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W A t F k f H F A G y L i F RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E 5 BOARD OF PUBLIC UTILITIES DATE: November 4, 2011 ITEM NO: 6 SUBJECT: RESOURCE PORTFOLIO MODELING SOFTWARE ISSUE: That the Board of Public Utilities consider approval of a Software License, Maintenance and Support Agreement between City of Riverside ('Riverside") and Ascend Analytics, LLC ("Ascend") for development and implementation of Resource Portfolio Modeling ("RPM") software to serve the analytical needs of Power Planning & Marketing (Resources Division), Market Operations (Resources Division), and Risk Management (Finance/Administration Division). RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the Software License, Maintenance and Support Agreement with Ascend Analytics, LLC, of Boulder, Colorado, in the amount of$494,955 for Fiscal Year 2011112 with $208,000 for the annual RPM software licensing and maintenance fees and the one-time cost of$286,955 to purchase the necessary network hardware for hosting the RPM software system within the Riverside's Information Technology Department and installing, configuring, integrating and deploying the RPM software platform for use by Riverside Public Utilities; and 2. Authorize the City Manager, or his designee, to execute the Software License, Maintenance and Support Agreement. BACKGROUND: The Power Planning & Marketing Section within the Resources Division uses special-purpose computer modeling software to analyze Riverside's electric resource portfolio. Analyses using the resource portfolio modeling software are required for a variety of purposes, including: • long-term integrated resource planning • evaluation of prospective new power supply resources energy risk management (position analysis, hedging and optimization) • power cost forecasting and budgeting The current RPM software used by the Power Planning & Marketing Section has become obsolete and is no longer well supported by its vendor. To meet the Section's needs for a new RPM software, Riverside issued a Request for Proposal ("RFP") on February 25, 2011. Six (6) vendors submitted proposals in response to the RFP. Riverside reviewed all of the proposals and selected three (3) finalists for further consideration. Separate on-site meetings were held with each finalist, including in-depth demonstrations of their respective software products.