CITY OF GLENDALE CALIFORNIA REPORT TO CITY COUNCIL

Transcription

1 FORMCM 36 CITY OF GLENDALE CALIFORNIA REPORT TO CITY COUNCIL August4,2009 AGENDA ITEM Proposals for Professional Services for Implementation of an Advanced Metering Infrastructure' Meter Data Management System (AMI' MOMS) 1. Molion authorizing the City Manager, or his designee, to enter inlo a conlract wilh KEMA, Inc. in Ihe amount of $984,500 to provide project management support services and other lechnical support to implement an Advanced Metering Infraslructure ' Meter Data Management System (AMI ' MOMS) for electric and water meters. COUNCIL ACTION Public Hearing ( I ordj'nance ( Approved for ~ ' ''' I,. ~ Consent Catendar ( calendar Action ttem [ X I Report Only [ I ADMINtSTRATIVE ACTION Submitted Glenn O. Steiger, General Manager- GWP....,..., _~~~~~=_ Prepared Craig R. Kuennen, PBC Marketing Manager ~~i<.jl"w~~4- A72 '&-- Ned F. Bassin, AGM - Customer and Support Services f?l'-rR, J~ Peter Kavounas, AGM - Water Services fJ,~~~~"'<:''';~~ ---""~ Approved James E. Starbird, City Manager \tf $ ~ ~ v Reviewed ScoUH.Howard, CityAUorney ~... "... < 8 B

2 Contract Award 10 KEMA, Inc. Augusl4, 2009 Page20f6 RECOMMENDATION GWP respectlully recommends Ihat the City Council adopt a motion authorizing the City Manager, or his designee, to enter into a contract with KEMA, Inc. (KEMA) in the amount of $984,500 to provide project management support services and other technical support in the implementation of an AMI' MOMS for electric and water meters. SUMMARY On July 14, 2009, the City Council approved the GWP AMI' MOMS deployment project. This project is a key component in realizing the benefits and goals oullined in the new GWP Five-Year Strategic Plan. It will install a new state-of-the-art AMI' MOMS as the first step in moving GWP to a Smart Grid. The deployment of AMI' MOMS will impact almost all of GWP's organization and processes. GWP staff leading the deployment effort will need to proactively understand and address a number of processes and organizational impacts while simultaneously fulfilling existing duties and obligations, and maintaining business operations. As such, the GWP AMI' MOMS deployment staff will need additional project management support services and technical support to successfully complete the project. A Request for Proposal (RFP) for professional services was issued in March GWP received six (6) proposals. The GWP Smart Grid Commillee (Commillee) reviewed the proposals individually and met on May 14, 2009 to review the scoring, rank the proposals and made a final selection. The Commillee unanimously selected KEMA, Inc. GWP respectfully recommends that the City Council adopt a motion authorizing GWP to enter into a Contract with KEMA for professional services Not-to-Exceed $984,500. FISCAL IMPACT The proposed contract is $984,500. Funds are available in the GWP FY and will be included in the FY budget. Funds will be allocaled in the following manner: $275,660 under Account No , Fund No. 573, Project No , Organization No. 951 and $708,840 under Account No , Fund No. 553, Project No , and Organization No BACKGROUND On July 14, 2009, the City Council approved the GWP contract with llron, Inc. to implement AMI' MOMS. This project will install a new state-of-the-art AMI' MOMS as the first step in moving GWP to a Smart Grid. This project will replace all electric and water meters with state-of-the-art smart meters with two-way communications. It will also provide capability for in-home communications with home appliances, air conditioning systems, pool pumps, in-home displays, etc. Customers will be able to access real time information they need to better manage their electric and water usage via their own intemet connections.

3 Contract Award to KE MA, Inc. Page 3016 The new GWP AMI I MOMS system will have the following features: Smart meters with large data storage capabilities and two-way communications hardware and software: - Eleclric meters with remotely-controllable switches to allow for remote service disconnect and re-connect. - Water meters with leak detection and lamper informalion - Electric and Water meter tamper detection. A wide area network to allow two-way communications between the GWP computers and each meter in our service territory with capability for remote meter reading. Serve as the communicalions backbone for distribulion automation, direct load conlrol, distributed generation, demand response, and new customer programs and service options that allow customers to take control of energy and water costs through access to real or near real time consumption information. MOMS and systems software to inlegrate meter data with the utility's billing, customer information syslem, oulage management, load control systems, and other Smart Grid syslems. A premise gateway that communicales to a home area network (HAN) to promote demand response, energy and water conservation, and dynamic pricing options. Ultimately, Ihe GWP Smart Grid Project will provide for: Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid. Dynamic optimization of grid operations and resources with full cyber-security. Deploymenl and integration of distributed resources and generation including renewable resources. Development and incorporation of demand response, demand-side resources, and energy-efficiency resources. Deployment of Smart Technologies (real-time, automated, interactive lechnologies that optimize the physical operation of appliances and consumer devices) for metering, communications conceming grid operations and stalus, and dislribution automation. Integration of Smart Appliances and consumer devices. Deployment and integralion of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and Ihenmal-storage air conditioning. Provision to consumers of timely information and control options. Glendale's Iransition to the Smart Grid will be led by GWP's Smart Grid Development Team. The GWP Smart Grid Development Team will be responsible for work related to all phases of the implementalion of the project from finalizing the scope of work to proof of concept to full implementation to final acceptance. With few exceplions, the Smart Grid Development Team members will continue to fulfill existing dulies and maintaining business operations during the deployment phase. As such, they will need additional project management support services and technical support to successfully complele the project. It is anticipated the GWP Smart Grid Development Team will need technical advice and support in the following areas:

