of equity at the date of transition reported under Canadian GAAP to IFRS. These consolidated financial statements were approved by the Board of Directors on February 29, 2012. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 8 (b) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for available-for- sale financial assets, certain assets and liabilities initially recognized in connection with business combinations, and derivative financial instruments, which are measured at fair value. (c) Functional and presentation of currency The financial statements are presented in US dollars, which is Constellation's functional currency. (d) Use of estimates and judgements The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect on profit or loss, when, and if, better information is obtained. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: Note 3(l) – Revenue recognition Note 3(a) - Business combinations Note 3(n) - Accounting for income taxes Note 3(j) - Impairment Note 3(d) - Intangible assets Note 22 - Contingencies 3. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and in preparing the opening IFRS statement of financial position at January 1, 2010 for the purposes of the transition to IFRSs, unless otherwise indicated. The accounting policies have been applied consistently by the Company‘s subsidiaries. (a) Basis of consolidation (i) Business combinations Acquisitions on or after January 1, 2010 Acquisitions on or after January 1, 2010, have been accounted for using the acquisition method required by IFRS 3. Goodwill arising on acquisition is measured as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount (generally fair CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 9 value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. Transaction costs that the Company incurs in connection with a business combination are expensed as incurred. Acquisitions prior to January 1, 2010 As part of its transition to IFRSs, the Company elected to restate only those business combinations that occurred on or after January 1, 2010. In respect of acquisitions prior to January 1, 2010, goodwill represents the amount recognized under previous Canadian GAAP. (ii) Consolidation methods Entities over which the Company has control are fully consolidated from the date that control commences until the date that control ceases. Entities over which the Company has significant influence (investments in "associates") are accounted for under the equity method. Significant influence is assumed when the Company's interests are 20% or more, unless qualitative factors overcome this assumption. Associates are those entities in which the Company has significant influence, but not control, over the financial and operating policies. Investments in associates are recognized initially at cost, inclusive of transaction costs. The Company's investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The consolidated financial statements include the Company's share of the income and expenses and equity movement of equity accounted investees, from the date that significant influence commences until the date that significant influence ceases. (iii) Transactions eliminated on consolidation Intra-company balances and transactions, and any unrealized income and expenses arising from intra-company transactions, are eliminated in preparing the consolidated financial statements. (b) Foreign currency translation (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of subsidiaries of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are re-measured to the functional currency at the exchange rate at that date. Foreign currency differences arising on re-measurement are recognized through profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments, which are recognized in other comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. (ii) Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to U.S. dollars using average exchange rates for the month during which the transactions occurred. Foreign currency differences are recognized in other comprehensive income in the cumulative translation account. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 10 Since January 1, 2010, the Company's date of transition, foreign currency differences are recognized and presented in other comprehensive income and in the foreign currency translation adjustment in equity. However, if the operation is a non-wholly owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interest when applicable. Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which its substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences. (c) Financial Instruments The Company's financial instruments comprise cash, restricted cash, equity securities, accounts receivables, notes receivables, share purchase warrants, derivatives, bank indebtedness, accounts payable and accrued liabilities, and holdbacks on acquisition. Financial assets are recognized in the consolidated statement of financial position if we have a contractual right to receive cash or other financial assets from another entity. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or were transferred and the Company has transferred substantially all risks and rewards of ownership. All financial liabilities are recognized initially on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. (i) Non-derivative financial assets Non-derivative financial assets are classified in the following categories at the time of initial recognition based on the purpose for which the financial assets were acquired: Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified within loans and receivables or financial assets at fair value through profit or loss. The Company’s investments in equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses which are recognized in profit or loss, are recognized in other comprehensive income and presented within equity in the fair value reserve. When an investment is derecognized, the cumulative gain or loss in other comprehensive income is transferred to profit or loss for the period. The fair value of the available-for-sale financial assets is determined by reference to their quoted closing bid price at the reporting date. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 11 Loans and receivables Loans and receivables, which comprise trade and notes receivables, are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value inclusive of any directly attributable transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment losses. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date, which are classified as non-current assets. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss which comprise warrants are classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value when the Company manages such investments and makes purchase and sale decisions based on their fair value and related investment strategy. Upon initial recognition, applicable transaction costs are recognized through profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (ii) Non derivative financial liabilities Financial liabilities consist of bank indebtedness, accounts payable and accrued liabilities, and holdbacks on acquisitions. Financial liabilities are recognized initially at fair value plus any directly attributable transaction costs and subsequently measured at amortized cost using the effective interest method. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expire. (iii) Derivatives Derivatives are recognized initially at fair value; applicable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized immediately in profit or loss. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. (d) Intangible assets (i) Goodwill Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For measurement of goodwill at initial recognition, including the recognition of bargain purchase gains, refer to note 4(a). In respect of acquisitions prior to January 1, 2010, goodwill is included on the basis of its deemed cost, which represents the amount recognized under previous GAAP. After initial recognition, goodwill is measured at cost less any accumulated impairment losses, with the carrying value being reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may be impaired. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 12 not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity accounted investee. No such losses have been recognized during the year. The impairment test methodology is based on a comparison between the higher of fair value less costs to sell and value-in-use of each of the Company's business units (considered as the grouping of cash generating units ("CGU") at which level the impairment test is performed) and the net asset carrying values (including goodwill) of the Company's business units. Within the Company's reporting structure, business units generally reflect one level below the six operating segments (Volaris Operating Group, Harris Operating Group, Emphasys Operating Group, Jonas Operating Group, Homebuilder Operating Group, Friedman Operating Group). In determining the recoverable amount, the Company applies an estimated market valuation multiple to the business unit's annual reoccurring revenues, which are derived from combined software/support contracts, transaction revenues, and hosted products. Valuation multiples reflect current conditions specific to the business unit and are tested for reasonability by comparing to the Company's current and past experience in acquiring representative software companies. An impairment is recognized if the carrying amount of a CGU exceeds its estimated recoverable amount. (ii) Acquired intangible assets The Company uses the income approach to value acquired technology and customer relationship intangible assets. The income approach is a valuation technique that calculates the fair value of an intangible asset based on the estimated cash flows that the asset can be expected to generate over its remaining useful life. The Company utilizes the discounted cash flow ("DCF") methodology which is a form of the income approach that begins with a forecast of the annual cash flows that a market participant would expect the subject intangible asset to generate over a discrete projection period. The forecasted cash flows for each of the years in the discrete projection period are then converted to their present value equivalent using a rate of return appropriate for the risk of achieving the intangible assets' projected cash flows, again, from a market participant perspective. The present value of the forecasted cash flows are then added to the present value of the residual value of the intangible asset (if any) at the end of the discrete projection period to arrive at a conclusion with respect to the fair value of the subject intangible assets. Specifically, the Company relies on the relief-from-royalty method to value the acquired technology and the multiple-period excess earnings ("MEEM") method to value customer assets. The underlying premise of the relief-from-royalty method is that the fair value of the technology is equal to the costs savings (or the "royalty avoided") resulting from the ownership of the asset by the avoidance of paying royalties to license the use of the technology from another owner. Accordingly the income forecast reflects an estimate of a fair royalty that a licensee would pay, on a percentage of revenue basis, to obtain a license to utilize the technology. The MEEM method isolates the cash flows attributable to the subject asset by utilizing a forecast of expected cash flows less the returns attributable to other enabling assets, both tangible and intangible. Other intangible assets that are acquired by the Company and have finite useful lives are measured at cost, being reflective of fair value, less accumulated amortization and impairment losses. Subsequent expenditures are capitalized only when it increases the future economic benefits that form part of the specific asset to which it relates. Otherwise all other expenditures are recognized in profit or loss as incurred. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 13 Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are acquired and available for use, since this most closely reflects the expected usage and pattern of consumption of the future economic benefits embodied in the asset. To determine the useful life of the technology assets, the Company considers the length of time over which it expects to earn or recover the present value of the assets. The estimated useful lives for the current and comparative periods are as follows: Technology assets 2 to 12 years Customer assets 5 to 12 years Backlog 1 year Non-Compete agreements Life of agreement Amortization methods, useful lives and the residual values are reviewed at least annually and are adjusted if appropriate. (iii) Research and development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalized only if the product or process is technically and commercially feasible, if development costs can be measured reliably, if future economic benefits are probable, if the Company intends to use or sell the asset and the Company intends and has sufficient resources to complete development. To date, no development expenditures have been capitalized. For the year ended December 31, 2011, $101,750 (2010 ‒ $84,880) of research and development costs have been expensed in profit or loss. These costs are net of investment tax credits recognized through profit or loss of $7,081 for the year ended December 31, 2011 (2010 ‒ $3,752). (e) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost of property and equipment at January 1, 2010, the date of transition to IFRS, was determined by reference to its carrying value as elected for deemed cost purposes. Cost includes initial and subsequent expenditures that are directly attributable to the acquisition of the related asset. When parts of an item of property, and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. (ii) Depreciation Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property and equipment. The estimated useful lives for the current and comparative periods are as follows: CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 14 Asset Rate Computer hardware 3 Years Computer software 1 Year Furniture and equipment 5 Years Leasehold improvements Shorter of the estimated useful life and the term of the lease Building 50 Years Depreciation methods, useful lives and residual values are reviewed at each financial year end or more frequently as deemed relevant, and adjusted where appropriate. (f) Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the first-in first-out principle, and includes expenditures incurred in acquiring the inventories, production and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. (g) Work in progress Work in progress represents the gross unbilled amount expected to be collected from customers for contract work performed to date. It is measured at cost plus profit recognized to date (see note 3(l)) less progress billings and recognized losses, if any. Work in progress is presented in the statement of financial position for all contracts in which costs incurred plus recognized profits exceed progress billings. If progress billings exceed costs incurred plus recognized profits, then the difference is presented as deferred revenue in the statement of financial position. (h) Acquired contract assets and liabilities Long-term customer contracts acquired in a business combination are assigned a fair value at the date of acquisition based on the remaining amounts to be billed under the contract, reduced by the estimated costs to complete the contract and an allowance for normal profit related to the activities that will be performed after the acquisition. The resulting amount is recorded as an asset when billings are in excess of costs plus the allowance for normal profit on uncompleted contracts. Conversely, the resulting amount is recorded as liability when costs plus the allowance for normal profit are in excess of billings on uncompleted contracts. Each period subsequent to acquisition, the asset (liability) is reduced (increased) by actual billings and increased (decreased) by revenue recognized in the statement of operations. (i) Other noncurrent liabilities Other non-current liabilities consists of the non-current portion of lease incentives, non-compete obligations, deferred revenue and contingent consideration recognized in connection with business acquisitions to be settled in cash over the next three years, which were discounted for measurement purposes. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 15 (j) Impairment (i) Financial assets (including receivables) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, or indications that a debtor or issuer will enter bankruptcy. The Company considers evidence of impairment for receivables at both a specific and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired, together with receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. Impairment losses on available-for-sale equity securities are recognized by transferring the cumulative loss that has been recognized in other comprehensive income, and presented in unrealized gains/losses on available-for- sale financial assets in equity, to profit or loss. The cumulative loss that is removed from other comprehensive income and recognized through profit or loss is the difference between the acquisition cost, net of any principal repayment and amortization, and the current fair value, less any impairment loss previously recognized through profit or loss. If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognized in profit or loss, then the impairment loss is reversed, with the amount of the reversal recognized in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognized in other comprehensive income. (ii) Non-Financial assets The carrying amounts of the Company’s non-financial assets, other than, inventories (note 3(f)) and deferred tax assets (note 3(n)), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is estimated annually on December 31 of each year. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing the value in use, the Company uses discounted cash flows which are determined using a pre-tax discount rate specific to the asset or CGU. The discount rate used reflects current market conditions including risks specific to the assets. Significant estimates within the cash flows include maintenance growth rates and operating expenses. For the purpose of impairment testing, assets that cannot be tested individually CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 16 are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. For the purposes of goodwill impairment testing, goodwill acquired in a business combination is allocated to the CGU, or the group of CGUs, that is expected to benefit from the synergies of the combination. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU (group of units) on a pro rata basis. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately and, therefore, is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been previously recognized. (k) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at the estimated future cash flows required to settle the present obligation, based on the most reliable evidence available at the reporting date. The estimated cash flows are discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The amortization of the discount is recognized as part of finance costs. (l) Revenue recognition Revenue represents the fair value of consideration received or receivable from clients for goods and services provided by the Company, net of discounts and sales taxes. The Company reports revenue under four revenue categories being, License, Hardware, Professional Services and Maintenance. Typically, the Company's software license agreements are multiple-element arrangements as they may also include maintenance, professional services, and hardware. Multiple-element arrangements are recognized as the revenue for each unit of accounting is earned based on the relative fair value of each unit of accounting as determined by an internal analysis of prices or by using the residual method. A delivered element is considered a separate unit of accounting if it has value to the customer on a standalone basis, and delivery or performance of the undelivered elements is considered probable and substantially under the Company's control. If these criteria are not met, revenue for the arrangement as a whole is accounted for as a single unit of accounting. The Company typically sells or licenses software on a perpetual basis, but also licenses software for a specified time. Revenue from short-term time-based licenses, which usually include support services during the license period, is recognized rateably over the license term. Revenue from multi-year time based licenses that include CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 17 support services, whether separately priced or not, is recognized rateably over the license term unless a substantive support service renewal rate exists; if this is the case, the amount allocated to the delivered software is recognized as software revenue based on the residual approach once the revenue criteria have been met. Revenue from the license of software involving significant implementation or customization essential to the functionality of the Company's product, or from the sales of hardware where software is essential to its functionality, is recognized under the percentage-of-completion method of contract accounting based either on the achievement of contractually defined milestones or based on labour hours. Any probable losses are recognized immediately in operating expenses. In certain situations where the outcome of an arrangement cannot be estimated reliably, costs associated with the arrangement are recognized as incurred. In this situation, revenues are recognized only to the extent of the costs incurred that are probable of recovery. A portion of the Company's sales, categorized as hardware revenue, are accounted for as product revenue. Product revenue is recognized when the Company has an executed agreement, the product has been delivered and costs can be measured reliably, the amount of the fee to be paid by the customer is fixed and determinable, and the collection of the related receivable is deemed probable from the outset of the arrangement. If for any of our product or service offerings, the Company determines at the outset of an arrangement that the amount of revenue cannot be measured reliably, the Company concludes that the inflow of economic benefits associated with the transaction is not probable, and revenue is deferred until the arrangement fee becomes due and payable by the customer. If, at the outset of an arrangement, the Company determines that collectability is not probable, the Company concludes that the inflow of economic benefits associated with the transaction is not probable, and revenue recognition is deferred until the earlier of when collectability becomes probable or payment is received. If collectability becomes unlikely before all revenue from an arrangement is recognized, the Company recognizes revenue only to the extent of the fees that are successfully collected unless collectability becomes reasonably assured again. If a customer is specifically identified as a collection risk, the Company does not recognize revenue except to the extent of the fees that have already been collected. Maintenance revenue primarily consists of fees charged for customer support on software products post-delivery and also includes, to a lesser extent, recurring fees derived from combined software/support contracts, transaction revenues, and hosted products. Maintenance revenue remaining to be recognized in profit or loss under this policy is recognized as deferred revenue in the balance sheet when amounts have been billed in advance. Professional Services revenue including implementation, training and customization of software is recognized by the stage of completion of the arrangement determined using the percentage of completion method noted above or as such services are performed as appropriate in the circumstances. The revenue and profit of fixed price contracts is recognized on a percentage of completion basis when the outcome of a contract can be estimated reliably. When the outcome of the contract cannot be estimated reliably, the amount of revenue recognized is limited to the cost incurred in the period. Losses on contracts are recognized as soon as a loss is foreseen by reference to the estimated costs of completion. Management exercises judgement in determining whether a contract's outcome can be estimated reliably. Management also applies estimates in the calculation of future contract costs and related profitability as it relates to labour hours and other considerations, which are used in determining the value of amounts recoverable on contracts and timing of revenue recognition. Estimates are continually revised based on changes in the facts relating to each contract. Judgement is also needed in assessing the ability to collect the corresponding receivables. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 18 The timing of revenue recognition often differs from contract payment schedules, resulting in revenue that has been earned but not billed. These amounts are included in work in progress. Amounts billed in accordance with customer contracts, but not yet earned, are recorded as deferred revenue. (m) Finance income and finance costs Finance income comprises interest income, gains on the disposal of available-for-sale financial assets, dividend income, and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognized as it accrues through profit or loss, using the effective interest method. Finance costs comprise interest expense on borrowings, amortization of the discount on provisions, fair value losses on financial assets at fair value through profit or loss, and impairment losses recognized on financial assets other than trade receivables. Transaction costs attributable to our line of credit are recognized in finance costs using the effective interest method. Foreign currency gains and losses are reported on a net basis. (n) Income taxes Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for temporary differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits, difference in tax bases in the purchaser's tax jurisdiction and its cost as reported in the consolidated financial statements as a result of an intra-group transfer of assets and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. (o) Investment tax credits The Company is entitled to certain non-refundable Canadian investment tax credits for qualifying research and development activities in Canada. Investment tax credits are accounted for as a reduction of the related CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 19 expenditure for items of a current expense nature or as a reduction of property and equipment for items of a capital nature when the amount is reliably estimable and the Company has reasonable assurance regarding compliance with the relevant conditions and that the credit will be realized. (p) Segment reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. The operating results of all operating segments are reviewed regularly by the Company’s President and Chairman of the Board of Directors to make decisions about resources to be allocated to the segment and assessing their performance. The Company's has six operating segments, referred to as Operating Group's by the Company being Volaris, Harris, Emphasys, Jonas, Homebuilder, and Friedman. The operating segments are aggregated by applying the aggregation criteria in IFRS 8, Operating Segments, into two reportable segments Public (Volaris, Harris, Emphasys) and Private (Jonas, Homebuilder, Friedman). Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly interest-bearing borrowings and expenses, and corporate assets and expenses and are included as part of the other segment when reconciling to the consolidated totals. Segment capital expenditures are the total cost incurred during the period to acquire segment assets, being property and equipment and intangibles that are expected to be used for more than one period. Corporate head office operating expenses, which exclude the unallocated items noted above, are allocated on a consistent basis to the Company's segments based on the segment's percentage of total consolidated revenue for the allocation period. (q) Earnings per share The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attributable to shareholders and the weighted average number of shares outstanding , adjusted for the effects of all dilutive potential ordinary shares. (r) Short-term employee benefits Short-term employee benefit obligations, including wages, benefits, incentive compensation, and compensated absences are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under the Company's employee incentive compensation plan if the Company has legal or constructive obligation to pay this amount at the time bonuses are paid as a result of past service provided by the employee, and the obligation can be estimated reliably. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 20 (s) Lease payments Payments made under operating leases are recognized in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. (t) New standards and interpretations not yet adopted A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended December 31, 2011, and have not been applied in preparing these consolidated financial statements. The relevant standards are listed below. IFRS 9 Financial Instruments IFRS 9 (2010) supersedes IFRS 9 (2009) and is effective for annual periods beginning on or after January 1, 2015, with early adoption permitted. For annual periods beginning before January 1, 2015, either IFRS 9 (2009) or IFRS 9 (2010) may be applied. The Company intends to adopt IFRS 9 (2010) in its financial statements for the annual period beginning on January 1, 2015. The extent of the impact of adoption of IFRS 9 (2010) has not yet been determined. Amendments to IFRS 7 Disclosures – Transfers of Financial Assets The Company does not expect the amendments to have a material impact on the financial statements, because of the nature of the Company’s operations and the types of financial assets that it holds. Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2012. The Company does not expect the amendments to IAS 12 to have a material impact on the financial statements. IFRS 10 Consolidated Financial Statements The Company intends to adopt IFRS 10 in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect IFRS 10 to have a material impact on the financial statements. IFRS 11 Joint Arrangements The Company intends to adopt IFRS 11 in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect IFRS 11 to have a material impact on the financial statements. IFRS 12 Disclosure of Interests in Other Entities The Company intends to adopt IFRS 12 in its financial statements for the annual period beginning on January 1, 2013. The Company does not expect the amendments to have a material impact on the financial statements, because of the nature and extent of the Company’s interests in other entities. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 21 IFRS 13 Fair Value Measurement The Company intends to adopt IFRS 13 prospectively in its financial statements for the annual period beginning on January 1, 2013. The extent of the impact of adoption of IFRS 13 has not yet been determined. Amendments to IAS 28 Investments in Associates and Joint Ventures The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2013. The extent of the impact of adoption of the amendments has not yet been determined. Amendments to IAS 1 Presentation of Financial Statements The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2013. As the amendments only require changes in the presentation of items in other comprehensive income, the Company does not expect the amendments to IAS 1 to have a material impact on the financial statements. Amendments to IAS 19 Employee Benefits The Company intends to adopt the amendments in its financial statements for the annual period beginning on January 1, 2013. The extent of the impact of adoption of the amendments has not yet been determined. Amendments to IAS 32 and IFRS 7, Offsetting Financial Assets and Liabilities The Company intends to adopt the amendments to IFRS 7 in its financial statements for the annual period beginning on January 1, 2013, and the amendments to IAS 32 in its financial statements for the annual period beginning January 1, 2014. The extent of the impact of adoption of the amendments has not yet been determined. 4. Business acquisitions 2011 (a) During the year ended December 31, 2011, the Company closed twenty two acquisitions for aggregate cash consideration of $46,962 plus cash holdbacks of $9,647, resulting in total consideration of $56,609. There was no individually material acquisition in 2011. Of the twenty two acquisitions, the Company acquired 100% of the shares of twelve companies and acquired the net assets of the other ten companies. The holdbacks are payable over a three-year period and are adjusted, as necessary, for claims under the respective representations and warranties of the agreements. The acquisitions include software companies catering to the agri-business, supply chain management, moving and storage, health and leisure clubs, local government, public safety, auto, RV, marine and equipment dealers, manufacturing ERP, club management, school administration, land management, and wholesale and distribution, all of which are software businesses similar to existing businesses operated by the Company. The acquisitions have been accounted for using the acquisition method with the results of operations included in these consolidated financial statements from the date of each acquisition. The goodwill recognized in connection with these acquisitions is primarily attributable to the application of Constellation’s best practices to improve the operations of the companies acquired, and to a lesser extent, synergies with existing businesses of Constellation and other intangibles that do not qualify for CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 22 separate recognition. Goodwill in the amount of $6,710 is expected to be deductible for income tax purposes. Due to the complexity and timing of certain acquisitions made in the latter part of the year, the Company is still in the process of determining and finalizing the fair value of the assets and liabilities acquired as part of the acquisitions. The amounts determined on a provisional basis generally relate to net tangible asset assessments and measurement of the assumed liabilities. Twelve of the acquisitions have been included in the private reportable segment and ten have been included in the public reportable segment. The following table summarizes, by reportable segment, the aggregate estimated fair value of the assets and liabilities acquired, as well as deferred income taxes, assumed at the date of each acquisition: Public Sector Private Sector Consolidated Assets acquired: Cash 750$ 5,701$ 6,451$ Accounts receivable 4,972 3,627 8,599 Other current assets 558 622 1,180 Property and equipment 362 1,313 1,675 Other long term assets - 229 229 Deferred income taxes - 497 497 Technology assets 22,351 20,662 43,013 Customer assets 13,644 8,764 22,408 42,637 41,415 84,052 Liabilities assumed: Current liabilities 3,595 7,153 10,748 Deferred revenue 15,429 2,572 18,001 Deferred income taxes 1,712 1,729 3,441 Other long term liabilities 2,784 1,239 4,023 23,520 12,693 36,213 Goodwill 7,248 1,522 8,770 Total cash consideration 26,365$ 30,244$ 56,609$ During the period the Company also acquired 50% of the shares of a software company catering to private clubs for consideration of nil. This acquisition has been accounted for as an associate. The 2011 acquisitions include contingent consideration payable on the achievement of certain revenue and income targets. The obligation for contingent consideration for acquisitions during the year ended December 31, 2011 has been recorded at its estimated fair value, which has been determined to be $5,443 at the various acquisition dates. As part of these arrangements, which included both the maximum and unlimited contingent consideration amounts, the estimated outcome is not expected to CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 23 exceed a maximum of $9,000, which is representative of the Company's current assessment relative to the applicable targets. Aggregate contingent consideration of $7,166 (December 31, 2010 - $2,944; January 1, 2010 - $1,145) has been reported at its estimated fair value relating to applicable acquisitions in the statement of financial position. The 2011 business acquisitions contributed revenue of $37,349 and net income of $2,179 during the year ended December 31, 2011. Revenue and net income amounts from acquisitions included in the Public sector were $24,282 and $2,144, respectively. Revenue and net loss amounts from acquisitions included in the Private sector were $13,067 and $35, respectively. If the acquisitions would have occurred on January 1, 2011, management estimates that consolidated revenue would have been $801,431 and consolidated net income for the period would have been $154,813 as compared to the amounts reported in the statement of comprehensive income for the period. In determining these amounts, management has assumed that the fair value adjustments that arose on the date of acquisitions would have been the same if the acquisition had occurred on January 1, 2011. The net loss from acquisitions is primarily caused by the associated amortization of intangible assets recognized as if the acquisitions had occurred on January 1, 2011. 2010 (b) On October 1, 2010, the Company acquired the Cogsdale group of companies ("Cogsdale") for aggregate cash consideration of $24,580 plus cash holdbacks of $2,524 resulting in total consideration of $27,104. The holdbacks are payable over a one year period and are adjusted for claims under the representations and warranties of the agreements. Holdbacks of $410 have subsequently been paid. The balance of the cash holdbacks accrued have yet to be settled due to disputes over the net tangible assets of the business and subsequent net tangible asset arbitration. It is unknown at this time whether additional cash holdback amounts will be paid. Cogsdale is a leading provider of service-oriented business solutions to local governments and utilities. The acquisition has been accounted for using the acquisition method with the results of operations included in these consolidated financial statements from the date of acquisition. The following table summarizes the aggregate fair value of the assets acquired and liabilities assumed at the date of acquisition: Assets acquired: Accounts receivable $ 4,904 Other non-cash current assets 329 Property and equipment 520 Technology assets 20,985 Customer assets 6,704 Backlog 1,729 35,171 Liabilities assumed: Current liabilities 3,037 Deferred revenue 3,568 Other long term liabilities 1,462 8,067 Total cash consideration $ 27,104 This acquisition has been included in the Public Sector reportable segment. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 24 (c) April 30, 2010, the Company acquired all of the remaining shares, not already held by the Company, of UK-based Gladstone PLC ("Gladstone") for $17,336. As at March 31, the Company had recorded its 31% ownership in Gladstone as an equity investment with a fair value of $9,479. The aggregate fair value determined upon acquisition was $26,870. There was no material gain or loss resulting from the difference in equity accounting and fair value on acquisition. Gladstone is a global provider of solutions for the health and leisure and education verticals. The acquisition has been accounted for using the acquisition method with the results of operations included in these consolidated financial statements from the date of acquisition. The following table summarizes the aggregate fair value of the assets acquired and liabilities assumed at the date of acquisition: Assets acquired: Cash $ 7,653 Accounts receivable 2,886 Other current assets 498 Deferred income taxes 1,655 Property and equipment 2,281 Technology assets 12,276 Customer assets 3,791 Backlog 800 31,840 Liabilities assumed: Current liabilities 43 Deferred revenue 3,012 Deferred income taxes 4,551 7,606 Goodwill 2,636 Total cash consideration $ 26,870 The acquisition has been included in the Private Sector reportable segment. (d) During the year ended December 31, 2010, the Company made nineteen additional acquisitions for aggregate cash consideration of $63,088 plus cash holdbacks of $6,688 resulting in total consideration of $69,776. The holdbacks are payable over a three-year period ending June 25, 2013 and are adjusted for claims under the representations and warranties of the agreements. Holdbacks of $1,734 remain at December 31, 2011. The acquisitions include software companies catering to the pulp and paper, tourism and attractions, schools, catalog, public transit, agriculture business, health club, health care, and housing finance agency markets. The acquisitions have been accounted for using the acquisition method with the results of operations included in these consolidated financial statements from the date of each acquisition. The following table summarizes, by reportable segment, the aggregate fair value of the assets acquired and liabilities assumed at the date of each acquisition: CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 25 Public Sector Private Sector Consolidated Assets acquired: Cash $ 5,691 $ 1,354 $ 7,045 Accounts receivable 8,642 5,100 13,742 Other current assets 2,554 1,176 3,730 Property and equipment 1,360 511 1,871 Deferred income taxes 5,850 141 5,991 Technology assets 21,041 20,243 41,284 Customer assets 8,778 7,309 16,087 Backlog 917 - 917 54,833 35,834 90,667 Liabilities assumed: Current liabilities 5,598 2,742 8,340 Deferred revenue 8,039 4,341 12,380 Deferred income taxes 2,564 2,706 5,270 Other long term liabilities 131 159 290 16,332 9,948 26,280 Goodwill 6,917 217 7,134 Excess of fair value of net assets acquired over consideration paid (1,745) - (1,745) Total cash consideration $ 43,673 $ 26,103 $ 69,776 (e) The goodwill recognized as a result of the 2010 acquisitions is primarily attributable to the application of Constellation best practices to the companies acquired, and to a lesser extent, synergies with existing businesses and other intangibles that do not qualify for separate recognition. Goodwill in the amount of $2,444 is expected to be deductible for income tax purposes. A bargain purchase gain totalling $1,745 arose on one of the 2010 acquisitions because the fair value of the separately identifiable assets and liabilities acquired exceeded the total consideration paid, principally due to the acquisition of tax attributes that will benefit the Company. The excess of the fair value of net assets acquired over costs totalling $1,745 has been recorded as a bargain purchase gain in profit or loss. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 26 5. Equity securities available-for-sale At December 31, 2011, the Company held investments in three (December 31, 2010 - three; January 1, 2010 - five) public companies listed in the U.S. and Canada, all of which develop and sell software solutions. All investments have been designated as available-for-sale in the Company's consolidated financial statements. One investment was sold during the year and, accordingly, a gain on sale was recognized in profit or loss. December 31, 2011 December 31, 2010 January 1, 2010 Cost Fair Value Cost Fair Value Cost Fair Value Common shares $ 13,330 $ 21,222 $ 15,320 $ 23,723 $ 19,139 $ 22,323 6. Inventories December 31, 2011 December 31, 2010 January 1, 2010 Raw materials 9,726$ 9,126$ 4,266$ Work in progress 429 817 499 Finished goods 3,384 6,002 9,555 Total 13,539$ 15,945$ 14,320$ No inventories were carried at fair value less cost to sell, and the carrying amount of inventories subject to retention of title clauses was nil, at December 31, 2011 and for the comparative periods disclosed. In 2011 raw materials and changes in finished goods and work in progress recognized as cost of sales amounted to $57,850 (2010: $42,737). In 2011 the write-down of inventories to net realizable value amounted to $157 (2010: $383). The reversal of write-downs amounted to $764 (2010: $115). Write-downs and reversals of write- downs are based on the Company’s projected usage. The write-down and reversal are included in costs of sales. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 27 7. Other Assets December 31, 2011 December 31, 2010 January 1, 2010 Prepaid assets 22,432$ 21,652$ 16,014$ Investment tax credits recoverable 3,201 3,929 2,250 Notes receivable (ii) - - 3,833 Acquired contract assets (iii) - 882 4,164 Total current 25,633$ 26,463$ 26,261$ Restricted cash (i) 23$ 857$ 2,229$ Investment tax credits recoverable 8,271 3,689 2,133 Long-term trade and other receivables 2,485 3,247 3,605 Share purchase warrants - - 200 Equity accounted investees (iv) 14,534 14,698 - Acquired contract assets (iii) 2,692 1,057 5,712 Total non-current 28,005$ 23,548$ 13,879$ (i) Restricted cash Restricted cash is held in accordance with various escrow agreements related to prior and current period business acquisitions. (ii) Notes receivable and share purchase warrants Prior to 2009 the Company entered into agreements with VCG Inc. (subsequently VCG LLC) to purchase $4,085 senior subordinated secured notes. These notes bore interest at 12% per annum payable annually in arrears and originally matured on June 18, 2012. A note extension agreement was entered into on April 13, 2009 which extended the June 18, 2009 and June 18, 2010 interest payment dates to December 31, 2009 and December 31, 2010, respectively. The agreement also accelerated the maturity date of the principal amount of each note (together with the accrued interest on the principal amount) from June 18, 2012 to December 31, 2010 resulting in the principal amount being reclassified to current assets at December 31, 2009. In conjunction with these notes, the Company received share purchase warrants (the "Warrants") having the right to purchase Preferred Series C-1 shares convertible into 8.9% of the fully diluted equity interest of VCG Inc. as of September 22, 2008, subject to the terms of the Warrants. The Warrant component of this instrument constituted a derivative, and accordingly, was valued separately from the value of the notes. For the year ended December 31, 2010, the Company recorded interest income related to carrying value accretion of $252 (2009 - $190). On November 12, 2010, the Company increased its investment in Bond International Software plc ("Bond"). Bond utilized the proceeds of the investment to purchase VCG LLC, one of Bond’s largest North American competitors. The principal value plus accrued interest outstanding to the Company on the VCG LLC notes was repaid in full on CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 28 the closing of the transaction. The rights associated with Warrants were relinquished and the deemed fair value of $200 was recorded in profit or loss as a charge to finance expense. (iii) Acquired contract assets Long-term contracts acquired in a business combination are assigned a fair value at the date of acquisition based on the remaining amounts to be billed under the contract, reduced by the estimated costs to complete the contract and an allowance for normal profit related to the activities that will be performed after the acquisition. The resulting amount is recorded as an asset when billings are in excess of costs plus the allowance for normal profit on uncompleted contracts at the date of acquisition. Each period subsequent to acquisition, the asset is reduced by actual billings and increased by revenue recognized in the statement of operations. (iv) Equity accounted investees For 2011, the Company’s share of profit in its investments currently being accounted for as equity investees was nil (2010: nil). Dividends received for the year totalled $164 (2010: nil). The market value of the publically traded equity held in the equity accounted investee is $7,113. Summary financial information for equity accounted investees, not adjusted for the percentage ownership held by the Company is as follows: June 30, 2011 December 31, 2010 January 1, 2010 Note 1 Total assets 82,446 86,994 75,319 Total liabilities 26,722 30,821 25,460 Six months ended June 30, 2011 Fiscal year ended December 31, 2010 Note 1 Revenue 29,471 50,011 Expenses 29,468 50,986 Net income (loss) 3 (975) Note 1: Based on most recently published financial information. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 29 8. Property and equipment Computer hardware Computer software Furniture and equipment Leasehold improvements Building Total Cost Balance at January 1, 2010 19,281$ 7,130$ 8,414$ 4,000$ -$ 38,825$ Additions 2,784 3,105 707 496 - 7,092 Acquisitions through business combinations 914 526 993 279 1,960 4,672 Disposals / retirements (28) - (162) (86) - (276) Effect of movements in foreign exchange 244 120 32 7 - 403 Balance at December 31, 2010 23,195$ 10,881$ 9,984$ 4,696$ 1,960$ 50,716$ Balance at January 1, 2011 23,195$ 10,881$ 9,984$ 4,696$ 1,960$ 50,716$ Additions 2,640 1,998 1,224 1,488 - 7,350 Acquisitions through business combinations 995 226 391 63 - 1,675 Disposals / retirements (909) (83) (356) (35) - (1,383) Effect of movements in foreign exchange (161) (55) (27) (37) (2) (282) Balance at December 31, 2011 25,760$ 12,967$ 11,216$ 6,175$ 1,958$ 58,076$ Depreciation and impairment losses Balance at January 1, 2010 15,573$ 6,263$ 6,474$ 2,289$ -$ 30,599$ Depreciation charge for the year 2,414 2,724 1,172 446 - 6,756 Disposals / retirements (25) - (142) (59) - (226) Effect of movements in foreign exchange 11 50 (17) 6 68 118 Balance at December 31, 2010 17,973$ 9,037$ 7,487$ 2,682$ 68$ 37,247$ Balance at January 1, 2011 17,973$ 9,037$ 7,487$ 2,682$ 68$ 37,247$ Depreciation charge for the year 3,319 2,760 1,111 678 - 7,868 Disposals / retirements (908) (83) (352) (35) - (1,378) Effect of movements in foreign exchange (143) (76) (22) (11) - (252) Balance at December 31, 2011 20,241$ 11,638$ 8,224$ 3,314$ 68$ 43,485$ Carrying amounts: At January 1, 2010 3,708$ 867$ 1,940$ 1,711$ -$ 8,226$ At December 31, 2010 5,222$ 1,844$ 2,497$ 2,014$ 1,892$ 13,469$ At January 1, 2011 5,222$ 1,844$ 2,497$ 2,014$ 1,892$ 13,469$ At December 31, 2011 5,519$ 1,329$ 2,992$ 2,861$ 1,890$ 14,591$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 30 9. Intangible assets and goodwill Technology Assets Customer Assets Backlog Non-compete agreements Goodwill Total Cost Balance at January 1, 2010 249,961$ 85,566$ 7,583$ 4,544$ 40,821$ 388,475$ Acquisitions through business combinations 74,545 26,582 3,446 9,770 114,343 Effect of movements in foreign exchange 3,199 (1,209) 1,948 (1,864) (446) 1,628 Balance at December 31, 2010 327,705$ 110,939$ 12,977$ 2,680$ 50,145$ 504,446$ Balance at January 1, 2011 327,705$ 110,939$ 12,977$ 2,680$ 50,145$ 504,446$ Acquisitions through business combinations 43,057 22,407 - 17 9,296 74,777 Effect of movements in foreign exchange (550) (197) - (12) 50 (709) Balance at December 31, 2011 370,212$ 133,149$ 12,977$ 2,685$ 59,491$ 578,514$ Amortization and impairment losses Balance at January 1, 2010 123,919$ 31,598$ 7,583$ 3,136$ -$ 166,236$ Amortization for the year 47,041 18,818 1,376 691 - 67,926 Effect of movements in foreign exchange 1,511 (1,281) 1,697 (1,630) 297 Balance at December 31, 2010 172,471$ 49,135$ 10,656$ 2,197$ -$ 234,459$ Balance at January 1, 2011 172,471$ 49,135$ 10,656$ 2,197$ -$ 234,459$ Amortization for the year 52,952 21,125 2,329 244 - 76,650 Impairment charge 376 113 - - - 489 Effect of movements in foreign exchange (687) (165) (12) (12) - (876) Balance at December 31, 2011 225,112$ 70,208$ 12,973$ 2,429$ -$ 310,722$ Carrying amounts At January 1, 2010 126,042$ 53,968$ -$ 1,408$ 40,821$ 222,239$ At December 31, 2010 155,234$ 61,804$ 2,321$ 483$ 50,145$ 269,987$ At January 1, 2011 155,234$ 61,804$ 2,321$ 483$ 50,145$ 269,987$ At December 31, 2011 145,100$ 62,941$ 4$ 256$ 59,491$ 267,792$ Impairment testing for cash-generating units containing goodwill The annual impairment test of goodwill was performed in Q4, 2011 and Q4, 2010 and did not result in any impairment loss. As permitted by IFRS 1, the Company elected not to restate business combinations prior to January 1, 2010 [refer to Note 3(a)(i)]. As required under this election an impairment test was performed on the January 1, 2010 statement of financial position, which did not result in the recognition of an impairment loss. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 31 For the purpose of impairment testing, goodwill is allocated to the Company’s business units which represent the lowest level within the Company at which the goodwill is monitored for internal management purposes, which is not higher than the Company’s operating segments. There was no goodwill allocated to the Company’s business units that was deemed to be significant in comparison to the carrying amount of goodwill as at December 31, 2011. 10. Bank indebtedness Constellation has an operating line-of-credit with a syndicate of Canadian chartered banks and U.S. banks in the amount of $160,000 (December 31, 2010 - $160,000; January 1, 2010 - $160,000). The line-of-credit bears a variable interest rate and is due in full on September 30, 2012 with no fixed repayment required. Interest rates are calculated at prime or LIBOR plus interest rate spreads based on a leverage table. The line-of-credit is secured by a general security agreement covering the majority of Constellation and its subsidiaries’ present and future real and personal property, assets and undertaking, including all shares, partnership interests and other equity interests held in the capital of any other company; and is subject to various debt covenants. As at December 31, 2011, nil (December 31, 2010 - $47,291; January 1, 2010 - $43,100) had been drawn from this credit facility, and letters of credit totalling $385 (December 31, 2010 - $403; January 1, 2010 - nil) were issued, which limits the borrowing capacity on a dollar-for-dollar basis. Capitalized transaction costs associated with the line-of-credit are being amortized through profit or loss using the effective interest rate method. As at December 31, 2011, $644 (December 31, 2010 - $1,250; January 1, 2010 - $1,947), the carrying amount of such costs were in the statement of financial position and have been classified as part of other current assets. Years ended December 31, 2011 2010 Interest expense $ 4,448 $ 4,286 Amortization of transaction costs 596 697 $ 5,044 $ 4,983 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 32 11. Provisions Restructuring Other Total At January 1, 2010 5,874$ 2,438$ 8,312$ Reversal (4,765) - (4,765) Provisions made during the year - 847 847 Provisions used during the year (1,064) (1,010) (2,074) Effect of movements in foreign exchange (45) (22) (67) At December 31, 2010 -$ 2,253$ 2,253$ At January 1, 2011 -$ 2,253$ 2,253$ Reversal (37) (37) Provisions made during the year 3,490 3,490 Provisions used during the year (2,152) (2,152) Effect of movements in foreign exchange 1 1 At December 31, 2011 -$ 3,555$ 3,555$ Restructuring The Company determined that restructuring actions were required to improve the overall utilization and reduce overhead costs at the Public Transit Solutions ("PTS") business unit. Restructuring actions include consolidating facilities and reducing the workforce. The majority of the reduction in workforce related to development and production employees. Other Other provisions include various individual provisions for onerous contracts and other liabilities of the Company. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 33 12. Income taxes (a) Tax recognized in profit or loss 2011 2010 Current tax expense Current year 17,942$ 16,176$ Adjustment for prior years 673 785 18,615 16,961 Deferred tax expense Origination and reversal of temporary differences (90,104) (13,280) Effect of change in future tax rates (2,563) 523 Change in recognized deductible temporary differences and prior year losses 576 1,518 Recognition of previously unrecognized losses (1,727) (1,325) (93,818) (12,564) Total tax expense (recovery) (75,203) 4,397 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 34 (b) Reconciliation of effective tax rate Net income for the year 157,174$ 30,016$ Total tax expense (75,203) 4,397 Net income before tax 81,971 34,413 Income tax expense using the Company's statutory tax rate of 28.25% (2010 ‐ 31%) 23,157 10,668 Impact on taxes from: Foreign tax rate differential (3,993) (6,133) Other, including non deductible expenses and non taxable income (1,530) (1,639) Deferred tax benefit of inter‐jurisdictional transfer of assets (89,746) ‐ Effect of change in future tax rates (2,563) 523 Recognition of prior year tax losses (1,727) (1,325) Current year tax losses for which no deferred tax recognized 526 1,518 Under (over) provisions in prior years 673 785 (75,203) 4,397 2011 2010 The significant change in the effective tax rate during the year was due to the recognition of a future tax recovery related to inter-jurisdictional transfers of certain intangible assets within the Company during the year. Deferred tax assets were recorded on the increase in fair market value arising on the transfers. The deferred income tax recovery recorded through profit or loss represents the amount of the temporary differences that the Company has determined is probable of being utilized for income tax deduction purposes in the future. 13. Deferred tax assets and liabilities (a) Unrecognized deferred tax liabilities The aggregate amount of temporary differences associated with investments in subsidiaries for which we have not recognized deferred tax liabilities is $189,000 (2010: $54,000) as the Company ultimately controls whether the liability will be incurred and it is satisfied that it will not be incurred in the foreseeable future. The temporary differences relate to undistributed earnings of the Company’s subsidiaries. Dividends declared would be subject to withholding tax in the range of 0-5% depending on the jurisdiction of the subsidiary. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 35 (b) Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following items. 2011 2010 Deductible temporary differences, including capital losses 20,400$ 22,400$ Non capital tax losses 12,200 13,700 $8,100 of the non capital tax losses expire between 2015 and 2031 and $4,100 can be carried forward indefinitely. The deductible temporary differences and capital losses do not expire under current tax legislation. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available in those jurisdictions against which the Company can utilize these benefits. (c) Recognized deferred tax assets and liabilities 2011 2010 2011 2010 2011 2010 Property, plant and equipment 3,551 3,049 (4,036) (4,513) (485) (1,464) Intangible assets 106,119 5,865 (35,742) (25,705) 70,377 (19,840) Reserves 2,649 3,162 ‐ ‐ 2,649 3,162 Non capital tax losses 5,365 8,331 ‐ ‐ 5,365 8,331 SR&ED Expenditure pool 4,074 2,395 (2,903) (1,587) 1,171 808 Deferred revenue 1,678 2,392 ‐ ‐ 1,678 2,392 Foreign and other tax credits 2,207 1,938 ‐ ‐ 2,207 1,938 Contract asset 3,427 2,477 (107) (184) 3,320 2,293 Other 2,470 932 (352) (993) 2,118 (61) Tax (assets) liabilities 131,540 30,541 (43,140) (32,982) 88,400 (2,441) Reclassification (31,881) (15,173) 31,881 15,173 ‐ ‐ Net tax (assets) liabilities 99,659 15,368 (11,259) (17,809) 88,400 (2,441) Assets Liabilities Net The reclassification relates to the offsetting of deferred tax assets and deferred tax liabilities to the extent that they relate to the same taxing authorities and there is a legally enforceable right to do so. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 36 (d) Movement in deferred tax balances during the year Balance December 31, 2010 Recognised in profit or loss Recognised in other comprehensive income Acquired in business combinations Other Balance December 31, 2011 Property, plant and equipment (1,464) 979 ‐ ‐ ‐ (485) Intangible assets (19,840) 93,522 ‐ (3,305) ‐ 70,377 Reserves 3,162 (513) ‐ ‐ ‐ 2,649 Non capital tax losses 8,331 (2,966) ‐ ‐ ‐ 5,365 SR&ED Expenditure pool 808 363 ‐ ‐ ‐ 1,171 Deferred revenue 2,392 (714) ‐ ‐ ‐ 1,678 Tax credits 1,938 269 ‐ ‐ ‐ 2,207 Contract asset 2,293 1,027 ‐ ‐ ‐ 3,320 Other (61) 1,851 172 ‐ 156 2,118 (2,441) 93,818 172 (3,305) 156 88,400 Balance January 1, 2010 Recognised in profit or loss Recognised in other comprehensive income Acquired in business combinations Other Balance December 31, 2010 Property, plant and equipment (2,312) 848 ‐ ‐ ‐ (1,464) Intangible assets (20,794) 9,171 ‐ (8,217) ‐ (19,840) Reserves 2,066 1,096 ‐ ‐ ‐ 3,162 Non capital tax losses 2,546 (153) ‐ 5,938 ‐ 8,331 SR&ED Expenditure pool 677 131 ‐ ‐ ‐ 808 Deferred revenue 2,678 (286) ‐ ‐ ‐ 2,392 Tax credits 1,784 154 ‐ ‐ ‐ 1,938 Contract asset 2,247 46 ‐ ‐ ‐ 2,293 Other (434) 1,557 (1,487) ‐ 303 (61) (11,542) 12,564 (1,487) (2,279) 303 (2,441) CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 37 14. Capital and other components of equity Capital Stock The authorized share capital of Constellation consists of an unlimited number of common shares and an unlimited number of Class A non-voting shares. The rights and privileges of the Class A non-voting shares entitle the holders of such shares to distributions, if and when declared by the Board of Directors provided an equivalent dividend is paid rateably on the common shares at the same time. The holders of the common shares will participate rateably with the holders of the Class A non-voting shares in any distribution of assets, or liquidation, dissolution or winding up of the Company’s assets. The holders of the Class A non-voting shares are entitled to convert such shares, at any time into common shares, on a one-for-one basis. Common shares Class A non-voting Total Number Amount Number Amount Number Amount December 31, 2011 17,504 86,794 3,688 12,489 21,192 99,283 Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss) is comprised of the following separate components of equity: Cumulative translation account The cumulative translation account comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as foreign exchange gains and losses arising from monetary items that form part of the net investment in the foreign operation. Amounts related to available-for-sale financial assets Available-for-sale differences comprise the cumulative net change in the fair value of available-for-sale financial assets until the investments are derecognized or impaired. Dividends During the year ended December 31, 2011 the Company declared and paid dividends of $2.00 per common and class A non-voting share (2010 - $0.26 per share). 15. Revenue The Company sub-classifies revenue within the following components: license revenue, maintenance revenue, professional service revenue and hardware and other revenue. Software license revenue is comprised of license fees charged for the use of software products licensed under single-year, multiple-year or perpetual arrangements in which the fair value of maintenance and/or professional service fees are determinable. Professional service revenue consists of fees charged for implementation services, custom programming, product training and consulting. Hardware and other revenue includes the resale of third party hardware as part of customized solutions, as well as sales of hardware assembled internally. Maintenance revenue primarily consists of fees charged for customer support on software products post-delivery and also includes, recurring fees derived from combined software/support contracts, transaction revenues, and hosted products. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 38 2011 2010 License revenue 61,076$ 49,987$ Professional services revenue 181,166 169,737 Hardware and other revenue 108,716 74,602 Maintenance revenue 422,383 339,639 Total 773,341$ 633,965$ Years ended December 31, Revenues from contract accounting are allocated to license revenue, professional service revenue and hardware revenue based on their relative fair value and the amount recognized is determined using the percentage of completion method. During the year ended December 31, 2011 $194,749 (December 31, 2010 - $167,566) of contract revenue was recognized. Advances for which the related work has not started, and billings in excess of costs incurred and recognized profits, are presented as deferred revenue. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 39 16. Finance income and finance costs 2011 2010 Interest income on notes receivable -$ (683)$ Gain on foreign exchange forward contract (443) - Other financing interest (472) (183) Dividend income (99) (113) Equity in net earnings of equity investees - (199) Gain on sale of available-for-sale financial assets transferred from equity (6,253) (63) Finance income (7,267)$ (1,241)$ Interest expense on bank indebtedness 4,448$ 4,286$ Amortization of transaction costs 596 697 Reduction in fair value of VCG LLC warrants - 200 Other financing interest 531 600 Finance costs 5,575$ 5,783$ Years ended December 31, 17. Earnings per share Basic and diluted earnings per share 2011 2010 Numerator: Net income 157,174$ 30,016$ Denominator: Basic and diluted shares outstanding 21,192 21,192 Earnings per share Basic and diluted 7.42$ 1.42$ Years ended December 31, CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 40 18. Capital risk management The Company's objectives in managing capital are to ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions and to provide returns to its shareholders. The Company manages its capital with the objective of ensuring that there are adequate capital resources while maximizing the return to shareholders through the optimization of the debt and equity balance. The capital structure of the Company consists of cash, credit facilities and components of shareholders' equity including retained earnings and capital stock. The Company is subject to certain covenants on its credit facilities. The covenants include a leverage ratio and an interest coverage ratio, as well as a minimum net worth requirement. The Company monitors the ratios on a monthly basis. Other than the covenants required for the credit facilities, the Company is not subject to any externally imposed capital requirements. The Board of Directors determine if and when dividends should be declared and paid based on all relevant circumstances, including the desirability of financing further growth of the Company and its financial position at the relevant time. The Board of Directors has adopted a policy to pay quarterly dividends commencing April 2, 2012. Constellation intends to declare a regular quarterly dividend to allow shareholders to participate in its free cash flow, while retaining sufficient capital to invest in acquisitions and organic growth. There is no guarantee that dividends will continue to be paid in the future. The Company makes adjustments to its capital structure in light of general economic conditions, the risk characteristics of the underlying assets and the Company's working capital requirements. In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may increase or decrease dividends, increase or decrease the line of credit or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors reviews and approves any material transactions not in the ordinary course of business, including significant acquisitions or other major investments. 19. Financial risk management and financial instruments Overview The Company is exposed to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth. The main objectives of the Company's risk management process are to ensure that risks are properly identified and that the capital base is adequate in relation to those risks. The principal financial risks to which the Company is exposed are described below. Market risk Market risk is the risk that changes in market prices, such as fluctuations in the equity prices of the Company's publicly traded investments, foreign exchange rates and interest rates, will affect the Company's income or the value of its financial instruments. The Company manages risk related to fluctuations in the market prices of its publicly traded investments by regularly conducting financial reviews of publicly available information to ensure that any risks are within CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 41 established levels of risk tolerance. The Company does not routinely engage in risk management practices such as hedging, derivatives or short selling with respect to its publicly traded investments. The following table details the Company's sensitivity to a 1% strengthening in the market price of the equity securities it currently holds. For a 1% weakening in the market price, there would be an equal and opposite impact on net income and comprehensive income. Net income $ 212 Comprehensive income $ 212 The Company is exposed to interest rate risk on the utilized portion of its line of credit and does not currently hold any financial instruments that mitigate this risk. Management does not believe that the impact of interest rate fluctuations relative to the variable interest rate attached to the line of credit and in consideration of the current and expected level of borrowings will be significant and, therefore, has not provided a sensitivity analysis of the impact of fluctuations on net income and comprehensive income. The Company operates internationally, giving rise to exposure to market risks from changes in foreign exchange rates which impact sales and purchases that are denominated in a currency other than the respective functional currencies of certain of its subsidiaries. The Company currently does not typically use derivative instruments to hedge its exposure to those risks. Most of the Company's businesses are organized geographically so that many of its expenses are incurred in the same currency as its revenues thus mitigating some of its exposure to currency fluctuations. The Company enters into forward foreign exchange contracts from time to time with the objective of mitigating volatility in profit or loss in respect of monetary liabilities. During the year, the Company purchased a contract of this nature and has recorded its fair value at December 31, 2011 based on foreign exchange rates relative to the stated rate in the contract. The fair value adjustment has been recorded in finance income in profit or loss. Foreign currency sensitivity analysis: The Company is mainly exposed to fluctuations in the Canadian dollar, British pound, Swiss franc, Euro, and Australian dollar. The major currency exposures, as of December 31, 2011, are summarized in USD equivalents in the following table. The local currency amounts have been converted to USD equivalents using the period end exchange rates. Canadian Dollar British Pound Swiss Franc Euro Australian Dollar Current assets 27,648$ 15,949$ 22,961$ 7,296$ 4,237$ Non-current assets 42,512 43,556 2,144 10 10,252 Current liabilities (45,855) (24,488) (26,355) (4,951) (6,422) Non-current liabilities (15,479) (11,249) (11,065) (1,177) (427) Net financial assets 8,826$ 23,768$ (12,315)$ 1,178$ 7,640$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 42 The following table details the Company's sensitivity, with regards to the above net asset position, to a 1% strengthening of the Canadian dollar, British pound, Swiss Franc, Euro, and Australian dollar against the U.S. dollar. The sensitivity analysis includes foreign currency denominated monetary assets and liabilities and non- monetary assets and liabilities of non-USD functional subsidiaries, and adjusts their translation at period end for a 1% change in foreign currency rates. For a 1% weakening against the U.S. dollar, there would be an equal and opposite impact on net income and comprehensive income. Canadian Dollar British Pound Swiss Franc Euro Australian Dollar Net income 44$ 238$ (123)$ 12$ 76$ Comprehensive income 88$ 238$ (123)$ 12$ 76$ Liquidity risk Liquidity risk is the risk that the Company is not able to meet its financial obligations as they fall due or can do so only at excessive cost. The Company manages liquidity risk through the management of its capital structure and financial leverage, as outlined in note 18 to the consolidated financial statements. The Company's growth is financed through a combination of the cash flows from operations and borrowing under the existing credit facilities. One of management's primary goals is to maintain an optimal level of liquidity through the active management of the assets and liabilities as well as the cash flows. The Company's credit facilities are disclosed in note 10 to the consolidated financial statements. As at December 31, 2011, available credit in respect of the Company's bank credit facility was $159,615. The majority of the Company's financial liabilities recorded in accounts payable and accrued liabilities are due within 60 days. Holdbacks payable are due within three years. Given the Company's available liquid resources as compared to the timing of the payments of liabilities, management assesses the Company's liquidity risk to be low. Credit risk Credit risk represents the financial loss that the Company would experience if a counterparty to a financial instrument, in which the Company has an amount owing from the counterparty failed to meet its obligations in accordance with the terms and conditions of its contracts with the Company. The carrying amount of the Company's financial assets, including receivables from customers, represents the Company's maximum credit exposure. The majority of the accounts receivable balance relates to maintenance invoices to customers that have a history of payment. In addition a large proportion of the Company's accounts receivable is with public sector government agencies. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 43 The maximum exposure to credit risk for accounts receivables at the reporting date by geographic region was: December 31, 2011 December 31, 2010 January 1, 2010 United States 57,187$ 47,078$ 53,457$ Canada 19,446 18,841 6,858 United Kingdom 11,322 11,024 8,201 Europe 10,012 12,402 26,769 Other 2,431 1,553 146 100,398$ 90,898$ 95,431$ The maximum exposure to credit risk for accounts receivables at the reporting date by reportable segment was: December 31, 2011 December 31, 2010 January 1, 2010 Public 72,716 71,235 82,597 Private 27,682 19,663 12,834 100,398$ 90,898$ 95,431$ CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 44 The aging of accounts receivables at the reporting date was: December 31, 2011 December 31, 2010 January 1, 2010 Current 49,084 43,512 48,456 61-120 days Gross 29,585 29,766 32,431 Impairment (77) (925) (13) Net 29,508 28,841 32,418 More than 120 days Gross 28,505 25,907 20,310 Impairment (6,699) (7,362) (5,753) Net 21,806 18,545 14,557 Total accounts receivable Gross 107,174 99,185 101,197 Impairment (6,776) (8,287) (5,766) Net 100,398 90,898 95,431 An allowance account for accounts receivables is used to record impairment losses unless the Company is satisfied that no recovery of the amount owing is possible; at which point the amounts are considered to be uncollectible and are written off against the accounts receivable directly. The number of days outstanding of an individual receivable balance is the key indicator for determining whether an account is impaired. The movement in the allowance for impairment in respect of accounts receivables during the year ended: 2011 2010 Balance at January 1 8,287$ 5,766$ Impairment loss recognized 3,737 5,983 Impairment loss reversed (3,834) (1,810) Amounts written off (1,414) (1,652) Balance at December 31 6,776$ 8,287$ There is no concentration of credit risk because of the Company's large individually small number of customers. In addition the Company typically requires up front deposits from customers to protect against credit risk. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 45 The Company manages credit risk related to cash by maintaining bank accounts with Schedule 1 banks. In the ordinary course of business the Company and its subsidiaries have provided performance bonds and other guarantees for the completion of certain customer contracts. The Company has not experienced a loss to date and future losses are not anticipated; therefore, no liability has been recorded in the consolidated statements of financial position related to these types of indemnifications or guarantees at December 31, 2011. Fair values versus carrying amounts The carrying values of accounts receivable, accounts payable, accrued liabilities, the majority of acquisition holdbacks and bank debt, approximate their fair values due to the short-term nature of these instruments. Bank debt is subject to market interest rates. The Company has capitalized the transaction costs associated with negotiating the line of credit. As a result at December 31, 2011, the fair value of the line of credit is $nil and the carrying value $644 has been included as part of other assets. (December 31, 2010: fair value $47,291, carrying value $46,041). The fair values of available-for-sale equity investments at the reporting date are determined by the quoted market values for each investment (note 5). Fair value hierarchy The table below analyzes financial instruments carried at fair value, by valuation method.  level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;  level 2 inputs are inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly (i.e. prices) or indirectly (i.e. derived from prices); and  level 3 inputs are inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs). In the table below, the Company has segregated all financial assets and liabilities that are measured at fair value into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. The Company has no financial assets or liabilities measured using level 3 inputs. Financial assets measured at fair value as at December 31, 2011 and December 31, 2010 in the financial statements are summarized below. The Company has no financial liabilities measured at fair value initially other than those recognized in connection with business combinations. December 31, 2011 December 31, 2010 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities $ 21,222 $ - $ 21,222 $ 23,723 $ - $ 23,723 Foreign exchange 443 - 443 - - - forward contract $ 21,665 $ - $ 21,665 $ 23,723 $ - $ 23,723 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 46 There were no transfers of fair value measurements between level 1 and level 2 of the fair value hierarchy in 2011 and 2010. 20. Operating leases The Company leases premises and certain equipment and automobiles under operating leases. The operating rental expense for the year ended December 31, 2011 was $14,849 (2010 - $13,255). The annual minimum lease commitments are as follows: December 31, 2011 December 31, 2010 January 1, 2010 Less than 1 year $ 14,921 $ 12,465 $ 11,661 Between 1 and 5 years 27,354 27,256 25,832 More than 5 years 7,044 8,553 6,435 Total $ 49,319 $ 48,274 $ 43,928 21. Operating Segments Segment information is presented in respect of the Company's business and geographical segments. The accounting policies of the segments are the same as those described in the significant accounting policies section of these consolidated financial statements. Reportable segments The Company has six operating segments, which have been aggregated into two reportable segments in accordance with IFRS 8 Operating Segments. The Company‘s Public Sector segment develops and distributes software solutions primarily to government and government-related customers. The Company‘s Private Sector segment develops and distributes software solutions primarily to commercial customers. The determination that the Company has two reportable segments is based primarily on the conclusion that differences in economic cycles and procedures for securing contracts between our governmental clients and commercial, or private sector clients are significant enough to warrant distinct segmented disclosures. Corporate head office operating expenses are allocated to the Company’s segments based on the segment’s percentage of total Company revenue for the allocation period. Intercompany-expenses (income) represent management fees charged by Constellation’s head office to the reportable segments. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 47 Fiscal year ended December 31, 2011 Public Sector Private Sector Other Consolidated Total Revenue 571,648$ 201,693$ -$ 773,341$ Expenses Staff 288,919 112,460 - 401,379 Hardware 53,665 7,189 - 60,854 Third party licenses, maintenance and professional services 35,581 15,485 - 51,066 Occupancy 13,328 5,590 - 18,918 Travel 24,113 5,925 - 30,038 Telecommunications 6,762 3,230 - 9,992 Supplies 12,437 2,877 - 15,314 Professional fees 6,037 2,586 - 8,623 Other 3,349 5,130 - 8,479 Income before the undernoted 127,457 41,221 - 168,678 Depreciation 5,806 1,654 408 7,868 Amortization of intangible assets 56,926 19,724 - 76,650 Impairment of non-financial assets 489 - - 489 Foreign exchange (gain) loss 1,250 (610) 2,752 3,392 Finance income (318) (64) (6,885) (7,267) Finance costs 222 188 5,165 5,575 Inter-company expenses (income) 20,205 9,380 (29,585) - 84,580 30,272 (28,145) 86,707 Profit before income tax 42,877 10,949 28,145 81,971 Current income tax expense (recovery) 14,843 5,985 (2,213) 18,615 Deferred income tax (recovery) expense (56,380) (37,584) 146 (93,818) Income tax recovery (41,537) (31,599) (2,067) (75,203) Net income 84,414 42,548 30,212 157,174 Other selected information December 31, 2011 Public Sector Private Sector Other Consolidated Total Current assets 140,517 43,649 36,362 220,528 Current liabilities 232,410 87,540 886 320,836 Goodwill 37,827 21,664 - 59,491 Other Intangible assets 128,405 79,896 - 208,301 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 48 Fiscal year ended December 31, 2010 Public Sector Private Sector Other Consolidated Total Revenue 474,832$ 159,133$ -$ 633,965$ Expenses Staff 260,475 96,064 - 356,539 Hardware 40,007 5,102 - 45,109 Third party licenses, maintenance and professional services 26,149 11,520 - 37,669 Occupancy 11,864 4,976 - 16,840 Travel 18,498 4,596 - 23,094 Telecommunications 6,529 2,648 - 9,177 Supplies 8,810 2,315 - 11,125 Professional fees 5,942 2,277 - 8,219 Other 5,511 4,264 - 9,775 Income before the undernoted 91,047 25,371 - 116,418 Depreciation 5,144 1,586 26 6,756 Amortization of intangible assets 50,775 17,151 - 67,926 Foreign exchange (gain) loss 2,687 2,114 (275) 4,526 Finance income (188) (80) (973) (1,241) Finance costs 318 282 5,183 5,783 Bargain purchase gain (1,745) - - (1,745) Inter-company expenses (income) 7,326 4,094 (11,420) - 64,317 25,147 (7,459) 82,005 Profit before income tax 26,730 224 7,459 34,413 Current income tax expense (recovery) 16,400 3,665 (3,104) 16,961 Deferred income tax (recovery) expense (7,681) (3,622) (1,261) (12,564) Income tax recovery 8,719 43 (4,365) 4,397 Net income 18,011 181 11,824 30,016 Other selected information: December 31, 2010 Public Sector Private Sector Other Consolidated Total Current assets 144,960 29,566 39,021 213,547 Current liabilities 213,449 66,698 50,329 330,476 Goodwill 30,152 19,993 - 50,145 Other Intangible assets 147,317 72,525 - 219,842 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 49 Geographical segments The public and private sector segments are managed on a worldwide basis, but operate in three principal geographical areas, Canada, USA, and UK/Europe. In presenting information on the basis of geographical segments, segment revenue is based on the region in which the revenue is transacted and intellectual property is located. Segment assets are based on the geographic locations of the assets. Year ended December 31, 2011 Canada USA UK/Europe Other Total Revenue 131,951$ 467,202$ 165,251$ 8,937$ 773,341$ Total assets 268,484 250,251 96,415 15,425 630,575 Property and equipment 5,573 4,841 3,608 569 14,591 Acquired contract assets - 1,052 1,640 - 2,692 Intangible assets 113,051 104,929 39,809 10,003 267,792 Year ended December 31, 2010 Canada USA UK/Europe Other Total Revenue 128,083$ 351,520$ 126,764$ 27,598$ 633,965$ Total assets 252,950 145,522 104,810 32,637 535,919 Property and equipment 7,235 1,123 4,964 147 13,469 Acquired contract assets - 1,695 244 - 1,939 Intangible assets 122,134 77,000 41,340 29,513 269,987 Major customers No customer represents revenue in excess of 10% of total revenue in both 2011 and 2010. 22. Contingencies In the normal course of operations, the Company is subject to litigation and claims from time to time. The Company may also be subject to lawsuits, investigations and other claims, including environmental, labour, product, customer disputes and other matters. Management believes that adequate provisions have been recorded in the accounts where required. Although it is not always possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of such contingencies will not have a material adverse impact on the results of operations, financial position or liquidity of the Company. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 50 On September 30, 2008, the Company acquired certain assets and liabilities of Maximus Inc.’s Asset, Justice, and Education Solutions businesses ("MAJES"). As part of the acquisition, the Company also acquired certain long-term contracts that contain contingent liabilities which may, but are unlikely to, exceed $13 million in the aggregate. The contingent liabilities relate to liquidated damages contractually available to customers for breaches of contracts by MAJES and for estimated damages available to customers for breaches of such contracts by MAJES where such contracts did not contain specified penalties. The contingent liabilities represent the difference between the maximum financial liabilities potentially due to customers less the amounts accrued in connection with the contracts assumed on acquisition. In February 2011, a subsidiary of the Company and Maximus Inc. ("Maximus") received a letter from a customer initiating a dispute resolution process under the customer’s contract. The customer alleges that the subsidiary of Constellation and, separately Maximus failed to observe the most favoured customer pricing terms of the contract and also raised a number of issues pertaining to services and products delivered under the contract. The customer alleges total damages of approximately $30 million. The subsidiary of the Company and the seller of the MAJES assets are contesting all of the customer’s claims. The contract with the customer has a $9 million limitation of liability clause that the Company believes will apply to all of the claims in the letter. The subsidiary of the Company also believes that it is entitled to indemnification from Maximus in respect of certain of the claims made by the customer. The Company is currently following the dispute resolution process and continues to provide services to the customer. On November 2, 2009, the Company acquired certain assets and liabilities of the Public Transit Solutions ("PTS") business of Continental Automotive AG. The Company also acquired contingent liabilities related to certain long- term contracts that may, but are unlikely to, exceed $2 million in the aggregate. The contingent liabilities relate to liquidated damages contractually available to customers for breaches of contracts by PTS. The contingent liabilities represent the difference between the maximum financial liabilities potentially due to customers less the amounts accrued in connection with the contracts assumed on acquisition. The Company is subject to income tax audits by various authorities in respect of prior periods that could result in additional tax expense in future periods. While the outcome of current outstanding actions and claims remains uncertain, it is expected that they will be resolved without a material impact to the Company’s financial position. However, there can be no assurances as to the final resolution of these matters and, if the final outcome is adverse to the Company, the amounts the Company is required to pay and the loss of certain future tax deductions could be material to these financial statements. 