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IBM_City of Dubuque_Smarter City PartnershipFROM: Michael C. Van Milligen, City Manager SUBJECT: IBM/City of Dubuque Smarter City Partnership ®ATE: September 16, 2009 In 1982, there was a national recession and the State of Iowa had an unemployment rate of 8.5%. However, armed with a comprehensive plan dated 1936, and an over dependence on a few employers for jobs, the City of Dubuque had an unemployment rate in 1982 of 14.2%, or 67% higher than the rest of the State. For the entire decade of the 1980's, the City's unemployment rate was 35% higher than the State unemployment rate. Today the City has taken the position to plan, invest and take calculated risks, and the national unemployment rate is 9.4%, while the City of Dubuque unemployment rate is 6.3%, 33% lower than the national rate. In 2007, Dubuque was recognized by the National League of Cities as an All-America City, and in 2008 by the U.S. Conference of Mayors as The Most Livable City in the United States for a city under 100,000 population. The America's River Project and the Port of Dubuque redevelopment have received many awards, including the 2005 Phoenix Award for Excellence in Brownfield Redevelopment for U.S. E.P.A. Region 7 and the 2004 Achievement in Economic Development Award from the International Downtown Association. Now, a new opportunity is presenting itself. Mayor Roy Buol and the Dubuque City Council have made sustainability a top priority. A community task force has received significant community input over atwo-year period, creating the community's definition of sustainability as a livable, viable and equitable community with environmental/ ecological integrity, economic prosperity and cultural/social vibrancy. It is my pleasure to present an unparalleled opportunity for cooperation and innovation between IBM and the City of Dubuque. Dubuque is a community that clearly understands IBM's vision for a Smarter Planet, and is uniquely positioned for IBM's needs through a decade of work on sustainability. This is an opportunity to create a replicable business model for IBM and for future sustainable, smarter cities across the country. This is the right opportunity to contribute to the creation of a Smarter Planet. 1~Page IBM and Dubuque are bound by a common commitment to aggressive innovation-the kind of innovation that has transformed the oldest city in Iowa to become one of the newest and strongest regional economies in the country. This partnership is intended to demonstrate that sustainability can be sustainable. January 15, 2009, marked the announcement that IBM planned to establish a Global Service Center in Dubuque. Following rigorous competition from many other cities across the country, the decision to locate 1,300 jobs in the historic downtown Roshek Building was lauded by local leaders as the nation sunk into what has been described as the most serious recession since the Great Depression. IBM leaders sited three reasons for the selection 1) strong public-private partnerships 2) strong foundation of education in the region and 3) Sustainable Dubuque -the Mayor and Council led-citizen supported initiative. As work began to restore the Roshek Building, another opportunity arose. IBM Vice- President Robert Morris of the Watson Research Center arrived in Dubuque. His visit in early February identified the possibility of partnering with Dubuque in several areas, including Smart Cities research, instrumentation, intelligence and interconnection. Over the past six months City staff have met through teleconference, videoconference and in person with IBM staff. There have been meetings and visits with elected officials and federal department staff and time spent working with IBM on this project. Of the areas of focus identified by Mr. Morris and his team, City staff and IBMers agreed to focus on the Smarter City Initiative. The City and IBM will partner to create a groundbreaking model for cities with populations of 200,000 or less, where over 40% of the United State's population lives. This project seeks to provide information to citizens so that they can make smarter choices related to energy consumption. The program outlines a pilot project of citizens and businesses who through advanced technology will be able to actively participate in managing consumption of energy. Dubuque's compelling community story and accomplishments in sustainability form a model for other communities across the nation to learn from in order to effect change. This model can be replicated in any community, particularly communities under 200,000, where 40% of the United States population resides. It is a model that results in community engagement and education, more energy-efficient ways of operating municipal services and buildings, decreased carbon emissions, job creation, financial savings, and a higher quality of life for the entire community. Cities are in search of a bold and transformational agenda, a road map that will