4 Contract Award to KEMA, Inc, Page Project management support services and documentation 2. Administration and reporting of any grant funds as may be received by state or federal agencies 3. Finalization of the AMI-MOMS Project Scope of Work and Project Plan, including Proof of Concept and Full Scale Implementation Strategy and Timeline 4. Disaster recovery plan 5. Defining and conducting system-level testing 6. System/integration requirements, analysis, and design 7. Change management 8. Training and knowledge transfer 9. Benefits realization 10. Customer outreach and education RFP PROCESS AND SELECTION On March 19, 2009, GWP issued an RFP to seek the professional services of a consulting firm that understands the AMI industry, technologies, costs and benefits to assist GWP in the implementation of its AMI / MOMS project. On April 9, 2009, GWP received six responses to that RFP. The RFP called for responses to be evaluated in accordance with the following scoring system: Qualifications and experience Approach and understanding of requirements Cost Ability to meet proposed schedule and budget estimates 25% 20% 25% 30% On April 13, 2009, the GWP Smart Grid DevelopmentTeam metto distribute the responses and discuss the evaluation process. Over the next few weeks, team members individ ually reviewed and scored the responses. On May 14, 2009, the Smart Grid Development Team met and discussed the responses as a group and developed a final ranking. Table 1 below represents the final rankings as determined by the Smart Grid Development Team. TABLE 1 Struc- Criteria KEMA Nex-Level Boreas Ensplria RWBeck tunt Aooroach Qualifications Meets Budaet Cost Total Points As shown in Table 1, KEMA was ranked first followed closely by the Structure Group. The GWP Smart Grid Development Team selected KEMA based on the following: 1) KEMA's approach and understanding of the project was the most detailed and responsive, 2) KEMA 's overall corporate qualifications and proposed staff experience are exceptional, KEMA is a recognized industry leader in AMI/ MOMS, 3) KEMA's proposed level of support and corresponding budget estimates are very reasonable, and GWP's past experience with KEMA is that they meet deadlines within budget, and 4) the cost difference between KEMA and the low priced respondent was primarily due to the fact that the low price respondent proposal significantly underestimated the level of support that will be required. GWP has considerable experience working with KEMA and is confident that KEMA is the best choice for

5 Contract Award to KEMA, Inc. Page 5 of6 this project. As such, GWP respectfully recommends that the City Councit adopt a motion authorizing GWP to enter into a Contract with KEMA professional services not-to-exceed $984,500. SCOPE OF WORK The project mission will be to provide GWP with a fully functional AMI ' MOMS system. The AMI ' MOMS system will be easy to maintain and easy to enhance with additional capabilities as they become available in the marl<etplace and will incorporate leading-edge industry products that have the marl<et positioning to stand the test of time. AMI' MOMS is a transfonmational effort that is redefining the way that utilities will deal with customers, improve operations and leverage detailed service point information within the organization. The KEMA AMI ' MOMS support team is consummately familiar with AMI and MOMS technologies that can unlock these benefits and the back office systems that are an essential element in this transformation. The project vision is to implement an innovative AMI' MOMS system that provides benefits to GWP in the areas of customer service, revenue collection, technical modernization, Smart Grid capabilities, and effective employee utilization. In this effort, KEMA will provide the following support on a pre-approved time and materials basis: 1. Project Management Support Services and Documentation. As project advisor, KEMA will be responsible for assisting the GWP Business Transformation and Marl<eting Administrator and Project Manager with establishing GWP's schedule of activities and ensuring the assignment of resources to GWP tasks. KEMA will also help coordinate all activities between the vendor and GWP including: dispute resolution, acting as the clearinghouse for consolidation of project issues and concems that may be identified by the GWP smart grid development team. KEMA will be the client advocate with the project vendors to monitor project progress, offer cost-effective and time saving alternative solutions, develop project strategies, and monitor GWP resources and task progress. 2. Administration and Reporting of Grant Funds. KEMA, as a 3rd party independent expert in the energy markets, will assist GWP in identifying reporting requirements and create a reporting process to monitor and report on effective use of funding. It is important the process clearly details how use of the Grant Funds will be measured during and upon project completion. KEMA will define this process by assessing the requirements, defining the scope, and developing an actionable project plan to comply with the reporting requirements. Administration of this process will be developed by KEMA in concert with GWP's in-house Smart Grid Development Team. KEMA will worl< with GWP to integrate this process into all phases of the project from initiation through full implementation such that the data gathering and reporting can be automated as much as possible. 3. Business Continuity' Disaster Recovery Plan High Level Overview. KEMA will support GWP in creating a Business Continuity' ~isaster Recovery Plan for the AMI' MOMS System, to support the ability to continue to read meters and generate bills during the deployment phase of AMI' MOMS in the event of an incident that impacts the AMI' MOMS system during this time. The data from AMI' MOMS will eventually touch many different departments, systems and processes within GWP and every business can experience a serious incident that can prevent it from continuing normal business operations: and this can happen at any time. This can range from a flood or explosion to a serious computer malfunction or a software/firmware or information security incident, which for AMI / MOMS could result in a lack of ability to communicate with some or all smart meters or the inability to manage the data and to generate billing determinants, interact with the customer information system and/or other systems. 4. Define and Conduct System-Level Testing. KEMA understands the importance of testing to the ultimate overall success of the Glendale Water & Power AMI ' MOMS Implementation Project. Industry "Best-Practices" consistently identify Testing as the number 1 determinate between a successful and a failed deployment. As such KEMA is proposing to assist GWP in developing a Test Program/Work Plan that is directed toward testing the new '