23. Guarantees (a) In the ordinary course of business the Company and its subsidiaries have provided performance bonds and other guarantees for the completion of certain customer contracts. The total obligations of the Company pursuant to such bonds and related contingencies total $30,077 (2010 - $25,956). No liability has been recorded in the consolidated financial statements. (b) As at December 31, 2011, in the normal course of business, the Company and its subsidiaries have outstanding letters of credit totalling $385 (2010 - 403). (c) In the normal course of business, some of the Company's subsidiaries entered into lease agreements for facilities. As the joint lessees, the subsidiaries agree to indemnify the lessor for liabilities that may arise from the use of the leased facility. The maximum amount potentially payable under the foregoing indemnity cannot be reasonably estimated. The subsidiaries have liability insurance that relates to the indemnifications. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 51 (d) The Company and its subsidiaries have provided routine indemnifications to some of its customers against liability if the Company's product infringes on a third party's intellectual property rights. The maximum exposure from the indemnifications cannot be reasonably estimated. 24. Changes in non-cash operating working capital 2011 2010 (Increase) decrease in accounts receivable (4,420)$ 11,646$ Increase in work in progress (1,282) (908) (Increase) decrease in other current assets 1,611 (1,174) (Increase) decrease in inventory 2,610 (1,029) Increase in long term assets (5,403) (1,278) Change in acquired contract assets and liabilities (14,150) (2,968) Increase in other non-current liabilities (1,002) 326 Increase (decrease) in accounts payable and accrued liabilities excluding holdbacks from acquisitions (793) 8,802 Increase in deferred revenue 5,618 3,192 Increase (decrease) in provisions 1,315 (6,059) (15,896)$ 10,550$ 25. Related parties Key management personnel compensation The key management personnel of the Company, inclusive of the operating segments, are the members of the Company’s executive management team and Board of Directors, and control approximately 13% of the outstanding shares of Constellation. Years ended December 31, 2011 2010 Salaries, bonus and employee benefits $ 11,812 $ 15,749 Total $ 11,812 $ 15,749 If terminated for other than just cause, each executive officer, is entitled to either up to 12 months prior written notice or payment in an amount equal to up to12 month’s salary (or in the case of the Chief Operating Officer, 12 month’s total compensation) at the rate in effect at the time of his or her termination. There were no post- employment benefits, other long-term benefits, or share-based payments attributed to the key management personnel in 2010 and 2011. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 52 26. Subsequent events Subsequent to December 31, 2011, the Company acquired the net assets of three separate entities for aggregate cash consideration of $7,744 on closing plus holdbacks of $2,707. In addition, there is contingent consideration payable in connection with two of the acquisitions based on the amount that certain financial measures exceed predetermined levels in the post-acquisition period. The business acquisitions include companies catering to the facility management, education (UK), and school administration markets, and are all software businesses similar to existing businesses of the Company. Two business acquisitions will be included in our Public Sector segment and one in our Private Sector segment. On January 3, 2012 the Company declared an initial quarterly cash dividend of $1.00 per share payable on April 2, 2012 to all common shareholders and class A non-voting shareholders of record at the close of business on March 12, 2012. 27. Explanation of transition to IFRS As stated in note 2, these consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs). The accounting policies as set out in note 3 have been applied in preparing the consolidated financial statements for the year ended December 31, 2011, the comparative information for the year ended December 30, 2010, and in preparation of an opening IFRS statement of financial position at January 1, 2010 (the Company's date of transition to IFRS). In preparing its opening IFRS statement of financial position, the Company has adjusted amounts previously reported in financial statements prepared in accordance with previous Canadian GAAP. An explanation of how the transition from previous Canadian GAAP to IFRS has affected the Company's financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables. Reconciliation of financial position and shareholders' equity CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 53 January 1, 2010 Notes Previous Canadian GAAP (reclassified, note a) Adjustments IFRS Assets Current assets: Cash $ 33,249 $ - $ 33,249 Equity securities available-for-sale 22,323 - 22,323 Accounts receivable c 90,683 4,748 95,431 Work in progress c 21,910 1,167 23,077 Inventory c 12,702 1,618 14,320 Other assets c,e 26,335 (74) 26,261 207,202 7,459 214,661 Non-current assets: Property and equipment c,e,f 10,539 (2,313) 8,226 Deferred income taxes c,j 4,318 461 4,779 Other assets c,e,h 13,478 401 13,879 Intangible assets c,e,g 226,818 (4,579) 222,239 255,153 (6,030) 249,123 Total assets $ 462,355 $ 1,429 $ 463,784 Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness h $ 43,100 $ (1,947) $ 41,153 Accounts payable and accrued liabilities c,d 95,343 (8,704) 86,639 Deferred revenue c,e 128,359 6,940 135,299 Provisions 8,312 - 8,312 Acquired contract liabilities 7,652 - 7,652 Acquisition holdback payments 3,587 - 3,587 Income taxes payable c 3,751 6 3,757 290,104 (3,705) 286,399 Non-current liabilities: Deferred income taxes c,j 17,839 (1,518) 16,321 Acquired contract liabilities c,e 34,120 7,362 41,482 Acquisition holdback payments 2,537 - 2,537 Other liabilities c,d 9,051 (5,033) 4,018 63,547 811 64,358 Shareholders‘ equity: Capital stock 99,283 - 99,283 Accumulated other comprehensive (loss) income e (157) 3,161 3,004 Retained earnings 9,578 1,162 10,740 108,704 4,323 113,027 Total liabilities and shareholders' equity $ 462,355 $ 1,429 $ 463,784 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 54 December 31, 2010 Notes Previous Canadian GAAP (reclassified, note a) Adjustments IFRS Assets Current assets: Cash $ 30,911 $ - $ 30,911 Equity securities available-for-sale 23,723 - 23,723 Accounts receivable 90,898 - 90,898 Work in progress 25,607 - 25,607 Inventory 15,945 - 15,945 Other assets 26,463 - 26,463 213,547 - 213,547 Non-current assets: Property and equipment e,f 16,430 (2,961) 13,469 Deferred income taxes j 14,918 450 15,368 Other assets e,h 24,519 (971) 23,548 Intangible assets d,e,g 273,009 (3,022) 269,987 328,876 (6,504) 322,372 Total assets $ 542,423 $ (6,504) $ 535,919 Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness h $ 47,291 $ (1,250) $ 46,041 Accounts payable and accrued liabilities 104,905 - 104,905 Deferred revenue e 157,240 785 158,025 Provisions 2,253 - 2,253 Acquired contract liabilities 10,908 - 10,908 Acquisition holdback payments 6,920 - 6,920 Income taxes payable 1,424 - 1,424 330,941 (465) 330,476 Non-current liabilities: Deferred income taxes j 19,443 (1,634) 17,809 Acquired contract liabilities e 33,924 1,709 35,633 Acquisition holdback payments 2,744 - 2,744 Other liabilities d 4,962 1,244 6,206 61,073 1,319 62,392 Shareholders‘ equity: Capital stock 99,283 - 99,283 Accumulated other comprehensive income e,f 5,292 3,230 8,522 Retained earnings 45,834 (10,588) 35,246 150,409 (7,358) 143,051 Total liabilities and shareholders' equity $ 542,423 $ (6,504) $ 535,919 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 55 Reconciliation of profit for the year ended December 31, 2010 Notes Canadian GAAP (reclassified note b) IFRS adjustments IFRS Revenue i $ 630,857 $ 3,108 $ 633,965 Expenses Staff i 353,431 3,108 356,539 Hardware 45,109 - 45,109 Third party license, maintenance and professional services 37,669 - 37,669 Occupancy 16,840 - 16,840 Travel 23,094 - 23,094 Telecommunications 9,177 - 9,177 Supplies 11,125 - 11,125 Professional fees 8,219 - 8,219 Other d 9,764 11 9,775 Income before the undernoted 116,429 (11) 116,418 Depreciation f 6,036 720 6,756 Amortization of intangible assets g 69,367 (1,441) 67,926 Foreign exchange loss e 2,387 2,139 4,526 Finance income (1,241)- (1,241) Finance costs d 5,610 173 5,783 Bargain purchase gain c -(1,745) (1,745) 82,159 (154) 82,005 Profit before income tax 34,270 143 34,413 Extraordinary gain c 12,538 (12,538) - Current income tax expense 16,961 - 16,961 Deferred income tax recovery j (11,918)(646) (12,564) Income tax expense (recovery) 5,043 (646) 4,397 Net income $41,765 $(11,749) $30,016 Net change in fair value on available-for-sale Financial assets during the period 6,071 - 6,071 Net unrealized foreign exchange adjustment gain on available-for-sale financial assets during the period 61 - 61 Reclassification of unrealized gain upon derecognition of available-for-sale investments (733)- (733) Foreign currency translation differences from foreign operations e 1,310 297 1,607 Deferred tax expense j (1,260)(227) (1,487) Other comprehensive income for the period, net of income tax 5,449 70 5,519 Total comprehensive income for the period $47,214 $(11,679) $35,535 Earnings per share Basic and diluted $ 1.97 $ (0.55) $ 1.42 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 56 Adjustments to the statements of cash flows for 2010 Income taxes paid has been moved into the body of the statement of cash flows, whereas it was previously disclosed as supplemental information. In addition, interest paid was previously included as part of operating activities, whereas it is included within financing activities under IFRS. There are no other material differences between the statement of cash flows presented under IFRS and the statement of cash flows presented under previous Canadian GAAP. Correction of immaterial errors related to 2010 interim periods The Company has recast the statement of financial position and statement of comprehensive income for the year ended December 31, 2010 included herein as compared to the same reconciliation notes reported in the interim financial statements for the periods ended March 31, 2011 and June 30, 2011. For the year ended December 31, 2010 net income was reduced by $947 and accumulated other comprehensive income was increased by $947 primarily related to adjustments in connection with monetary items designated as part of the net investment in foreign operations. The Company reviewed the impact of these errors on the comparative periods in fiscal 2010 and determined that the errors were not material. Notes to the reconciliations as at and for the periods included above (a) In transitioning to IFRS, the Company has reclassified certain amounts within the consolidated statement of financial position. The Company recognized reclassification adjustments related to deferred income tax assets and liabilities so as to present those amounts by tax jurisdiction on a consolidated basis in the statement of financial position. This reclassification was included in the Canadian GAAP amounts reflected in the reconciliation tables above. The impact of the reclassification recognized as of January 1, 2010 and December 31, 2010 was a decrease of deferred income tax assets and liabilities of $10,986 and $11,802, respectively, with no corresponding impact in profit or loss. (b) In transitioning to IFRS, the Company has elected to present its expenses in the consolidated statement of comprehensive income according to their nature. As a result, expenses previously disclosed under Canadian GAAP within cost of revenue, research and development, sales and marketing, and general and administration are presented under IFRS based on the nature of the cost incurred. As required by IFRS, the Company has reported finance income and finance cost on a gross basis. (c) IFRS 1 states that on first-time adoption, an entity may elect not to apply IFRS 3 (revised), Business Combinations (“IFRS 3”) retrospectively to business combinations that occurred before the date of transition, January 1, 2010. Under Canadian GAAP the Company had early adopted the Handbook Section 1582, Business Combinations ("HB 1582"), effective January 1, 2010, the requirements of which are substantially converged with IFRS; consequently no changes were deemed applicable for our acquisitions acquired after January 1, 2010. Goodwill relating to business combinations that occurred prior to January 1, 2010 was tested for impairment. No impairment existed at the transition date. As a result of this election, business combinations which occurred prior to January 1, 2010 have a deemed cost equal to the carrying value in accordance with Canadian GAAP at December 31, 2009. Where the accounting for the purchase equation was incomplete at December 31, 2009, in respect of an un-restated business combination, the deemed cost is equal to the carrying value of such assets and liabilities acquired immediately after the business combination, inclusive of the adjustments made CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 57 during the measurement period under Canadian GAAP. The statements of financial position under IFRS differ from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Current assets: Accounts receivable $ - $ 4,748 Work in progress - 1,167 Inventory - 1,618 Other assets - (78) Non-current assets: Property and equipment - (5) Deferred income taxes - 358 Other assets - 2,404 Intangible assets - 200 Current liabilities: Accounts payable and accrued liabilities - (8,716) Deferred revenue - 6,725 Acquisition holdback payments - - Income taxes payable - 6 Non-current liabilities: Deferred income taxes - 44 Acquired contract liabilities - 7,727 Other liabilities - (6,167) Increase in retained earnings $ - $ 10,793 On November 2, 2009, the Company acquired the Public Transit Solutions business of Continental Automotive AG. Negative goodwill arose on acquisition because the fair value of the separately identifiable assets and liabilities acquired exceeded the total consideration paid. Under Canadian GAAP, the negative goodwill was recorded as an extraordinary gain during the measurement period in fiscal 2010. Under IFRS, the negative goodwill, or bargain purchase gain, has been reported in the opening statement of financial position because the carrying amount under previous Canadian GAAP of assets acquired and liabilities assumed in an un-restated business combination immediately after the business combination becomes their deemed cost at that date. As a result, an extraordinary gain of $10,793 for the year ended December 31, 2010, which was reported under Canadian GAAP in profit or loss, is eliminated against retained earnings under IFRS. Negative goodwill totalling $1,745 has arisen on one of the 2010 acquisitions (fourth quarter) because the fair value of the separately identifiable assets and liabilities acquired exceeded the total CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 58 consideration paid. Under Canadian GAAP this was reported as a extraordinary gain, while under IFRS it is reported as a bargain purchase gain. (d) The Company has applied IFRS 3 to all business combinations after January 1, 2010. Under IFRS, the estimated fair value of any contingent consideration outstanding at January 1, 2010 must be recognized. The application of Canadian GAAP as it relates to acquisitions prior to January 1, 2010 does not allow for recognition unless the contingency can be reasonably estimated at the date of acquisition and determined beyond a reasonable doubt. Under Canadian GAAP the Company had elected to early adopt HB 1582 effective January 1, 2010, the requirements of which are converged with IFRS; consequently there is no impact on acquisitions acquired subsequent to January 1, 2010. The IFRS statements of financial position differs from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Intangible assets $ (86) $ - Accounts payable and accrued liabilities - 12 Other non-current liabilities 1,244 1,134 Decrease in retained earnings $ (1,330) $ (1,146) The IFRS statements of comprehensive income differ from the amounts reported in the Canadian GAAP statements of operations by the following amounts: Year ended December 31, 2010 Increase/(decrease) in: Other expense $ 11 Finance costs 173 Decrease in profit before income taxes $ 184 (e) Under IFRS, there are various indicators to be considered in determining the appropriate functional currency of an entity. When the indicators are mixed and the functional currency is not obvious, priority should be given to indicators that have a greater weighting, such as primary indicators including the currency that most influences sales prices, the currency of the market in which the goods are sold, and the currency that mainly influences expenses. Canadian GAAP has similar indicators as IFRS in determining functional currency. However, Canadian GAAP does not have a hierarchy of indicators under which certain indicators are given priority. In accordance with IFRS, the Company has assessed the functional currency of foreign subsidiaries. As part of this assessment, in general the functional currency of subsidiaries has changed as sales CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 59 prices and expenses are mainly influenced by their respective local currency. The IFRS statements of financial position differ from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Current assets: Other assets $ - $ 4 Non-current assets: Property and equipment 124 36 Other assets 279 (56) Intangible assets (552) (954) Current liabilities: Accounts payable and accrued liabilities - - Deferred revenue 785 215 Non-current liabilities: Acquired contract liabilities 1,709 (365) Cumulative translation account (503) (820) Decrease in retained earnings $ (2,140) $ - The IFRS statements of comprehensive income differ from the amounts reported in the Canadian GAAP statements of operations by the following amounts: Year ended December 31, 2010 Increase/(decrease) in: Foreign exchange loss $ 2,140 Decrease in profit before income taxes $ 2,140 IFRS 1 permits the cumulative translation differences for all foreign operations to be deemed nil at the date of transition to IFRS, with future gains or losses on subsequent disposal of any foreign operations to exclude translation differences arising from periods prior to the date of transition to IFRS. The Company has applied this election, as a result, $3,161 has been reclassified from other comprehensive income to retained earnings. (f) Under Canadian GAAP certain of the Company's business units used the declining balance method to depreciate property and equipment, while other business units used the straight line method to depreciate property and equipment. Under IFRS, uniform accounting policies must be used for CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 60 reporting similar activity and transactions. The IFRS statement of financial position differs from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Property and equipment $ (3,085) $ (2,344) Foreign currency translation adjustment (21) - Decrease in retained earnings $ (3,064) $ (2,344) The IFRS statements of comprehensive income differ from the amounts reported in the Canadian GAAP statements of operations by the following amounts: Year ended December 31, 2010 Increase/(decrease) in: Depreciation $ 720 Decrease in profit before income taxes $ 720 (g) Under Canadian GAAP certain of our business units used various methods in determining the useful lives of intangible assets. Under IFRS, uniform accounting policies must be used for reporting like transactions. The IFRS statements of financial position differs from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Intangible assets $ (2,384) $ (3,825) Decrease in retained earnings $ (2,384) $ (3,825) CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 61 The IFRS statements of comprehensive income differ from the amounts reported in the Canadian GAAP statements of operations by the following amounts: Year ended December 31, 2010 Increase/(decrease) in: Amortization of intangible assets $ (1,441) Decrease in profit before income taxes $ (1,441) (h) Under Canadian GAAP direct costs associated with securing the Company's revolving line of credit were capitalized to other assets and recognized in profit or loss through interest expense. Under IFRS, these transaction costs are capitalized as part of the related financial liability. The costs are amortized using the effective interest method to interest expense and included as part of finance costs. The IFRS statements of financial position differs from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Other assets $ (1,250) $ (1,947) Bank indebtedness (1,250) (1,947) Increase/(decrease) in retained earnings $ - $ - (i) Under Canadian GAAP, the Company accounted for certain long-term contracts using the completed contract method of accounting. Completed contract method of accounting is generally not permitted under IFRS. If the outcome of a contract is not known, then revenue is recognized only to the extent of the costs incurred that are probable of recovery and is limited to the amount of costs recognized during the period. As a result of retrospective application of this policy, $10,125 of revenue and costs have been recognized through retained earnings in the opening IFRS balance sheet. CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 62 The IFRS statements of comprehensive income differ from the amounts reported in the Canadian GAAP statements of operations by the following amounts: Year ended December 31, 2010 Increase/(decrease) in: Revenue $ (3,108) Staff expense (3,108) Increase/(decrease) in profit before income taxes $ - (j) Under IFRS, subsidiaries with a functional currency that is not their local currency and that have foreign-denominated non-monetary assets or liabilities, requires a deferred tax asset/liability to be recorded based on foreign exchange movements during a given period. Under Canadian GAAP this was not required. Additionally, the IFRS financial statements differ by the income tax effect of the IFRS adjustments discussed above in this note. As a result of these changes, the IFRS deferred tax asset and deferred tax liability differs from the amounts reported in the Canadian GAAP balance sheets by the following amounts: December 31, 2010 January 1, 2010 Increase/(decrease) in: Property and equipment (note f) $ 309 $ 31 Intangible assets (note g) 70 33 Foreign exchange on foreign-denominated non monetary assets (note j) 71 39 Deferred tax asset 450 103 Contingent consideration (note d) (426) (406) Property and equipment (note f) (416) (716) Intangible assets (note g) (483) (130) Foreign exchange on foreign-denominated non monetary assets (note j) (309) (310) Deferred tax liability (1,634) (1,562) Decrease in accumulated other comprehensive income (227) - Increase in retained earnings $ 2,311 $ 1,665 CONSTELLATION SOFTWARE INC. Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except per share amounts and as otherwise indicated) Years ended December 31, 2011 and 2010 63 Other comprehensive income under IFRS differs from the amounts reported in the Canadian GAAP financial statements by the following amounts: Year ended December 31, 2010 Increase/(decrease) in: Deferred income tax recovery $ (646) Increase in net income $ (646) The IFRS other comprehensive income for the year ended December 31, 2010 differs from the amount reported in the Canadian GAAP statements by $227. CITYVIEW TEST PLAN CityView Test Plan Page 2 CityView © 2012 <<DATE>> <<ClientName and ClientNumber>> General Information Purpose: To determine that the criteria for acceptance are met and to document that any deficiencies encountered have been addressed. All outstanding issues should be noted with agreed upon dispositions such as:  Pre-Go Live Fix with expected delivery date for each issue, allowing time for re-testing  Post Go Live Fix specifying anticipated number of days to resolve each issue  Future Product Enhancement listing expected release version for each issue  Change Order for Scope Changes In order to adequately evaluate the system, each of the components should be tested individually in addition to an overall assessment of the system as a whole. The system must be tested against agreed upon scripts to quantify whether it meets certain acceptance criteria. Those test scripts should be based against signed off scope documentation and data collection materials only. The parts of the system that will need to be reviewed are:  Application Test / Configuration Test – per Prebuilt  Data Conversion Test – per Data Source  Interface Test – per interface  Property Update  GIS / Mapping Test  Other Customizations Test (Exchange, Document Management, etc.) The testing will be conducted by the client staff after receiving Training; this is done to give the Subject Matter Experts practical experience with CityView. Each tester should have time set aside to perform the work necessary to check each test case and document their findings. The testers should use the CityView feedback feature to document the results of their tests and maintain a record of the information put into feedback. The feedback can be reported against to provide a status of each item. CityView software uses the feedback feature as the exclusive method of tracking issues, that way there is no confusion. Application Test / Configuration Test The CityView application should be tested against the configuration documented in the data collection and scope documents. Each PreBuilt will have a different configuration specified so separate test cases should be developed for each PreBuilt. In some circumstances several departments may use a single CityView PreBuilt and in those situations there could be more than one set of test cases per PreBuilt. The specific configuration items that need testing and acceptance, using the data collection as the basis for the test scenarios, are: CityView Test Plan Page 3 CityView © 2012  Activity Workflow Diagrams  Fee Calculations  Attribute Fields (additional non-PreBuilt data fields) and Lookup Values  Letters  Business Rules and Automation A user will need to walk through each test scenario and evaluate the compliance off the application’s configuration against the test case specifications. Each test case should clearly state the expected outcome. The result of every testing scenario should be documented along with every discrepancy between data collection. Data Conversion Test The data conversion must be checked against the field mapping document. For every data field in the source database there must be a corresponding field in CityView. Since the PreBuilts have a standard set of data fields, there are typical situations where additional fields are necessary. CityView handles this with special fields called attributes. In either case, whether the source data is mapped to a PreBuilt field or an attribute, the data displayed in CityView should match the specified data in the field mapping document. Any exceptions must be noted and reported as feedback. Once a list of corrections to the conversion is completed then it can be run again and re-tested. The process must happen for every conversion source being imported into CityView. Interface Test Each interface should be verified to check that the output, typically a file, matches the specifications documented. There should be a field mapping document, similar to the Data Conversion and there should be a sample output file to gauge the quality of the file resulting from CityView’s batch process. A second pass needs to be done to run the outputs through a test instance of the target system. Usually, the file will be imported into that 3rd party application and the data reviewed therein. CityView staff will make corrections to the output where it doesn’t match the specification document, if the target system changes or can’t accept the file then a change may be required. Property Update Most customers receive regular updates from the local authority with respect to Property Ownership. CityView staff can create a set of scripts to update the CityView database for Addresses, Legal Owners and Parcels (but not for Zoning or Structures) from Assessor / Appraiser information or from GIS. This must be verified as having correct location information and is typically mandatory in the PreBuilts. CityView Test Plan Page 4 CityView © 2012 After the update is run, a sample of locations should be checked for consistency. A list of test items needs to be made with original values from the source and compared against the resulting values in CityView Property. GIS / Mapping Test CityView supports integration with GIS software. The end user workstation must have the appropriate GIS software installed and connectivity to the GIS file. In order to test this, a user can simply select a property in CityView and open the map. When the map loads, the user should be focused on the parcel and be able to interact with the map using the tools provided. For instance, a user might select the information tool and look at the details provided. Some clients may have certain fields populated with GIS data after a property is selected, this is called a GIS Spatial query and those specifications should be included in a test case with a list of properties and expected results for those data fields. The results of the GIS testing need to be entered in the test acceptance, if any functionality isn’t working then that must be noted in feedback. In some cases the GIS field may need to be modified, in other cases the GIS query or map settings may have to be changed. Other Customizations Test For every custom item a test case should be run to determine if it is working as specified in the scope. For example, if a document management system was to be storing copies of files a user will have to add a file in CityView and verify that it exists in the DMS. On the following page is a Sample Test Results Matrix: CityView Test Plan Page 5 CityView © 2012 Sample Test Results Matrix PreBuilt Item Detail Expected Actual Pass Date / Feedback # Workflow 1 Activities Outcomes Next Activities Follows Diagram Fee Calculations 1 Fee QTY Fee AMT Fee Value Fee Work Items Fee Value Attribute 1 Name Position Data Type Look Up Values* Letters 1 (sample) Format Field Values Logo Embedded Object Data Conversion Item Detail Expected Actual Pass Date / Feedback # Data Source 1 Field Name Data Type Location in CV Value CityView Test Plan Page 6 CityView © 2012 Interface Item Detail Expected Actual Pass Date / Feedback # Interface 1 File / Table Format Field Name Data Type Location Value Exports OK Imports OK Batch Schedule Property Update Item Detail Expected Actual Pass Date / Feedback # Parcel Values Linked Attributes Owner Values Linked Attributes Address Values Linked Attributes CityView Test Plan Page 7 CityView © 2012 GIS / Mapping Item Detail Expected Actual Pass Date / Feedback # Mapping Focus on Parcel Information Tool Select Tool Spatial Query Populates Field Value Data Type Look up* Custom Items Item Detail Expected Actual Pass Date / Feedback # Custom TBD – specification 4464 Markham Street, Suite 2307, Victoria, BC., V8Z 7X8 Canada Toll-Free: 1.800.665.5647 | Tel: (250) 475.6600 | Fax: (250) 475.6080 A City Test Cases Permits and Inspections PreBuilt Version 1.0 Permits and Inspections Test Cases Version 1.0 Page 2 of 16 Revision History Version Primary Author(s) Description of Version Date Completed 1.0 Matt Voytilla Initial Release Permits and Inspections Test Cases Version 1.0 Page 3 of 16 Table of Contents 1. Create a Permit Application Test Case Scenarios ..................................................................... 