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CITY COUNCIL WORK SESSION 4:00 PM I. Advanced Metering Infrastructure (AMI) II. Water and Electric Rate Study III. RFTA Destination 2040 CITY COUNCIL WORK SESSION August 06, 2018 4:00 PM, City Council Chambers MEETING AGENDA Advanced Metering Infrastructure (AMI) Water and Electric Rate Study P1 1 MEMORANDUM TO: Mayor and City Council FROM: Lee Ledesma, Utilities Finance & Administrative Manager THRU: David Hornbacher, Utilities Director Scott Miller, Public Works Director DATE OF MEMO: August 3, 2018 MEETING DATE: August 6, 2018 RE: Advanced Metering Infrastructure (AMI) Work session Update on Request for Proposal Results REQUEST OF COUNCIL: Staff requests input from City Council regarding the purchase and implementation timing of an Advanced Metering Infrastructure (AMI) system for City of Aspen Water and Electric Utilities. PREVIOUS COUNCIL ACTION: In October of 2017, during a Council work session presentation of Water and Electric proposed budget and rates for 2018, Council requested staff research and present on an Advanced Metering Infrastructure (AMI) for the City’s Water and Electric Utility. BACKGROUND: On December 29, 2017, City of Aspen issued an RFP for an Advanced Metering Infrastructure System. The due date for bid proposals was February 2, 2018 and the City received four bid proposals. A diverse bid review team was established consisting of: · Lee Ledesma, Utilities · John Sobieralski, IT · Keith Wester, Water · Ron Christian, Electric · Cory Garske, Utility Billing · Ryland French, Efficiencies The review team chose the top two respondents for in-person demonstrations, which occurred the second week of May 2018. Hotline Electric presented on May 8th and Landis + Gyr presented on May 10th. On June 14th the bid review team met and unanimously selected Landis + Gyr as the top proposal in the RFP process for a City of Aspen Utilities AMI system. P2 I. 2 DISCUSSION: AMI technology is rapidly transforming the utilities industry by providing both utilities and customers the data and tools to better understand and optimize water and electric usage. As an emerging industry best practice, Landis + Gyr AMI systems have been implemented worldwide. In Colorado, implementation includes the largest municipal utility, Colorado Springs Utilities with over 500,000 meters, to locally Holy Cross Energy with 55,000 meters. This technology continues to grow and adapt to provide solutions to current and future needs. At today’s work session, staff will discuss the details of how this AMI system enables Council Goals and Objectives, Utilities Best Management Practices, and Customer tools. Examples of this AMI’s system’s capacity include: Council Goals and Objectives · Climate Action and Resiliency Planning · Building performance · Electric Vehicle support through charger metering and energy pricing Utilities Best Management Practices · Energy and Water Efficiency and Conservation Program · Capital Asset Program optimization · Distribution Automation and Generation · Rate Design Flexibility o Dynamic Pricing o Time of Day o Water Budget o EV rates · Electric Outage Management o Outage detection and restoration o Preventable Outage maintenance · Water System Integrity · Replace aging meter infrastructure components · Improved accounting of water and electric usage · Advanced Security · Simplified customer account changes Customer Tools for Engagement and Satisfaction · Customer Portal real time access · Customizable range settings for alerts of usage, early water leak detection, etc. · Water and Electric usage awareness, charts and graphs · Energy control P3 I. 3 FINANCIAL IMPACTS: The selected proposal from Landis + Gyr is $1,722,076. Staff included in the 2019 draft budget a capital project budget placeholder of $1.8 million split 50/50 between the Water and Electric Funds. The main components are: Installation: $412,000 Equipment: $850,000 Technology/Support/Training/Outreach: $538,000 Grant: Staff submitted a grant application to the Community Office of Resource Efficiency (CORE) in the amount of $ 200,000. This request was positively received, recommended by the Grant Review Committee, and approved by the CORE Board of Directors. Final approval from Pitkin County and City of Aspen is pending their review of all CORE grant recommendations and annual funding. RECOMMENDED ACTION: Council direction for Staff to proceed with the purchase of Advanced Metering Infrastructure for the City of Aspen Water and Electric Utilities and implementation beginning in year 2019 or as so determined by Council. ALTERNATIVES: City Council could direct staff not to pursue implementation of AMI at this time. Staff would continue to use traditional meters read monthly by meter staff to gather data and process utility billings. CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit A – City of Aspen AMI RFP 12 29 2017 Exhibit B - Landis + Gyr presentation to Aspen Bid Review Team 5-10-18 Exhibit C – City of Aspen Grant Application to CORE P4 I. 1 Request for Proposals for Advanced Metering Infrastructure System Due Date: 2:00pm, February 2, 2018 City of Aspen Purchasing Department 130 South Galena Street Aspen, CO 81611 (970)920-5079 Rebecca.Hodgson@cityofaspen.com P5 I. REQUEST FOR PROPOSALS Sealed proposals will be received at the City of Aspen Purchasing Department until 2:00p.m., February 2, 2018, at which time the proposals will be opened and reviewed, for the following City of Aspen project: Advanced Metering Infrastructure System The project will include: supply and train City staff on an advanced metering infrastructure system for all electric metering points, with an option to provide water metering points. The City desires a proven and secure two-way, multi-purpose management communications network solution, which offers remote monitoring and control functions to various devices on the proposed City of Aspen system. Complete proposal packages are available to download from www.BidnetDirect.com Vendors must be registered to view the bid packages. There is no charge to register. Call 800-835-4603 if you need assistance registering. The City reserves the right to reject any or all Proposals or accept what is, in its judgment, the Proposal which is in the City's best interest. The City further reserves the right, in the best interests of the City, to waive any technical defects or irregularities in any and all Proposals submitted. In order to submit the proposal, an electronic copy must be uploaded into the Bidnet Direct website. The City cannot accept faxed or emailed proposals. Pursuant to the Colorado Open Records Act, C.R.S. Section 24-72-200.1 (CORA), any and all of the documents that are submitted to the City of Aspen may be deemed public records subject to examination and inspection by third parties. The City of Aspen reserves the right, at its sole discretion, to release for inspection or copying any document, plan, specification, proposal or other writing submitted pursuant to this request. Discussion may be conducted with responsible Offerors who submit Proposals determined to be reasonably susceptible to be selected for award for purpose of clarification to assure full understanding of, and responsiveness to the solicitation requirements. In addition to price, the criteria set forth in the Instruction to Offerors and any specific criteria listed below, may be considered in judging which Proposal is in the best interests of the City: compliance with requirements; solution that best fits our needs now and in the future; simplicity and ease of install and use; availability, delivery and installation schedule; quality and extent of training; experience providing solution; and security. BY ORDER OF THE CITY OF ASPEN, COLORADO Rebecca Hodgson, Purchasing P6 I. 3 1. SCOPE OF WORK 1.1 Background Electric Utility Every inch of the Aspen Municipal Electric System is buried with the majority of the lines being “direct bury.” Aspen Electric provides service to approximately 3,050 accounts located within the Aspen Municipal boundary. Out of those accounts, there are 2,020 residential accounts and 1,030 commercial accounts. Meter sizes range from 200 amp to 2,000 amp. There are a total of 30 meters classified as large commercial accounts that measure demand and 325 meters that are currently set up with AMI capabilities. The distribution system consists of four main circuits. The system is interconnected with the Holy Cross Energy system at 3 locations. The distribution voltage is 14,400,/24,900 volts. There are 131 single phase transformers and 104 three phase transformers connected to the system. The maximum system load is approximately 14,750 KW. The peak load generally occurs during the Christmas-New Year’s holiday period. City of Aspen currently utilizes the following meter types: Meter Type Quantity Single-Phase Form 2S Meters 2,500 Single-Phase Odd-Form Meters 50 Network Meter 150 Polyphase Meters 400 TOTAL 3,100 Water Utility Aspen owns and operates its own water utility with the exception of the wastewater treatment plant, which is maintained by Aspen Consolidated Sanitation District. City staff maintains raw water deliveries to the water treatment plants in sufficient quantities to meet system demands. Staff also perform operations and maintenance functions for the treatment facility, booster stations, pump stations, vaults and storage tanks, and the Thomas Reservoir located adjacent to the treatment plants. The City of Aspen's water distribution system consists of 16 separate pressure zones. These pressure zones are supplied by 14 water storage tanks that are fed by 14 pumping stations and three wells. The water distribution system is comprised of approximately 73.2 miles of water mainlines that range in size from 24" to 4" in diameter. Aspen water utility currently uses the Aclara STAR Network Advanced Metering Infrastructure (AMI) system for metering and billing purposes for approximately 1,200 of the 4,000 water customer connections. Out of those 4,000 accounts, approximately 3,400 are residential P7 I. 4 water accounts and 600 are commercial water accounts. Service line connections to the distribution system range from ¾ inch to 4-inch. Meter Type Quantity ¾” Water Meter 1,000 1” Water Meter 1,400 1 ½” Water Meter 1,000 2” Water Meter 500 4” Water Meter 100 TOTAL 4,000 1.2 Objectives The City of Aspen is accepting proposals to supply an advanced metering infrastructure system for all electric metering points, with an option to provide water metering points. City of Aspen Utilities plans to deploy the electric system over one to two years starting in 2019. This timing is subject to change based on proposal, financial conditions and City Council direction. Deployment of the water system will depend on the technical solutions available, availability, integration, and costs. Objectives of the AMI system includes: Reduce electric and water meter reading costs Increase meter reading performance and accuracy Provide two-way monitoring and control functions through the AMI system In electric utility, provide outage and restoration notification to increase outage management efficiency Ability to provide direct load control of select city and customer load devices—i.e. water heaters, space heaters, air conditioners, electric vehicles, etc. Reduce energy and water theft Provide time-of-use and dynamic rate structuring capability Perform remote disconnect/reconnect of electric service Supply comprehensive data from endpoints Provide endpoint information to other applications Protect and secure consumer data Provide customer data portal/availability of information for customers Reduce electric and water losses Allow incremental deployment and expansion for both electric and water utility Position the City of Aspen for future technological advances P8 I. 5 Integrate real time information from AMI system to distribution automation strategies and SCADA system to improve system reliability and efficiency Enable “Pay as You Go” prepayment capability Allow the capability to provide customers with their real-time energy and water use data Provide demand response capability 1.3 Project Overview The City of Aspen seeks to identify the AMI solution that best addresses our requirements and objectives. In addition to the functionality stated in this section, the City intends to use the AMI system to support, and/or augment, efficiency, renewable, and greenhouse gas initiatives. Some of the programs the City will consider in the future are: Substation and distribution automation Automated Power Factor Control Conservation Voltage Reduction Recloser and breaker automation Integration of electric AMI meter data into the outage management system as well as predictive and preventative maintenance programs Integration of AMI electric and water meter data into the SCADA system for distribution automation purposes Electric Vehicle (EV) charging infrastructure with separate rate structures and energy consumption tracking Personal energy management (In home displays, thermostats, load control devices) Energy and Water conservation and efficiency programs Demand response initiatives Dynamic rate structuring Distributed generation including, but not limited to, photovoltaic systems Leak detection and water distribution system monitoring 2. System Requirements The City desires a proven and secure two-way, multi-purpose management communications network solution, which offers remote monitoring and control functions to various devices on the proposed City of Aspen system. The offered AMI solution shall address and support the following related features and functions identified in sections 2.1 through 2.8 of this RFP. 2.1 System Overview The utility desires to own, operate, and maintain its own network. The network should have battery back-up for all infrastructure devices and be designed so there is no single point of failure. Overall system security is of utmost importance. All end points need advanced P9 I. 6 security. Ease of installation is of primary importance, with flexible installation options on utility poles, street lights, and other utility-owned property. Since City of Aspen will use the network for both AMI and Distribution Automation (DA) the network must be capable of routing DA message packets with or without any enhanced/smart meters installed. With this information in mind please provide a description and architecture diagram of each element of the bidder’s proposed solution. Describe each system element including any single points of failure for the following: Endpoints Routers Collectors Communications Server(s) 2.2 General Requirements A two way, network communications system utilizing secured, advanced and future proof technology. All devices shall be self-registering at time of installation. Please describe the amount of time that the registration process takes. The network routing shall be dynamic and self-healing to maintain optimum performance during distribution grid disturbances, and during due to seasonal or physical changes. Daily retrieval of all meter data with at least 99% of all meters successfully read each day without estimation. Interval load profile data at 5, 15, 30, or 60 minutes intervals shall be provided at least every 4 hours for AMI meters. Some interval data may be retrieved as often as every 5 minutes for special applications. All data retrieved shall be time-stamped by the endpoint. The host system must transmit all necessary billing data, without estimates, for at least 99% of the meters in each billing cycle to the customer information system on a daily basis within 24 hours of the end of the billing cycle. All alarms, including power failure, shall be programmable by event type and be reported via an unsolicited event message. The communications system shall support real-time, on-demand meter reading requests and shall have an average response time of 30 seconds or less at least 90% of the time. The communications system shall enable remote reprogramming of all endpoints from the head end system to change all programmable information in the device, such as the number and frequency of data elements reported. P10 I. 7 The communications system shall enable remote firmware upgrades to all electric and water endpoints without a field visit. Time stamp of readings and actual endpoint reading time shall be within one minute of the system reference time (e.g., National Institute of Standards and Technology). All system hardware must be capable of reporting diagnostic, tamper alerts and errors to the data collection system. The system shall support advanced metering functions such as demand, time of use (TOU), load profiling and multi-channel capability (e.g., KVA, KVARH). The system shall support outage management and restoration functions, predictive and preventative maintenance programs, conservation and efficiency programs, virtual metering capability, load control devices, distributed generation, communication of broadcast messaging to customer, and dynamic rate structures. Must be an Electric AMI provider for minimum of five years. Indicate number of years of providing this service. Water AMI providers for a minimum of two years. Proposed solution must have been commercially available for a minimum of one year. Only systems with proven deployments that have capability of supporting AMI Electric, AMI Water, Distribution Automation, Home Automation, Direct Load Control, and Dynamic Voltage Control under a unified communication platform will be considered. A minimum of ten current deployments of 25,000+ Electric AMI endpoints. Flexibility of an AMI Network Infrastructure, such as own and operate solution, a fully hosted solution (SAS), or combination of both capabilities (depending on application) are preferred. Systems that have minimum of different manufacturer’s components for ease of use, installation, number of components, hardware, software and service 2.3 AMI Communication Requirements The AMI solution shall support either a single- or multi-layer infrastructure (i.e., local- area network (LAN) and wide-area network (WAN)). The LAN must utilize two-way communication from the endpoint device to the collector for all electric and water devices including endpoints, routers, and collectors. The WAN must support multiple communications technologies from the collector device to the central host server (e.g., wired or wireless: TCP/IP-based, GPRS, CDMA, Ethernet, BPL, LTE, Private LTE, or WiFi). The AMI solution must support the following two-way communication methods. o Scheduled data messages (programmable for daily, hourly, sub-hourly) o Proactive messages (unsolicited messages sent as events occur) P11 I. 8 o On-demand messages (in near real-time) o Broadcast messages (also providing control functions) The AMI solution shall be designed so that increases in data requirements (e.g., moving from daily reads of all customers to 15-minute interval reads of all customers) do not raise the operation and maintenance cost of the system. Please describe your network design methods to ensure the AMI system can accommodate future growth and technological advances. Description of how AMI solution would transfer certain data to City’s existing SCADA system. 