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hHP aA IF fa Rx L`:: Y+N IF I rl� "if k d f F ev ip RIVERSIDE PUBLIC UTILITIES PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 20, 2015 ITEM NO: 8 SUBJECT: FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH LEIDGS ENGINEERING, LLC (FORMERLY SAIC ENERGY, ENVIRONMENT & INFRASTRUTURE) FOR PREPARATION OF A UTILITY TECHNOLOGY PLAN — EXTENSION OF TERM ISSUE: The item for Board of Public Utilities consideration is approval of an extension to the term of the professional services agreement with Leidos Engineering, LLC to June 30, 2015 in order to complete the project. RECOMMENDATION: That the Board of Public Utilities adopt the First Amendment to the Professional Services Agreement with Leidos Engineering, LLC(formerly SAIC Energy, Environment and Infrastructure)extending the term to June 30, 2015. BACKGROUND: On April 19,2013,the Public Utilities Board approved the professional services agreement with SAIC Energy, Environment & Infrastructure, LLC (SAIC) for the preparation of a Utility Technology Strategic Plan in the amount of$749,700 with an initial term through June 30,2014. In September 2013, SAIC changed its name to Leidos Engineering, LLC (Leidos). The project scope included a one-day strategic planning session, an assessment of current technology systems, needs assessment and gap analysis; preliminary design of a city- wide communication network to support future distribution automation and automated meter reading systems; inventory and condition assessment of the Utilities'fiber network,assessment and recommendations related the City's radio communications; recommendations on near-term and long-term utility technology initiatives; and recommendations to the organization of the utility personnel engaged in technology projects. The original project timeline anticipated a final report being completed in the December2013 or January 2014 timeframe. However,with the hiring of a new General Manager in late January 2014, it was decided to slow- down the project in order for our new General Manager to provide his viewpoint and vision of technology for the next decade. General Manager Balachandran spent the next few months getting familiarwith the state of RPU's technology, as well as meeting with subject matter experts to determine needs for the future. One of the significant changes in vision from when the project started under our previous General Manager was consideration of automated metering infrastructure (AMI) and other grid infrastructure modernization technologies in the near future (some of these technologies have been referred to in the industry as smart- grid technologies, operational technologies and advanced utility technologies). General Manager Balachandran, since starting here at RPU, has stressed the need for focus on evolving towards grid infrastructure modernization at a more fast-follower pace than RPU has done in the past. This focus is aligned with RPU's goals to "Maximize the use of technology to improve utility operations." With this update in strategic focus,we requested additional scope to include more specific recommendations as it relates to evaluating and operating a modern utility(smart grid utility)and include recommendations on how evolving technologies such as solar and battery storage will affect our grid, in addition to electric vehicles. None of these items had been addressed in previous report drafts, therefore additional work was necessary. The costs for this additional work will be included within the total project costs previously approved by the Board.