4 2. Permit Test Case Scenarios ............................................................................................................. 6 3. Review Test Case Scenarios ......................................................................................................... 10 4. Inspections Test Case Scenarios .................................................................................................. 12 5. Contacts Test Case Scenarios ..................................................................................................... 14 6. Attach Documents and Images Test Case Scenarios ............................................................ 15 Version 1.1 Page 4 of 16 1. Create a Permit Application Test Case Scenarios Scenario Name 1 – Create a Permit Application Test Number P1.1 Description Create a Permit Application Setup Instructions Sheet Verification Step Expected Result Application Press the New Application (No Project) button · Next sequential Application Number is assigned. · Application Status is set to Pending. · Date Entered is set to today’s date. · Entered By is filled with the currently logged in user’s name. · The Verify Submittal activity is created (Select the Permitting Activities binder to verify). · The first status tracking row is created, with the status of Pending. · Default submittal is added to the Submittal sheet in the Permit Plan Check binder. Set the Application Type · The applicable attribute fields for that application type are displayed in the Attribute Control. · The Subpermits for the selected application type are added on the Permit Details sheet. Set the Work Class Set the Construction Type Set the Origin Set the Inspector · Attributes applying to the inspector are displayed. Set the Occupancy Code a. If on the Application sheet with an Occupancy Code lookup, select the Occupancy Code from the lookup list. b. If on the Application sheet with an Occupancy Code list, click the Add Version 1.1 Page 5 of 16 Occupancy Code button, select the newly created row and select the Occupancy Code from the lookup list Set the Land Use Set the Fire Zone Enter the Description of Work Press the Add Location button · A new row is added to the Locations table · Cursor is positioned in the Location Entry field Enter the first few numbers of a street number or name for a known address (e.g. 931) · Suggested locations (addresses and/or parcels) containing the numbers entered are displayed Backspace within the Location Entry field and enter garbage characters which you know will not correspond to any known address · Error message indicating that no locations can be suggested is displayed Close the message window, backspace within the Location Entry field and enter the first few characters of a street name for a known address (e.g."RIL") · Suggested locations containing the characters entered are displayed Select one of the addresses shown in the Suggested Locations display area · The selected location is displayed in the Description field for the table row just created · The Location Type is set to Address · An Alert indicator is displayed if an alert was created on the parcel associated with the address Click the Add Related Parcels, Addresses and Owners button · The associated parcel location is added to the location table. · The Location Type is set to Property · An Alert indicator is displayed if an alert was created on the parcel associated with the property Permit Details Perform the Permit Test Case Scenarios Reviews Perform the Reviews Test Case Scenarios Version 1.1 Page 6 of 16 2. Permit Test Case Scenarios Scenario Name 1 – Add a permit with work items 2 – Verify a permit submittal 3 – Take in fee payments 4 - Issue a permit Test Number P2.1 Description Add a permit with work items Setup Instructions · There is an existing permit application open. · The user is positioned on the Permit Details sheet in the Permit Application binder. Sheet Verification Step Expected Result Permit Details Click the Add Permit button · A new record is added to the Permits table · The status of the new record is set to Pending Select the Permit Type · Plan Check this permit is checked. Assign a Plan Checker to the permit Enter the Total Valuation of the permit Enter Comments about the permit Fill in any attributes fields applicable to this permit Click the Add Work Item button · A new record is added to the Description of Work table. · The quantity of the work item is set to 1. Select a Work Item from the Work Item lookup · The list is filtered based on the permit selected in the Permits table. · The unit is set to the default measurement type for that work item. · The default valuation amount is set. Enter the quantity of the work item, if applicable · The Total valuation for this work item updates based on the quantity and unit amount. · The Valuation field of the permit record in the Permits table updates to the new valuation. · The Total Valuation amount updates to include the new valuation. Version 1.1 Page 7 of 16 Enter any other applicable work items. Click the Generate Defaults button · Any fees associated with the work items are added to the Fee sheet. Test Number P2.2 Description Verify a submittal Setup Instructions · There is an existing permit application open. · A permit has been added to this application. · The user is positioned on the Submittals sheet in the Permit Plan Check binder. Sheet Verification Step Expected Result Submittals If the submittal type has not been specified, select the type from the Type lookup in the Submittals table. · If the type is already specified, the user is asked to confirm that they want to change the type of submittal. · The Submittal Name is filled with a description of the submittal. · If submittal requirements have been defined, they are added to the Submittal Requirements table below. In the Submittals Requirements table, check the Received? Checkbox on all submittal requirements that have been received. Once all submittal requirements have been received, change the Status of the submittal record in the Submittals table to Complete. Go to the Permitting Activities sheet in the Permitting Activities binder Permitting Activities Change the Verify Submittal activity’s Outcome to Complete. · The next activity in the permitting workflow is added to the Activity Tracking table. Test Number P2.3 Description Take in fee payments Setup Instructions · There is an existing permit application open. · The permits and work items have been specified. · The Generate Defaults button has been clicked and any associated fees have been added to the Fees sheet. Version 1.1 Page 8 of 16 Sheet Verification Step Expected Result Fees Select a Fee from the Fee table Click the Make Payment button, on the Payments table · The user is repositioned on to the Fee Search sheet, in the Cashiering binder. Fee Search Check the Pay? Checkbox on the fee you want to pay Click the Mark All Related Fees, if you want to pay all fees on this permit · All fees that are on the same permit as the currently selected fee have their Pay? checkbox checked. Click the Make Payment button · The user is repositioned to the Payments sheet Payments Select the transaction you want to process for the fee. Click the equals sign (=) button beside the Amount Tendered field · The Amount Tendered field is set to the fee amount owing. Select the Payment Method Enter the Check Number, if applicable Enter the Post Mark date, if applicable If the client is paying by two different methods, you can split the payment by entering the amount to take off the current transaction in the Split Payment Amount box and click the Split Payment button · A new transaction record is created with the amount the user entered in the Split Payment Amount box, and the user is repositioned onto this new record. Enter the first few letters of the contact that is paying the fee into the Contact (Paid By) box. · The autosuggest field will fill with possible contacts that match the entered text. Select the contact that is paying the fee. · The contact’s information is entered into the Contact (Paid By) field. Click the Tender Payment button · The receipt is generated with the transaction information filled out. · The Amount Paid field of the fee on the Fees sheet is updated with the amount paid. · If the entire Fee Amount has been paid, the Paid? Checkbox is checked. Click the Print Receipts button · The receipt is generated in PDF format. · The receipt is attached to the permit’s Documents and Images sheet. Permitting Activities Change the Outcome of the Collect Fees activity to complete. · The next activity is added to the Activity Tracking table. Version 1.1 Page 9 of 16 Test Number P2.4 Description Issue a permit Setup Instructions · There is an existing permit application open. · The permits and work items have been specified. · All required fees have been collected. · All reviews have been completed. Sheet Verification Step Expected Result Permit Details Select a permit from the Permits table Change the Status of the permit to Issued · The permit’s Expiration Date is set to today’s date. Set the permit’s Expiration Date Permitting Activities Set the Issue Permit activity’s Outcome to Issued. · The Status of the application is set to Issued. · Any required inspections are added to the Activity Tracking table. Inspections Perform the Inspections Test Case Scenarios Version 1.1 Page 10 of 16 3. Review Test Case Scenarios Scenario Name 1 – Add a review 2 – Approve a review Test Number P3.1 Description Add a review Setup Instructions · There is an existing permit application open. · A permit and work items have been added that require reviews. · The user is positioned on the Reviews sheet in the Permit Plan Check binder. Sheet Verification Step Expected Result Reviews Click the Add a Review Item button · A new review record is added to the Reviews table. · The review is Assigned To the Inspector assigned to this permit application. · The Date Required is set to today’s date. · The Outcome is set to Pending. Select the type of review from the Review lookup · The Responsible Department for that review type is selected from the Responsible Department lookup. · The review activity is added to the Activity Tracking table on the Permitting Activities sheet. Enter the Date Required Enter the Date Requested Enter any Comments about the review Test Number P3.2 Description Approve a review Setup Instructions · There is an existing permit application open. · A permit and work items have been added that require reviews. · Reviews have been added to the permit. · The user is positioned on the Reviews sheet in the Permit Plan Check binder. Sheet Verification Step Expected Result Reviews Select the review to Approve Version 1.1 Page 11 of 16 Change the Outcome of the review to Approved · The Date Complete is set to today’s date. · Any condition verification activities are added on the Permitting Activities sheet. · If all reviews have been completed, the Status of the application will be set to Ready for Issuance. Enter any Comments about the review Enter the Start Time of the review. Enter the End Time of the review. Enter the Hours Spent on the review Version 1.1 Page 12 of 16 4. Inspections Test Case Scenarios Scenario Name 1 – Add an inspection 2 – Pass an inspection 3 – Add Corrections required for an inspection Test Number P4.1 Description Add an inspection Setup Instructions · There is an existing permit application open. · The permit has been issued. · The user is positioned on the Inspections sheet in the Permit Inspections binder. Sheet Verification Step Expected Result Inspections Click the Add Inspection button · A new review record is added to the Inspection Tracking table. · The review is Assigned To the Inspector assigned to this permit application. · The Date Scheduled is set to today’s date. · The Outcome is set to Pending. Select the type of inspection from the Inspection lookup · The Responsible Department for that inspection type is selected from the Responsible Department lookup. · The inspection activity is added to the Activity Tracking table on the Permitting Activities sheet. · The Priority is set to Routine. Enter the Date Scheduled Enter the Date Requested Select the Requested Time Frame Test Number P4.2 Description Pass an inspection Setup Instructions · There is an existing permit application open. · The permit has been issued. · An inspection has been added to the permit. · The user is positioned on the Inspections sheet in the Permit Inspections binder. Version 1.1 Page 13 of 16 Sheet Verification Step Expected Result Inspections Set the Outcome of an inspection to Passed · The Verify Final Inspection Status activity is created and added to the Inspection Tracking table and the Permitting Activities table. · The Date Complete of the inspection is set to today’s date. · Completed By is set to the currently logged in user. · The corresponding activity on the Permitting Activities sheet is updated. Enter the Start Time of the inspection Enter the End Time of the inspection Enter the Hours Spent on the inspection Test Number P4.3 Description Add Corrections required for an inspection Setup Instructions · There is an existing permit application open. · The permit has been issued. · An inspection has been added to the permit. · The user is positioned on the Inspections sheet in the Permit Inspections binder. Sheet Verification Step Expected Result Inspections Set the Outcome of an inspection to Corrections Required · The Date Complete of the inspection is set to today’s date. · Completed By is set to the currently logged in user. · The corresponding activity in the Activity Tracking table is updated. · The inspection activity is re-added to the Inspection Tracking table and the Activity Tracking table. · If required, an activity will be added to generate and post notices at the construction site. Enter the Start Time of the inspection Enter the End Time of the inspection Enter the Hours Spent on the inspection Version 1.1 Page 14 of 16 5. Contacts Test Case Scenarios Scenario Name 1 – Add a new Contact Test Number P5.1 Description Add a new Contact Setup Instructions · There is an existing case open. Form Verification Step Expected Result Contacts Press the Add Contact button · A new row is added to the Contact table Enter the first few letters of a Contact’s name into the Contact entry box · Suggested Contacts are displayed Select the Contact you want to add. · The Contact’s information is entered into the Contact entry box Click or tab outside of the Contact entry box. · The Contact is added to the Contacts table Select the type of the Contact from the Type lookup Check the Primary Contact checkbox Version 1.1 Page 15 of 16 6. Attach Documents and Images Test Case Scenarios Scenario Name 1 – Attach documents 2 – Remove a document 3 – Upload document 4 – Email document Test Number P6.1 Description Attach an document Setup Instructions · There is an existing case open. Form Verification Step Expected Result Documents and Images Press the Attach Documents button · A file select box is displayed Select one document you want to attach (or hold Ctrl and select multiple documents) and click the Open button. · The document is added to the Documents and Images list · A preview of the document is displayed below the Documents and Images list, if the document is an image Select the type of document from the File Type lookup Enter a name for the document Enter any comments about the document Test Number P6.2 Description Remove an document Setup Instructions · There is an existing case open. · There is a document attached to the case. Form Verification Step Expected Result Documents and Images Select the document you want to remove · The document is highlighted Right click on the document · A drop down list appears Version 1.1 Page 16 of 16 Select Clear Document from the drop down list · The selected document is removed from the list Test Number P6.3 Description Upload document Setup Instructions · There is an existing case open. · There is a document attached to the case that has not been uploaded yet (i.e. The document is stored locally on the user’s computer). Form Verification Step Expected Result Documents and Images Click the Upload Document button · All of the locally stored documents are moved to the configured document management server · All of the documents are marked with a tag to indicate they have been moved to the document management server. Right click on the document · A drop down list appears Select Clear Document from the drop down list · The selected document is removed from the list Test Number P6.4 Description Email document Setup Instructions · There is an existing case open. · There is a document attached to the case Form Verification Step Expected Result Documents and Images Select a document from the Documents and Images table · The selected document is highlighted Click the Email Document button · A new email is created for the user with the selected document attached and “See Attached” printed in the body. PROPERTY INFORMATION MANUAL Version 2013.2 CityView Property Information Manual Page 3 CityView, a division of Harris Computer Systems © 2013 TABLE OF CONTENTS CITYVIEW PROPERTY INFORMATION PREBUILT .......................................................................................... 5 Parcel Information ...................................................................................................................................... 5 Searching for a Parcel by Address ............................................................................................................... 6 Searching for a Parcel by Parcel Number ..................................................................................................... 9 Adding a New Parcel ................................................................................................................................ 11 Deleting Unwanted Parcels ....................................................................................................................... 13 Tracking Contact Information ................................................................................................................... 13 Tracking Address Information ................................................................................................................... 17 Zoning Information .................................................................................................................................. 18 Adding a New Zone ................................................................................................................................. 21 Deleting Zoning Information from a Parcel ................................................................................................ 21 Property Restrictions ................................................................................................................................ 22 Adding a Property Restriction ................................................................................................................... 23 Deleting a Restriction from a Parcel .......................................................................................................... 24 TRACKING STRUCTURES ...................................................................................................................................... 25 Adding a New Structure ........................................................................................................................... 25 Deleting a Structure from a Parcel ............................................................................................................ 26 Associating Structures and Addresses .................................................................................................... 27 Linking Structures to Data in other Tables ................................................................................................. 27 Unlinking Structures from Data in other Tables ......................................................................................... 28 PROPERTY AND OWNER UPDATES ................................................................................................................... 29 Managing Manual and Automated Data Changes ................................................................................. 29 Reconciling Parcels in the Source Data with Temp Parcels Created in CityView .................................. 29 Using the Temp Parcel and Temp Address Attribute Fields ......................................................................... 29 Allowing Addresses to Appear Independently of Parcels ............................................................................ 30 WORKING WITH PROPERTIES ........................................................................................................................... 31 Subdivisions (Lot Splits) ........................................................................................................................... 31 Subdividing a Parcel ................................................................................................................................. 32 Creating Temporary Parcels ...................................................................................................................... 32 CityView Property Information Manual Page 4 CityView, a division of Harris Computer Systems © 2013 Property-Based Alerts .............................................................................................................................. 33 Adding an Alert ....................................................................................................................................... 34 Changing the Severity (Type) of an Alert ................................................................................................... 34 Removing an Alert ................................................................................................................................... 35 Deleting an Alert ...................................................................................................................................... 35 Contact Logs ............................................................................................................................................. 35 Adding a Contact Log .............................................................................................................................. 36 Deleting a Contact Log ............................................................................................................................ 37 Documents & Images in the Property PreBuilt ........................................................................................ 37 Tracking Correspondence in the Property PreBuilt................................................................................. 38 Related Items Screen ................................................................................................................................ 39 Related Fees Screen ................................................................................................................................. 41 Related Deposits and Bonds Screen ........................................................................................................ 