ignite community engagement and create real results in relationship to sustainability. Dubuque has proven its ability to excite and engage citizens through past projects, including Sustainable Dubuque. Dubuque proposes to build upon its successes in partnering with businesses, non-profits, and residents to reduce energy use, lower 2~Page costs, create jobs and increase quality of life indicators such as air and water quality. The project will do so by engaging initially 250 pilot households, eventually expanding to 1,000 and beyond, in a community-wide data collection campaign. Those pilot participants will track their water consumption, energy consumption, and, in future phases, vehicle miles traveled. Based on the data collected, citizens can make educated decisions about their energy use. Dubuque's sustainability initiative is based on a multi-step process that is undertaken in every major public and private initiative in the City. That process creates a model for communities across the country: 1) Engage citizens 2) Develop and define vision and goals 3) Identify strategies and methods to implement goals 4) Collect and disseminate information 5) Targeted community education based on collected data 6) Interface technology in response to data and analysis and optimize outcomes. New technologies are capable of digitizing and connecting City systems, so they can sense, analyze and integrate data, and respond intelligently to the needs of citizens. IBM, the City of Dubuque, and other partners will revitalize the City's systems to become smarter and more efficient in order to meet the City's vision for sustainability. Locally, the effort will be led by Smart City Project Manager David Lyons. David served as Chief Business Development Officer for the Iowa Farm Bureau Federation before becoming involved with this project. At the Iowa Farm Bureau, David worked to increase business opportunities and choices for Iowa's producers, with particular focus on growing value added agriculture and improving rural infrastructure. Prior to joining the Iowa Farm Bureau in 2000, David was Director of the Iowa Department of Economic Development, Insurance Commissioner for the State of Iowa and Legal Counsel with the Iowa Legislature. During his service with the State, David spearheaded numerous special State projects including the Iowa Trust Receivership, the Iowa Health Care Reform Council and the Food Capitol of the World Initiative. He received his undergraduate degree from Loras College in Dubuque and his law degree from the University of Iowa. Consistent with the City's emphasis on partnerships, many organizations are making important contributions to this project, including Alliant Energy, Black Hills Energy, the Historic Millwork District property owners, Dubuque Initiatives, the Federal and State governments, ECIA, the Community Foundation of Greater Dubuque, the Dubuque Area Chamber of Commerce, the Greater Dubuque Development Corporation, Dubuque Main Street, AY McDonald Manufacturing, the Dubuque Racing Association and others are helping to make this work. As you know, the Dubuque Area Chamber of Commerce and the Community Foundation of Greater Dubuque are partnering on a community dialogue on 3 ~ Page sustainability titled Dubuque2 that is funded by the Mystique Casino. This project complements that effort. Later today, the City of Dubuque will be hosting U.S. Department of Transportation Secretary Ray LaHood, U.S. Housing and Urban Development Secretary Shaun Donovan and U.S. Environmental Protection Agency Secretary Lisa P. Jackson. This IBM/City of Dubuque Smarter City Partnership matches well with the intent of their visit as they discuss the sustainability partnership they have created amongst those agencies as they lead the country forward. I am recommending the City provide $850,000 towards this project from the Water Fund. Even with this expense, and some additional expenses related to the project, capacity exists within the Water Fund. The Fiscal Year 2010 adopted budget included an increase to City water rates of 5%. The City-wide installation of new water meters and a low flow metering device manufactured by AY McDonald, as well as financing the meter change-out project with debt over a 20-year term, rather than a 15-year term, produces the possibility to reduce the water rate increase in Fiscal Year 2010 by 2%. Through better monitoring of Water Department energy usage, it is hoped that further reductions in the cost of the City processing and delivering water will be possible. As the City installs new water meters, I am further recommending that the City budget $10,000 this fiscal year, and additional amounts in future years, to assist property owners with matching funds for the repair of water leaks. I am also recommending approval of the contract with David Lyons to manage this project. City funds have been identified for this purpose, but Federal and State grants might support this position and future phases of this Smarter