At the July 31, 2017 meeting, the City Commission entered into a performance contract agreement with Johnson Controls, Inc. to provide a City-wide energy-based performance contract solution. Part of the project scope included full implementation of a water advanced metering infrastructure (AMI) system. The software required to operate the AMI system is sold by Itron, Inc. and requires a separate software agreement outside of the Johnson Controls performance contract. The annual cost of the software agreement is already included in the Johnson Controls performance contract cash flow.
The purpose of this amendment to the Itron agreement is to add Managed Services to the Software as a Service (SaaS) and reduce the annual contract escalation rate of the agreement from 5% to 3% which is more in line with typical service contracts.
Under the current SaaS agreement Itron is responsible for the maintenance, availability, and performance of the hosted back-office. Itron is responsible for the back-office availability and file delivery but not the read rate on the field equipment. The City is responsible for the daily operations encompassing the Field Area Network (CGRs and CAMs) as well as endpoint data collection and integrity. The Managed Services package includes read rate service level agreement, and 24-7-365 support. Itron, Inc. is responsible for the Field Area Network as well as endpoint data collection and data integrity.
The CGRs are now obsolete and in need of replacement this fiscal year. City staff considered the cost of adding Managed Services to the Itron agreement versus the cost of replacing the CGRs and adding a network engineer/application engineer/systems administrator to the IT staff and determined it was more cost effective to add Managed Services to the agreement.