41 CityView Property Information Manual Page 5 CityView © 2012 CITYVIEW PROPERTY INFORMATION PREBUILT Property Information is where all current and historic parcel information is tracked, including addresses, ownership, and structure information. It also provides some more advanced features, such as parcel subdivision and tracking of parent parcels. Property data can be populated manually or it can be imported from an external source such as a GIS database. It should be noted that the term “Parcel Number” is replaceable throughout the application if that term is not used in your organization (common replacements are APN, PID, PIN, etc.) Other identifiers such as Roll Numbers and Folio Numbers can also be accommodated (either through core or custom fields, as appropriate.) Any of these fields can be used to relate the property data to a map, depending on what is the most sensible linkage from a GIS perspective. PARCEL INFORMATION The screen is used to access information about properties, addresses, and owners. Other types of contacts can also be tracked, such as tenants, past owners, etc. Depending on where the source data for CityView Property Information is coming from, your organization may have opted to have the Property data entry screens set to “read only” (meaning you cannot modify the information through CityView.) This would only be the case if you had a single, authoritative source of property data that is not CityView. Under most other circumstances, you will be able to modify, maintain and enrich your basic property information through the screens provided in CityView Property Information. Please ensure you have read the CityView Basics manual before starting to work with Property Information. Having an understanding of how CityView forms work will help ensure you do not inadvertently modify your property data. For example, many new users make the mistake of typing into the dat a form in order to perform a search for existing data. You do not want to do this when you are on the screen as it will overwrite data in the underlying property tables. One thing you will notice on the screen is that you are able to see either a single Parent Parcel for the current property; or, you will see a list box that accommodates multiple Parent Parcels. This is a choice your organization should have made during your project implementation and it depends largely on whether the source data has this information available in it. If you feel the wrong screen has been exposed in your environment, i.e. if you only see a single input box for Parent Parcel and you would like to see the list box, then please let us know and we can help you set it up differently. CityView Property Information Manual Page 6 CityView © 2012 PROPERTY INFORMATION Searching for a Parcel by Address One of the most common ways that people search for property information is by address. The easiest way to do this is to click directly on the magnifying glass icon in the ribbon and then enter the address in the search dialog when it appears. CityView Property Information Manual Page 7 CityView © 2012 Assuming you invoke this Search while you are positioned on the screen, the search results will automatically be Property-based results. If you happen to be on some other screen, e.g. the screen, or if you have no screen open, you may find you get a lot of different results back. As long as you select one of the results from the Property section, as shown above, clicking on the search result you want will take you to the screen and position you on the appropriate property record. Alternatively, CityView provides a pre-defined search that makes it possible to do more advanced, address- based searches. To access this search, you will definitely need to be on the screen and then you will go to the drop-down menu below the magnifying glass icon on the ribbon, as shown below. CityView Property Information Manual Page 8 CityView © 2012 SEARCHING BY PRE -DEFINED SEARCH METHO D Method To use the canned Parcel by Address search: 1) Click the Property Information link in the catalog 2) Make sure you are on the first tab. (You may be automatically placed on the last tab you used, so ensure you are on the screen.) 3) Click on the Search drop-down on the tab of the ribbon and select the Properties by Address search. 4) The pre-defined search will automatically open in the panel. 5) Enter appropriate search criteria into the input boxes. 6) Click the Find Results button to execute your search. The properties matching your search results will be listed in the grid. 7) Click on the row in the results grid for the particular property you wish to see. The Parcel Information screen (or any other related screen) will automatically fill with data. CityView Property Information Manual Page 9 CityView © 2012 Note: the assumption is the screen is already open. Clicking on the row in the results grid will not launch the screen if it is currently closed. If you have accidentally closed the screen, re - open it from your Recent Items in the Catalog and you will see that it is positioned on the property that you selected in the grid. Likewise, if you are using CityView Mapping, the map will synchronize to the selected row. The map does not need to be open before you perform the search. It will synchronize constantly as you move from one property to another. ENTERING CRITERIA IN TO PRE -DEFINED SEARCH If any of the search criteria do not seem relevant to your search, you can change the operator to “Is Some Value” (if you want to exclude records where that field has no value), or set it to “Display” only. Note: both of these options are at the very top of the pick-list so you have to scroll up to find them. VIEWING RESULTS OF A PRE -DEFINED SEARCH Searching for a Parcel by Parcel Number CityView Property Information Manual Page 10 CityView © 2012 FINDING PROPERTY REC ORDS BY PARCEL NUMBE R Method To search by parcel, from the screen, using the “Quick Find” method: 1) Click the Property Information link in the catalog 2) Make sure you are on the first tab. (You may be automatically placed on the last tab you used, so ensure you are on the screen.) CityView Property Information Manual Page 11 CityView © 2012 3) Right-click in the text box. 4) Click in the input box beside the Find (Parcel Number Contains) option in the selection menu. A cursor will appear in the input box. 5) Enter any portion of the parcel number you wish to locate and then press the Enter key on your keyboard. The panel will automatically open and a new search will have been started for you with appropriate criteria. 6) Click on the row that you want to view in the screen. Remember: when the search results come back from the database, they are displayed in the results grid in the panel. CityView will automatically position on the first row returned, and its details will be displayed in the screen. Please note, if you have CityView Mapping, there are great features you can take advantage of in the grid. See the CityView Basics Manual for more information. Addin g a New Parcel If you are maintaining all of your property data in CityView, you will need to add parcels to the database from time to time. Note: there is a separate feature that can be used when an existing parcel subdivides. Method To add a new parcel: 1) Click the Property Information link in the catalog. 2) Make sure you are on the first tab. (You may be automatically placed on the last tab you used, so ensure you are on the screen.) 3) Click the Add a New Parcel button. A new record will be added with a temporary parcel number. 4) Set all applicable fields to appropriate values (note: the defaults to “Active” so you will be able to use this new parcel immediately on permit applications, code cases, etc.) CityView Property Information Manual Page 12 CityView © 2012 ADDING A NEW PARCEL RECOR D Remember to set the parcel number to the correct value. If this truly is a temporary parcel, you can leave the temporary number in place until such time as an official parcel number has been assigned. At which point, you can return to this record and overwrite the temporary parcel number with the newly assigned parcel number.1 FIELDS IN THE PARCEL TABLE Field Definitions Parcel Number The parcel number (a.k.a. APN, PID, PIN) which is generally assigned by an external authority (e.g. the tax assessor or property appraiser.) Parent Parcel Number Parcel Number of the parcel from which this parcel was created (i.e. in the case of a subdivision, this field would indicate the original Parcel Number of the parcel that was subdivided to create the current parcel.) Planning Area Typically this is used for identifying parcels that fall into designated areas that the Planning Dept is tracking for development purposes. The value relates to LookupAreaPlanning, so the value must be one of the values that will be present in that lookup table. Examples might be “Downtown Development District”, “East Side Neighborhood Redevelopment”, “Historic District”, etc. Subdivision Indicates the neighborhood or community name where the property is located. This is unrelated to subdividing land. This is meant to categorize parcels, only where applicable, into their respective communities. The value relates to LookupSubdivision, so the value must be one of the values that will be present in that lookup table. Examp les might be “Crystal Springs Phase I”, “Crystal Springs Phase II”, “Heavenly Acres”, etc. Primary Land Use Indicates the primary, approved use of the land. This is different from the Zoning of the property in that it might be zoned for One or Two-Family Residential use, but the property 1 Overwriting the parcel number after the parcel is linked to applications/cases will cause the location on the application/case to be updated as well. CityView Property Information Manual Page 13 CityView © 2012 itself could be vacant, or could have a duplex on it. The Primary Land Use denotes the specific use of the property within the range of possible uses deemed acceptable by the Zoning Ordinance. This field relates to LookupUseLand, so the value must be one of the values that will be present in that lookup table. Property Value Last known assessed value of the property as provided by the assessment authority. Parcel Status Indicates that the parcel is active or historic. Active parcels are available for selection on new Permits, Code Cases, etc. whereas Inactive parcels are only tracked for the sake of historic permits, cases, etc.2 It is important, from a data integrity perspective and for historic record keeping that Parcel information is always preserved in , so we never delete parcel records, we only mark them as inactive. Jurisdiction Jurisdiction is meant to be a fairly generic term that won’t necessarily be used the same way from one client to the next. It is meant to be a field that provides FULL coverage, i.e. your Jurisdictions should be selected so that every Parcel in the City or County has a valid jurisdiction. If you are a County, a logical choice would be each of the Cities and Townships within the County. For Cities, you can use political dividing lines, or community names, or any other kind of district categorization that works (e.g. school districts.) The significance of this field is that it is the only such field that will be automatically carried down from the Property to Permits, Code Cases, etc. It is also a filterable field on many reports, so it is good for being able to report by region. The value relates to LookupJurisdiction, so the value must be one of the values that will be present in that lookup table. Legal Description Used to record the legal description of the property. Deleting Unwanted Parcels It is unlikely that you will have security rights to delete parcels; however, if you do, here are a few words of caution: we typically don’t want parcels to be deleted from the database because they may have Permit Applications, Code Cases, etc. tied to them. Even if the parcel has been subdivided and you will be creating new parcels to replace it, it is still preferable if you do not delete the recor d from the database. The recommended approach is to set the to “Inactive”. This will cause the parcel record to no longer show up in the auto-suggest control so users will not be able to associate this parcel with future code cases or permit applications. Tracking Contact Information Tracking property owners is a fundamental part of CityView Property Information. In fact, you can track current owners, past owners, tenants and any other relevant contact information against the parcel. 2 If the field is Null (empty) it will be assumed that the parcel is active. CityView Property Information Manual Page 14 CityView © 2012 VIEWING/EDITIN G CONTACT INFORMATIO N A DDING A C ONTACT (OWNER ) TO A P ARCEL Method To add a new owner: 1) Ensure you are positioned on the correct Parcel record 2) Click the Add Property Contact button. A new, blank row will be added to the grid. 3) In the auto-suggest control (see screenshot), start typing any portion of the contact’s name 4) When you see the name of the appropriate contact appear in the list of suggestions, click on it to select it. You will see that name appear in the empty row of the grid. 5) Use the drop-down labeled to select “Property Owner” as the contact type for this contact. CityView Property Information Manual Page 15 CityView © 2012 Note: We’ve assumed this is an active owner, so we did not set the ; however, if for some reason you were adding a historic owner to this property, you could set the to “Historic Owner” and then specify the by selecting a date from the calendar control. You also have the ability to add a free-text associated with any contact on a property. D ELETING A C ONTACT (OWNER ) FROM A P ARCEL It is much less problematic to delete an owner (or other contact) from a parcel than it is to delete the whole parcel; however, we still typically do not recommend it. It is much more appropriate to simply mark the old owner as inactive (i.e. by setting to “Historic Owner” and giving it an ) than to delete it altogether. That being said, sometimes data entry errors happen and a contact record does not belong on that parcel at all. In this case, it is reasonable to delete the contact record. Method To delete a property contact: 1) From the ribbon’s tab, click the Remove drop-down and then select Property Owner / Tenant. ─OR─ Right-click on the pertinent row in the grid and select Data > Delete the current record from Property Owner / Tenant. 2) When prompted, click Yes3 Important: by following these steps, you are not deleting the contact information from the Addres s Book. You are simply deleting the linkage between that contact and this parcel record. L INKING C ONTACTS TO D ATA IN OTHER T ABLES Addresses and Structures are both related directly to Parcels, but not to each other. Therefore, you can have a situation where there are multiple addresses and multiple structures tied to one parcel record. Being able to link a structure to a specific address (or vice versa) is very important so that you can print the correct address on documents/letters, make sure inspectors show up at the correct location, etc. It is important to realize that these tables are not directly related to one another. They are “siblings”, related only by virtue of the fact that they both have the same parent. When you create an “association”, you are adding a many-to-many link record between the two tables. Consequently, there are many utility 3 Once you have become used to the record deletion process, you can use the k eyboard shortcut Alt+D to delete records from grids. This is faster, but it is very important that your cursor be in the grid row that you are trying to delete from. You will not get any visual indication of what table you are about to delete from, so unti l you have some experience, it is better to use the right-click method or the ribbon method. CityView Property Information Manual Page 16 CityView © 2012 expressions in the system to help with correctly accessing data in rules and letters because CityView will not inherently know that Record A from Table 1 is related to Record C from Table 2. The only place where that knowledge exists is in the intermediary table. Method To link a structure to an address: 1) Position on the appropriate row in the grid 2) Click the Link hyperlink 3) A modal4 window will open which will list the applicable Address in the header section and will display all possible Structure choices in a grid (see screenshot below.) 4) Find the appropriate Structure in the grid 5) Click the Add hyperlink (note the selected Structure will move over to the adjacent list box, indicating that this is now the structure that is linked to the Address in the header.) It is possible to link (or “associate”) multiple structures to an address. Some association modal windows will only allow you to link one record to one record, e.g. you can only link a Fee to one Permit on a given Application (i.e. sub-permit.) LINKING A STRUCTURE TO AN ADDRESS (MODAL WINDOW) U NLINKING S TRUCTURES FROM D ATA IN OTHER T ABLES 4 A modal window is a window that opens on top of another window, preventing you from interacting with the underlying screen until you have completed your data entry and closed the modal window using the Finished button. CityView Property Information Manual Page 17 CityView © 2012 Once the Add hyperlink is clicked, it will change to a Remove hyperlink. This gives you the ability to unlink a structure from an address at a later date. Andy also wants a note in here that if you click the Add Related Address, Owners button and there are associations in play, only the owners for the applicable address will be copied down. Tracking Address Information Using CityView Property Information, you can track one or more addresses against a property. It is fairly typical that the assessor will only track one address for a given parcel, but there are many reasons why you may want to track multiple addresses in CityView (e.g. separate units within a building (duplexes, condos, or suites), mobile home parks, malls, building on a corner lot is known by two different addresses depending on who you ask (i.e. post office, assessor), etc.) VIEWING/EDITING ADDR ESS INFORMATION A DDING AN A DDRESS TO A P ARCEL Method To add a new address: 1) Ensure you are positioned on the correct Parcel record 2) Click the Add Property Address button. A new row will be added to the grid. CityView Property Information Manual Page 18 CityView © 2012 3) Enter a for the new address into the first data entry field in the grid. 4) (Optional) If the pick-list has been configured with the valid streets for your area, select a from the drop-down. This will automatically populate the field with the appropriate street description. This may seem redundant, but it does provide a bit of added quality control around your data entry process. 5) (Alternatively) Manually enter the for the new address. 6) (Optional) Enter a street (N, S, E, or W) for the new address. 7) (Optional) Enter the for the new address. 8) (Optional) Enter the for the new address. 9) (Optional) Enter the for the new address. 10) (Optional) Enter the for the new address. D ELETING AN A DDRESS FROM A P ARCEL Method To delete an address: 1) From the ribbon’s tab, click the Remove drop-down and then select Address. ─OR─ Right-click on the pertinent row in the grid and select Data > Delete the current record from Address. 2) When prompted, click Yes5 ZONING INFORMATION Zoning allows properties to be grouped together according to what land use or kinds of structures are going to be permitted within a certain area. Zoning also includes restrictions in different areas, such as height of buildings, use of green space, density (number of structures in a certain area), use of lots, and types of businesses. Examples of zoning types include open space, residential, retail, commercial, 5 Once you have become used to the record deletion process, you can use the keyboard shortcut Alt+D to delete records from grids. This is much faster, but you do not get the visual indication of wha t table you are about to delete from, so until you have some experience, it is better to use the right-click method. CityView Property Information Manual Page 19 CityView © 2012 agricultural, and industrial. The specific zoning types that you track within CityView will be dictated by your local ordinances. CityView Property Information Manual Page 20 CityView © 2012 ZONING INFORMATION CityView Property Information Manual Page 21 CityView © 2012 Adding a New Zone Method To add a new zone for a parcel: 1) Ensure you are positioned on the correct Parcel record 2) Click the Add Zone button. A new, blank row will be added to the grid. 3) Set the (the will automatically be set to “Active” and will be set to today’s date.) 4) (Optional) Enter the , and FIELDS IN THE ZONE TABLE Field Definitions Zone Type Indicates the Zone that the property is in, e.g. R3 (Residential One and Two Family), R2 (Residential Multi-Family), R1 (Residential Transient), C (Commercial), A (Agricultural), etc. Zone Identifier There could be several values in this lookup, as your business processes require, as this is generally used to qualify each zone where multiple zones are active on a single property. The Zone Identifier modifies the contents of the Zone Type by identifying the source or reason why the property is in this zone. That is, you will normally have a “Primary” zone which reflects the zoning for all properties in that area; however, a given parcel in that area may also have a conditional use permit or variance allowing some addit ional use, so it might have a “Conditional” zone associated with it as well. Street Frontage The number of feet of street frontage that the property has Status Indicates whether this zone is currently applicable to this property. I.e. if the Status is Active, then the property is currently in that zone. If it is “Historic” or “Inactive” then the property used to be in that zone but is no longer. Date Changed Specifies the date that the zoning information was last modified. Comments Any free-text comments the user wishes to add related to this zoning record. Deleting Zoning Information from a Parcel It is much less dangerous to delete a piece of zone data from a parcel than it is to delete the whole parcel; however, we still typically do not recommend it. It is much more useful to be ab le to go back to a parcel and see the complete history of all the zoning changes that have been made over time. Therefore, the best practice is to simply mark the old zone record as inactive or historic, rather than delete it altogether. That being said, sometimes data entry errors happen and a Zone record does not belong on that parcel at all. In this case, it is possible to delete the Zone record. Method To delete a property zone: CityView Property Information Manual Page 22 CityView © 2012 1) Right-click on the pertinent row in the grid and select Data > Delete the current record from Zone ─OR─ From the ribbon’s tab, click the Remove drop-down and then select Zone. 2) When prompted, click Yes6 It is very important to make sure that you are deleting from Zone and not some other table. If you have accidentally selected a row in the wrong grid, or have right-clicked on a stand-alone field from a different table, you do not want to proceed to delete the record. PROPERTY RESTRICTIONS The grid allows you to track information about the property relating to things such as flood plains, conservation restrictions, setbacks, zoning conditions, and limited height of accessory structures to name a few. CityView allows you to track as many restrictions against a single property as is required. The list of possible restrictions is stored in LookupAssessRestrictions. 6 Once you have become used to the record deletion process, you can use the keyboard shortcut Alt+D to delete records from grids. This is much faster, but you do not get the visual indication of what table you are about to delete from, so until you have some experience, it is better to use the right-click method. CityView Property Information Manual Page 23 CityView © 2012 PROPERTY RESTRICTION S Adding a Property Restriction Method To add a new restriction for a parcel: 1) Ensure you are positioned on the correct Parcel record CityView Property Information Manual Page 24 CityView © 2012 2) Click the tab. 3) Click the Add Restriction button. A new row will be added to the grid. 4) Select the 7 from the drop-down list (the associated descriptive text, if configured, will appear in the field below the grid.)8 5) If desired, modify the text in the field. Deleting a Restriction from a Parcel Method To delete a property restriction: 1) Right-click on the pertinent row in the grid and select Data > Delete the current record from Property Restriction ─OR─ From the ribbon’s tab, click the Remove drop-down and then select Property Restriction. 2) When prompted, click Yes9 7 Restriction Codes are stored in the lookup table, “LookupAssessRestrictions” 8 Note: a corresponding Alert will also get added to the Alerts screen so that other users are aware of the restriction. 9 Once you have become used to the record deletion process, you can use the keyboard shortcut Alt+D to delete records from grids. This is much faster, but you do not get the vi sual indication of what table you are about to delete from, so until you have some experience, it is better to use the right-click method. CityView Property Information Manual Page 25 CityView © 2012 TRACKING STRUCTURES Structures are any type of building, including outbuildings and so forth (silos, barns, sheds, etc.) that exist on a property. These can all be tracked in CityView for informational purposes but there is no canned automation to keep this data up to date so it requires diligence on the part of the users if it is expected to be reliable. Note: In absence of any customization, there is currently no method of synchronizing this data with an external data source (such as GIS data.) That is, if you track structures in a GIS layer, CityView cannot directly consume that data like it can with Parcels, Addresses and Owners. STRUCTURES Adding a New Structure Method To add a new structure to a parcel: 1) Ensure you are positioned on the correct Parcel record CityView Property Information Manual Page 26 CityView © 2012 2) Click the tab. 3) Click the Add a Structure button. A new row will be added to the grid. 4) Set the (this should default to a sequential number starting at 1 for the first structure on the property, but it can be manually overridden.) 5) Enter a (this is any description you want to assign to the structure, e.g. “Silo”, “Granny Suite”, “Detached Garage”, etc.) 6) (Optionally) Enter a 7) Select a from the drop-down list of choices. 8) Select a from the drop-down list of choices. 9) Use the field to indicate whether this building is complete or still under construction. FIELDS IN THE STRUCTURES TABLE Field Definitions Structure ID Unique sequence number can be attributed to each structure on the property. The software may automatically assign an auto-incrementing number, or the user can manually override this with a number of their choice. Building Name A logical name for each structure, e.g. “House”, “Silo”, “Barn”, “Shed”, etc.. In the case of commercial buildings this could be the actual name of the building, e.g. “Wal-Mart” (this might be less practical if the structure is leased space and the tenant chances often.) Dwelling ID Can but used to further identify the structures on the properties that are actual dwellings. Structure Type Categorizes the structure by the type of structure/building, e.g. “Single Family Residence”, “Multi-Family Residence”, “Commercial”, “Industrial”, etc. Must be one of the values that stored in LookupStructureType. Construction Type Categorizes the structure by the type of construction, e.g. wood frame, steel, fire resistant, etc. (often IBC construction types are used, i.e. Type I, VB, etc.) Must be one of the values stored in LookupTypeConstruction. Status Indicates the Status of the structure, e.g. under construction, finished (complete), demolished, etc. Must be one of the values stored in LookupGNStatus. Historical? Indicates if this is an active or historical (inactive) structure. Last Updated Date Indicates the date that the data in the record was last updated (per structure.) Deleting a Structure from a Parcel Method To delete a structure altogether: 1) Right-click on the pertinent row in the grid and select Data > Delete the current record from Structure CityView Property Information Manual Page 27 CityView © 2012 ─OR─ From the ribbon’s tab, click the Remove drop-down and then select Structure. 2) When prompted, click Yes10 ASSOCIATING STRUCTURES AND ADDRESSES Linking Structures to Data in other Tables Addresses and Structures are both related directly to Parcels, but not to each other. Therefore, you can have a situation where there are multiple addresses and multiple structures tied to one parcel record. Being able to link a structure to a specific address (or vice versa) is very important so that you can print the correct address on documents/letters, make sure inspectors show up at the correct location, etc. PROPERTY HAVING 3 AD DRESSES AND 3 STRUCT URES It is important to realize that these tables are not directly related to one another. They are “siblings”, related only by virtue of the fact that they both have the same parent. When you create an “association”, you are adding a many-to-many link record between the two tables. Consequently, there are many utility expressions in the system to help with correctly accessing data in rules and letters because CityView will not inherently know that Record A from Table 1 is related to Record C from Table 2. The only place where that knowledge exists is in the intermediary table. Method To link a structure to an address: 10 Once you have become used to the record deletion process, you can use the keyboard shortcut Alt+D to delete records from grids. This is much faster, but you do not get the visual indication of what table you are about to delete from, so until you have some experience, it is better to use the right-click method. CityView Property Information Manual Page 28 CityView © 2012 1) Position on the appropriate row in the grid 2) Click the Link hyperlink 3) A modal11 window will open which will list the applicable Address in the header section and will display all possible Structure choices in a grid (see screenshot below.) 