City Project. Should the City not receive Federal or State grant funds, which it is anticipated the City will receive some grant funds, the City has sufficient capacity within the Water Department budget and other sources where savings have been realized, to provide the City funds needed to support Phase I of the pilot program expenses. The pilot project will not be able to be as robust as hoped without outside grant dollars, it may take longer to complete, and it will create a higher hurdle for community-wide implementation. The City has applied for the following grants: Grants Submitted To Amount Showcase Communities US Environmental Protection Agency $ 500,000 Community Renewable Energy US Department of Energy $ 6,000,000 Deployment Industrial Energy Efficiency US Department of Energy $19,854,150 TIGER US Department of Transportation $49,799,979 These four grants bring the total number of grants submitted by the City of Dubuque to State or Federal stimulus/funding programs to seventeen, with fourteen grant 4~Page applications still in progress. The City of Dubuque has received $10.6 million in funds to date, and the City now has $85.7 million pending in grant requests submitted. Sustainability has a hidden benefit. Sustainability is an opportunity for Dubuque to continue to diversify the economy and to perform better than the rest of the State and the nation on job creation. Just look at sustainability as another new market, as the automobile industry was in the early 1900's, the airline industry in the 1940's, computer hardware in the 1970's, and computer software in the 1980's. The businesses and industries in Dubuque have a chance to be on the cutting edge of developing products and services that will be in demand across the world as there is a move to more efficiently use energy resources and water. The City's sustainability effort, and specifically the IBM/City of Dubuque Smart City Partnership, could be more than we ever dreamed it could be. Not only will the IBM/City of Dubuque Smart City partnership save businesses and individuals money, create jobs, contribute to local and national energy independence, help brand the community to help recruit businesses and workforce, create a major recruitment tool for the three colleges to entice students, and bolster the convention and tourism business, but it will accelerate local business growth. As Vice-President of IBM Research Robert Morris has said, "The goal of this collaboration is to develop and pilot a systematic mechanism to give consumers and businesses the information they need to make informed decisions about how they consume resources like electricity, water, natural gas, and oil. To create such a mechanism, a partnership is needed between a community with a track record of successful public-private partnerships, citizens and businesses that believe in sustainability, and enterprises like IBM that have the information technology and knowledge to apply to this transformative partnership." My thanks to David Lyons, Greater Dubuque Development Corporation Executive Director and Chief Operating Officer Rick Dickinson, City Attorney Barry Lindahl, Assistant City Manager Cindy Steinhauser, Assistant City Manager Teri Goodmann, Public Information Officer Randy Gehl and Stimulus Coordinator Cori Burbach for all they have done to make this partnership a reality. Specifically, I am respectfully recommending Mayor and City Council approval of four items: 1. Authority to finalize negotiations on the IBM Services Agreement, as detailed in the memorandum from Assistant City Manager Cindy Steinhauser. 2. Authorization to commit $850,000 in Water Department funds and approval of a 2% water rate reduction for the current fiscal year. 3. Authorization to execute a contract with David Lyons to serve as the City's Project Manager for the Smarter City Project. 5~Page 4. Approval of several Federal grant applications that will not only support this partnership, but lead to the construction of the Southwest Arterial and support redevelopment of the Historic Millwork District. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Cori Burbach, Stimulus Coordinator David Lyons, Project Manager 6~Pac~~: TO: Michael Van Milligen, City Manager FROIIn: Cindy Steinhauser, Assistant City Manager SUBJECT: Approval of Smart Sustainable Dubuque Services Agreement ®ATE: September 16, 2009 INTRO®UCTION The purpose of this memorandum is to bring to your attention that we are ready to proceed with service agreements to support the Smarter Sustainable Dubuque project's technical needs. BACKGROUND Throughout its history, Dubuque has responded to challenges in a positive and proactive manner. Since 2006 Dubuque has made sustainability a priority, realizing it was crucial to remaining competitive. That priority has been reflected broadly across the community, from City Council action, to Envision 2010 programming, to the new Dubuque2 outreach effort recently launched with the help of the Dubuque Area Chamber of