2.4 IT Security Requirements Cyber security capabilities of the solution must address both inadvertent compromises of the systems and infrastructure, due to user errors, equipment failures, and natural disasters, and deliberate attacks, such as from disgruntled employees, industrial espionage, and terrorists. The proposed solution must address the following security requirements: Meet current NERC CIP standards for cyber security and supports upgrade mechanisms to ensure continuing compliance. Implement recommended security controls from current ASAP-SG security profile for Advanced Metering Infrastructure and supports upgrade mechanisms to ensure continuing compliance. Support Advanced Encryption Standard (AES) encryption at the head end and at the meter level. Devices must support upgrading encryption ciphers to address any vulnerabilities discovered in the ciphers. Utilize secure cryptographic protocols and support upgrades to ensure these protocols can be upgraded to address new vulnerabilities. Currently this is TLS v1.2, however if vulnerabilities are discovered in this protocol the devices must support upgrading to newer versions of this protocol. Use at a minimum 256-bit encryption when transporting data. Where a hashing function is involved it must use SHA-2 at a minimum. The proposed system must offer as standard or optional capability to utilize advanced techniques to ensure authentication and integrity of data as follows: Role Based Access Controls (RBAC) within the head-end enabling the utility to restrict operational and data access on a granular basis to both individuals and systems with an explicit need. Native and Lightweight directory access protocol (LDAP) head-end user authentication mechanisms. When passwords are stored, they must be hashed and salted using current secure methods. Elliptic Curve Cryptography (ECC)-based downstream digital signatures applied to utility configurable messages classes. P12 I. 9 Hash Message Authentication Codes (HMACs) of encrypted messages. Cyclic Redundancy Checks (CRC’s) at the radio packet level to detect transmission errors and poorly implemented packet deception attacks. Using Public Key Infrastructure (PKI) and ECC digital signature mechanisms, the head-end and interconnected systems must collect, validate and store non- reputable message acknowledgements. Mobile administration software must make use of digital certificates issued by the head-end to authenticate field tools. Compliance with Smart Grid security standards and guidelines such as NISTIR 7628. Vendor must perform initial penetration testing of both the network and the head- end system using third party security experts. The results of these tests shall be provided on request in order to demonstrate the strength of the solution’s end-to- end security. 2.5 AMI Hardware Component Requirements Electric Utility General Proposed electric meters and installed endpoints must be manufactured, sold and supported by a single vendor to ensure competitive pricing and effective support. All endpoints must be integrated at the meter manufacturer’s facility. Prior to delivery from the factory, the meter manufacturer shall test each meter to certify the accuracy and proper operation of the meter. A file with meter attribute information and test results shall be electronically provided prior to every shipment from the manufacturer. Meters must be field programmable via an optical port that can be utilized without removing the protective cover. Meters must support optical port lockout for security purposes. Endpoints must be certified to comply with FCC Part 15 rules. Single Phase Electric Meters Single-phase electric meters with two-way communications proposed by the vendor must be rated as follows: Operating Temperature from -40 Degrees Celsius to +85 Degrees Celsius, Nominal Voltage 120VAC or 240VAC, Operating Voltage 80% to 115% of Nominal Voltage, Frequency 57Hz to 63Hz, Relative Humidity of 5% to 95% non-condensing, Voltage Burden less than or equal to 1.9 Watts Maximum. P13 I. 10 Single-phase electric endpoints shall allow interrogation and reprogramming over the AMI system without interruption of the service connection. Single-phase electric endpoints shall synchronize to a single host system time source and shall not exceed a one-minute time drift. Data displayed on the single-phase electric meter must match the reading provided by the AMI system. Single-phase electric endpoints shall have a programmable outage and restoration notification time; this shall be reprogrammable from the host system. Single-phase electric endpoints shall have data storage capability to store over 30 days of 15-minute load profile data; this data shall not be lost during power outages. Single-phase electric endpoints must be preprogrammed for standard single-phase meters and require no programming prior to installation. Polyphase Electric Meters Polyphase electric meters with two-way communications proposed by the vendor must be rated as follows: Operating Temperature from -40 Degrees Celsius to +85 Degrees Celsius, Nominal voltage 120-277V Auto Ranging Power Supply, Operating Voltage 80% to 120% of Nominal Voltage, Frequency 57Hz to 63Hz, Relative Humidity of 5% to 95% non-condensing, Voltage Burden less than or equal To 1.8 Watts Maximum. Polyphase electric meters must provide up to 15 channel load profile data. Polyphase electric endpoints must utilize a direct register read function to read any register found in an ANSI C12.18-19 compliant polyphase meter. These direct register reads include, but are not limited to, the following: Daily kWh, kVARh, kVAh readings with time stamp Daily maximum kW demand (30-minute rolling) with time stamp Time-of-use billing data for multiple channels 5, 15, or 60-minute load profile data for multiple channels Access to all meter diagnostics registers (i.e., tamper detection, reverse energy flow detection, health diagnostics, site diagnostics, power quality diagnostics) Number of momentary outages and events Power quality information Polyphase electric endpoints shall be preprogrammed for standard polyphase meters and require no programming prior to installation. Polyphase electric endpoints shall allow interrogation and reprogramming over the AMI system without interruption of the service connection. Polyphase electric endpoints shall synchronize to a single host time source and shall not exceed a one minute time drift. P14 I. 11 Data displayed on the polyphase electric meter must match the reading provided by the AMI system. Polyphase electric endpoints shall have programmable outage and restoration notification time; this shall be reprogrammable from the host system. Polyphase electric endpoints shall have data storage capability to store over 30 days of five-minute load profile data; this data shall not be lost during power outages. Water and Electric Utility Meters must be field programmable via an optical port that can be utilized without removing the protective cover. Meters must support optical port lockout for security purposes. Meters must support tilt detection. Electric meters must offer display options for +kWh, -kWh, Net kWh, added kWh, Time of Use and Demand. Meter firmware must be remotely programmable over the AMI network. Meters must meet the following applicable ANSI Standards including C12.1, C12.10, C12.18, C12.19, C12.20 (0.2 and 0.5 Accuracy Classes). Electric endpoints must be capable of providing the following information: Daily kWh reading with time stamp Daily maximum kW demand (15, 30, or 60-minute rolling or block demand) with time stamp Time-of-use billing data Load profile data with or without the use of a load-profile-enabled meter Tamper detection, reverse energy flow detection and endpoint health diagnostics The number of momentary outages and events Duration of sustained outages in minutes Bidders should describe additional information available from both the electric and water endpoints. Endpoints must be certified to comply with FCC Part 15 rules. 2.6 AMI Network Infrastructure Devices Any network device placed in the field must meet the following minimum requirements. Utilize an outdoor NEMA enclosure, rated for -40o C to +70o C, with remote antenna capability, that can be pole- or wall-mounted P15 I. 12 Allow remote firmware upgrades Utilize Advanced Encryption Standard (AES) using unique keys at the endpoint to protect home or premises information from interception. The system’s data collectors shall have, at a minimum, eight hours of battery backup and remain fully operational during that time; no data loss may occur if the life of the battery is exceeded. The AMI system shall not rely on any collector device as a single point of failure for data retrieval of any specific endpoint’s data. Anything utilizing a hashing function needs to use SHA2 at a minimum. 2.7 Central Host Server Central host server shall: Be capable of control and monitoring functions for multiple AMI technologies to provide future feature flexibility. Provide a one-page dashboard of system health with instant indication of Endpoint Status, Collector Alerts, Endpoint Alerts, Deployment Status, Validation Threshold Alerts, E-mail Alerts and Not Logging Alerts. Have flexible billing extracts which interface to a reasonable selection of existing industry standard billing applications. Provide possible energy theft detection and reporting Offer customized reports Support online viewing of reports and extraction to common formats such as Microsoft Excel or Adobe PDF Provide audit reporting capabilities Provide support for flexible data extract formats Provide mapping capabilities for display of detected outages Be web browser-based Use HTTPS communication security with current TLS transport protocols and no use of known outdated/insecure protocols Provide full functionality with all major client browsers without the need of plug-ins such as Java or Flash Provide methods of user authentication with option for two-factor authentication Provide on option of login in using SAML SSO P16 I. 13 2.8 Advanced System Requirements Electric Outage Detection The system endpoints shall be configurable to provide unsolicited power outage alerts in the event of power loss within 30 seconds or less. All communication modules installed in electric meters must provide a “last gasp” packet of data in the event of a power outage to ensure rapid and accurate response to the outage condition. Power outage and power restoration notifications for electric devices shall be detected and reported to the central host server with an average response time of less than 10 minutes. Offer the capability to alert CITY OF ASPEN employees via pager, e-mail, text message, or any IP-based device Provide notification thresholds which are configurable in the central host server software system Enable two-way communication to customer home information and load management devices as may be available and deployed. Advanced AMI System Applications The AMI network infrastructure shall be capable of supporting DA/SCADA applications utilizing the following industry standard communication protocols: DNP 3.0, PGE 2179, ABB, Modbus, CHK/Gridsense, Syprotect, Utilinet, S4, PSI and ASCII. The AMI solution shall allow support of load control devices (i.e., relays) without physical change-out of field-installed devices. The AMI solution shall allow support of prepayment and home automation applications without physical change-out of field-installed devices. The AMI solution shall allow for support of in-home devices such as in-home displays and thermostats, without physical change-out of field-installed devices. On the Electric Utility side, the AMI solution shall allow for network and available software support for a dynamic voltage management solution for energy conservation and stable supply across the CITY OF ASPEN distribution grid. Including but not limited to following features: Implement, track, and sustain continuous improvement of a utilities distribution power delivery to its customers. Reduce the energy usage for utilities, without a change in how customers use energy. Analyze each circuit and locate potential service delivery issues proactively. Validate energy reduction using rigorous statistical methods P17 I. 14 The AMI solution shall allow dynamic load control applications to be supported, using same network and available software solution. This includes but is not limited to time- based-rate or rebate based programs that would communicate with traditional switch relay control programs on water heaters, pool pumps and air conditioning units that deliver energy consumers financial incentive to participate and provide utility with a mechanism to control peak demand for both power cost and quality benefits. Transformer and circuit loading for predictive and preventative maintenance. System Training Requirements Standard training for City personnel is required. AMI System Implementation Requirements For this project, Proposers shall be responsible for supplying, delivering, installing, training and ensuring the proposed AMI system is operational prior to full deployment. This shall include, but not be limited to: AMI system deployment management and support Network deployment planning and installation training Host system controller configuration and installation Support for the development of an interface and integration with the utility billing system, the outage management system and other enterprise applications Establishing training with the utility and supporting initial functional testing of the system Utility and subcontractor support for complete field network and meter installation 2.9 Turnkey Installation Services Turn-key installation services should include: Labor associated with electric meter exchanges Voltage checks on line and load side for all accounts P18 I. 15 Labor associated with water meter installations Labor associated with water meter retrofits Labor and material associated with the installation of Data Collectors and Repeaters Provision of work order management system (hardware and software) GPS coordinate collection (premise accuracy) Pre-installation and post-installation meter photographs Restoration of work sites to pre-existing conditions Qualified installation technicians, with details concerning qualifications. Experienced, full-time project management staff with details concerning experience. Provision of call center during deployment for scheduling and addressing customer complaints. Staff to support data transfer, dispatching and work order management system Inventory receipt and control program Quality audit program Vehicles with appropriate signage Miscellaneous tools and safety equipment Uniforms, badges, etc. Standard hiring practices to include background checks, drug testing, etc. City of Aspen reserves the right to reject any particular applicant or remove any hired technician for cause Performance reports 2.9 Warranties Warranty coverage for all hardware, software, etc. must be a minimum of three years from the date of installation with a prorated depreciated value of assets out to ten years. P19 I. 16 3. Procurement Process 3.1 RFP Schedule RFP released December 22, 2017 RFP written questions due January 12, 2018 RFP receipt deadline February 2, 2018 Evaluation and selection complete May 2018 Expected project start date 2019 Note: City of Aspen may accelerate project into 2018 based on Council direction. 3.2 Communication Questions must be submitted in writing through the Bidnet Direct website, www.bidnetdirect.com. Q&As will be made public for all interested parties to review and consider. Addendums and other important information will be published on the Bidnet Direct website. It is the proposers’ responsibility to check the website frequently for new postings. 3.3 Proposal Format Proposer must follow the proposal format as indicated below. Failure to do so may result in disqualification. Cover Letter Section 1 - Executive Summary Executive Summary shall contain a brief description of the following items. Introduce the company. Include headquarters, mailing address, phone number and web address if applicable. Technology overview Contact name and email address for purposes of this procurement process. Section 2 - Technical Proposal Describe the technical aspects of product and/or service offering. Clearly and concisely describe the functional and performance features, advantages, and benefits of the system proposed. Also include: The proposed electric solution The proposed water solution P20 I. 17 Screen shots of central host server dashboard and key reports available from the proposed system. Provide details of the system’s MDM capabilities, if available. Offer and describe available IT hosting services including; certification level of data center(s), data backup capabilities, secondary site availability, and disaster recovery RTO and RPO. Describe account management approach, including the turnover process from presale through post-implementation support. Description of demonstrated deployment procedures, proposed project Include detailed information on training: number of days required for onsite training, complete list of training topics, and personnel required to attend. Complete Exhibit A, Response to the System Requirements spreadsheet whether compliant or non-compliant. Give more details if necessary. Section 3 –Qualifications Qualification and expertise of company and individuals who will be assigned to the project; Provide three to five references for projects of similar scope and size. Include project name, year, contact person, contact person email and phone number. Section 4 - Price and Business Relationship Proposal Standard AMI System hardware and software Electric meters including two-way communication components based on meter quantities and types listed in section 2.1 of this RFP Water meters including two-way communication components based on meter quantities and types listed in section 2.1 of this RFP In home displays (quantity breaks up to 1,000 units) Load Control Switches (quantity breaks up to 1,000 units) Integration, deployment and training services Annual maintenance and/or hosting costs AMI cybersecurity assurance testing and verification Any other items required to meet system requirements as described in sections 2.1 through 2.8 of this RFP. Timeline and process recommendation for City’s verification of a fully functioning system prior to project closeout A list and estimated cost of any equipment or materials that are required to be purchased by the City. Section 5 - Appendix organization and key personnel Proposed deployment schedule P21 I. 18 3.4 Submission Proposals must be submitted electronically through the Bidnet Direct website, www.bidnetdirect.com. Submissions must be compiled into a single Word or .pdf document named “2017-50594 from XYZ Company” and uploaded before 2:00pm, February 2, 2018 to be considered. Please note once the proposal has been uploaded, it must be published. The City cannot accept faxed or emailed proposals. 