6 Con tract Award to KEMA, Inc. Page60f6 AMI! MOMS Systems sufficiently to ensure the successful deployment of a quality, workabte system that meets GWP specifications and expectations. 5. Systemllntegration Requirements, Anatysis, and Design. KEMA will work with GWP to develop a ptan for System Integration Requirements, Analysis, and Oesign which includes: 1) System Integration Requirements document which addresses the overall System tntegration Plan and defines all of its etements, 2) System Integration Analysis document which provides detailed descriptions of the various integration steps, including a prioritized listing of the steps to be imptemented for each task, and 3) System Integration Oesign document which defines the actual system integration imptementation process, including an overall project schedule and test requirement documents. 6. Change Management. KEMA will work with GWP in creating the Change Management strategy for its AMI! MOMS Implementation that defines the structure, work plan, and approach that will be setup and managed by GWP in managing the Change Management process. The deployment of AMI! MOMS has impacts across almost all of a utitity's organization and processes. Utilities have a need to proactively understand and address these process and organization impacts to most effectivety take advantages of the capabitities of AMI! MOMS. Meter data is one of the core data elements and the management of the meter through its lifecycle is one of the core processes of a utility. With the emergence of AMt! MOMS, which enables two-way communications with the meter and end-user and dramatically increases the amount and type of data available, utilities have found that almost every unit within their organization may be impacted by this technotogy. Therefore, the utility needs to first understand the potential impacts and then address these impacts with a combination of process changes, organizational changes, and/or system changes. 7. Training and Knowtedge Transfer. Support training and knowledge transfer process. Project training includes a project orientation class that provides an overview of the AMt! MOMS project and the major functionat areas. Following this functional overview, new project members go through a training course related to the toots they are scheduted to use with an emphasis on the AMI! MOMS operations specific for each toot. We have assumed that each vendor associated with the AMI Head-End System and the MOMS System will provide user training for their system as a pretude to our support. B. Benefits Reatization. Benefits realization will focus on the benefit projections identified in the business case, inctuding operational and the societal benefits. The objective is to further refine these estimates, and possibly identify new benefit areas that would contribute to the business case. This refinement effort would focus on the review and refinement of the existing GWP economic model, rather than the creation of a new toot. However, as required and appropriate, augmentations may be made to provide greater depth of assumptions and additional validations. These adjustments woutd leverage KEMA knowtedge; experiential knowtedge gained from simitar efforts with other utilities; and references other utility business plans that are in the public domain. 9. Customer! Employee Outreach and Education. Educating GWP's customers and employees about the benefits and operational improvements associated with the planned AMI project should be a significant component of GWP's AMI! MOMS strategy. KEMA has extensive experience in assisting utilities with the development of a customer outreach and education plan. EXHIBtT(S) None

7 MOTION Moved by Council Member, seconded by Council Member that the City Council hereby approves and accepts the proposal submitted by KEMA, Incorporated pursuant to a Request for Proposals, for proj ect management support services in connection with the implementation of an AMI/MOMS electric and water meter program for Glendale Water & Power in an amount not to exceed $984,500. authorized to execute an agreement with KEMA, The City Manager is Incorporated subject t o approval by the city attorney. Vote as follows : Ayes: Noes: Absent: Abstain: APPROVED AS TO FORM C ----=:>~-~-~~ = CITY ATTORNEY " ".IE '7-'3- - d,. J:\FILES\OOCrl LES\ FACTFIND\pr o f services pe r RFP s mart me t er I(s '"tn 89 'wpd 1