Commerce and Community Foundation of Greater Dubuque. The community wide vision is for a transformative approach to sustainability, one that results in a more viable, livable and equitable Dubuque. However, it is an old but true statement that you cannot manage what you do not measure. With the sustainability effort, it is critical to incorporate new, transformative approaches and technology to allow us to measure, manage and optimize resources. This will be critical if we are going to be able to assure citizens that our community sustainability effort is truly "sustainable". It will also be necessary in order to properly plan for the development of new industries, expanded opportunities for existing industry, new jobs, new markets and new community growth. Over the past several months, many members of City staff, along with many community partners have been in dialogue with representatives of IBM to discuss opportunities to share resources and further advance the City Councils' goal of making Dubuque a model showcase for sustainability. These community partners include Greater Dubuque Development Corporation, The Community Foundation of Greater Dubuque, the Dubuque Area Chamber of Commerce, Dubuque Initiatives, area schools, Black Hills Energy, Alliant, ECIA, Main Street Ltd and others. ISCIJSSI®N American cities are in search of a transformational agenda to revitalize their economies and improve their environments. Dubuque has defined itself as a national leader in sustainability, with its unique blend of forward-thinking public policy and a committed grass-roots base. Together with partners and clients, IBM is working to build a smarter planet. Together, Dubuque and IBM can realize one of the country's first "Smarter Sustainable Cities," one that is environmentally sustainable, economically prosperous, and socially vibrant. The citizens of Dubuque have already collaborated on an unprecedented sustainability agenda. When enabled with smarter technology and infrastructure, the benefits seem to be without limits. The City proposes a program that will create a Master Agreement with IBM to partner and provide advanced technological and analytical services to Dubuque's sustainability effort, with resulting models to support long term efforts. The models will include vital data management and analysis and the research and development needed to make this data useful. The model will also expand opportunities for local businesses to thrive in new sustainable industries. This services agreement is an outgrowth of the City's Memorandum of Understanding with IBM which generally defines particular scopes of work. Generally, grant funds, with some funds from City sources, would finance the IBM research and development required to implement an Integrated sustainability System, which will arm residents and business owners with the data required to make smarter choices about their energy consumption habits and save money. The Master Agreement with IBM proposes to work with the City of Dubuque on several potentially groundbreaking projects. Some of the projects are anticipated to begin in Fall 2009. Others are anticipated to begin as soon as sources of funding for those projects are secured through new grants, stimulus funds and other means. Some tasks, including required studies for projects, can begin immediately or in near future and continue on parallel tracks if funding for those tasks is secured already. Projects 1. Integrated sustainability System and Community Engagement 2. Smart Parking 3. Smart Water 4. Smart Transit 5. Smart Energy IBM proposes to work with the City of Dubuque on research projects with the end goal of demonstrating an experimental proof of concept for the Integrated sustainability System ("ISS") based on specifications defined by the City of Dubuque through an active and ongoing community engagement process. IBM Research will assist the City of Dubuque to help define the energy, water, and a subset of carbon footprint sustainability metrics, community engagement, sustainability community networking and respective parameters in visualization in the dashboards of the ISS. IBM Research will also assist the City of Dubuque in the community engagement process to educate the community on the use and potential value of the dashboards in ISS. The City of Dubuque intends to work with IBM to define the novel and experimental metrics of interest and the information to be visualized in the ISS. This will be done through a "laboratory" mock-up of the ISS to be developed by City of Dubuque staff and delivered to IBM, which will then design the ISS to customize it to the requirements specified by the City of Dubuque in the mock-up. The proposed Master Agreement will be implemented in a series of individually negotiated "Statements of Work." The first such Statement of Work is for Smart Water. This project will allow water utility customers to access their current water usage data, and various statistical data, in real time, from an IBM