5.5 Evaluation of Proposals Proposal(s) will be evaluated using the following criteria: Compliance with the requirements – 25% Proposed solution that best fits the utility’s operational needs, both currently and future – 15% Total cost to deploy proposed solution – 10% Costs of system updates and maintenance – 5% Simplicity, ease of install and use of system – 5% Availability, delivery, and installation schedule – 10% Quality and extent of training offered – 10% Experience in providing AMI solutions similar in scope – 10% Advanced security of endpoints and overall system – 25% The City reserves the right to review the successful proposer’s or finalists annual reports and financial statements for the previous three years. This information is considered proprietary and will only be reviewed the City’s Finance Director. Proprietary information is not subject to Colorado Open Records Act (CORA) and will remain private and confidential. Discussion may be conducted with responsible offerors who submit Proposals determined to be reasonably susceptible to be selected for award for purpose of clarification to assure full understanding of, and responsiveness to the solicitation requirements. 6. Legal Pursuant to the Colorado Open Records Act, C.R.S. Section 24-72-200.1 (CORA), any and all of the documents that are submitted to the City of Aspen may be deemed public records subject to examination and inspection by third parties. The City of Aspen reserves the right, at its sole discretion, to release for inspection or copying any document, plan, specification, proposal or other writing submitted pursuant to this request. P22 I. 19 The City reserves the right to reject any or all Proposals or accept what is, in its judgment, the Proposal which is in the City's best interest. The City further reserves the right, in the best interests of the City, to accept a late submittal or to waive any technical defects or irregularities in any and all Proposals submitted. In order to fully understand the legal parameters of contracting with the City, proposers must review Instructions to Offerors of Professional Services and the Professional Services Agreement before participating in the City’s procurement process. By participating in the City’s procurement process, you agree to the terms and conditions without change. The City recognizes additional contract language may need to be added. P23 I. 1 THE CITY OF ASPEN INSTRUCTIONS TO OFFERORS OF PROFESSIONAL SERVICES 1. The City of Aspen has advertised to invite Professionals to submit sealed Proposals as more fully described in the Request for Proposals. The following instructions have been prepared to assist Offerors in the preparation of their Proposals. These instructions may be altered by the City whenever it is deemed necessary in the best interests of the City. 2. The Contract Documents for this project shall consist of the following documents: A. Request for Proposals (Public Notice and Letters to Potential Offerors). B. Instructions to Offerors. C. Addenda, if any. D. Proposal submitted by Offeror. E. Proposal Bond Forms, if any. F. Qualification Form, if any. G. Notice of Award. H. Agreement. I. Scope of Work, if not set forth in the Request for Proposals. J. Notice to Proceed. 3. Information contained in the Contract Documents, as completed during the contract award process, shall be the basis for the Proposals, and nothing shall be deemed to change or supplement this basis except for written revisions to the above documents issued by the City of Aspen. 4. The City reserves the right to reject any or all Proposals or accept what is, in its judgment, the Proposal which is in the best interest of the City’s. The City further reserves the right, in the best interests of the City, to waive any technical defects or irregularities in any and all Proposals submitted, and to negotiate contract terms with the Successful Offeror, and the right to disregard all nonconforming, nonresponsive or conditional Proposals. Discrepancies between words and figures will be resolved in favor of words. Discrepancies between the indicated sum of any column of figures and the correct sum thereof will be resolved in favor of the correct sum. 5. The cost of proposal preparation shall be borne solely by the persons or entities submitting proposals. 6. The following procedures or steps shall be followed after the issuance or publication of Request for Proposals: P24 I. 2 A. Reference is made to the Request for Proposals to determine if a pre-Proposal conference will be scheduled, and if so, where and when. If a pre-Proposal conference is scheduled, attendance at the pre-Proposal conference is mandatory unless prior authorization is given by the City. The costs of attendance at a pre-Proposal conference shall be borne entirely by the Offeror. B. Reference is made to the Request for Proposals to determine how complete Proposal Packages may be obtained. C. Before submitting a Proposal, each Offeror must (a) examine the Contract Documents thoroughly, (b) visit the site, if any, to familiarize her/himself with local conditions that may in any manner affect cost, progress or performance of the Work, (c) familiarize her/himself with federal, state and local laws, ordinances, rules and regulations that may in any manner affect costs, progress or performance of the Work; (d) familiarize her/himself with the unique weather conditions of the City of Aspen and surrounding area that may affect costs, progress or performance of Work; and (e) study and carefully correlate Offeror's observations with the Contract Documents. D. Reference is made to the Request for Proposals for the identification of those reports of investigations and tests of subsurface and latent physical conditions at the site or otherwise affecting cost, progress or performance of the Work which have been relied upon by the City of Aspen or a consultant in preparing any Drawings or Specifications. These reports are not guaranteed as to accuracy or completeness, nor are they part of the Contract Documents. Before submitting her/his Proposal each Offeror will, at her/his own expense, make such additional investigations and tests as the Offeror may deem necessary to determine her/his Proposal for performance of the Work in accordance with the time, price and other terms and conditions of the Contract Documents. E. Reference is made to the Request for Proposals to determine the place, date, and time for delivering sealed Proposals for this project. F. Proposals shall be submitted at the time and place indicated in the Request for Proposals and shall be included in an opaque sealed envelope, marked with the Project title and name and address of the Offeror and accompanied by the Proposal Security referenced below and other required documents. If the Proposal is sent through the mail or other delivery system the sealed envelope shall be enclosed in a seperate envelope with the notation "PROPOSAL ENCLOSED" on the face thereof. Proposals submitted by P25 I. 3 facsimile machine (FAX) or email shall not be accepted or considered. G. Reference is made to the Request for Proposals to determine if Proposal Security shall be required for this project. If a Proposal Security is required then each proposal must be accompanied by Proposal Security made payable to the City of Aspen, in an amount of five percent (5%) of the maximum Proposal price and in the form of a certified or bank check or a Proposal Bond (on form attached, if a form is prescribed) issued by a Surety. The Proposal Security of the Successful Offeror will be retained until such Offeror has executed the Agreement and furnished the required Payment and Performance Bonds, if any are required by the Supplemental General Conditions, whereupon it will be returned; if the Successful Offeror fails to execute and deliver the Agreement and furnish the require Performance and Payment Bonds, if any are required, within fifteen (15) days of the Notice of Award, the City of Aspen may annul the Notice of Award and the Proposal Security of that Offeror shall be forfeited. The Proposal Security of any Offeror whom the City of Aspen believes to have a chance of receiving the award may be retained by the City of Aspen until the earlier of the seventh day after the "effective date of the Agreement" (which term is defined in the General Conditions) or the sixty first (61) day after the Proposal opening. Proposal Security of other Offerors will be returned within seven (7) days of the Proposal opening. H. Reference is made to the Request for Proposals for any Proposal Forms that may be required to be completed as part of the Proposal. Proposal Forms, if any are required, must be completed in ink or by a printer/typewriter. The Proposal price must be stated in words and numerals; in case of a conflict, words will take precedence. Proposals by corporations must be executed in the corporate name by the president or a vice-president (or other corporate officer accompanied by evidence of authority to sign) and the corporate seal must be affixed and attested by the secretary or an assistant secretary. The corporate address and state of incorporation shall be shown below the signature. Proposals by partnerships must be executed in the partnership named and signed by a partner, whose title must appear under the signature and the official address of the partnership must be shown below the signature. I. Proposals may be modified or withdrawn by an appropriate document duly executed (in the manner that a Proposal must be executed) and delivered to the place where Proposals are to be submitted at any time prior to the opening of Proposals. If, within twenty four (24) hours after Proposals are opened, any Offeror files a duly signed written notice with the City of Aspen P26 I. 4 and promptly thereafter demonstrates to the reasonable satisfaction of the City of Aspen that there was a material and substantial mistake in the preparation of her/his Proposal, that the Offeror may withdraw her/his Proposal and the Proposal Security will be returned. Thereafter that Offeror shall be disqualified from submitting a Proposal. J. At the place, date and time fixed for opening Proposals, all Proposals received prior to that time shall be opened and reviewed. All Proposals shall remain open for a period of thirty (30) days, but the City may, in its sole discretion, release any Proposal and return the Proposal Security prior to that date. K. The City shall then evaluate each Proposal in the best interests of the City of Aspen. The proposals shall be evaluated to determine which are the most advantageous to the City of Aspen taking into consideration price, the evaluation factors set forth at Section 3-14(f) of the Aspen Municipal Code, and any factors set forth in the Request for Proposals. L. Prior to accepting a Proposal, the City may decide to interview one or more Offerors to negotiate final contract terms for inclusion in the Agreement. M. To demonstrate qualifications to perform the Work, each Offeror must be prepared to submit within five (5) days of a request, financial data, previous experience or evidence of authority to conduct business in the state of Colorado. Notwithstanding any language to the contrary contained in any Request for Proposals, professionals shall not be required to divulge any information they deem to be confidential regarding previous clients, work performed, or cost of said previous work. The request, if any, for financial data is intended solely to help assess the professional’s capacity and qualifications to work for the City. N. Upon determining the successful Offeror, the City of Aspen shall send to the Successful Offeror a Notice of Award notifying the recipient of the City's acceptance of the Offeror's Proposal, subject to the City Manager or City Council approval of the Contract Documents. The Notice of Award shall also forward to the presumptive Successful Offeror three (3) unexecuted copies of the Agreement with instructions to execute and return the same to the City within ten (10) days or risk having their Proposal declared abandoned. If the proposed Agreement shall be for an amount in excess of $25,000.00, the City Council at its next regularly scheduled meeting following receipt by the City of the duly executed copies of the Agreement shall be asked to consider approval of the Agreement and authorize the Mayor of the City of Aspen to execute the same. If the proposed Agreement shall be in an amount equal to P27 I. 5 or less than $25,000.00 the City Manager shall be asked to consider approval of the Agreement by executing the same. O. Upon receipt of all documents required by the Notice of Award and upon approval of the Agreement by the City Council or City Manager, the Successful Offeror shall be sent a Notice to Proceed along with a copy of the Agreement duly executed by the City Manager or Mayor of the City of Aspen. 7. All purchases of supplies, construction or building materials shall not include Federal Excise Taxes or Colorado State or local sales or use taxes. The City of Aspen's State of Colorado tax identification number is 98-04557. The City of Aspen's Federal Tax Identification Number is 84-6000563. 8. There are specific indemnity and insurance requirements which the Successful Offeror must comply with prior to the start of Work for this project. These requirements are set forth in detail in the Agreement. 9. The submission of a Proposal will constitute an incontrovertible representation by the Offeror that he has complied with every requirement of these instructions and that the Contract Documents are sufficient in scope and detail to indicate and convey understanding of all terms and conditions for performance of the Work. 10. Reference is made to the Request for Proposals for the identity of the City of Aspen's project manager(s) who will coordinate all aspects of the selection process. All questions about the meaning or intent of the Contract Documents shall be submitted to the project manager(s) in writing. Replies will be issued by Addenda mailed or delivered to all parties recorded by the project manager(s) as having received a Proposal Package. Questions received less than ten (10) days prior to the date of Proposal openings may not be answered. Only questions answered by formal written Addenda will be binding. Oral and other interpretations or clarifications will be without legal effect. 11.. By submitting an offer or bid, Professional certifies and represents that at this time: (i) Professional shall confirm the employment eligibility of all employees who are newly hired for employment in the United States; and (ii) Professional has participated or attempted to participate in the Basic Pilot Program in order to verify that it does not employ illegal aliens. instruc3.bid – version 6/07 P28 I. Agreement Professional Services Page 0 CITY OF ASPEN STANDARD FORM OF AGREEMENT V 2009 PROFESSIONAL SERVICES City of Aspen Project No.: _____________. AGREEMENT made as of _____ day of _____________, in the year _______ BETWEEN the City: Contract Amount: The City of Aspen c/o ________________ 130 South Galena Street Aspen, Colorado 81611 Phone: (970) 920-5079 And the Professional: _________________________ c/o _______________________ __________________________ __________________________ Phone: ____________________ For the Following Project: ________________________________________________ Exhibits appended and made a part of this Agreement: If this Agreement requires the City to pay an amount of money in excess of $25,000.00 it shall not be deemed valid until it has been approved by the City Council of the City of Aspen. City Council Approval: Date: ___________________________ Resolution No.:___________________ Exhibit A: Scope of Work. Exhibit B: Fee Schedule. Total: $_____________ P29 I. Agreement Professional Services Page 1 The City and Professional agree as set forth below. 1. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as set forth at Exhibit A attached hereto and by this reference incorporated herein. 2. Completion. Professional shall commence Work immediately upon receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and care and the orderly progress of the Work in a timely manner. The parties anticipate that all Work pursuant to this Agreement shall be completed no later than __________________. Upon request of the City, Professional shall submit, for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by the Professional. 3. Payment. In consideration of the work performed, City shall pay Professional on a time and expense basis for all work performed. The hourly rates for work performed by Professional shall not exceed those hourly rates set forth at Exhibit B appended hereto. Except as otherwise mutually agreed to by the parties the payments made to Professional shall not initially exceed the amount set forth above. Professional shall submit, in timely fashion, invoices for work performed. The City shall review such invoices and, if they are considered incorrect or untimely, the City shall review the matter with Professional within ten days from receipt of the Professional's bill. 4. Non-Assignability. Both parties recognize that this Agreement is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. Sub-Contracting, if authorized, shall not relieve the Professional of any of the responsibilities or obligations under this Agreement. Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any subcontractors’ officers, agents and employees, each of whom shall, for this purpose be deemed to be an agent or employee of the Professional to the extent of the subcontract. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any sub-contractor. 5. Termination of Procurement. The sale contemplated by this Agreement may be canceled by the City prior to acceptance by the City whenever for any reason and in its sole discretion the City shall determine that such cancellation is in its best interests and convenience. 6. Termination of Professional Services. The Professional or the City may terminate the Professional Services component of this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the other party, specifying the effective date of the termination. No fees shall be earned after the effective date of the termination. Upon any termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for damages sustained by the City by virtue of any breach of this P30 I. Agreement Professional Services Page 2 Agreement by the Professional, and the City may withhold any payments to the Professional for the purposes of set-off until such time as the exact amount of damages due the City from the Professional may be determined. 7. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in, or be construed as establishing an employment relationship. Professional shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner and means of conducting the work are under the sole control of Professional. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's employees engaged in the performance of the services agreed to herein. 8. Indemnification. Professional agrees to indemnify and hold harmless the City, its officers, employees, insurers, and self-insurance pool, from and against all liability, claims, and demands, on account of injury, loss, or damage, including without limitation claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arise out of or are in any manner connected with this contract, to the extent and for an amount represented by the degree or percentage such injury, loss, or damage is caused in whole or in part by, or is claimed to be caused in whole or in part by, the wrongful act, omission, error, professional error, mistake, negligence, or other fault of the Professional, any subcontractor of the Professional, or any officer, employee, representative, or agent of the Professional or of any subcontractor of the Professional, or which arises out of any workmen's compensation claim of any employee of the Professional or of any employee of any subcontractor of the Professional. The Professional agrees to investigate, handle, respond to, and to provide defense for and defend against, any such liability, claims or demands at the sole expense of the Professional, or at the option of the City, agrees to pay the City or reimburse the City for the defense costs incurred by the City in connection with, any such liability, claims, or demands. If it is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or damage was caused in whole or in part by the act, omission, or other fault of the City, its officers, or its employees, the City shall reimburse the Professional for the portion of the judgment attributable to such act, omission, or other fault of the City, its officers, or employees. 9. Professional's Insurance. (a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations P31 I. Agreement Professional Services Page 3 assumed by the Professional pursuant to Section 8 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 8 above by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure and maintain, the minimum insurance coverages listed below. Such coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims-made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. (i) Workers’ Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance with minimum limits of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - policy limit, and FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted for the Workers' Compensation requirements of this paragraph. (ii) Commercial General Liability insurance with minimum combined single limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall contain a severability of interests provision. (iii) Comprehensive Automobile Liability insurance with minimum combined single limits for bodily injury and property damage of not less than ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate with respect to each Professional's owned, hired and non- owned vehicles assigned to or used in performance of the Scope of Work. The policy shall contain a severability of interests provision. If the Professional has no owned automobiles, the requirements of this Section shall be met by each employee of the Professional providing services to the City under this contract. (iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS ($1,000,000) each claim and ONE MILLION DOLLARS ($1,000,000) aggregate. P32 I. Agreement Professional Services Page 4 (c) The policy or policies required above shall be endorsed to include the City and the City's officers and employees as additional insureds. Every policy required above shall be primary insurance, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Professional. No additional insured endorsement to the policy required above shall contain any exclusion for bodily injury or property damage arising from completed operations. The Professional shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided to the City shall be completed by the Professional's insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City prior to commencement of the contract. No other form of certificate shall be used. The certificate shall identify this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30) days prior written notice has been given to the City. (e) Failure on the part of the Professional to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this contract, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the premiums against monies due to Professional from City. (f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. (g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $350,000.00 per person and $990,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 10. City's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Proper- ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Risk Management Department and are available to Professional for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. City shall provide Professional reasonable notice of any changes in its membership or participation in CIRSA. 11. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written P33 I. Agreement Professional Services Page 5 representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. 12. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return receipt requested to the respective persons and/or addresses listed above. 13. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of persons to perform services under this contract. Professional agrees to meet all of the requirements of City's municipal code, Section 13-98, pertaining to non-discrimination in employment. 14. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant, or condition to be performed by Professional to which the same may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence. 15. Execution of Agreement by City. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding anything to the contrary contained herein, this Agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a duly authorized official in his absence) to execute the same. 16. Illegal Aliens – CRS 8-17.5-101 & 24-76.5-101. (a) Purpose. During the 2006 Colorado legislative session, the Legislature passed House Bills 06-1343 (subsequently amended by HB 07-1073) and 06-1023 that added new statutes relating to the employment of and contracting with illegal aliens. These new laws prohibit all state agencies and political subdivisions, including the City of Aspen, from knowingly hiring an illegal alien to perform work under a contract, or to knowingly contract with a subcontractor who knowingly hires with an illegal alien to perform work under the contract. The new laws also require that all contracts for services include certain specific language as set forth in the statutes. The following terms and conditions have been designed to comply with the requirements of this new law. (b) Definitions. The following terms are defined in the new law and by this reference are incorporated herein and in any contract for services entered into with the City of Aspen. “Basic Pilot Program” means the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public P34 I. Agreement Professional Services Page 6 Law 156, 108th Congress, as amended, that is administered by the United States Department of Homeland Security. “Public Contract for Services” means this Agreement. “Services” means the furnishing of labor, time, or effort by a Contractor or a subcontractor not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. (c) By signing this document, Professional certifies and represents that at this time: (i) Professional shall confirm the employment eligibility of all employees who are newly hired for employment in the United States; and (ii) Professional has participated or attempted to participate in the Basic Pilot Program in order to verify that new employees are not illegal aliens. (d) Professional hereby confirms that: (i) Professional shall not knowingly employ or contract new employees without confirming the employment eligibility of all such employees hired for employment in the United States under the Public Contract for Services. (ii) Professional shall not enter into a contract with a subcontractor that fails to confirm to the Professional that the subcontractor shall not knowingly hire new employees without confirming their employment eligibility for employment in the United States under the Public Contract for Services. (iii) Professional has verified or has attempted to verify through participation in the Federal Basic Pilot Program that Professional does not employ any new employees who are not eligible for employment in the United States; and if Professional has not been accepted into the Federal Basic Pilot Program prior to entering into the Public Contract for Services, Professional shall forthwith apply to participate in the Federal Basic Pilot Program and shall in writing verify such application within five (5) days of the date of the Public Contract. Professional shall continue to apply to participate in the Federal Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Professional is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Federal Basic Pilot Program is discontinued. (iv) Professional shall not use the Basic Pilot Program procedures to undertake pre-employment screening of job applicants while the Public Contract for Services is being performed. P35 I. Agreement Professional Services Page 7 (v) If Professional obtains actual knowledge that a subcontractor performing work under the Public Contract for Services knowingly employs or contracts with a new employee who is an illegal alien, Professional shall: (1) Notify such subcontractor and the City of Aspen within three days that Professional has actual knowledge that the subcontractor has newly employed or contracted with an illegal alien; and (2) Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the new employee who is an illegal alien; except that Professional shall not terminate the Public Contract for Services with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. (vi) Professional shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5), C.R.S. (vii) If Professional violates any provision of the Public Contract for Services pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City of Aspen may terminate the Public Contract for Services. If the Public Contract for Services is so terminated, Contractor shall be liable for actual and consequential damages to the City of Aspen arising out of Professional’s violation of Subsection 8-17.5-102, C.R.S. (ix) If Professional operates as a sole proprietor, Professional hereby swears or affirms under penalty of perjury that the Professional (1) is a citizen of the United States or otherwise lawfully present in the United States pursuant to federal law, (2) shall comply with the provisions of CRS 24-76.5-101 et seq., and (3) shall produce one of the forms of identification required by CRS 24-76.5-103 prior to the effective date of this Agreement. 16. Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest. (a) Professional warrants that no person or selling agency has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Professional for the purpose of securing business. (b) Professional agrees not to give any employee of the City a gratuity or any offer of employment in connection with any decision, approval, disapproval, recommendation, P36 I. Agreement Professional Services Page 8 preparation of any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to this Agreement, or to any solicitation or proposal therefore. (c) Professional represents that no official, officer, employee or representative of the City during the term of this Agreement has or one (1) year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof, except those that may have been disclosed at the time City Council approved the execution of this Agreement. (d) In addition to other remedies it may have for breach of the prohibitions against contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to: 1. Cancel this Purchase Agreement without any liability by the City; 2. Debar or suspend the offending parties from being a Professional, contractor or subcontractor under City contracts; 3. Deduct from the contract price or consideration, or otherwise recover, the value of anything transferred or received by the Professional; and 4. Recover such value from the offending parties. 17. Fund Availability. Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be contingent upon the availability of those funds for payment pursuant to the terms of this Agreement. 18. General Terms. (a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. (b) If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. (c) The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. P37 I. Agreement Professional Services Page 9 (d) This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect. 19. Electronic Signatures and Electronic Records This Agreement and any amendments hereto may be executed in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one agreement binding on the Parties, notwithstanding the possible event that all Parties may not have signed the same counterpart. Furthermore, each Party consents to the use of electronic signatures by either Party. The Scope of Work, and any other documents requiring a signature hereunder, may be signed electronically in the manner agreed to by the Parties. The Parties agree not to deny the legal effect or enforceability of the Agreement solely because it is in electronic form or because an electronic record was used in its formation. The Parties agree not to object to the admissibility of the Agreement in the form of an electronic record, or a paper copy of an electronic documents, or a paper copy of a document bearing an electronic signature, on the ground that it is an electronic record or electronic signature or that it is not in its original form or is not an original. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in three copies each of which shall be deemed an original on the date first written above. CITY OF ASPEN, COLORADO: PROFESSIONAL: ________________________________ ______________________________ [Signature] [Signature] By: _____________________________ By: _____________________________ [Name] [Name] Title: ____________________________ Title: ____________________________ Date: ___________________ Date: ___________________ Approved as to form: _______________________________ City Attorney’s Office P38 I. Agreement Professional Services Page 10 EXHIBIT A PROFESSIONAL SERVICES AGREEMENT P39 I. Agreement Professional Services Page 11 EXHIBIT B PROFESSIONAL SERVICES AGREEMENT Fee Schedule P40 I. 1 | City of Aspen RFP Response | © Landis+Gyr 2018 City of Aspen RFP Response Reaching New Heights May 10, 2018 P41I. 2 | City of Aspen RFP Response | © Landis+Gyr 2018 Our Team John Fowler Andy Schade Dana Hanson Kelly Dietz Miguel Paz Tesia Barnes Doug Schmidt (Hamilton) Kameron Thornton (Hamilton) Josh Snoddy (Holy Cross)P42I. 3 | City of Aspen RFP Response | © Landis+Gyr 2018 Agenda ∙Introduction ∙The Ask ∙The Solution Overview ∙Follow Up Questions ∙Implementation Plan ∙Demonstration ∙Why Landis+Gyr P43I. 4 | City of Aspen RFP Response | © Landis+Gyr 2018 Introduction The Ask The Solution Overview The Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P44I. 5 | City of Aspen RFP Response | © Landis+Gyr 2018 With 3500+ utility customers, we’re the most experienced technology partner in the industry. We work with 300+ public power utilities like the City of Aspen to achieve grid optimization, customer satisfaction, and growth every day.P45I. 6 | City of Aspen RFP Response | © Landis+Gyr 2018 Introduction The Ask The Solution Overview The Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P46I. 7 | City of Aspen RFP Response | © Landis+Gyr 2018 You currently have engaged customers and strong performance in customer satisfaction. But you want to expand your offering with: •Improved billing accuracy and frequency •More convenient engagement systems •Low initial and ongoing costs •Ability to grow into the future Your Vision for the City of Aspen P47I. 8 | City of Aspen RFP Response | © Landis+Gyr 2018 Landis+Gyr –Rocky Mountain Presence HOLY CROSS ENERGY Gridstream RF 55K endpoints YAMPA VALLEY ELECTRIC ASSOCIATION Gridstream RF 26K endpoints EMPIRE ELECTRIC ASSOCIATION Gridstream RF 16k endpoints COLORADO SPRINGS UTILITIES Gridstream RF 584K endpoints 231K Electric 206K Gas 147K Water HYRUM CITY POWER Gridstream RF 5K endpoints 2,500 Water P48I. 9 | City of Aspen RFP Response | © Landis+Gyr 2018 TEPCO 100% Networking Solution Landis+Gyr is building the largest IoT Network in the world. Landis+Gyr Solution: •Build a multi-purpose communications network that includes RF Mesh, PLC and Cellular NICS •Deliver HES AMI system & MDMS platform, scalable for 27 Million endpoints •Network design •Installation and integration services •Customized training Results: •Bringing multiple communications technologies into one network •IPv6-capable technologies for a future -proof solution •Highest standards -based security “Development is making smooth progress. Even though target for completion is in 2020, it can be accelerated, provided the customer needs are strong.” -Hiroshi Yamaguchi, EVP TEPCO P49I. 10 | City of Aspen RFP Response | © Landis+Gyr 2018 The technology you need to get there Consumer Tools Demand Side Management ∙AMI ∙Multi-purpose Network ∙Distribution Automation Street Lighting P50I. 11 | Presentation Title Here | © Landis+Gyr 2018 Introduction The Ask The Solution Overview The Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P51I. 12 | City of Aspen RFP Response | © Landis+Gyr 2018 The Landis+Gyr Offering Our unparalleled expertise is in applying the right technologies to solve for utility challenges Solutions support future needs Technology platform designed for utilities Services + expertise to ensure success P52I. 13 | City of Aspen RFP Response | © Landis+Gyr 2018Landis+Gyr Solutions Smart Metering Distribution Sensing & Control Demand & DER Management Customer Tools Smart City P53I. 14 | City of Aspen RFP Response | © Landis+Gyr 2018 Market Leader in Electric Metering Metering technology goes beyond traditional AMI capabilities: •Increased safety •Power quality •Patented Outage and Restoration Detection •Grid efficiency •Rate flexibility Smart Metering P54I. 15 | City of Aspen RFP Response | © Landis+Gyr 2018 25+ Years of DA Experience One Multi-purpose network to support DA and AMI: •Interoperability with 60+ devices •DA-level performance •Insights from distribution devices and data to improve grid planning and operations Distribution & Control P55I. 16 | City of Aspen RFP Response | © Landis+Gyr 2018 Greater Control of Edge Resources Improved grid stability and efficiency with demand-side solutions: •Support customer choice and convenience •Optimize load factor and minimize peaks •Create tailored solutions for your needs Demand & DER Management P56I. 17 | City of Aspen RFP Response | © Landis+Gyr 2018 Giving Customers Awareness, Insights, and Control Improving customer satisfaction by providing a quality experience: •Pre-payment for budget management •Energy awareness, insights, and equipment •Tools for energy control Customer Tools P57I. 18 | City of Aspen RFP Response | © Landis+Gyr 2018 Extended Business Value Leveraging community-wide connectivity to serve your community: •Smart street-lighting •Environment & safety sensing •Future smart community applications Smart Community P58I. 19 | City of Aspen RFP Response | © Landis+Gyr 2018 The Proven Utility IoT Platform Multi-Purpose Interoperable Layered Intelligence SecureExtends the Value of AssetsOne network to support Smart Community initiatives Seamless device integration Intelligence where and when you need it Industry-leading securityFuture-ready and backwards compatible Our Solution starts with Gridstream®Connect P59I. 20 | City of Aspen RFP Response | © Landis+Gyr 2018 Grid Analytics Demand Response Meter to Cash Consumer Tools Network Management Streetlight Control Distribution Automation Data Meters Load Switches Thermostats Solar Inverter Line Sensors Street Lighting EV Charging Distribution Automation Smart Network Devices Our Multi-Purpose Network One Infrastructure to Solve Many Challenges P60I. 21 | City of Aspen RFP Response | © Landis+Gyr 2018 Introduction The Ask The Solution Overview Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P61I. 22 | City of Aspen RFP Response | © Landis+Gyr 2018 System Functions Follow Up Questions •Radio Frequency Communication Platform and Aspen Propagation Map –overview of recommended communication model for Aspen Water and Electric customers Question 2a P62I. 23 | City of Aspen RFP Response | © Landis+Gyr 2018 Gridstream Connect Edge Intelligence Community Intelligence System Intelligence •902-928 MHz FHSS •Up to 300 kbps •Secure Communications •Supports Multi-tenancy •DNP 3.0 / Modbus •Multi-speak Compliant •IEC CIM Compliant •IPV6 P63I. 24 | City of Aspen RFP Response | © Landis+Gyr 2018 Unparalleled Quality of Service Multi-Purpose RF Network 01001110000011110101010001110001 11000001110101011100100100100001 11111001010101000001010101100110 01010101000100001111000111001010 10000111010101000111000111001010 10001100010000110000110000010000 10000111111010101000111000111011 10000100011000011010101010111000 10001000011000001010000100001110 00010001111100001000011100011010 1010100110 DATA AMI METERS STREET LIGHTING DA DEVICES SCADA Understanding the Importance of Data Flow P64I. Outage Notification Momentary (Blink)Sustained Outage < 80% Nominal Voltage Transmit Outage notification 2 minute Super Capacitor30 seconds Transmit outages of other meters P65I. 26 | City of Aspen RFP Response | © Landis+Gyr 2018 Flexible Communications for the Next Generation Utility •Configurable and scalable •Environmentally rugged design •Tamper alarms •Multiple mounting options •Battery backed •GPS •Secure Wi -Fi for configuration •Linux processing module Network Gateway P66I. 27 | City of Aspen RFP Response | © Landis+Gyr 2018 •Acts as a network repeater −1 watt power output −1-5 miles range •120/240 Volt Power −15 hour battery •Minimum 20’ Antenna Height •Serves ~ 1,400 points •Shared by DA and AMI Devices •Wind Tunnel Tested up to 150 mph Gridstream Router P67I. 28 | City of Aspen RFP Response | © Landis+Gyr 2018 Guaranteed design with 100% Coverage Utility Input Density, Capacity and Buffer Analysis Initial Design Final Design Site Survey Network Design Approach P68I. 29 | City of Aspen RFP Response | © Landis+Gyr 2018 Proposed Network Design 3 Network Gateways 54 Total Routers 37 Core Routers 17 Optional Redundancy Routers 100% Coverage Guaranteed P69I. 30 | City of Aspen RFP Response | © Landis+Gyr 2018 IT Requirements •Network requirements and solution details –include security, servers, operating systems, software, hardware Follow Up Questions Question 2d P70I. 31 | City of Aspen RFP Response | © Landis+Gyr 2018 Software as a Service Landis+Gyr Hosted Command Center •Access to software, including Landis+Gyr application and third party •24/7 Service Desk Support •IT Infrastructure Services •High Availability/Scale for Growth •IT Monitoring and Maintenance (Updates) •IT Systems Monitoring and management •Security (Physical and Logical) •Software Maintenance •Software Upgrades •Database best practices 31P71I. 32 | City of Aspen RFP Response | © Landis+Gyr 2018 Best-in-Class Security Industry Open Standard INDUSTRY STANDARDS -BASED APPROACH •Lead by government and industry best practices and standards •Edge-to-edge protection from endpoints in the field to the enterprise IT •NSA Suite B •NISTIR 7628 •OpenSG AMI-SEC •NIST FIPS 140 OPEN SECURITY POSTURE •Risk-based approach •Continuous penetration testing •Evolving security threats –we work with utilities for wide situational awareness P72I. EV Charging Energy Monitor Follow Up Questions •Discussion and solution for monitoring Electric Vehicle charging stations through separate meters or submeters with a separate electric rate structure Question 3a P73I. ALLOWS EV MANAGEMENT AND CHARGING OPTIMIZATION •Proof of Concept with Switch on EV charger –switch drives a contactor and uses external CT to determine load •Allows control for load management by utility (SCADA or VPP) •Programming of switch allows for control of charging by user •Rules engine allows charging to take place only based on meter load •Configurable to correspond with solar production B A R B A D O S L I G H T A N D P O W E R : A C A S E S T U D Y P74I. 35 | City of Aspen RFP Response | © Landis+Gyr 2018 ·Potential interface with existing SCADA systems Distribution Automation Follow Up Questions Question 3b P75I. 36 | City of Aspen RFP Response | © Landis+Gyr 2018 Gridstream ®Connect Built for DA DA & AMI Over 1 Network Interface with Any Device Using a Variety of Supported Industry Protocols Low Latency Delivery of Grid-critical Messages Ongoing Development with Partners Customizable Apps for Localized Device Intelligence •Built-in quality of service •Battery-backed data routing •Peer to peer communications 1 Network Designed with the Performance Requirements of Distribution Automation P76I. 37 | City of Aspen RFP Response | © Landis+Gyr 2018 Market Leader in Enabling Distribution Automation Auto- sectionalizing & restoration Distributed energy resource integration Recloser monitoring and control Capacitor bank monitoring and control Volt / VAR monitoring and control Fault isolation and pinpointing Transformer/line monitoring Connectivity -Enabled Use Cases P77I. 38 | City of Aspen RFP Response | © Landis+Gyr 2018 Distribution Automation is in our DNA 260k+Deployed Devices 200+Utility Customers 25+Years of DA Experience 100+Applications Actively Deployed 39 Integrated Devices P78I. 39 | City of Aspen RFP Response | © Landis+Gyr 2018 Smart Streetlighting Follow Up Questions P79I. 40 | City of Aspen RFP Response | © Landis+Gyr 2018 Smart Streetlighting Retrofit Streetlights with Connectivity for Increased Control Compatible with ANSI 3, 5 and 7 pin streetlight receptaclesFEATURES •Standard ANSI connector for any ANSI -socket enabled streetlight •Better than 0.5% accuracy •Easy module installation •Custom builds available BENEFITS •Improved asset/outage management •Enhanced public safety •Reduced operational expense •Reinforced RF Mesh network •Enables energy savings P80I. 41 | City of Aspen RFP Response | © Landis+Gyr 2018 •Compliant with ANSI C136.41 -3/5/7 pin receptacles •Approaching 0.5% power measurement accuracy •IP66 sealed design (dust and water tight) •On board photocell w/ fail on •GPS chip •LED manufacturer agnostic; NEMA Standard receptacle •On/Off/Dim, Outage detection •Hi/Lo Voltage, Current Power Alerts •Voltage, Current, Energy, Power, Power Factor monitoring •Constant lumen output over time Streetlight Controller P81I. 42 | City of Aspen RFP Response | © Landis+Gyr 2018 Streetlights & Mesh Network Streetlight HES Water & Gas Meters Electric Meters Network Gateway Command Center P82I. 43 | City of Aspen RFP Response | © Landis+Gyr 2018 Electric Metering •Electric Meter/Utility solution –specifics on meter types, physical installs and programming, and associated two - way communication technology all the way back to active bill run within Munis billing software Follow Up Questions Question 2b P83I. 44 | City of Aspen RFP Response | © Landis+Gyr 2018 Today’s meter is a network sensor with ability to: •Prioritize messages •Perform calculations •Run control algorithms •Translate communication protocols •Many others Edge Computing •ADVANCED APPLICATIONS •DEMAND MANAGER •PRE -PAY •ADVANCED THERMAL MONITORING •MULTIPLE PROFILES •INCREASED GRANULARITY •HEMS AT THE METER •PLUGGABLE DERS •GRID STABILITY P84I. 45 | City of Aspen RFP Response | © Landis+Gyr 2018 Electric Metering Leading Models for Residential and Commercial / Industrial Customers RESIDENTIAL ELECTRIC FOCUS AXe •Enhanced security •Reactive monitoring •Upgradable two 8-channel load profile recorders •Independent over -the-air upgrades •Motor-operated cam -driven disconnect switch •Highest base plate temperature rating in industry •10 kV surge protection exceeding ANSI standards •UL2735 listed C&I ELECTRIC S4x •Enhanced security •True four quadrant reactive metering •Simultaneous integral and RMS reactive measurement •Two independent 16-channel load profile recorders •Independent over -the-air upgrades •10 kV surge protection exceeding ANSI standards •UL2735 listed P85I. Focus AXe-SD Service Disconnect 46 Landis+Gyr Confidential Information Commonalities •Same cam activated mechanism •Same 3-point contacts per phase •Same high-temp baseplate •Same10,000 cycles at 200 A •Same 10 kV surge protection CL200 Service Switch CL320 Service Switch Differences •Thicker silver contacts •Copper buss bars twice as thick •Two CTs to shorten current path •4,000 cycles at 320 A •Meets latest ANSI C12 Heat rise P86I. 47 | City of Aspen RFP Response | © Landis+Gyr 2018 Water Metering •Water Meter/Utility solution –specifics on meter types, physical installs and programming, and associated two - way communication technology all the way back to active bill run within Munis billing softwareFollow Up Questions Question 2c P87I. 48 | City of Aspen RFP Response | © Landis+Gyr 2018 Streamlined Data Collection and Reduced Cost of Ownership Key Water AMI Functionality Auto Registration •Simplifies and reduces installation time •No field programming •No special field tools required On-Request and Scheduled Reads •Automates off -cycle /special reads •Remote service close - outs and register re - reads •Eliminates costly site visits and estimated bills Alerts and Alarms •Tamper Detection •Zero Flow •Leak detection •Reverse flow Over-the -Air Firmware Updates •Common Command Center Head -end Software •Eliminates field visits •Assures latest capability and module support 15-Minute Interval Data •Sent every 6 hours (programmable) •Supports end user usage profiles, capacity utilization, and planning •Supports flexible rate design 20 Year Battery Life •Reduces operating and maintenance expenses •Under normal operating profile P88I. 49 | City of Aspen RFP Response | © Landis+Gyr 2018 Multiple Network Options for Water Additional Parent Options •Routers •Street Lights •Electric Meters •Future Devices Adds flexibility for water-only parts of your system P89I. 50 | City of Aspen RFP Response | © Landis+Gyr 2018 Encoded Registers Compatibility –Pitt and Wall Modules Pit and Wall Module •Allows utilities to retrofit existing meters with AMR encoded registers •Reduce the number of meter replacements required Manufacturer Encoder Elster (AMCO)Invision Neptune ProRead ARB V, VI and ARB VI Auto - detect, E -Coder Badger ADE, HR-E, HR-E LCD, E-series Sensus ECR II, ICE, OMNI, iPERL Mueller Translator Metron -Farnier Hawkeye P90I. 51 | City of Aspen RFP Response | © Landis+Gyr 2018 Introduction The Ask The Solution Overview The Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P91I. 52 | City of Aspen RFP Response | © Landis+Gyr 2018 Implementation Plan •Product and service warranty details for all vendor components offered in bid proposal •Staff training and support –specifics on what training is included, timeline of this training, and support availability and costs after implementation •Project management services provided by vendor –details on # of staff, hours of staff, and services of staff that are included in proposal Question 4a, 4b, 4c P92I. 53 | City of Aspen RFP Response | © Landis+Gyr 2018 Warranties Question 4a Product and service warranty details for all vendor components offered in bid proposal Landis+Gyr's warranty is 18-months.P93I. 54 | City of Aspen RFP Response | © Landis+Gyr 2018 Landis+Gyr Training ✓Setting up command center ✓Deploying and managing collectors, routers, and meters ✓Daily system monitoring ✓Command center reports ✓Billing and extract tools Command Center training at City of Aspen ✓Implementing 2-way Water Meters ✓Additional training is available via our online training sessions, which are offered on a regular basis ✓Landis+Gyr exchange training classes ✓Hamilton training, workshops and user group Other training ✓Command center system administration training (hands-on) ✓Online security training ✓Gridstream RF encryption mode –configuration ✓Gridstream RF encryption mode monitoring and troubleshooting Security & admin training at City of Aspen ✓Gridstream RF system overview ✓Collector installation & configuration ✓Router installation & configuration ✓Tech studio training ✓Radioshop software training Network Deployment training at City of Aspen Support agreement includes 40 credits annually to apply towards additional on site and/or web based training P94I. 55 | City of Aspen RFP Response | © Landis+Gyr 2018 Your Landis+Gyr Project Team Technical Implementation Manager Network Design Engineer Landis+Gyr Project Manager Technical Implementation Engineer John Fowler Account Manager Hamilton Associates Doug Schmidt Kameron Thornton Dana Hanson Field Sales Engineer Business Integration Analyst Field Service Representative Solutions Architect Technical Implementation Architect Support Partners P95I. 56 | City of Aspen RFP Response | © Landis+Gyr 2018 Project Management Services Project management services provided by vendor –details on # of staff, hours of staff, and services of staff that are included in proposal Position AMI Hours Install Hours Total Hours Sr Project Manager 315 120 435 Technical Implementation Manager 319 150 469 Integration Analyst 40 0 40 Network Design Engineer 48 0 48 RF Technician/Field Service Rep 40 0 40 Solutions Architect 40 0 40 Solutions Architect - Security 40 0 40 Subtotal - Labor 842 270 1112 Hours by Resource Type P96I. 57 | City of Aspen RFP Response | © Landis+Gyr 2017 City of Aspen Proposed Deployment Project Timeline SaaS Command Center Installation & Configuration Complete Tue 4/16/19 Integration Implementation Tue 5/7/19 Support Phase Mon 9/23/19 -Wed 1/15/20 Initial Deployment Water Modules Complete Mon 10/21/19 Command Center Training Mon 6/24/19 Start Mon 1/7/19 Finish Wed 1/15/20 March May July September November January Contract Signature / Customer Approval to Begin Work Mon 1/7/19 Detailed Design and Planning Tue 4/2/19 -Fri 5/10/19 Onsite Customer Kickoff Meeting Tue 4/2/19 -Mon 4/8/19 Active Deployment Phase Mon 5/20/19 -Mon 10/21/19 System Verification & Acceptance Mon 9/23/19 -Tue 12/10/19 Project Closure Meeting Held Tue 1/7/20 -Wed 1/8/20 Resource Forecast Complete, Planning Team Secured Mon 2/11/19 Initial Network Design Complete Wed 2/20/19 Project Initiation Complete Mon 3/11/19 Network Deployment Training Mon 5/27/19 Initial Deployment Electric Endpoints Complete Mon 9/16/19 AMI Water Training Mon 9/23/19 Project Closure Gate Completed Wed 1/15/20 P97I. 58 | City of Aspen RFP Response | © Landis+Gyr 2017 Implementation Plan •Broader list of references from previous contract installs with specific contact names, email addresses, and phone numbers Question 1a P98I. 59 | City of Aspen RFP Response | © Landis+Gyr 2017 Installation References Utility Contact Phone Size of Deployment Total Techs Farmers Electric Coop Scott Davis 800-397-4821 6,000 2 Crawford Electric Coop Terry Gordon 573-732-4415 7,000 1 Empire Electric Cooperative Clint Rapier 970-564-4418 10,300 2 Northwestern Electric Coop Jaret Dowler 580-571-3906 15,000 4 Wood County Electric Coop Steve Cates 903-763-5593 33,000 1 Navopache Electric Cooperative Garth Turley 928-368-5116 34,000 6 Central Georga EMC Ben Thomason 770-504-7883 49,100 5 P99I. 60 | City of Aspen RFP Response | © Landis+Gyr 2018 Introduction The Ask The Solution Overview The Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P100I. 61 | City of Aspen RFP Response | © Landis+Gyr 2018 POC: Successful Basement Communications at ISIS Theater P101I. 62 | City of Aspen RFP Response | © Landis+Gyr 2018 Introduction The Ask The Solution Overview The Follow Up Questions Implementation Plan Demonstration Why Landis+Gyr P102I. 63 | City of Aspen RFP Response | © Landis+Gyr 2018 Our Commitment Our commitment is to be the City of Aspen’s long-term trusted technology partner Operate with honesty and integrity BEST -IN-CLASS PEOPLE AND SERVICES We commit to providing the City of Aspen with an experienced and proven team GUARANTEED NETWORK DESIGN AND COVERAGE We stand behind our design ONE MULTI-PURPOSE NETWORK We commit to one proven network to support the City of Aspen and future smart city initiatives NO CUSTOMER LEFT BEHIND We commit to forward migration of technology to reduce risk of stranded assets P103I. Thank You P104I. 1 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION City of Aspen Municipal Electric Utility- Advanced Metering Infrastructure TRUE Grant Required Submittal Questions Organization Description The City of Aspen Municipal Electric Utility (“Aspen Electric” or “City of Aspen Utility” or “Utility”) serves 3,100 residential and commercial accounts. The Utility plays a critical role in the City of Aspen’s efforts to reach the community’s greenhouse gas (GHG) reduction goals of 30% decreased emissions by 2020 and 80% by 2050. A central component of the Utility’s mission is to “drive the reduction of Aspen’s GHG emissions and energy use through policy, outreach, energy efficiency and renewable energy programs.” Advanced Metering Infrastructure (AMI) enables all the aforementioned initiatives, and is one of the strongest opportunities for Aspen Electric to reach above and beyond its current services to pursue its mission. The City of Aspen Utility was established in 1956 and, in 2015, was the third municipal utility in the nation to achieve 100% renewable electricity. Aspen Electric maintains a portfolio of wind power (53%), hydroelectric power (46%), and landfill gas (1%). Aspen Electric provides approximately 50% of the electricity consumed in the City of Aspen (see service area map in Fig. 1) and Holy Cross Energy provides the remainder. Aspen Electric infrastructure includes: 25 miles of underground primary cable, 200 electric transformers, 2 local hydroelectric generation plants (Ruedi Hydro at 5 MW and Maroon Creek Hydro at 0.5 MW), and 590 streetlights. Figure 1. Aspen Electric Service Area. Also includes Aspen Recreation Center and Burlingame Housing (not shown on map). Project Description and Goals Project Description: Advanced Metering Infrastructure (AMI), also known as smart meters, will save energy and build a foundation for energy conservation programs in the future. The scope of the project is to replace all electric meters in the Aspen Electric system with AMI. Traditional meters are read manually, in-person, and once a month by Utility staff. In contrast, AMI will communicate wirelessly with the Utility every 15 minutes. AMI’s additional functionalities including: • Energy savings, GHG reductions, and supporting 100% renewable • Time of use pricing and demand response • Better data collection to improve CORE and City of Aspen energy efficiency programs • Advanced management of distributed energy generation and electric vehicles • Customer education and greater customer control over utility bills • Superior outage management P105 I. 2 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION Figure 2. Smart Meter Benefits, image from: www.visualistan.com Icon Key for TRUE Grant Selection Criteria : Project Goals : 1. Achieve energy savings through reduced utility system energy losses a. Annual electricity savings of 1,320,000 KWH and annual financial savings of $100,000 to the utility. That equates to a savings of 1.8% of total utility-wide electricity consumption. This striking figure is the equivalent of zeroing the electricity use of 132 average U.S. homes. AMI accomplishes these energy reductions by reducing system energy losses: i. Providing the utility with insights to right size system components, such as oversized transformers and distribution equipment. ii. Enabling conservation voltage reduction.1 1 Energy, expressed as watts (the W in KWH), is equal to voltage times amps. Electric utilities deliver electricity to their customers within an acceptable range of voltage. The energy use of equipment in a building can be reduced if the voltage is reduced to the low end of the acceptable range, without impacting device performance. This practice is called conservation voltage reduction, and is facilitated by AMI. Savings Reductions in energy use and GHGs, production of renewables. Community Strengthens community and local economy, protects environment, fulfills REMP objectives. Innovation Uses most innovative tech and enhances market share and acceptance of energy efficiency and renewables. Education Promotes public awareness of energy efficiency and renewables, inspires others to action. P106 I. 3 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION 2. Prevent greenhouse gas emissions through energy savings a. A Climate Action Plan objective and a catalyst for additional actions. Energy consumption in Aspen’s residential and commercial buildings creates 31% and 25% of the community’s total GHG emissions, respectively. In a business as usual scenario, emissions are expected grow 7% in residential buildings and 10% in commercial by 2050. By contrast, if the 46 actions identified by Aspen’s community-driven 2018-2020 Climate Action Plan (CAP) are implemented, an 86% reduction of GHGs from residential buildings and 80% from commercial could be achieved by 2050. AMI deployment is both its own CAP action and foundational to the implementation of the following CAP actions: i. Support distributed energy storage to address the intermittency of wind and solar. ii. Maximize local and regional renewable energy generation. iii. Implement sleep mode technology for second homes when unoccupied. iv. Encourage and require energy efficiency upgrades for rental units. v. Support commercial energy benchmarking and incremental energy efficiency improvements through policy. vi. Adapt utility rates as necessary to incentivize and balance current and future priorities. b. Energy savings will support Aspen Electric in maintaining its 100% renewable portfolio in the face of growing demand. Aspen Electric serves it’s 3,100 customers with 100% renewable electricity. While utility scale renewable electricity is becoming more common, this valuable resource is still in limited supply on a larger scale. This scarcity illustrates the value of energy-saving projects on the Aspen Electric grid, including AMI. Energy conservation achieved by this project will buffer increased energy use from population and development growth in Aspen, and increasing electrification of vehicles and building heating systems. c. More renewable electricity for other communities. Aspen is one of 69 communities that purchase wholesale power from the Municipal Energy Association of Nebraska (MEAN). Aspen Electric’s conservation efforts will create more availability on the system for other communities to provide their consumers with renewable electricity. 3. Enable customer participation in dynamic pricing and demand response programs a. Dynamic pricing2 and demand response programs3 commonly reduce costs to customers, and are expected to reduce energy demand for the utility by 6,294 KW, equating to annual savings of $104,000. These programs also lessen the risk of power outages. b. Home Area Networks. Customers can remotely monitor and control connected devices like smart thermostats, independent of utility programs. c. Reducing peak demand can reduce GHG emissions and free up renewable resources to serve a larger number of utilities and customers. Dynamic pricing and demand 2 Dynamic pricing uses time of use rates to encourage consumers to take advantage of reduced rates at times when the community’s overall electricity use is lower and use less electricity during periods of peak demand with higher rates. 3Demand response programs wirelessly connect a customer’s energy using appliances such as hot water heaters, air conditioners, and pool pumps to the AMI meter, allowing the utility to turn off those appliances for limited, agreed upon durations, reducing the system’s peak electricity use. Demand response is an opt -in program in which consumers are compensated by the utility for participation. P107 I. 4 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION response programs lower the total demand for electricity at the peak times in the day. This is especially valuable for managing utility-scale renewable energy, which is challenged by the intermittency of resources such as wind and solar. Shaving off electricity use during periods of highest demand also reduces GHGs by preventing the need for “peaker plants,” often powered by coal and methane, which are used to add on- demand electricity into the grid during times of highest use. For more information, view the EPA’s Smart Grid website’s 45 second video. 4. Improve energy efficiency programs at CORE and City of Aspen a. Valuable data for CORE and City of Aspen energy efficiency program managers. Examples of the data and insights enabled by AMI include: i. Granular data, moving from a single monthly measurement to measurements on 15-minute intervals. ii. Tailored programs with improved ability to isolate an individual customers’ electricity usage and advise them on how to save. iii. Analyzing real time energy use, a valuable tool when investigating unexpectedly high usage and bills. iv. Load disaggregation (identifying the individual sources of energy use within a building) to help customers and program managers prioritize energy saving opportunities. v. Building level aggregation of energy use for structures with multiple meters, facilitating targeted outreach to high energy use buildings. vi. Neighborhood-level energy use modelling to identify areas with the highest average energy use per building (and highest potential for energy savings) and develop programs to support these neighborhoods in achieving energy and utility bill savings. This includes targeted affordable housing programs. 5. Enable consumers to better manage their energy use a. Customers can better manage their electricity bills with AMI. Much like a usage alert on a cellular data plan, with AMI, customers can set alerts to notify themselves before reaching specific energy use and/or cost thresholds. This helps both with budgeting and increasing public education on the direct connection between energy use and energy costs. b. Greater detail and modelling than traditional monthly reads allow. AMI comes with a user-friendly web portal for customers to view their historic and current energy use and bills. The portal can connect customers with energy efficiency programs and educate them about savings potential. c. Traditional electric meters can result in inaccurate readings, which currently amount to 773,000 KWH in annual electricity loss, equaling $107,000 in uncaptured costs. Inaccurate meter reads lead customers, understandably, to believe that their electricity use is lower than reality. These inaccuracies also result in inequitable payment for service across the customer base. By eliminating these inaccuracies, consumers can base energy use habits on accurate usage and billing data. 6. Facilitate distributed renewable energy (solar panels), electric vehicle adoption, and micro grids a. Improved solar PV systems. i. AMI allows for the utility to identify areas within its service territory where solar PV will be most valuable in offsetting electricity usage. P108 I. 5 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION ii. Customers and contractors considering solar PV can better model and understand how solar can interact with dynamic pricing programs. iii. Customers can better track the production of their solar PV systems and identify when maintenance is necessary. b. Electric vehicle (EV) management. i. AMI will allow the utility to model the impacts that EV charging will have on the grid, allowing the City of Aspen to promote the adoption of EVs in a proactive way. ii. EV owners can make use of smart charging equipment and dynamic pricing programs. iii. AMI may even allow for vehicle-to-grid energy flow in the future, benefiting the utility and customer. c. Setting a foundation for microgrids. AMI will be critical in any future implementation of microgrids, which may provide benefits in reliability, resiliency, and security. 7. Improved outage management a. Improved efficiency of outage management. AMI will improve the Utility’s ability to manage power outages through predictive and preventative maintenance programs, as well as send outage and restoration notifications. This all contributes to a better experience for customers. Project Urgency: A CORE TRUE grant of $200,000 would support Aspen City Council in evaluating and funding the full deployment of this project by demonstrating community and financial support for AMI, limiting costs to rate payers, and adding urgency to the timeline of AMI deployment. • The City of Aspen Electric Utility has secured $840,000 to advance this project. Additional funding of $421,700 is being pursued for full deployment to reach the total projected budget of $1,261,700. In the summer of 2018, staff will seek direction from Aspen City Council on how to fund the remainder of the project. Securing a CORE TRUE grant would demonstrate partner and community support for AMI and provide motivation to act quickly and realize these benefits without delay. • The remaining project budget of $421,700 could be either drawn from Utility savings or be passed along to ratepayers. Importantly, TRUE grant funds would serve a direct community benefit by reducing this total cost to ratepayers. • The time is now; distributed renewable energy, electric vehicles, and time of use pricing are no longer futuristic possibilities. With AMI, Aspen will have the tools to fully make use of current innovative energy management. • The time is now; on the heels of releasing a new Climate Action Plan, Aspen’s elected officials, staff, and partners have the momentum, motivation, and resources to accelerate and implement the types of initiatives that AMI makes possible. Estimated Savings Energy Savings : AMI would achieve annual electric savings of 1,320,000 KWH from utility grid efficiency improvements alone. Additional energy savings will be achieved from energy conservation programs supported by AMI. (For calculations, please see Attachment 2: Estimated Energy and Financial Savings Calculations, cell Q23). P109 I. 6 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION This is relative to total system-wide annual electric consumption of 72,049,000 KWH (For calculations, please see Attachment 2: Estimated Energy and Financial Savings Calculations, cell C6). Financial Savings : Average annual savings of $311,000, composed of: $104,000 savings in capacity charges; $107,000 increased revenue through more accurate metering; and, $100,000 in energy loss savings. (For calculations, please see Attachment 2: Estimated Energy and Financial Savings Calculations, cells Q20, Q24, Q27, and Q31). Project Team Lee Ledesma, City of Aspen Utilities Finance & Administrative Manager Lee will oversee AMI integration with the Utility’s existing software and billing processes. Lee will manage contracts and project progress. Ron Christian, City of Aspen Electric Superintendent Ron is the project lead on electric meter replacement. He will work directly with the vendor and customers to ensure technical deployment of infrastructure. Keith Wester, City of Aspen Utilities Program Manager Keith is the City of Aspen’s meter supervisor and will be responsible for daily management of the AMI system, programming in the field, and ongoing response to customer concerns and maintenance needs. Tyler Christoff, City of Aspen Deputy Director of Utilities Tyler provides senior management and project oversight. He will monitor impacts to electric utility and integration into long term planning. David Hornbacher, City of Aspen Director of Utilities Dave delivers oversight and guidance around impact to electric and water utilities, as well as public outreach. John Sobieralski, City of Aspen Network Coordinator Information Technology John will be the manager of networking and IT services for this project. John IT security certifications include: CISSP, GICSP, and GCFE. Pete Strecker, City of Aspen Assistant Finance Director Pete supervises the City of Aspen Utility Billing Office and will oversee the budgetary constraints of the project. Ryland French, City of Aspen Resource Efficiency Administrator Ryland is involved in AMI vendor selection to secure the necessary functionalities to accomplish the immediate and next generation energy conservation, solar PV, and electric vehicle goals of the project. P110 I. 7 | P a g e C ITY OF A SPEN A DVANCED M ETERING I NFRASTRUCTURE A PPLICATION Project Budget A total cost for a AMI deployment is estimated as $1,261,700 and detailed in the Table 1 below. The City of Aspen Utility released a Request for Proposals (RFP) for an Advanced Metering Infrastructure (AMI) System in December 2017. Four vendors responded with proposals. After assessing each proposal with an evaluation matrix, two top vendors were identified for consideration: Landis + Gyr, and Hotline Electrical Sales & Service. Both vendors have Colorado offices and ample experience in AMI deployment. Table 1. Anticipated AMI Budget for the Aspen Electric Utility. Description Price Electric Meters with Communication Modules $475,000.00 Network Equipment $100,000.00 Radio Frequency Tools $7,000.00 Software & Support $100,000.00 Project Delivery Services $165,000.00 Training $40,000.00 Customer Portal $40,000.00 Street Light Controller and Software $70,000.00 Electric Meter Installation $125,000.00 Network Gateway Collectors, Routers, Installation $25,000.00 Contingency $114,700.00 ASPEN ELECTRIC UTILITY -- AMI TOTAL $1,261,700.00 ASPEN ELECTRIC UTILITY ADVANCED METERING INFRASTRUCTURE SYSTEM P111 I. 1 MEMORANDUM TO: Mayor and City Council FROM: Lee Ledesma, Utilities Finance & Administrative Manager THRU: David Hornbacher, Utilities Director Scott Miller, Public Works Director DATE OF MEMO: August 3, 2018 MEETING DATE: August 6, 2018 RE: Water and Electric Cost of Service Rate Study Worksession Update on Results REQUEST OF COUNCIL: The purpose of this worksession is to introduce the Utilities rate consultant, provide an update on Cost of Service for the Water and Electric utility, present an implementation timeline, and provide an opportunity for Council questions and input. PREVIOUS COUNCIL ACTION: Council approved Cost of Service rate study for Water and Electric Utilities in February of 2016. Previous comprehensive Cost of Service rate study for the Water and Electric Utilities was performed in 2011/2012. The 2011 Electric Cost of Service rate study identified a 12-year plus transition for Electric Availability charges with a projection of the Residential Class reaching 92% Cost of Service by 2015. The 2012 Water Cost of Service rate study showed Fire Protection, Pumping and Raw Water as the furthest away from Cost of Service and even with higher rate increases in these categories for the past six years, they remain below 100% Cost of Service in the current analysis. BACKGROUND: In 2012 City Council made the decision to transition both the Electric and Water Utilities’ rate structures to a Cost of Service model. Cost of Service recovers the full cost of providing services to each class of customer. For the past six years, Utilities staff has been transitioning towards full Cost of Service based on the results of the 2011/2012 rate study. DISCUSSION: The current Cost of Service study for both utilities provides an update on the status of these transitions and several options on how quickly Council may choose to move to full Cost of Service in each of the customer classes. Utilities staff has also had initial conversations about modifying the existing seven (7) Billing Area Weighting Factors, (shown below), to a model of two (2) Billing Area Factors, one for in-city accounts and one for out-of-city accounts. Staff is requesting direction on whether this alternative is one that Council is interested in the Staff researching further for later discussion. P112 II. 2 Current methodology of allocating fixed costs to the Water Utility’s 7 Billing Areas is based on existing infrastructure in each of the Billing Areas and replacement costs associated with this infrastructure--water mainlines, pump stations, storage tanks, and fire hydrants. The Billing Area Factor for Area 1 is the baseline and reflects the fact that there is less infrastructure cost per customer due to a higher density of customers and because Area 1 is all feed by a gravity system. Billing Area Factors Water Utility Cost of Service Electric Utility Cost of Service P113 II. 3 Rate Study Timeline FINANCIAL IMPACTS: Financial impacts in the form of rate adjustments for City Electric and Water customers will be dependent on length of transition to cost of service, identified capital project needs, including an analysis of the AMI project, and operating and supplemental budget requests. Billing Area Weighing Factors for the Water Utility would also have financial impacts if City Council is interested in pursuing water rate structures based on in-city/out-of-city account rate structures rather than current seven (7) billing area weighing factors. RECOMMENDED ACTION: Staff requests feedback on Cost of Service rate study for the City’s Electric and Water Utility including a recommended Cost of Service transition period. ALTERNATIVES: City Council could choose to direct staff and consultant to pursue alternative Electric and Water rate recommendations and analysis outside of those presented in this work session. CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit A – City of Aspen Water and Electric Cost-of-Service Study Exhibit B – Current Water Billing Areas Exhibit C – Alternative Structure to Water Billing Areas Exhibit D – January 2018 – CAMU Residential Survey P114 II. Water and Electric Cost-of-Service Study Draft Executive Summary /August 6, 2018 CITY OFASPEN P115 II. CITY OF ASPEN DRAFT WATER AND ELEC TRIC COST -OF-SERVICE STUDY This page intentionally left blank to facilitate two-sided printing. P116 II. DRAFT WATER AND ELECTRIC COST-OF -SERVICE STUD Y 1 Executive Summary Introduction The City authorized Raftelis to review and update the most recent water and electric rate studies completed by Nebraska Municipal Power Pool (NMPP). Our review consisted of the following components for each utility: Determining the level of rate revenue from existing rates and other sources to meeting annual revenue requirements.Raftelis used 2019 as a hypothetical test year. Completing a comprehensive cost-of-service analysis to determine the cost of provide service. For the water utility, cost to provide service is based on cost recovery from the demand, fire, pumping, variable and raw water components. For electric, cost of service is based on the cost to provide service to the residential, small commercial, and large commercial classes Designing of cost-of-service rates using 2018 revenue requirements For the water utility only, review utility investment charges (UIC) Definitions The following terms are used in this executive summary: Cost of service:the process of equitably allocating annual revenue requirements (operating expenses, capital costs, and changes in reserves)to customer classes based on their usage and customer characteristics Test year:The year in which cost-of-service rates will be in effect Revenue under existing rates:Revenue generated from existing 2018 rates applied to 2019 account and usage projections Water Utility Findings COST OF SERVICE PROC ESS The cost-of-service process consists of the following steps. Development of rate revenue for the test year using detail billing records Development of the test year revenue from rates Allocation of the detailed revenue requirement line items to functional cost components (demand, variable, fire, pumping, raw water). Development of unit cost of service by component TEST YEAR REVENUE REQUIREMENT The test year revenue requirement is shown in Table 1. The revenue requirement is based on the City’s LRP and a projected 2019 rate revenues based on an analysis of detailed billing records. P117 II. 2 CITY OF ASPEN Table 1:Water -Test Year Revenue Requirement ($ millions) Description 2019 Operating Expenses $4.25 Capital Costs 1.05 Transfers Out 2.44 Gross Revenue Requirement 7.74 Less: Adjustments Change in Fund Balance 0.62 Non-Rate Revenues (2.36) Total Adjustments (1.74) Net Revenue Required from Rates $6.00 COST ALLOCATION Working with Staff, Raftelis allocated line item revenue requirements to the functional categories: Demand, fire, variable, pumping, and raw water.Table 2 summarizes the allocated cost by revenue requirement parameter. Table 2:Water -Allocation of Revenue Requirement ($ millions) Demand Fire Pumping Variable Raw Water Total Operating $0.69 $0.75 $0.43 $2.14 $0.25 $4.26 Capital 0.20 0.15 0.11 0.48 0.12 1.06 Transfers Out 0.56 0.40 0.24 1.15 0.09 2.44 Less: Adjustments Non-Rate Revenues 0.61 0 0 0 0 0.61 Change in Fund Balance (0.52)(0.35)(0.22)(1.09)(0.19)(2.37) Total $1.54 $0.95 $0.56 $2.68 $0.27 $6.00 COMPARISON OF COST OF SERVICE TO REVENUE UNDER EXISTING RATES Table 3 compares the cost-of-service results to revenue under existing rates for the 2019 hypothetical test year. Column 4 of Table 3 indicates the percent increase or decrease required to achieve cost-of-service. For example, the revenue from the demand charges will need to be decreased by 8.9% to be in alignment with the cost-of-service. The last column of Table 3 indicates the level at which revenue under existing rates recovers cost-of-service. For example, revenue from demand charges recovers 9.7% more than what the cost-of-service analysis indicates. The City may wish to adopt cost-of-service rates in the year they would effective. However, to mitigate impacts to customers’ bills, a multi-year transition may be more appropriate.Using the fire charge as an example, the City may wish to transition from recovering $0.60 million in 2019 to $0.95 million over a multi-year period. Each year, the percent of cost of service recovery would increase from 63.1% in the first year until reaching 100% in the final year. Table 3:Water -Cost-of-Service Comparison ($ millions) Category Revenue Under Existing Rates 2018 Cost of Service Change -% % of Existing Rev to Cost of Service Demand Charge $1.70 $1.55 -8.9%109.7% Fire Charge 0.60 0.95 58.4%63.1% Pumping Charge 0.47 0.55 16.6%85.7% Variable Charge 3.03 2.67 -11.9%113.4% Raw Water Charge 0.20 0.28 42.7%70.7% Total $6.00 $6.00 0.0%100.0% P118 II. DRAFT WATER AND ELECTRIC COST-OF -SERVICE STUD Y 3 Water Utility Investment Charge The City requested a review of the recently updated UIC completed by NMPP. Their results are shown below in Table 4. Table 4: NMPP Calculated UIC Billing Area Tap Fees, per ECU Tap Fees Using CPI Tap Fees Using UPIS Average of Two Methods 1 $5,795 $6,078 $7,960 $7,019 2 11,590 12,157 15,920 14,038 3 11,590 12,157 15,920 14,038 4 7,244 7,598 9,950 8,774 5 10,141 10,637 13,930 12,284 6 11,590 12,157 15,920 14,038 7 8,693 9,117 11,940 10,529 Raftelis did not independently verify the data used to calculate the UIC for each methodology used by NMPP. Based on the results show here, it appears NMPP calculated the UIC using two different approaches. The first approach applied an escalation factor to the existing fees based on the Consumer Price Index. The second approach used the Utility’s plant-in-service from the City’s assets records to estimate the UIC. Raftelis conducted a cursory review of the City’s current asset listing and calculated UICs using the industry standard methodologies promulgated by the American Water Works Association. Our analysis used the City’s detailed asset listing and calculated the current replacement cost of facilities using the Engineering New Record (ENR) cost index. The values shown in Table 5 are for Billing Area 1 only. Table 5: Raftelis Proposed UIC Description Original Cost Replacement Cost Total Supply Assets $8,325,000 $23,200,000 Total Treatment Assets 52,800,000 95,000,000 Total Storage Assets 16,700,000 20,040,000 Total Pump/PRV Assets 8,650,000 10,380,000 Total Distribution Assets (>8" Mains)56,242,500 82,659,250 Total $142,717,500 $231,279,250 Estimated ERU Capacity (2018 Estimated)24,778 Calculated Utility Investment Charge, Bill Area 1 $9,334 Current Utility Investment Charge, Bill Area 1 5,795 Change $3,539 Based on our analysis, we find that the maximum supportable UIC is $9,334. This means that the City could adopt a fee up to that amount that is supported by the City’s current asset listing and the estimated ERU capacity. P119 II. 4 CITY OF ASPEN Electric Utility Findings COST OF SERVICE PROC ESS The electric cost-of-service process consists the following steps. Development of rate revenue for the test year using detail billing records Development of the test year revenue requirement to determine the revenue required from rates Functionalize revenue requirement to system functions (e.g. purchased power, distribution management, hydropower, etc.) Allocation functionalized costs to cost components (e.g. energy, demand, availability) Distribute costs to customer classes based on their proportionate share of energy usage, demands, and customers TEST YEAR REVENUE REQUIREMENT The test year revenue requirement is shown in Table 6. The revenue requirement is based on the City’s LRP and a projected 2019 rate revenues based on an analysis of detailed billing records. Table 6:Electric -Test Year Revenue Requirement ($ millions) Description 2019 Operating Expenses $7.55 Capital Costs 0.81 Transfers Out 0.80 Debt Service 0.27 Gross Revenue Requirement 9.43 Less: Adjustments Non-rate Revenues (0.18) Change in Fund Balance (0.46) Total Adjustments (0.64) Net Revenue Required from Rates $8.79 ALLOCATION OF REVENUE REQUIREMENT TO COST COMPONENTS Working with Staff, Raftelis categorized the detailed line item revenue requirements to functional categories. Examples of functional categories include purchase power, hydropower, transmission and wheeling, distribut ion management, etc.The functionalized costs are then allocated to cost components.Cost components include energy (kWh), demand (kW), and availability charges.Table 7 below shows the summarized allocated revenue requirement to cost components. Table 7:Electric -Allocation of Revenue Requirement ($ millions) Description Energy Demand Availability Total Operating Expenses $3.62 $2.85 $1.07 $7.54 Capital Costs 0.20 0.22 0.39 0.81 Transfers Out 0.36 0.29 0.15 0.80 Debt Service 0.07 0.07 0.13 0.27 Less:Adjustments Non-rate Revenues (0.08)(0.07)(0.03)(0.18) Change in Fund Balance (0.20)(0.16)(0.09)(0.45) Total $3.97 $3.20 $1.62 $8.79 P120 II. DRAFT WATER AND ELECTRIC COST-OF -SERVICE STUD Y 5 COMPARISON OF COST OF SERVICE TO REVENUE AT EXISTING RATES Once the functionalized costs are allocated, they can be distributed to customer classes based on their proportionate share of usage characteristics. For example, residential kilowatt-hours represent 34% of total kilowatt-hours sold. Therefore,34% of the energy costs would be allocated to the residential class.In a comparable manner, large residential demands account for approximately 16% of total kW demand. This results in an allocation of 16% to the large commercial class.Table 8 shows the class cost of service compared to revenue under existing rates for each class. Column 4 of Table 8 indicates the percent increase or decrease required to achieve cost-of-service. For example, revenue from the residential class will need to be increased by 9.4% to be in alignment with the cost-of-service. The last column of this table indicates the level revenue under existing rates recovers cost -of-service. For example, revenue from residential rates recovers 91.4% of what the cost-of-service analysis indicates. The City may wish to adopt cost-of-service rates in the year they would effective. However, to mitigate impacts to customers’ bills, a multi-year transition may be more appropriate. Using the residential class as an example, the City may wish to transition from recovering $3.28 million in 2019 to $3.59 million over a multi -year period. Each year, the percent of cost of service recovery would increase from 91.4% in the first year until reaching 100% in the final year. Table 8:Electric -Cost-of-Service Comparison ($ millions) Customer Class Revenue Under Existing Rates 2018 Cost of Service Change -%% of Existing Rev to Cost of Service Residential $3.28 $3.59 9.4%91.4% Small Commercial 3.47 3.30 -4.9%105.2% Large Commercial 2.04 1.89 -6.8%107.3% Total $8.79 $8.79 0.0%100.0% P121 II. BillingArea 6BillingArea 6BillingArea 4BillingArea 3BillingArea 2BillingArea 1BillingArea 7BillingArea 2BillingArea 5AIRPORTRDPYRAMID RDS ORIGINAL STTRUSCOTT PLTEA L CT AABC 500W A IR P O R T RDSERVICE CENTER RDHIDEAWAYLNT O T T E R D O W N R D T W IN R ID G E D R CASCADE LNLACET LNBENNETT BENCH RDS M U G G L E R M T N R D O W L C R E E K R D HARMONY RDHARBOUR LNMATCHLESS DRBENNETTPLSTAGE CTG L E N D E E R D U T E A V E WORLD CUP C T NORTHSTAR DRALPINE CTALLEYA A B C 1 0 0 RIO GRANDE PLN 6TH STSTILLWATER LNCRYSTALLAKE RDBRENDEN CT SESAMESTE HOPKINSAVEN SPRING STCA LLAH ANC TTHUNDERBOW L LNH W Y 8 2 S AL PS RD STAGE RDHWY 82F O U N D E R S P L MIDLAND AVELINDVIG CTN 8TH STN GARMISCH STHWY 82O A K LN LA C E T C T S 7TH STN 7TH STN MONARCH STN 8TH STCLEVELAND STS 1ST STN 2ND STS HUNTER STN 4TH STS 3RD STN 1ST STS GALENA STN MILL STS 4TH STN 5TH STS 6TH STS MONARCH STS WESTEND STS ASPEN STS MILL STS SPRING STS GARMISCH STALLEYS 5TH STEXHIBITION LNWOODDUCK LNN 3RD STDEAN STC H A N C E C T AABC 200W BLEEKER STPROSPECTOR RDAABC 300 BUNNY CTN SPRING STBAYSTN 3R D S T POWDERBOWL TRLLONE PINE RDALLEYE JUANITA STUTECTM T N L A U R E L D R PA R K CIR MTNOAKS PLALICELNFRONT WAYRIDGE PLROARINGFORK DRU TE A V EW NORTH STDALEAVEE FRANCIS STRIVERDRE HYMAN AVEALTA VISTA DRAVSC RDNEALE AVESILVERLODE DR TR A IN O RSLND G W FRANCIS STHARMONYPLMOL LY CT R E C Y C L E C IR CASTLE CREEK RDPOWER PLANT RDS SPRING STOBERMEYERPLACE DRSTEINWAYPITKIN WAYB AR NAR D PA RK CT W SMUGGLER STG IB S O N A V E H W Y 82CHATFIELD RDSTAGE RDM A Y F L O W E R C T LUPINEDRDEAN STBROWN LNSPRUCE STAABC100N RIVERSIDEAVEBENNETT CT ALLEYSAWMILLCTMEADOWS RDGREYTALON CTRIVERSIDE DR MOORE DRPEARLCTBUS BARN LN PFISTER DRALLEYGILLESPIE STALLEYWINTERWAYW NORTH STLIBRARYALLEYSUMMITSTAVSCRDS TA G E C T W FRANCIS STW HYMAN AVENORTHWAY DRE DURANT AVEE MAIN STALLEYALLEYE COOPERAVEALLEYALLEYALLEYWILLIAMS WAY ALLEYALLEYW HALLAM STW MAIN STALLEYALLEYE BLEEKER STE HOPKINS AVELA K E A V E ALLEYR IV E R D O W N D R ALLEYGILBERTSTMAGNIFICO RDW HOPKINS AVEALLEYCLUB CIRW NORTH STPO WD E R L N DEAN STO R E G O N T R LE HALLAM STW COOPERAVEARDMORE DRN W ILL O W CT PARK AVEMASCOTTE LNSAGE CTEAGLE PINES DR MINERSTRAIL RDJUAN STA A B C 4 0 0 SALVATIONCIRW OO D W AR D L N SIERRA VISTA DRLAURELLNSIEVERS CIRQUEEN STMAROONCTCLUBSIDEDRSHAVANODRMAROON CREEK RDHIGH SCHOOL RDTUMBLEDOWN LNCASCADELNBLACKBIRCH DRE B U T T E R M ILK R D SH ADY LN ARTPKYFIVETREES LNRIDGE RDNARROWWAYE A IRP O R T RD ACCESS LOOPM T N L A U R E L L N FR E E S IL V E R C THIGHLANDS SUMMER RDMTNLAUREL CTE COOPER AVECOUNTRYDAYWAYSPRUCE CT MEADOWS TRUSTEE ASPEN MTN RDTIEHACK RD W A LN U T S TE WATER PLSILVERKING DRC E M E TE R Y LN DOOLITTLECIRVINE STBLUEBONNETTRLPFEIFER PLS MEADOW LNRIVERSIDE DRARDMORE CTPOLECAT DRFORGE RD OVERLOOK DRCINNAMON CTKING STTOBY LNGLEN DEE RDC O T T ON W O O D L N A S P E N M T N C U T O F F R DAJAX