4) Find the appropriate Structure in the grid 5) Click the Add hyperlink (note the selected Structure will move over to the adjacent list box, indicating that this is now the structure that is linked to the Address in the header.) It is possible to link (or “associate”) multiple structures to an address. Some association modal windows will only allow you to link one record to one record, e.g. you can only link a Fee to one Permit on a given Application (i.e. sub-permit.) LINKING A STRUCTURE TO AN ADDRESS (MODAL WIN DOW) Unlinking Structures f rom Data in other Tables Once the Add hyperlink is clicked, it will change to a Remove hyperlink. This gives you the ability to unlink a structure from an address at a later date. 11 A modal window is a window that opens on top of another window, preventing you from interacting with the underlying screen until you have completed your data entry and closed the modal window using the Finished button. CityView Property Information Manual Page 29 CityView © 2012 PROPERTY AND OWNER UPDATES CityView has an automated process by which property and/or owner data can be automati cally updated from an external data source such as GIS, assessor exports, financial systems, or other systems. Where no routine update is required, data can be entirely maintained through CityView using the instructions contained in this manual. Where a routine update is being employed, some of the features described in this manual must be adapted to ensure the property update functions properly. MANAGING MANUAL AND AUTOMATED DATA CHANGES When routine updates are employed, the source data is regarded as the “true” source of information; therefore, if property data has been modified in CityView since the last update it may be overwritten in favor of the source data. If a user modifies a field in CityView and the corresponding field in the integration source has no value, then the user's manually entered value is not overwritten. If both the source data and CityView have a value in a particular field, the source data is considered to be authoritative and the CityView value will be overwritten. Custom fields (attributes) may be created in the CityView database for tracking information that is not available in the property source data and these attributes are never modified by the integration procedures primarily because they do not exist in the source data. RECONCILING P ARCELS IN THE SOURCE DATA WITH T EMP PARCELS CREATED IN CITYVIEW There is currently no automated, out-of-the-box process for reconciling parcels and addresses from an integration source with those that have been created manually in CityView. There are many factors to consider in making such a process work automatically and if this is very important to the customer we can build custom functionality into the property update to handle their specific situation. Need a thing similar to the Move function on Master Project in order to do this. This should also account for situations where attTempParcel or attTempAddress were used to store the data rather than actual temp parcels created in AssessView. Should there also be a way to automatically list for the user all the parcels that got added from a certain date so that they know which ones need to be dealt with? We should probably have a separate discussion to flesh out what the end to end process needs to be. Using the Temp Parcel and Temp Address Attribut e Fields Rather than creating Temp Parcels and Temp Addresses, CityView users may enter the parcel/address information into the temporary parcel and temporary address attributes that exist in every PreBuilt. A simple search can be executed on a routine basis to determine which applications/cases are still waiting for “real” locations to be assigned to them. After running the property update, the proper locations can be added to the application/case and the temp fields can be cleared so that this record no l onger shows up in the search results. Reports and letters can be constructed to ensure they show the temp fields when there is no proper location assigned to a given application/case. CityView Property Information Manual Page 30 CityView © 2012 Allowing Addresses to Appear Independently of Parcels In situations where Parcel and Address data are not coming from the same source database, it can occur that an address is available even though its corresponding parcel is not available. The integration can be configured to show the address data in the auto-suggester so that it can be selected as a Location on an application/case; however, you will not be able to pull these addresses up on the Parcel Information screen until the parcel is available and the update has been able to associate the address to the parcel. In this situation, it is also important to note that the Add Related Parcels, Addresses and Owners button will not be able to retrieve any parcel or owner data. Once the parcel and owner data is available and the update has been able to associate the address to the parcel, the user will be able to click the button to pull in the related parcel and owner(s). CityView Property Information Manual Page 31 CityView © 2012 W ORKING WITH PROPERTIES SUBDIVISIONS (LOT S PLITS) The screen is used to subdivide parcels. CityView can subdivide one parcel into any number of parcels. This is a three step process:  Create the subdivision  Assign parcel numbers  Create parcels SUBDIVISIONS SCREEN Initially new parcels only exist on this screen (i.e. you will not be able to search for them on the screen, nor will you be able to pull them up as a Location on a Permit or Case.) CityView Property Information Manual Page 32 CityView © 2012 Once you assign the parcel numbers and address details12 and click either the Create Selected Parcel or Create All Parcels button, they will become “real” parcel(s). Even if the assessor has not yet assigned official parcel numbers to the parcels, you will still be able to make full use of them in CityView. Subdividing a Parcel Method To subdivide a parcel into multiple temporary parcels: 1) Make sure you are positioned on the correct (this will be the parent parcel of all the new temporary parcels) 2) Enter the desired number of new parcels into the text box 3) Click the Subdivide button Multiple rows will be added to the grid, based on how many subdivisions you specified, and each new parcel will be assigned a unique, temporary parcel identifier. You can enter one default addres s for each temporary parcel. If more addresses are required, they can be added on the screen once the parcels have been created. Creating Temporary Parcels Method To create the parcels that resulted from the subdivision process, above: 1) Position on a specific row in the grid 2) Click the Create Selected Parcel button to create just that one parcel ─OR─ Click the Create All Parcels button to create new parcels for each of the rows in the grid All core and custom fields from the parcel record (AssessView) will get copied to the new parcels and the parent parcel number will automatically be set.13 12 The physical boundaries are not captured in CityView but can be defined in your mapping sys tem. 13 If you are using the Parcel Information screen that allows for multiple parent parcels (indicated by the CityView Manager setting “AssessPropertyInformationSheet”), then all parent parcel records will be copied to the new parcels. CityView Property Information Manual Page 33 CityView © 2012 The original parcel will not be automatically deleted. All existing information on or related to this parcel is maintained. It can be deleted manually, if desired. Existing related information such as permit applications will not be copied or moved to the new parcels. PROPERTY-BASED ALERTS Alerts allow any department to assign an alert on a property such as a complaint, building infraction, zoning violation, etc. Alerts are displayed throughout the system in the top, right-hand corner of the screen (or wherever a grid is displayed.) Alerts can be assigned a severity, such as No Alert, Moderate, or High. Custom can also be defined for unique needs such as tracking properties that are awaiting assignment of a parcel number from the assessor, or properties that are in the flood plain, etc. Alerts allow you to identify and maintain any issues on a property so everyone within the organization will know if a problem exists before an application reaches a critical stage. Alerts can be added automatically or manually. Code Enforcement alerts are added automatically when there is a case opened against a property. Manual alerts can be added for property-based restrictions such as Heritage Properties. Alerts can be viewed, added and modified using the screen. All alerts associated with the property will be displayed in the list boxes. This includes alerts which have been closed and are pending. CityView will examine all open alerts on this property and adjust the traffic light to reflect the status of the most serious one. CityView Property Information Manual Page 34 CityView © 2012 ALERTS SCREEN Adding an Alert Method To add a new alert to a parcel: 1) Find the appropriate Parcel, searching either by property number or address. 2) Click on the Add Alert button. (A new line will be added to the grid.) 3) Using the lookups, fill in the detail information about the alert. (The default status of a new alert should be moderate.) 4) Use the section to add additional information about the alert. Changing the Severity (Type) of an Alert CityView Property Information Manual Page 35 CityView © 2012 Method To change the severity/type of an alert: 1) Find the appropriate Parcel, searching either by property number or address. 2) Ensure you are on the screen. 3) Select the row to be modified (in the grid) 4) Use the drop-down menu to select the desired severity Removing an Alert Method To remove an alert from a Parcel: 1) Find the appropriate Parcel, searching either by property number or address. 2) Ensure you are on the screen. 3) Select the row (in the grid) containing the alert to be removed 4) Change the to “Closed”. The alert will still be displayed on the screen for historical purposes, but it will not be reflected in the Locations grid when adding a property to another PreBuilt application. Deleting an Alert Method To delete an alert altogether: 1) Right-click on the pertinent row in the grid and select Data > Delete the current record from Alert ─OR─ From the ribbon’s tab, click the Remove drop-down and then select Alert. 2) When prompted, click Yes CONTACT LOGS The screen provides a way to track non-project related information against the Parcel. For example, maybe you had to call with the property owner and want to record the details of the call; or, CityView Property Information Manual Page 36 CityView © 2012 maybe you do annual septic compliance inspections that aren’t tied directly to a permit and you need somewhere to store the results of those inspections. CONTAC T LOG SCREEN Adding a Contact Log Method To add a new contact log to a parcel: CityView Property Information Manual Page 37 CityView © 2012 1) Find the appropriate Parcel, searching either by property number or address. 2) Ensure you are on the tab. 3) Click on the Add Log button. A new line will be added to the grid. 4) (Optional) Select a if this action will take place in the future 5) Select a if this action has already happened 6) In the text box, enter the information pertinent to this log item. Note: The first few words of the details will be displayed in the grid, so that it is available at a glance. Deleting a Contact Log Method To delete a contact log: 1) Right-click on the pertinent row in the grid and select Data > Delete the current record from Contact Log ─OR─ From the ribbon’s tab, click the Remove drop-down and then select Contact Log. 2) When prompted, click Yes DOCUMENTS & IMAGES IN THE P ROPERTY P REBUILT As of CityView 9, version 3.7, it is possible to track Documents & Images in the Property PreBuilt. This screen will allow you to attach documents and images directly to a property record, and it will automatically display documents and images indirectly related to the property because they are attached to permit applications, code cases, etc. that are linked to the property. For more information on using the Documents & Images screen, see the PreBuilt Essentials Manual. Customers who have integrations with 3rd party document management systems will not be able to use this feature until future versions of CityView so you may find that you do not see the new screen when you first get upgraded to 3.7. If you do not see the screen and you do not have a 3rd party document management system integration, then this is a simple matter of enabling the screen using CityView Security in Application Builder (contact Technical Support for more information.) CityView Property Information Manual Page 38 CityView © 2012 PROPERTY DOCUMENTS A ND IMAGES TRACKING CORRESPONDENCE IN THE PROPERTY P REBUILT Letters, certificates and other documentation that is generated by CityView to be printed or emailed to a contact is tracked on the Correspondence screen. When the letter is printed, it is converted to PDF format and automatically attached to the Documents and Images screen for future reference (including reprinting.) Usually letters are related to a specific code or application and they would be generated within those applicable business processes; however, occasionally a letter is not associated with anything other than the property itself. This is where you would make use of Correspondence in Property. For more information on using the Correspondence screen, see the PreBuilt Essentials Manual. PROPERTY CORRESPONDENCE CityView Property Information Manual Page 39 CityView © 2012 RELATED ITEMS S CREEN The screen is used to identify any permits, licenses, code enforcement cases or any other information that is related to a property and stored in CityView. You are able to view the specific PreBuilt item that is related to the property by clicking on the reference number link in the column in the grid. CityView Property Information Manual Page 40 CityView © 2012 RELATED ITEMS SCREEN CityView Property Information Manual Page 41 CityView © 2012 RELATED FEES S CREEN The screen is used as a basket to identify any outstanding fees on a permit, license, or on a code enforcement case. On this screen you will be able to see information like the , , , , and the . The reference number is a hyperlink; and, security permitting, clicking this hyperlink will take you directly into the case, permit or license. RELATED FEES SCREEN RELATED DEPOSITS AND BONDS SCREEN The screen is essentially the same as Related Fees except that it shows any deposits or bonds associated with the property via a code case, permit or planning application, etc. CityView 2013.2 - Release Notes Release Version 2013.2 Release Date May 11, 2013 We are pleased to announce the release of CityView 2013.2 and the related PreBuilt package. This release contains several enhancements and product fixes. Before upgrading to this version of CityView, the Supported Technologies section at the end of this document needs to be reviewed and compared with your infrastructure. Some older versions and some newer versions of the technologies may not be supported by this version of CityView. CityView Product Release Notes 2/32 Release 2013.2 Table of Contents Table of Contents ............................................................................................................................. 2 Symbol Legend ................................................................................................................................. 3 Electronic Plans Review ................................................................................................................... 4 Property Integration .......................................................................................................................... 4 Documents & Letters ........................................................................................................................ 8 Batch Letter Printing ....................................................................................................................... 10 Portal ................................................................................................................................................. 11 Configuration ................................................................................................................................... 13 Cashiering & Fees ........................................................................................................................... 15 Permits ............................................................................................................................................... 16 Licensing ........................................................................................................................................... 17 Checklists/Requirement Items....................................................................................................... 17 Search ............................................................................................................................................... 18 General ............................................................................................................................................. 18 Download ........................................................................................................................................ 21 Installation ........................................................................................................................................ 21 Information and Feedback ........................................................................................................... 21 Supported Technologies ................................................................................................................ 22 CityView Product Release Notes Release 2013.2 3/32 Symbol Legend This feature will only be functional AFTER a merge with the PreBuilt package associated with CityView 2013.2 Significant change. New or enhanced functionality. Defect that has been fixed. Clarification of behavior. Database schema changes have been made that may affect custom reports. CityView Product Release Notes 4/32 Release 2013.2 Electronic Plans Review Description ID Electronic Plans Review. Electronic Plans Review is now available. Contact Sales for more information. Property Integration Description ID Property Integration Configuration. A new user interface has been created to configure typical Property Integrations. This includes the ability to consume multiple data sources, map source to target fields and perform field transformations. There is a new “Property Integration” node under Integration in CityView Manager. Each sub-node represents a separate property configuration. Multiple configurations can be created, e.g. you might define one configuration for the initial property load, and a different configuration for periodic updates. Each configuration node has three child nodes that allow you to define the views that map external property data into a format that can be handled by the stored procedures that update the CityView property tables. There is one node for each supported view: ClientAssessView, ClientAddressView and ClientOwnerView. It is assumed that the external property data has already been loaded/linked into “staging table” in a SQL Server database. Unlike other functionality in CityView Manager, the Property Integration tools access the database directly (both the CityView database and the property integration database). Toolbar Tools: Save the specification to the CityView database Reload the specification from the CityView database Set the external property data source Database table/view browser Add a table mapping (this adds a table into the definition of the view) Create the view in the CityView database Features: - Right click on a table to define one or more joins or to set the filter for the table. If the join is not a straight forward join (i.e. you are joining to 44360 45019 44971 44965 45039 44370 CityView Product Release Notes Release 2013.2 5/32 a sub-query or field transformations are required) a custom join can be added which allows you to specify the join directly in SQL. - Required fields are marked with an asterisk - Fields with no mappings will be set to NULL - Hover over the field to get a tooltip (not all fields have tooltips) - Click the + button on the view field to map a field from the external property table to the view field. Multiple mappings can be concatenated to a single view field. The user interface for adding the field mapping has options for doing various transformations. The operations are generally executed in the order they appear in the UI. - After adding mappings with the '+' button, you can click on any individual mapping to edit it or delete it. - Right click on a field and select reorder to change the order of the mappings for that field. Click on each element in the order you want them to appear. - If it is not possible to create the view field mapping with the standard user interface, you can right click on the field and select "Custom Definition" from the menu. This allows you specify the field definition directly in SQL. You can't combine a custom field definition with standard field mappings in a single view field definition. - Sample data shows actual data from the external property data with the transformations applied - If a view field is related to a lookup table, the lookup table can be specified. This will automatically join the lookup table in the view SQL and the field will be mapped to the lookup table code field. - Lookup Tables: There are three lookup related properties in the field mapping dialog, ‘Lookup Table’ is the related lookup table, ‘Related Field’ is the lookup field to use in the relation (defaults to Code if it is not specified) and 'Custom Join Alias' is the alias used for the lookup table in a custom join expression. The ‘Custom Join Alias’ allows you to specify a more complex expression to join the lookup table to the query if needed. If you specify a ‘Custom Join Alias’ then you must also create a custom join for the lookup table that uses that alias. - Self Referencing Fields: You can map a view field onto another view field. You might want to do this if a field is logically composed of other fields in the view which have complicated transformations. This results in a nested query so it should be used sparingly. - Configuration notes: There is a notes panel at the bottom of the form which can be used to associate notes with a table mapping or an individual field mapping. There is a button on the toolbar to open the panel (it is closed by default). - Multiple tables can be mapped into a single view. The resulting view will consist of a union of the table mappings. - The view editor can be configured to use multiple data sources. 1. When you click on the ‘Add Data source’ tool in the toolbar, a dialog is displayed that lists all the data sources. The current CityView Product Release Notes 6/32 Release 2013.2 CityView database is added automatically and can’t be modified or deleted. There is a button that allows you to add additional data sources. Once added, the data source can be modified or deleted. 2. When specifying a data source, you must give it a name (any name you choose). This is how the data source will be referenced elsewhere in the program. If you modify the data source, it will automatically apply to all affected elements. 3. A table mapping has a right click menu option to change the data source for that table mapping. 4. When you add a new table mapping or join, you have to identify the data source. 5. The data table viewer has a data source picker if there is more than one data source. There is a new scheduled process type 'PropertyImport'. The process can be configured to run different parts of the property import: - Check Indexes and Constraints (runs the cv_PIindexUpdate stored procedure) - Update Owners (runs the cv_PIownerUpdate stored procedure) - Update Parcels and Addresses (runs cv_PIassessUpdate, cv_PIaddressUpdate, cv_PIattributeUpdate) - Update Parent Parcels (runs cv_PIparentParcelUpdate) - Update Zones (runs cv_PIzoneUpdate) CityView Product Release Notes Release 2013.2 7/32 CityView Product Release Notes 8/32 Release 2013.2 Documents & Letters Description ID Document Grid, Date Format. The Document grids will now display the date/time in the environment’s configured Short Date format. Typically, this excludes the time portion. 44916 Set Document Field Rule Outcome. The Set Document Fields rule outcome now uses a list of data sources to put together the path that a document will be uploaded to rather than just a single one. With this enhancement, the configuration of the path is more flexible and shouldn't need complex expressions. 44831 Document Grid Columns. The default widths for the document grid columns have been improved. If the user changes the column widths, these changes will be saved for that user. 44807 Group Documents by Module. Users are now able to group documents by Module. This option will only appear when the documents grid contains the Module column. Also, the "Group Documents" button will now be disabled if there are no documents. 43769 Options when Attaching a Document. When users attach a document from Desktop, a dialog will appear asking if they want to delete the local copy of the file and/or choose a file type for the documents they are uploading. If they choose a blank type, then no type will be set (but they can still set it later). If a third party DMS is being used, the same dialog will appear with two additional options. The first option is used if they want to upload to a third party Document Management System (DMS). If they choose not to, it will move the files to the default CityView repository. The other option is to not show the dialog again. If they choose this option, the settings they originally chose will be used every time they attach a document (until they close CityView). The exception is the file type setting, which will remain blank for any other documents they choose to attach. If they decide to attach more than one file at a time, then the file type they choose will be applied to all the files they upload. 44527 CityView Product Release Notes Release 2013.2 9/32 Save As for Documents. The Save As action can be accessed from the document viewer control. It is restricted by default. This action creates a local, saved copy of the document. It will not modify the document record or move the original file. This only applies to CityView documents, not documents in 3rd party repositories such as SharePoint, Laserfiche or Trim. 44668 Scheduled Associate Document Process. The environment name is now included in both the success and failure emails that are sent from the Scheduled Associate Documents process. 44746 Clear/Unlink Documents. When trying to remove a document, if the document is linked to more than one PreBuilt item, the following option is displayed: “The document is linked to more than one reference number. You can clear the document, unlink it, or click cancel to do neither. Clear the document if you want to remove it from all projects. Unlink the document if you want to remove it from the current reference number, leaving it linked to its other reference numbers." 44707 Selecting a Newly Attached Document. When attaching documents or adding new versions, the newly added row will be selected in the grid. 4768 Accidentally Changing Dropdown Values in the Document Grid. In some situations right clicking, left clicking or double clicking a dropdown cell in the document grid changed the cell value. This has been fixed. 44948 New Letter Template Button Security. The Add New Letter Template button was not respecting security settings. This has been fixed. 44634 CityView Product Release Notes 10/32 Release 2013.2 Distribution Lists for Adjacent Owners Distribution lists for adjacent owners were selecting all property contacts instead of current property owners only. This has been fixed. 44794 Batch Letter Printing Description ID Batch Letter Printing. A new type of application server scheduled process called “Batch Print” has been created which can print/store Print Queue letters and documents in bulk. This process can be created from the Scheduled Process Configuration screen and has most of the same properties as a standard Batch Process. It should be used as an alternative to the Print Queue screen for printing and storing large quantities of letters or documents. Along with the properties Batch Print shares with Batch Process, there are some new ones specific to this process: Save Letters to Single File – If this is set to true, the process will append or “concatenate” each document to a single, large PDF file or files. It appends up to 1000 documents before it creates the next file. Concatenated PDF Path – If the Save Letters to Single File property is set to true, this is the file path that will be used to store the concatenated PDF files. The path should be relative to the CityView document repository and include the file name. It uses dynamic data sources so the directory and file names can come from expressions or field values. If the last item in the path (the file name) doesn’t end with “.PDF”, CityView will and that extension. Print Letters – Indicates that the documents should be printed using the default printer on the Application Server 43593 45149 CityView Product Release Notes Release 2013.2 11/32 Portal Description ID DMZ Upload Security. If the Document Upload Directory is set for the Portal, documents uploaded from the Portal will have a URL for the path. The URL can be used to download the file from the portal using a special controller implemented by the portal. The URL stored in the path can't be used directly to download the document because an id needs to be appended to the URL, which CityView Desktop does automatically. The GNDocumentsExt table has a new field called Location which gets created by the management server when upgrading to 2013.2. The location will be set to CityView Portal for documents residing in the portal upload directory. In CityView Desktop, documents with a location of CityView Portal behave much the same as documents that have been attached but not transferred. When a portal document is transferred, CityView Desktop uses the URL to download the file from the Portal into the Desktop cache folder and then transfers the document to the CityView repository (or 3rd party DMS). After this is complete, the file is deleted from the portal upload directory. 