server, for use to improve sustainability and cost savings opportunities through water consumption management ("Prototype Service"). Dubuque will provide IBM with current meter readings on a schedule and frequency agreed by the parties from 250 customers' advanced water meters ("Dubuque Data"), and set up a mechanism that will enable these customers to provide Dubuque with feedback about the IBM service. The parties will agree on the content, format and frequency for Dubuque to provide the customer feedback to IBM. IBM will own all the feedback. At the end of the project, IBM will provide Dubuque with astand-alone application tool, in object code form, that replicates the front end of the IBM Service, but accesses static and local data for use by Dubuque to demonstrate the Prototype Service to its citizens and others. Dubuque will be able to access this service from existing City equipment. U®GT The Smart Water segment of this contract is proposed to be $850,000 and can be funded from water user fees. Jenny Larson, the City's Budget Director, is proposing $500,000 be committed in Fiscal Year 2010 and $350,000 in Fiscal Year 2011. REC®IUIMEN®~-TI®N Staff requests that the City Council authorize the City Manager to complete negotiations with IBM for this Smarter Sustainable Dubuque Services Agreement and its first attached Statement of Work for a contract amount not to exceed $850,000 and subject to final City Council approval. Attachment cc: Jennifer Larson, Budget Director Sheila Samuelson, sustainability Coordinator Teri Goodmann, Assistant City Manager David Heiar, Economic Development Director Steve Brown, Project Manager David Lyons, Project Manager, Smart Sustainable Dubuque F:\USERS\Econ Dev\Smart City Initiative\20090916_Smart Sustainable City Memo.doc Ii~eorandu~n of LTnderstandir~~ between CITY ®JE' I)IJBIJ~ITE and IBM RESEAItCII This is a Memorandum of Understanding (MOU) between IBM RESEARCH and CITY OF DUBUQUE. The purpose of this MOU is to confirm the discussions between CITY OF DUBUQUE and IBM RESEARCH with respect to our intention to collaborate in areas of mutual interest derived from IBM RESEARCH's smarter planet initiatives and CITY OF DUBUQUE'S sustainability model, subject to negotiation of a mutually acceptable definitive written agreement(s). We envision that the first planned agreement (expected to be executed contemporaneously with this MOU) will encompass a six (6) month joint study effort to identify opportunities for innovation with IBM Research playing the role as an innovation partner for the City of Dubuque. IBM Research plans to work with the CITY OF DUBUQUE, the Greater Dubuque Development Corporation and other partners in Dubuque to create proofs of concept to showcase the capabilities. The study effort is expected to include a review of business, technical, marketing, sales, and financial plans and capabilities, among other things. In order to ensure that the parties understand the nature and the purpose of these discussions so that no misunderstanding occurs, we wish to document the status of the parties' discussions as of this date and provide a framework for ongoing discussions. This MOU sets forth the intentions and understandings of the parties for the purpose of facilitating our subsequent discussions and evaluations. The following describes the proposed relationship between CITY OF DUBUQUE and IBM RESEARCH with the goal of entering into a definitive written agreement(s) regarding such relationship including the intention to enter into an agreement regarding the study effort mentioned above. Objectives CITY OF DUBUQUE'S business interests in connection with this potential relationship are initially focused in the following areas in an effort to create jobs and save citizens and businesses money The City's sustaiilability model that will cover three core areas including all principles: 1. Economic Prosperity Regional Economy: Sustainable Dubuque is a community that values a diversified regional economy with opportunities for new and green markets, jobs, products and services. Smart Energy Use: Sustainable Dubuque is a community that values energy conservation and expanded use of renewable energy as a means to save money and protect the environment. ® Resource Management: Sustainable Dubuque is a community that values the benefits of reducing, reusing and recycling resources. e Community Design: Sustainable Dubuque is a community that values the built environment of the past, present and future which contributes to its identity, heritage and sense of place. 2, Social/Cultural Vibrancy e Green Buildings: Sustainable Dubuque is a community that values a productive and healthy built environment. Community Knowledge: Sustainable Dubuque is a community that values education, empowerment and engagement to achieve economic prosperity, environmental integrity and social/cultural vibrancy. Reasonable Mobility: Sustainable Dubuque is a community that values safe, reasonable and equitable choices to access live, work and play opportunities. 