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Anaheim, CA 92805
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www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: AUGUST 20, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: FIRST AMENDMENT TO SOFTWARE LICENSE AND SUPPORT
AND MAINTENANCE SERVICES AGREEMENT FOR CYBER
SECURITY SOLUTIONS
ATTACHMENT (Y/N): YES ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve a First Amendment (Amendment) to the Software License and Support and Maintenance Services Agreement (Agreement) with Landis + Gyr Technology, Inc. (Landis + Gyr) to upgrade grid automation and remote monitoring systems with advanced cyber security software, hardware, and related services, for one-time costs of approximately $555,533 for new software licenses, hardware, and implementation support services and an increase of annual fees to a not-to-exceed amount of $362,047 for recurring software license fees and support and maintenance services with an annual Consumer Price Index (CPI) escalator and a contingency of not to exceed $75,000 per year for as- needed extra services and products, with an initial term of five years and optional one-year renewals thereafter; and
2) Authorize the Purchasing Agent or designees to issue a master agreement and execute and deliver the Amendment and any related documents and take such actions as are necessary or advisable to implement and administer the Amendment.
DISCUSSION:
Since 2000, Anaheim Public Utilities (APU) has utilized the Landis + Gyr communications network and compatible electronic devices to support grid automation for power restoration. The communications network allows APU operations staff to remotely monitor and control high voltage equipment to improve outage restoration times. Utilizing the same secure network, the ability for electronic meters to be read remotely was added, with a software licensing master agreement approved by City Council in 2020. This system avoids utility staff entering customers’ backyards or inside businesses, and automatically informs APU of power outages prior to customers calling to report outages.
First Amendment to Software License and Support and Maintenance Services Agreement for Cyber Security Solutions August 20, 2024
APU is proposing to enter into the Amendment with Landis + Gyr to upgrade software and licenses, as well as add products and services related to cyber security enhancements. The implementation services scope of work consists of installation, system configuration, integration, testing, training, and documentation to be performed by Landis + Gyr to support APU staff who are responsible for grid security.
Ongoing annual licenses and maintenance services are included to support existing equipment and allow for growth to expand the network to support increased automation efforts as part of APU’s grid modernization initiatives. The one-time enhancements and annual maintenance services are intended to keep grid operations secure from potential cyber-attacks.
The one-time cost of approximately $555,533 is for new software licenses, hardware, and implementation support services. The annual fees is for a not-to-exceed amount of $362,047 for recurring software license fees and support and maintenance services with an annual Consumer Price Index (CPI) escalator. A contingency not to exceed $75,000 per year is included for as-needed extra services and products.
The proposed Amendment supports the City’s Strategic Plan, Goal D Foster a High- Performing Organization, Strategy 7 – Assess current technology to identify gaps and needs within City operations to better serve the community.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s Fiscal Year 2024/25 restricted Electric Utility Fund budget, and future years are subject to City Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Kari Bouffard Dukku Lee
Purchasing Agent Public Utilities General Manager
Attachments:
1. First Amendment to Software License and Support and Maintenance Services Agreement
2. Original Agreement AGR-12209