43593 45149 CityView Product Release Notes 12/32 Release 2013.2 DMZ Document Access. If the CityView repository is not accessible on the Portal (because it is in a DMZ), the Portal will now use the Application Server to download the documents. The Portal uses a session-less connection to the Application Server. 44927 Pay Fees Hyperlink. The Pay Fees link is no longer displayed if there are no fees owing. 45011 CityView Mobile: Filtering of Requirement Items. Filtering of Requirement Items in CityView Mobile is now available. 44607 Control over Uploaded Documents. There are now two new Manager settings: "Accepted Upload File Types" and "Maximum Allowed File Size (MB)" under Application Behavior/CityView Portal. They control the types of files that can be uploaded and the maximum size of files being uploaded through portal. If Accepted Upload File Types has not been set, then all files types are acceptable. If Maximum Allowed File Size is set to 0, then no limit is set on the maximum file size. If these values are set, and the user tries to upload a file that is too big or not an acceptable file type, a pop up will appear informing users why it is can’t be uploaded (either max size, or wrong file types) and uploading will stop. The message will also state the acceptable file types and maximum size allowable. This applies to both the public and staff portal. 44339 Attribute Control Size and Line Formatting on Portal. The portal now uses the MultiLineHeight property defined on the Attribute Configuration screen in CityView Desktop to determine how many lines are in a multiline textbox. Note: On the review page, values are displayed as text instead of using html controls so the multiline height does not apply. Multiline attribute values are now displayed in “div” elements instead of “span” elements on the review page and they are styled to preserve white space - but the text will wrap if necessary. 45009 Planning Application, Meeting Request Text. There is a new setting in Manager which can be used to display custom text at the top of the meeting request step for a new planning application: "Planning Meeting Request Text". The text can contain html markup and it is also rendered in an html div tag with css class cv-planningmeeting-text 44284 Filtering of Planning Types. When applying for a new Planning Application, the project type list in 44400 CityView Product Release Notes Release 2013.2 13/32 the first step is filtered according to the FlagPLApplicationType field (if it exists) on the LookupPLTypeApplication table. The planning types on the second step are filtered according to the FlagPLType field and the PLTypeTypeFilter field on the LookupPLTypeApplication table (if those fields exist). The process has also been modified so that the 2nd and 3rd steps will be automatically skipped if there are no planning types for the planning application type chosen. Conditions on Status Page. In some situations, Conditions were not being displayed correctly on the status page. This has been fixed. 44165 CityView Mobile: Inspection Page. On the inspection page, when firing Validate Pre-Change and Attribute Field Group rules, not all the appropriate tables were in context. This has been fixed. 44920 Skipped Portal Steps. If rules were configured to skip certain Portal steps, this caused some step-based automation to be skipped. This has been fixed. 44751 Configuration Description ID ShowEventViewer Action Security. The ShowEventViewer desktop action will be permitted by default for the Configuration organization role. This change happens with upgrades to 2013.2. 44514 Jurisdiction PrimaryTypePreBuilt Configuration. Jurisdiction PrimaryTypePreBuilt can now take a list (comma de-limited) of PreBuilt type codes instead of one PreBuilt type code. (e.g. CE,PR) 45096 Master Project Number format. You can now configure the Master Project Number to use two digits for the year. To enable this go into CityView Manager and enable custom application setting "MPNumberTwoDigitYear". 44268 Planning String Replacement. The ability to use string replacement for the Planning module has been added. In CityView Manager you can set the following custom application settings: Planning 44169 CityView Product Release Notes 14/32 Release 2013.2 PlanningLC Rebuilds of Schema and Binders/Sheets are required. Inactive Employees. The following filters have been added to the Employee configuration sheet : "All Active Employees" and "All Inactive Employees". "All Employees" is still the default, but this can be changed by a sheet filter override if needed. 43504 Sorting of Rule Outcomes. In the Business Rules configuration screen, the list of outcomes for a rule was not always ordered properly. This has been fixed. 45059 Save Letter As The menu items under the Save Letter As button on the Letters configuration screen were always disabled. This has been fixed. 44834 Attribute Field Group Sorting. Attribute Field Groups are now sorted alphabetically in the Attribute Field configuration screen. 44878 Rule Group IDs. In some isolated situations, Validation Pre-Change rules with a Read- Only outcome with a different GroupID would not work. This has been fixed. 44396 Address Book String Replacement. Related Items in the Address Book was not utilizing string replacement. For example Code versus Bylaw. This has been fixed. 43351 Next Activity Outcome Default. In the Next Activity configuration the initial outcome had no default value. In almost every case the initial outcome is pending. This is now the default value. It can still be updated to a different outcome if required. 44843 Mapping Configuration Security. Action security permissions exist to restrict access to map configuration. The actions of interest (found in the mapping section) are: - MapRefProperties - RemoveMap - AddMapToCatalog - EditOptions 44958 CityView Product Release Notes Release 2013.2 15/32 Cashiering & Fees Description ID Cashiering Popups. Clients who do not use Cashiering can now configure a popup to prompt the user for the payment method for the fee or fees being paid. To enable this go into CityView Manager and set custom application setting "CANoCashPromptForPaymentMethod" to “True”. 44228 LookupGNFee, TypeFilter Field Size. The TypeFilter field in LookupGNFee has been increased in size to 500 characters. 44803 Disbursements Amount Owing Fixed an issue with the Cashiering Receipt that was causing the amount owing field to display incorrectly. This only applies to clients that disburse the payment for a given fee to multiple GL accounts. 44742 Online Payments without Cashiering. A defect has been fixed with clients doing online payments without the Cashiering module. The amount paid was being set to the incorrect value. 44479 Cashiering Hyperlinks. The Cashiering Transaction Number hyperlink on the fees screen in the payments section was not working for users that were in the Cashier organization role. This has been fixed. 45203 Related Fees for Property. On the related fee sheet in Property certain fee payments were not visible. This has been fixed. 44820 Fee Configuration. Note that "Allow Line Item Quantity as Multiplier" and "Allow Users to Modify Line Item Quantity" can only be used for calculations that reference GNFee:Quantity for their quantity source. 44847 CityView Product Release Notes 16/32 Release 2013.2 Permits Description ID Catalog Changes In the Permits and Inspections folder we have removed the Permit Tracking hyperlink. The Utility Release screen has been added to the Permit Inspections folder and the Additional Properties screen has been moved to the Permit Plan check folder. 43419 Selection for Corrections Added Xpress style pop-up selection screen for manually choosing Corrections. The feature can be enabled based on PreBuilt module and activity type. For example, you can enable this for review corrections leave it disabled for inspection corrections. There are two settings to configure for each: One enables the popup window and the other changes the button label (i.e. “Add Correction” becomes “Select Corrections(s)”). 42940 Fire Zone String Replacement Added the ability to use string replacement for the fire zone field in the permits and inspections module. In CityView Manager you can set the following custom application settings: PRFireZone PRFireZoneLC Rebuilds of Schema and Binders/Sheets are required. 44609 Work Item Extended Description An Extended Description field has been added to work items in Permits and Inspections. You can set this in the work item configuration sheet. Once this been configured the extended description field on the permit details sheet will automatically be set to the extended description for that work item. 44700 Disconnection Updated the “Get Inspections for Disconnected” button on the Inspection Scheduling sheets to work for the Code Enforcement module. Using this button allows the inspector to go to a single screen to get the data he or she will need while disconnected (i.e.: in the field). 44159 CityView Product Release Notes Release 2013.2 17/32 Licensing Description ID LCLicensee:City Field Size The LCLicensee:City field has been increased in size from 20 to 50 characters. 45020 Hearing Error When creating hearings for licensee applications, an exception was generated. This has been fixed. 44280 Checklists/Requirement Items Description ID Checklist/Requirement Item Selection Added Xpress style selection for checklist/requirement items. The feature can be enabled based on PreBuilt module and checklist/requirement type. For example the user can enable it for review checklists and submittal requirements but not for inspection checklists. There are two settings to configure for each: One enables the popup window and the other changes the button label (i.e.: “Add Requirement” becomes “Select Requirement(s)”). New custom application settings XXSelectActivityChecklist and XXAddActivityChecklistButton. New custom application settings XXSelectInspectionChecklist and XXAddInspectionChecklistButton. New custom application settings XXSelectReviewChecklist and XXAddReviewChecklistButton. New custom application settings XXSelectSubmittalChecklist and XXAddSubmittalChecklistButton. A rebuild of binders and sheets is required after updating XXAddActivityChecklistButton / XXAddSubmittalChecklistButton / XXAddReviewChecklistButton / XXAddInspectionChecklistButton 43452 Checklist Filters The filters on the Checklist / Requirement Item dropdowns and Checklist / Requirement Status dropdowns have been updated so that 45027 CityView Product Release Notes 18/32 Release 2013.2 they function correctly on the CityView Portal. Search Description ID Obtaining more than 25 Results Fixed a problem in which the new Search would not return more than 25 results when the user selected more results. 44950 Search Problems when clicking twice With the new Search, clicking the Search button quickly more than once caused problems with the results. This has been fixed. 45070 String Replacement With the new Search, string replacement is now correctly used for: _CONIFG:Planning and _CONFIG:CPCMPlot. 44828 General Description ID Desktop Update Checks. For server performance reasons, the Desktop’s ten minute periodic check for application updates has been removed. When the user does a manual check for application updates, the Application Server in- memory rule cache is no longer bypassed. The Management Server is always checked for updates but if the Application Server already has the newest version cached, the cached version will be returned. This change also ensures that only one call to the Management Server is made at one time. 44558 Selection Checkbox position in grids. Select Fees, Select Reviews, and Select Inspections popup windows have been updated so the selection checkbox is on the left hand side of the grid. 44750 Sorting of Historic Owners. Added a sort on the Ownership Ends field in property contacts. This will cause all of the current owners to be the last records in the contacts grid in property. 44903 CityView Product Release Notes Release 2013.2 19/32 Statistics Canada Reports To accommodate long descriptions, the size of the description field in the work class and construction type lookup tables have been increased. Several of the values used for Statistics Canada were being truncated. * NOTE If you would like these values updated, please contact CityView Support. 44706 Outlook Add-in: Inserting a URL In the Outlook Add-In, if you choose the insert URL tool, the URL is now inserted at the current cursor position. 44951 Validate Pre-Change Rules Issues with the Validate Pre-Change rule not firing correctly for in- memory field value changes have been resolved. 44908 Re-Authentication In some situations with an Authentication rule on a button, if the rule was checking for a specific organization role, continuous error message were occurring if the user was not a member of that organization role. This has been fixed. 45143 Tarion (Ontario) Report Filters The “Date Issued is before or on" filter should now default to today’s date when the dialog box firsts opens. It will not change without user input. If the user changes the filter, the changes will be used for the remainder of the Desktop session only. 44415 44433 Custom Environments Requiring LoopupGNLetterType Table. In recent versions, Desktop required the LookupGNLetterType table at startup which was a problem for custom environments. This is no longer required. 44468 125% Screen Text Scaling Problems. Display problems for computers configured to use 125% text scaling have been fixed for three dialogs: - Query Limits Dialog for Searches and Reports - Email Documents Dialog. 44907 Clear Value in a Grid The Clear Value command in a grid cell was not correctly executing OnExit expressions. This has been fixed. 44296 Scheduled Batch Process Emails. If a scheduled batch process found no records to process, it incorrectly sent an error email. This has been fixed. 45182 CityView Product Release Notes 20/32 Release 2013.2 Historic Owners in Mailing Label View. The Mailing label report view was not filtering out historic owners. This has been fixed. 44792 Violations Date and Time Cited. The "Date Cited" field on the "Violations" screen (Code/Bylaw Enforcement) has been widened to allow entry and display of the time. The label for the field has been changed to "Date and Time Cited". 45016 Primary Land Use The Primary land use dropdown in the Property PreBuilt was not sorted. This has been fixed. 45271 CityView Product Release Notes Release 2013.2 21/32 Download In order to deploy Desktop with ClickOnce, you will need to contact CityView Support to obtain a ClickOnce package customized for each of your CityView environments. The customization will include the name of the environment as well as the host and port server connection information. When publishing this package, it is important that the name of the package and the published url/unc location remain stable so that future Desktop updates are automatic. To download CityView 2013.2, click the following link and click Save when prompted: http://cityview.municipalsoftware.com/download/CityView2013.2.zip Installation IMPORTANT! CityView PreBuilts users may also require a database update (merge) prior to installing this release. Please contact your Project Manager or Customer Support to arrange for this update. Note that installation of CityView 2013.2 requires Microsoft .NET 4.0. Installation instructions can be found at: http://cityview.municipalsoftware.com/download/CV2011_NewInstall.pdf Full details on the supported technologies can be found on the next page. Upgrade instructions can be found at: http://cityview.municipalsoftware.com/download/CV2011_Upgrade_Instructions.pdf Information and Feedback Release notes are available on our KnowledgeShare: Previous Release Notes Please contact us with any questions or comments regarding CityView products. Contact Information:  cityviewsupport@harriscomputer.com  CityView Customer Support  Toll-Free 1-866-988-TECH (8324) CityView Product Release Notes 22/32 Release 2013.2 Supported Technologies CityView 2013.2 depends on, and is supported on, the technologies and specific versions as indicated below. Microsoft Net Framework Provided By: Microsoft Corporation. Version Desktop Manager Application Builder Management Server Application Server Portal (New) Web Server (Classic) v 4.0 Required Required Required Required Required Required Required Compact versions Not supported Not supported Not supported Not supported Not supported Not supported Not supported Prior versions Not supported Not supported Not supported Not supported Not supported Not supported Not supported Required 3rd Party Components Provided By: CityView in the installers. Alternate versions are not supported. Product Desktop Manager Application Builder Management Server Application Server Portal (New) Web Server Syncfusion Essential Studio for .Net 9 Required Required Required Data Dynamics Active Reports 4.3 Required Required Required Required Keyoti RapidSpell 4.6 Required TxText Control for .Net 15.1 Required Required Required Required Required Microsoft C++ MFC 9.0 (redistributable) Required MSXML 4.0 (redistributable) Required Wintertree Spell Required CityView Product Release Notes Release 2013.2 23/32 Checking Engine 5.14.12.0 Microsoft MVC 3.0 Required jQuery 1.3.2 Required Excel 2003, 2007, 2010 (for exporting Grids, Activity Calendar) Required Database Database Engines - 32 and 64 bit editions Product Support Level Sql Server 2012 Being tested Sql Server 2008 R2 Recommended Sql Server 2008 Recommended Sql Server Express 2008 Supported Sql Server 2005 + SP2 Supported (note, Sql Server 2008 client components are required for merges) Note: Sql Server 2005 will not be supported on CityView versions released after September 2013. Sql Server 2005 Supported (note, Sql Server 2008 client components are required for merges) Note: Sql Server 2005 will not be supported on CityView versions released after September 2013. Sql Server Express 2005 Supported (note, Sql Server 2008 client components are required for merges) Note: Sql Server 2005 will not be supported on CityView versions released after September 2013. Sql Server prior versions Not supported CityView Product Release Notes 24/32 Release 2013.2 Database Connectivity Product Support Level OLE DB (MDAC 2.8) Required IIS Product Management Server (required) Application Server Portal (New) Web Server (Classic) IIS 7 (Integrated Mode) Supported N/A/ Supported Not supported IIS 6 Supported N/A Supported Supported IIS 5.1 Supported N/A Supported Supported IIS 5.0.2195.x with all security patches Supported N/A Not Supported Supported IIS prior version Not Supported N/A Not Supported Not Supported Mapping Technology (optional) Provided By: ESRI Please contact Support or Sales for converting any old Mapping licenses to licenses for the new Mapping technology. Product Desktop Man ager Applica tion Builder Managem ent Server Applica tion Server Portal Web Server (Classic) ArcGIS Server, Standard or Advanced Edition v10.0 with SP4 or v10.1 Recomme nded N/A ? N/A ? Recommend ed Not supported ArcGIS Server, Standard or Advanced Edition v10.0 Supported N/A ? N/A ? Supported Not supported ArcGIS Server Standard or Advanced Edition v9.3 Supported N/A ? N/A ? Supported Not supported ArcGIS Server Basic Edition Not supported N/A ? N/A ? Not supported Not supported CityView Product Release Notes Release 2013.2 25/32 ArcGIS Server prior versions Not supported N/A ? N/A ? Not supported Not supported Workgroup or Enterprise Capacity Level servers are supported. WPF technology is used to implement the Desktop viewer. Silverlight technology is used to implement the Portal viewer. Legacy Mapping Client Components Note - support for these mapping technologies has shifted to 'legacy' support. These technologies will continue to be supported until a date to be determined, but no significant enhancements will be implemented. Please contact Support or Sales for converting any Mapping licenses to licenses for the new Mapping technology. Product Desktop Manager Application Builder Management Server Application Server Web Server ArcGIS Engine 10 Not Supported ArcGIS Engine 9.3 SP1 Supported ArcGIS Engine 9.3 Supported ArcGISReader 10 Not Supported ArcGISReader 9.3 SP1 Supported ArcGIS Engine 9.2 Supported ArcGISReader 9.2 Supported ArcGIS Engine prior versions Not supported ArcGISReader prior versions Not supported Legacy Mapping Server Components Product Desktop Manager Application Builder Management Server Application Server Portal Web Server (Classic) ArcGIS Server v9.3 Supported N/A ? N/A ? Supported Supported CityView Product Release Notes 26/32 Release 2013.2 ArcGIS Server v9.2 Supported N/A ? N/A ? Supported Supported ArcGIS Server prior versions Not supported N/A N/A Not supported Not supported ArcSDE v9.1 Supported N/A ? N/A ? Supported Supported ArcIMS v9.3 N/A N/A Supported N/A N/A Not Supported Supported ArcIMS v9.2 N/A N/A Supported N/A N/A Not Supported Supported ArcIMS prior versions N/A N/A Not supported N/A N/A Not supported Not supported Document Management Systems (optional) Product Support Level Desktop Portal SharePoint 2010 Supported Supported Planned HP TRIM 7.3 Supported TRIM 32 bit client required Planned Laserfiche 8.3 Supported Laserfiche 8.3 libraries Required Laserfiche WebAccess 8.3 Supported Laserfiche 8.3 libraries Required Supported for Viewing Laserfiche WebLink 8.2 Supported Laserfiche 8.3 libraries Required Supported for Viewing Fortis 2.4.1 Supported Fortis Viewer Required Planned Oracle IBPM 7.7 (Stellent) Supported IPM Viewer Required Planned Active Directory / LDAP Product Support Level Active Directory - Windows Server 2008 Supported CityView Product Release Notes Release 2013.2 27/32 Active Directory - Windows Server 2003 SP1 Supported Active Directory - Windows Server 2003 Supported Active Directory - Windows Server - all prior versions Not supported Calendar Scheduling Technologies (optional) Product Support Level Exchange 2010 Supported with Web Services API Exchange 2007 Supported with Web Services or WebDAV using Independent Software WebDav for Microsoft Exchange v1.1 Exchange 2003 Supported with WebDAV using Independent Software WebDav for Microsoft Exchange v1.1 Exchange prior versions Untested Outlook Add-in (optional) Product Support Level Outlook 2012 32bit and 64bit Supported. Outlook 2010 32bit and 64bit Supported. Outlook – prior versions. Not supported Bluebeam (Required for Electronic Plans Review) Product Support Level Revu eXtreme 11 Supported. Required for uses who Prepare and Flatten documents. Revu CAD & Standard 11 Supported. Revu 10 Supported but not for Compare operations. CityView Product Release Notes 28/32 Release 2013.2 Email Product Desktop Manager Application Builder Management Server Application Server Web Server SMTP Supported For logging N/A For logging Supported Supported mailto: Supported N/A N/A N/A Supported Supported CDO Not supported Financial Systems Product Support Level Diamond Financial v? Supported Signature Capture Devices Product Model Support Level ePad Vision 9808 Supported ePad II 9851 Supported ePad USB 9801 Supported Label Printers Product Model Support Level Brother Label printer QL-700 Supported CityView Portal - Browsers Note - Javascript must be enabled. Product Support Level IE7 to 10 Supported Firefox 4.0 or higher Supported Chrome 3.0 or higher Supported CityView Product Release Notes Release 2013.2 29/32 Safari v? Supported Opera v? Supported Prior versions Not supported Other browsers Not supported Mobile Devices, for Staff Mobile Portal Product Support Level Blackberry 8310 or greater Supported iOS 4 or higher (iPhone/iPad/iPod) Supported Android 2.3 or higher Supported Windows Phone 7 Supported Palm Pre Supported Other devices Untested Payment Processing Product Support Level PayPal's PayFlow Pro v 4.3 Supported PayPal's PayFlow Link v 4.3 Supported, but not recommended PayGOV Supported iTransact Planned Web Service API Product Support Level Soap Toolkit 3.0 Supported Soap/XML Version 1.2 Supported Office XP Web Services Toolkit Supported Workstation Operating Systems Product Desktop Manager Application Management Application Web CityView Product Release Notes 30/32 Release 2013.2 Builder Server Server Server Windows 8, 32 bit and 64 bit Supported Supported (1) Supported (1) Windows 7, 32 bit and 64 bit Supported Supported (1) Supported (1) Windows Vista (64bit SP1) Supported ?? ?? Windows Vista (Business or Ultimate) SP1 Supported Supported Supported Windows Vista (Business or Ultimate) Supported Supported Supported Windows XP Professional SP3 Supported Supported Supported Windows - all prior versions Not supported Not supported Not supported Not supported Not supported Not supported Note (1): Needs to run in Administrator mode. Server Operating Systems Product Desktop Manager Application Builder Management Server Application Server Portal Web Server (classic) Windows Server 2008 R2 (64 bit) Supported Supported Supported Supported Supported Supported Not supported Windows Server 2008 with SP2 Supported Supported Supported Supported Supported Supported Supported Windows Server 2003 SP1 Supported Supported Supported Supported Supported Supported Supported CityView Product Release Notes Release 2013.2 31/32 Windows Server 2003 Supported Supported Supported Supported Supported Supported Supported Windows Server - all prior versions Not supported Not supported Not supported Not supported Not supported Not supported Not supported Virtual Hosting Product Support Level Microsoft Hyper-V Supported Microsoft Virtual Server 2005 Supported VM Ware Supported Hosted Platforms Product Desktop Manager Application Builder Management Server Application Server Web Server Terminal Services (Windows 2003) 64bit Supported ? ? ? ? ? Terminal Services (Windows XP) Supported ? Supported ? ? ? Citrix 1.80 and Above Supported ? Supported ? ? ? Other? Hardware Requirements Management Server The CityView Management Server runs under IIS and manages all elements of a CityView installation. CityView business users are only affected at authentication time. The performance of the Management Server will typically affect only deployment, design, and administration.  Windows Server with 2GHz Xeon processor recommended  2 Gigabytes (GB) of RAM or higher recommended  300 megabytes (MB) of available hard disk space CityView Product Release Notes 32/32 Release 2013.2 Application Server CityView business users are affected by the performance of the Application Server because it constitutes the Desktop's connection with the database.  Windows Server with 2GHz Xeon processor recommended  2 Gigabytes (GB) of RAM or higher recommended  300 megabytes (MB) of available hard disk space Portal  Windows Server with 2GHz Xeon processor recommended  2 Gigabytes (GB) of RAM or higher recommended  300 megabytes (MB) of available hard disk space Web Server (Classic)  Windows Server with 2GHz Xeon processor recommended  2 Gigabytes (GB) of RAM or higher recommended  300 megabytes (MB) of available hard disk space Desktop This recommendation is for a "typical" CityView Desktop user. A "power user" may see experience better performance with an upgraded machine while a clerk working within a single binder might well have satisfactory performance with a lesser machine.  Windows PC with 1GHz clock speed recommended  512 megabytes (MB) of RAM or higher recommended  40 megabytes (MB) of available hard disk space Application Builder  Windows PC with 1GHz clock speed recommended  512 megabytes (MB) of RAM or higher recommended  40 megabytes (MB) of available hard disk space Manager Client  Windows PC with 1GHz clock speed recommended  512 megabytes (MB) of RAM or higher recommended  40 megabytes (MB) of available hard disk space City of La Quinta Professional Services Rate Price Sheet Proposer Name: CityView Resource Category Hourly Rate Notes / Assumptions Project Management 150.00$ Trainer 150.00$ Conversion Support 150.00$ Programmer 150.00$ Business/Systems Analyst 150.00$ -$ -$ -$ -$ -$ -$ RFP # 10‐2010‐1 Page 1 of 1