3. EnvironrnentalIntegrity ® Healthy Air: Sustainable Dubuque is a community that values fresh air, reduced greenhouse gas emissions and minimized health risks. ® Clean Water: Sustainable Dubuque is a community that values water as a source of life and seeks to preserve and manage it in all forms. IBM RESEARCH'S business interests in connection with this potential relationship are initially focused in the following areas: IBM RESEARCH'S smarter planet initiatives that cover: Smart Cities Instrumentation, Interconnection and hitelligence including Integrated sustainability Monitoring & Modeling Energy efficient buildings Integrated Smart Parking and Transportation Smart metering for water usage Research intiatives that could help city residents reduce their carbon footprint. Education Services Healthcare IT In engaging in such a relationship, CITY OF DTJBUQTJE and IBM RESEARCH anticipate that they will also be engaging other partners as needed to deploy cutting edge solutions developed at IBM RESEARCH in the CITY OF DUBUQUE creating and smarter, more sustainable city. CITY OF DUBUQUE and IBM RESEARCH intend to hold regularly scheduled executive, marketing and sales, and technical meetings for strategy discussions and to review the status and progress of this potential relationship with respect to the following areas. The specific agreements for each of these areas are intended to be covered in individual appendices to the overall definitive agreement or, as appropriate, in separate agreements. IBM RESEARCH Resuonsibilities Under the proposed relationship, IBM RESEARCH intends to: Provide expertise regarding sustainability innovation to CITY of DUBUQUE a Study the various city systems in Dubuque including the energy, water; transportation, parl~ing and economic development and propose innovation projects to help improve the efficiency of the systems to make them smarter and more sustainable. This is expected to be conducted over a six (6) month period. e Based on the study conducted, initiate a portfolio of proof of concepts with the CITY of DUBUQUE to demonstrate smart city innovation capabilities. This work may begin as early as September 2009 with a proof of concept in congestion minimization. ® The goal is to showcase the innovation capabilities in Dubuque to be scaled and deployed within the entire city and to use it is as a model that can be replicated in the state of Iowa and the nation. ® Create a repository of content and lessons learned in the process of transforming Dubuque into a more sustainable and smarter city CITY OF DUBUQUE Responsibilities Under the proposed relationship, CITY OF DUBUQUE intends to: o Provide local specifications and requirements in the areas of smart city integration, energy, water, transportation around which research proposals need to be developed. Help build partnerships with lcey entities including city businesses, utilities and other public and private enterprises to enable the collaboration to create deployable prototypes of the proposals jointly developed with IBM Research. Lead the facilitation of appropriate funding mechanisms for the proposals developed and be solely responsible for any funding from government sources except in cases where it maybe required that industry lead the response to a Request for Proposal (RFP) issued by a government source. ~ Enlist, where appropriate, voluntary participation in these proposals by interested local agencies, and individuals. e Facilitate the implementation of systems that will be needed to perform the identified activities. a Facilitate the implementation of programs identified during the study effort. Joint Responsibilities Under the prcposed relationship, the panties jointly intend to: Jointly develop research proposals of interest o Jointly work on change management as proposals need to be modified or revised based on changes in the environment over the lifespan of their development o Jointly develop a governance model for running a project office to measure, monitor, evaluate and report progress and resolve issues that may hinder the progress of the work ® Jointly ~=ork to ensure city wide deployment of solutions based on the success of the proofs of concept General teams covering our discussions in connection with this MOU A. Confidentiality. Information that is exchanged will not be considered confidential unless it is disclosed tinder the terms of the IBM RESEARCH Confidential Disclosure Agreement between the parties dated ~~ ~] ~ %( ~ ~~ B. Term and Termination. This MOU will guide the further discussions of the parties until the signing of a definitive agreement, if any. After such date, neither party shall have any further obligations to the other party pursuant to this MOU, except as expressly provided in this MOU. This MOU and the negotiation of a definitive agreement are terminable at will by either party. All discussions, proposals, term sheets, draft agreements and other similar materials will be