REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute a Digital Services Agreement with Siemens Industry, Inc.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Since 2010, Silicon Valley Power (SVP) has used the Siemens EnergyIP (EIP) Meter Data Management (MDM) software to manage meter data. The MDM software converts raw meter data for use with the City's billing system and customer bills and is a critical software for over-the-air meter data collection and to create electric bills for the City's customers. This is a complex system requiring integration with the City's Customer Information System (CIS) for 60,000 service delivery points, 250 bill rate codes, and 200 billing routes throughout the City for all residential, commercial, and industrial customers. Previously, SVP has contracted with Omnetric for the same product. Omnetric is a Siemens Company. The name, but not the product, has changed as part of a company reorganization.
The MDM system is complex and required approximately seven years to install and develop to perform at a level fully adequate for production use for over the air billing by SVP and the Municipal Services Division of the Finance Department. Therefore, staff recommends an upgrade versus conducting a competitive Request for Proposal (RFP) process to potentially replace the system in its entirety.
DISCUSSION
SVP recommends executing an agreement with Siemens Industry, Inc. for an upgrade to the existing MDM system for improved serviceability, reduced times required for daily operational tasks, and to remove older systems no longer supported by the Original Equipment Manufacturers (OEMs). In addition, staff recommends five years of annual subscription fees to provide systems support and keep the licenses current plus five additional one-year options to extend the agreement for a total of ten years.
This proposed agreement will be n...
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