AVEC O T T O N W O O D C IR H I G H SC HOOL R D C L O U D N IN E L N STEEPLECHASE DRDANIELSEN DRRIDGE RDRACE STSTILLWATER DRMIDLANDPARK PLLITTLECLOUD TRLPASSGO LNW BUTTERMILK RD CASTLERIDGE RDTRUSCOTT PLN IC H O L A S L N MEADOWOOD DRPRIMROSE PATHDOOLITTLE DRFABILOOPP U P P Y S M IT H S T W I L L IA M S R A N C H D R S RIVERSIDE AVEBONITA DRASPEN MEADOWSSKIMMING LNMAROON DRP IT K IN M E S A D R VINE STANIMAL SHELTER RD BOOMERANG RDP LA C E R L N MAPLE LNUTE PLGLEN GARRY DRW LUPINE DR S A B IN D R HIGHLANDSSUMMER RDMTN VIEW DRLAZY CHAIRRANCH RDWESTVIEW DRHIGH SCHOOL RDDRAW DRAABC 400SNOWBUNNY LNHERRONHOLLOW RDHUNTER CREEK RDNIGHTHAWK DRNELL ERICKSON RDBULKLEY DRCA STLE CREEK DR SNEAKY LNMARIPOSA LNASPEN GROVE RDS A G E W A Y L A R S O N D R CRYSTALLAKE RDASPENGROVE RDMC L A IN FL AT S R D MINING STOCK PKWYGLEN EAGLES DR E L U P IN E D R WATERS AVEAIRPO RT R DR ED B U TTE D R TRENTAZ DRR E D M TN R D HOMESTAKE DRMUSICSCHOOL RDM A R O L T P L W TIEH AC K R D FALCON RDAMERICAN LNHUNTER CREEK TOLL RDW ILKINS O N LO W ER RD HEATHER LNS STARWOOD DRASPEN OAK DREAGLEPARK DRMUSIC SCHOOL CIRJOHNSON DRJALANDA LNLARKSPUR LNR A N C H R D ROARINGFORK RDR E LA Y R D HALL DRSMUGGLERCUTOFF RDEA STW O O D D R ISABELHAY RDC O A C H R D OAK RIDGE DRW REDS RDB U T T E R M IL K L N BADGER HOLLOWMCSKIMMING RDE RE D S R D WRIGHTS RDP A E P C K E D R EPPLEY DR W ILLO U G H B Y W A Y HWY 82R A D A R R D BUTTERMILK SUMMER RDRED MTN COMM SITEDate: 7/6/2018This map/drawing/image is a graphical representation of the featuresdepicted and is not a legal representation. The accuracy may change depending on the enlargement or reduction.Aspen Water Service Area & Pump Zones1 inch = 625 feetWhen printed at 36"x48"Water Billing AreaPumpzone12Water Poly0 1,000 2,000500FeetUtilities DepartmentP122II. AIRPORTRDPYRAMID RDS ORIGINAL STTRUSCOTT PLTEAL C T AABC 500W A IR P O R T RDSERVICE CENTER RDHIDEAWAYLNT O T T E R D O W N R D T W IN R ID G E D R CASCADE LNBENNETT BENCH RDSMUGGLER MTN RDO W L C R E E K R D HARMONY RDHARBOUR LNMATCHLESS DRBENNETTPLSTAGE CTG L E N D E E R D U T E A V E W O RL D C UP CT NORTHSTAR DRALPINE CTALLEYA A B C 1 0 0 RIO GRANDE PLN 6TH STSTILLWATER LNCRYSTALLAKE RDBRENDEN CT SESAMESTE HOPKINSAVEN SPRING STC A LLA H AN CTTHUNDERBOW L LNH W Y 8 2 N O R T H S TA RDR S A LPS RD STAGE RDHWY 82F O U N D E R S P L MIDLAND AVELINDVIG CTN 8TH STN GARMISCH STHWY 82O A K L N LA C E T C T S 7TH STN 7TH STN MONARCH STN 8TH STCLEVELAND STN 2ND STS HUNTER STN 4TH STS 3RD STN 1ST STS GALENA STN MILL STS 4TH STN 5TH STS 6TH STS MONARCH STS WESTEND STS ASPEN STS MILL STS SPRING STS GARMISCH STALLEYS 5TH STEXHIBITION LNWOODDUCK LNN 3RD STDEAN STC H A N C E C T AABC 200W BLEEKER STPROSPECTOR RDAA BC 300 BUNNY CTN SPRING STBAYSTN 3 R D ST POWDERBOWL TRLLONE PINE RDALLEYE JUANITA STUTECTM T N L A U R E L D R PA RK C IR MTNOAKS PLALICELNFRONT WAYRIDGE PLROARINGFORK DRU TE A V EC O LD S T R EA M LNW NORTH STDALEAVEE FRANCIS STRIVERDRE HYMAN AVEALTA VISTA DRAVSC RDNEALE AVESILVERLODE DR TR AIN O RS LN D G W FRANCIS STHARMONYPLM O L LY CT R E C Y C L E C I R CASTLE CREEK RDPOWER PLANT RDS SPRING STOBERMEYERPLACE DRSTEINWAYPITKIN WAYBAR NARD PAR K CT W SMUGGLER STG IB S O N A V E H W Y 8 2CHATFIELD RDSTAGE RDM A Y F L O W E R C T LUPINEDRDEAN STBROWN LNSPRUCE STAABC100N RIVERSIDEAVEBENNETT CT ALLEYSAWMILLCTMEADOWS RDGREYTALON CTRIVERSIDE DR MOORE DRPEARLCTBUS BARN LN PFISTER DRALLEYGILLESPIE STALLEYWINTERWAYW NORTH STC L U N Y R D LIBRARYALLEYSUMMITSTAVSCRDS TA G E C T W FRANCIS STW HYMAN AVENORTHWAY DRE DURANT AVEE MAIN STALLEYALLEYE COOPERAVEALLEYALLEYALLEYWILLIAMS WAY ALLEYALLEYW HALLAM STW MAIN STALLEYALLEYE BLEEKER STE HOPKINS AVEL A K E A V E ALLEYR IV E R D O W N D R ALLEYGILBERTSTMAGNIFICO RDW HOPKINSAVEALLEYCLUB CIRW NORTH STPOW D ER L N DEAN STO R E G O N T R LE HALLAM STW COOPERAVEARDMORE DRN W IL L O W C T PARK AVEMASCOTTE LNSAGE CTEAGLE PINES DR MINERSTRAIL RDJUAN STA A B C 4 0 0 SALVATIONCIRW O O D W A R D L N SIERRA VISTA DRLAURELLNSIEVERS CIRQUEEN STMAROONCTCLUBSIDEDRSHAVANODRMAROON CREEK RDHIGHSCHOOL RDTUMBLEDOWN LNCASCADELNBLACKBIRCH DRE B U T T E R M IL K R D SHAD Y LN WHITEHORSESPRINGS LNARTPKYFIVETREES LNRIDGE RDNARROWWAYE A IRP O R T RD ACCESS LOOPM T NLAURE L L N FR E E SILVE R C THIGHLANDSSUMMER RDMTNLAUREL CTE COOPER AVECOUNTRYDAYWAYSPRU CE CT MEADOWS TR USTEE A S P E N M T N R D TIEHACK RD W A LN U T S T E WATER PLSILVERKING DRC E M E TE R Y L N DOOLITTLECIRVINE STBLUEBONNETTRLPFEIFER PLS MEADOW LNRIVERSIDE DRARDMORE CTPOLECAT DRFORGE RD OVERLOOK DRCINNAMON CTTHISTLE LNKING STTOBY LNGLEN DEE RDC O T T O N W O O D LN A S P E N M TN C U T O F F R DAJAX AVEC O T T O N W O O D C IR H I G H S C H O O L RD C L O U D N I N E LN STEEPLECHASE DRDANIELSEN DRRIDGE RDRACE STSTILLWATER DRMIDLANDPARK PLLITTLECLOUD TRLPASSGO LNW BUTTERMILK RDCASTLERIDGE RDTRUSCOTT PLN IC H O LA S LN MEADOWOOD DRPRIMROSE PATHDOOLITTLE DRFABILOOPP U P P Y S M IT H S T W IL L IA M S R A N C H D R S RIVERSIDE AVEBONITA DRASPEN MEADOWSSKIMMING LNMAROON DRP IT K IN M E S A D R VINE STANIMAL SHELTER RD BOOMERANG RDP L A C E R L N MAPLE LNUTE PLGLEN GARRY DRW LUPINE DR S A B IN D R CLAY LNMTN VIEW DRLAZY CHAIRRANCH RDWESTVIEW DRHIGH SCHOOL RDDRAW DRAABC 400SNOWBUNNY LNHERRONHOLLOW RDHUNTER CREEK RDNIGHTHAWK DRNELL ERICKSON RDBULKLEY DRC ASTLE CR EEK DR SNEAKY LNMARIPOSA LNASPEN GROVE RDCHATTAN LN S A G E W A Y L A R S O N D R CRYSTALLAKE RDASPENGROVE RDMINING STOCK PKWYGLEN EAGLES DR E L U P IN E D R WATERS AVEAIRPO RT RDR E D B U T TE D R R E D M TN R D HOMESTAKE DRMUSIC SCHOOL RDM A R O L T P L M C L A IN F L A T S R D W TIEH A CK R D FALCON RDAMERICAN LNHUNTER CREEK TOLL RDW ILK IN S O NLOWER RD HEATHER LNASPEN OAK DREAGLEPARK DRMUSIC SCHOOL CIRC L U N Y R DJALANDA LNLARKSPUR LNR A N C H R D ROARINGFORK RDR E LA Y R D HALL DRTRENTAZ DRSMUGGLERCUTOFF RDE A S T W OO D D R ISABELHAY RDC O A C H R D W REDS RDOAK RIDGE DRB U T T E R M IL K L N BADGER HOLLOWS STARWOOD DRMCSKIMMING RDE R ED S RD WRIGHTS RDPA E P C K E D R EPPLEY DR HWY 82W ILLO U G H BY W A Y JOHNSON DRRED MTN COMM SITER A D A R RD BUTTERMILK SUMMER RDDate: 1/29/2018City of AspenUtilitiesThis map/drawing/image is a graphical representation of the featuresdepicted and is not a legal representation. The accuracy may change depending on the enlargement or reduction.Aspen Water Service AreaIn-City and Out-Of-City1 inch = 625 feetWhen printed at 36"x48"LegendPumpzone12Inside City LimitsWater Billing Area0 1,000 2,000500FeetP123II. P124II. P125III. Agenda •RFTA Funding History •Summary of “no mill levy” alternative •Project list update •Financial capacity analysis •Project Scenarios •Polling Results •Discussion •Next Steps P126III. Destination 2040 Process Flow Chart P127III. RFTA Funding History •2000 –RFTA was approved by voters and formed. Member jurisdictions came in at varying rates of sales tax •2004 –Region-wide .2% sales tax increase approved by voters. New Castle joined RFTA. •2008 –Region-wide .4% sales tax increase approved by voters for BRT. •The 2008 tax intended to keep RFTA financially fit for 12 years (until 2020)P128III. No Mill Levy Scenario •Keeping the current service with bus replacements results in immediate yearly deficit and negative fund balance starting in 2027 •Service needs to be reduced to have a yearly surplus and a positive fund balance •Little or no ability to leverage additional State and Federal funds. Any new State and Federal funding will probably be discretionary (competitive) and not formula funding.P129III. P130III. No Mill Levy Scenario- Service Reductions- Winter Down Valley P131III. No Mill Levy Scenario- Service Reductions- Winter Up Valley P132III. Project List •Projects grouped into three categories: •Improvements for the Environment •Improvements for Reducing Congestions and Improving Mobility •Improvements for Sustainability and Safety •Costs updated •Projects renumbered to coincide with project map P133III. P134III. Destination2040 Service Improvements •SH 82 Service Increase, 30-minute Valley service •SH 82 Service Increase, Weekend BRT (Spring/Fall) •I-70 Grand Hogback Service -27th Street to New Castle, 30 minute headways •SH 82/Grand Ave. Expand Service in Glenwood Springs (Val to GWPNR and BRT to Downtown GWS) •Better transit service connections to Snowmass Village on Brush Creek Road P135III. Financial Capacity Analysis •Assists in initial analyses of project delivery timing and affordability •Higher level in scope •Results are used as starting point for analyses within more detailed planning model to refine results of feasibility P136III. Financial Capacity Analysis •Two scenarios •Phased Implementation (July 2018) •Destination 2040 Stakeholder Recommendations •Project list determined for each scenario •Mill levy determined for each scenario based on cash flow, bonding, interest, inflation P137III. New 2.65 Mill Levy Scenario •Preserves service improvements •Constrains Destination 2040 project list •Assumes GMF expansion project is funded 50/50 by 2018 State-wide Transportation Ballot initiative •Responds to latest Polling results P138III. P139III. P140III. Assumptions for 2.65 Mill Levy Scenario •4% average annual increase in assessed valuation •5% reduction in existing BRT service (as a placeholder) •6.11% residential property assessment rate effective 2019 •A reduction of 6 expansion buses P141III. updated 7/3/18 Stakeholder Recommendations: 3.65 Mill ***July 2018 Analysis: 2.65 Mill Service Improvement Alternative C1 A3C Service Increase, 30-minute Valley service Included Included C3 A3B Service Increase, Weekend BRT (Spring/Fall)Included Included C4 A11F I-70 Grand Hogback Service - 27th Street to New Castle, 30 minute headways Included Included C5 A5 Expand Service in Glenwood Springs (Val to GWPNR and BRT to Downtown GWS)Included Included C6 A4 Better transit service connections to Snowmass Village on Brush Creek Road Included Included Capital Projects Alternative Description E5 C2 Rio Grande Trail Maintenance and Improvements Included **Included C7 B4 Improvements to Highway 82 Bus Stations Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 9 (Replacement of Fuel Farm)Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 5 (Two Story Offices and Electric Charging)Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 6 (Parts Room and Storage)Included Included S7 E2 RFTA Glenwood Springs Maintenance Facility Expansion Included *Included S10 E3 Replacement of Employee Housing and Carbondale Office Space Included **Included E2 A6 Bike Share Expansion Included Included E3 A16 Real Time Traveler Information Included Included C8 B3 Glenwood Springs 27 Street BRT Station Parking Expansion Included Included C9 B3 Willits BRT Station Parking Expansion Included Included C10 B3 Carbondale BRT Station Parking Expansion Included Not Included C11 B3 Aspen Junction (Basalt) PNR Expansion Included Not Included C12 B6 New Castle Park and Ride Expansion Burning Mountain Avenue Included Not Included C13 B7 Improvements to Town of Snowmass Village Transit Center Included Included C14 A15 Upper Valley Parking Management System Study Included Not Included C15 A15 Buttermilk Parking Management Included Included C16 B2 BRT Enhancements to Brush Creek Intercept Lot Included Not Included C17 B5 Micro Transit Accommodations at BRT Stations Included Not Included S1 D1 Pedestrian Crossings of 27 Street and Highway 82 in Glenwood Springs Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 7 (Additional Indoor Bus Storage)Included Not Included S8 B1 900 Block Grand Avenue In-Line Transit Stations in Glenwood Springs Included **Included S9 B8 New Transit Station in Glenwood Springs Included Included S10 E3 Expansion of Employee Housing and Carbondale Office Space Included Not Included E4 C1 LOVA Trail Construction from Glenwood Springs to New Castle Included Included S2 D5 South Bridge Highway 82 Connection in Glenwood Springs Included Included S3 D4 Pedestrian Crossing at 23 Street in Glenwood Springs Included Not Included S4 D2 Buttermilk Pedestrian Crossing in Pitkin County Included Included S5 D6 Enhanced Crossing of Rio Grande Trail at 14th Street in Glenwood Springs Included Not Included S6 E4 Aspen Maintenance Facility Expansion Phase 8 (CNG Compressor/Fueling)Included Not Included C18 A10 Expanded Circulators: Carbondale Not Included Not Included C19 A10 Expanded Circulators: Basalt Not Included Not Included C20 A10 Expanded Circulators: New Castle Not Included Not Included E6 D3 Rio Grande Trail Connectivity and Safety Improvements Not Included Not Included * Project cost reduced and Grant share increased ** Project cost reduced Alternative Alternative Destination 2040 Financial Capacity Analysis Scenarios P142III. What would a proposed 2.65 RFTA Mill Levy Cost a Homeowner? Assessment Rate of 6.11% Per $500,000 Actual home value •$6.75 per month •$80.95 per year P143III. What would a proposed 2.65 RFTA Mill Levy Cost a Commercial Property Owner? Assessment Rate 29% Per $1 million Actual Property Value •$64.04 per month •$768.50 per year P144III. What would a proposed 3.65 RFTA Mill Levy Cost a Homeowner? Assessment Rate of 6.11% Per $500,000 Actual home value •$9.29 per month •$111.51 per year P145III. What would a proposed 3.65 RFTA Mill Levy Cost a Commercial Property Owner? Assessment Rate 29% Per $1 million Actual Property Value •$88.21 per month •$1,058.52 per year P146III. P147III. Regional Polling Results •Regional Poll •Conducted May 29-June 7, 2018 •Purpose is to recheck public support/messaging •Includes about 20 questions •305 responses P148III. P149III. P150III. P151III. RFTA Board Decision Points 1.July 12 Board Meeting: Informational Session regarding mill levy amounts and milestones leading to the November 2018 Ballot 2.August 9 Board Meeting –Public Hearing to give municipalities, counties, and the public an opportunity to weigh in on the proposed mill levy increase before the Board takes formal action 3.Special meeting as late as the final week of August: Final decision needed from Board whether to refer the mill levy question P152III. Next Steps •Summer 2018 Outreach Plans •TAC Meeting in late July •August 9th RFTA Board Meeting –Pubic Hearing to give municipalities, counties, and the public an opportunity to weigh in on the proposed mill levy increase before the Board takes formal action P153III. QUESTIONS / DISCUSSION P154III. Spare slides from board retreat P155III. RFTA MAY BOARD RETREAT SUMMARY P156III. Destination 2040 Financing Plan Scenarios All-In: 4.3 Mill Stakeholder Recs: 3.65 Mill Sustainable Growth: 3.55 Mill Status Quo (BEB): 2 Mill Alternative Service Improvement Alternative C1 A3C Service Increase, 30-minute Valley service Included Included Included Not Included C3 A3B Service Increase, Weekend BRT (Spring/Fall)Included Included Included Not Included C4 A11F I-70 Grand Hogback Service -27th Street to New Castle, 30 minute headways Included Included Included Not Included C5 A5 Expand Service in Glenwood Springs (Val to GWPNR and BRT to Downtown GWS)Included Included Included Not Included C6 A4 Included Included Included Not Included P157III. All-In: 4.3 Mill Stakeholder Recs: 3.65 Mill Sustainable Growth: 3.55 Mill Status Quo (BEB): 2 Mill E5 C2 Rio Grande Trail Maintenance and Improvements Included Included Included Included C7 B4 Improvements to Highway 82 Bus Stations Included Included Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 9 (Replacement of Fuel Farm)Included Included Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 5 (Two Story Offices and Electric Charging)Included Included Included Included S6 E4 Aspen Maintenance Facility Expansion Phase 6 (Parts Room and Storage)Included Included Included Included S7 E2 RFTA Glenwood Springs Maintenance Facility Expansion Included Included Included Included S10 E3 Replacement of Employee Housing and Carbondale Office Space Included Included Included Included E2 A6 Bike Share Expansion Included Included Included Not Included E3 A16 Real Time Traveler Information Included Included Included Not Included C8 B3 Glenwood Springs 27 Street BRT Station Parking Expansion Included Included Included Not Included C9 B3 Willits BRT Station Parking Expansion Included Included Included Not Included C10 B3 Carbondale BRT Station Parking Expansion Included Included Included Not Included C11 B3 Aspen Junction (Basalt) PNR Expansion Included Included Included Not Included C12 B6 New Castle Park and Ride Expansion Burning Mountain Avenue Included Included Included Not Included C13 B7 Improvements to Town of Snowmass Village Transit Center Included Included Included Not Included C14 A15 Upper Valley Parking Management System Study Included Included Included Not Included C15 A15 Buttermilk Parking Management Included Included Included Not Included C16 B2 BRT Enhancements to Brush Creek Intercept Lot Included Included Included Not Included C17 B5 Micro Transit Accommodations at BRT Stations Included Included Included Not Included S1 D1 Pedestrian Crossings of 27 Street and Highway 82 in Glenwood Springs Included Included Included Not Included S6 E4 Aspen Maintenance Facility Expansion Phase 7 (Additional Indoor Bus Storage)Included Included Included Not Included S8 B1 900 Block Grand Avenue In-Line Transit Stations in Glenwood Springs Included Included Included Not Included S9 B8 New Transit Station in Glenwood Springs Included Included Included Not Included S10 E3 Expansion of Employee Housing and Carbondale Office Space Included Included Included Not Included E4 C1 LOVA Trail Construction from Glenwood Springs to New Castle Included Included Not Included Not Included S2 D5 South Bridge Highway 82 Connection in Glenwood Springs Included Included Not Included Not Included S3 D4 Pedestrian Crossing at 23 Street in Glenwood Springs Included Included Not Included Not Included S4 D2 Buttermilk Pedestrian Crossing in Pitkin County Included Included Not Included Not Included S5 D6 Enhanced Crossing of Rio Grande Trail at 14th Street in Glenwood Springs Included Included Not Included Not Included S6 E4 Aspen Maintenance Facility Expansion Phase 8 (CNG Compressor/Fueling)Included Included Not Included Not Included C18 A10 Expanded Circulators: Carbondale Included Not Included Not Included Not Included C19 A10 Expanded Circulators: Basalt Included Not Included Not Included Not Included C20 A10 Expanded Circulators: New Castle Included Not Included Not Included Not Included E6 D3 Rio Grande Trail Connectivity and Safety Improvements Included Not Included Not Included Not IncludedP158III.