null and void if discussions are terminated. ~. Nonexclusive 12elationship. This MOU outlines anon-exclusive commercial relationship between IBM RESEARCH and CITY OF DUBUQUE. Nothing contained in this MOU shall be deemed to be a restriction of any type on either party's ability to freely compete or . to enter into "partnering" relationships with other entities. Any decision by either party to forego, or engage in any other business opportunity or any other activity, to alter any business plan or direction, or to make any investment in anticipation of the consummation of any transaction contemplated by the parties, is at the sole discretion of the party electing to do so, and will not create any actual or potential liability or obligation for the other party, even if that party is aware of, or has been informed of or has indicated approval of any such action, decision or election unless agreed to otherwise in an agreement signed by both parties. In the event of termination of this MOU, neither pai°ty will be restricted as a result of these discussions, and in any event each party is free to pursue a similar business relationship with others at any time. D. Preliminary I~tatttre of Discussions. During the parties' discussions, the parties will likely exchange written or oral proposals, term sheets (including without limitation the responsibilities' outline contained herein), draft agreements or other similar materials. Neither party may rely on, be bound by, .or have any obligation under any such discussion, proposal, term sheet, draft agreement or other preliminary material, even if signed by one or both of the parties, except for a definitive written agreement signed by an authorized representative of each party that encompasses the subject matter of any such materials. In addition, the parties agree as follows: The parties acknowledge and agree that the proposed business relationship between the parties and the execution of the definitive agreement by CITY OF DUBUQUE and IBM RESEARCH is subject to all applicable legal and regulatory requirements and all necessary corporate and other approvals of the parties and their respective shareholders, members and/or partners. 2. Neither CITY OF DUBUQUE nor IBM RESEARCH nor any of their respective shareholders, members, partners or affiliates will issue any release or other publicity concerning this MOU except with the prior written approval of the other party. The parties agree to cooperate with respect to any news release or other publicity regarding the foregoing. 3. This MOU shall be read and interpreted with all changes of gender or number required by the context according to the ordinary and usual meaning of words, but words with recognized technical or trade meanings shall be interpreted according to such recognized meanings. 4. The cost intoned by each party with respect to these discussions, and all subsequent negotiations of the proposed agreement, whether resulting in an agreement or not, and including without limitation legal and attorney, technical and research, financial and other advisory fees, will be borne solely by the party which incui~ed them. This MOU supersedes all prior proposals and discussions and is the complete and exclusive statement of the understanding between IBM RESEARCH and CITY OF DUBUQUE as to the subject matter. This MOU cannot be modified except by a comprehensive writing signed by an authorized representative of each party that specifically amends this MOU. If this document adequately sets forth your understanding of our intentions, please indicate your agreement by signing both copies of this MOU and retlun one original to me (you may do so by facsimile or by mail). Acknowledged for; IBM By: Date ~~ ~~ ~~~ ~-er~~~ ~ a ~ ~~~ ~1 Gay/~ CITY OF DUBUQUE -~ By; _~2.~__, Date: ~~ ~' j ~~t~~r /?l r' <~: Prepared/Return to: David Heiar, Economic Development, 50 W 13th Street, Dubuque, IA 52001 (563) 589-4393 RESOLUTION NO. 340-09 Whereas, the City of Dubuque, Iowa, has established sustainability as a top priority; and Whereas, many cities are in search of transformational agendas to revitalize their economies and improve their environments; and Whereas, Dubuque has defined itself as a national leader in sustainability; and Whereas, the citizens of Dubuque have already collaborated on an unprecedented sustainable agenda; and Whereas, International Business Machines Corporation (IBM) is an international leader in developing a smarter planet; and Whereas, the general terms and conditions for a Master Contract with IBM, set forth in the attached memorandum, have been reviewed and are supported by the City Council; and Whereas, the City Council desires that the City Manager negotiate an agreement with IBM that incorporates those terms and conditions, subject to final approval by the City Council NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the general terms and conditions for a Master Contract with IBM, described in the attached memorandum, have been reviewed and are supported by the City Council. Section 2. That the City Manager is hereby authorized to negotiate an agreement with ABM, subject to final approval by the City Council Passed, approved and adopted this 17th day of September, 2009. Roy D. Buol, Mayor Attest: ~~ /Jeanne F. Schneider, City Clerk F:\USERS\Econ Dev\Smart City Initiative\20090916_Resolution Execution Sustainability Agreement.doc MASTER CONSULTING SERVICES AGREEMENT Client: City of Dubuque The parties to this Master Consulting Services Agreement ("Agreement") are the consulting services provider, The Iowa Institute and David Lyons, the Consultant ("Consultant") and the City of Dubuque ("Client"). For identification purposes, the date of this Agreement is the date it is signed by Client. The purpose of this Agreement is to set forth the terms and conditions under which Consultant will perform consulting services for Client. 1. Client. "Client" means the City of Dubuque, Iowa 2. Statement of work. For each engagement under this Agreement, the services to be performed by Consultant at Client's request will be described in a statement of work ("Statement of Work") as shown in Exhibit A. Each Statement of Work and each amendment thereto must be signed by both parties and must state that it is made pursuant to this Agreement. Each Statement of Work shall constitute a separate agreement which incorporates the terms and provisions of this Master Consulting Services Agreement. The provisions of this Agreement shall control over any conflicting provisions in a Statement of Work, except to the extent that a provision of this Master Consulting Services Agreement specifically states that a Statement of Work may provide different terms. A Statement of Work may contain additional terms, provided that the terms do not conflict with the provisions of this Agreement. Deliverables. The term "Deliverables" as used in this Agreement shall mean any and all written materials, services and other items which are to be furnished to Client by Consultant as provided in a Statement of Work. 3. Term and termination. Each Statement of Work shall take effect when signed by both parties. The actual provision of consulting services shall begin on the "Start Date" specified in the Statement of Work, which may or may not be the same as the effective date. Each Statement of Work will continue in effect until terminated by Client in accordance with the paragraph of this Agreement titled "Termination for convenience", but in the absence of such a termination for convenience: (a) if a Statement of Work specifies a term of months or a specific termination date, that Statement of Work shall automatically terminate upon expiration of the Initial Term (defined as the period beginning on the Start Date and ending on the specified termination date or at the end of the specified number of months) unless the Statement of Work is renewed in accordance with the paragraph below titled "Renewal"; or (b) if the consulting services consist of completing specified tasks or Deliverables and no term of months or termination date is specified in the Statement of Work, the Statement of Work shall automatically terminate upon completion of all tasks and final acceptance or non-acceptance of all Deliverables specified in that Statement of Work. Notwithstanding the foregoing, unless otherwise agreed in writing by the parties, this Ac,~eement shall commence on the•` % day of CJ--5"~~~~~~°~~- , 2009, and shall terminate at midnight on th 3 h day of June, 2011. Renewal. A Statement of Work with an Initial Term may be renewed by Client for an additional term ("Renewal Term"), and subsequently for additional Renewal Terms, upon written notice to Consultant on or before the expiration date of the then-current term. Each Renewal Term shall begin upon expiration of the prior term and shall have the duration specified in Client's notice, which shall not exceed 12 months without Consultant's written consent. 5. Fees. Each Statement of Work shall specify all fees and other charges that Client will pay Consultant for the consulting services to be rendered pursuant to that Statement of Work, and shall specify whether fees will be on a time- and-materials basis, a fixed price basis, or a combination of both. 6. Fixed price basis. If any services under a Statement of Work will be performed on a fixed price basis, the Statement of Work shall state a fixed price which shall include all labor and materials required to complete the entire Statement of Work (or the entire fixed price portion of the Statement of Work, as applicable). Invoices for work performed on a fixed price basis shall be issued as provided in the Statement of Work. 7. Change orders. A Statement of Work shall describe the work to be performed and may contain a list of assumptions on which delivery dates or fixed or maximum prices are based. If the scopes of the project or assumptions change during the course of the engagement, the changes shall be described in a change order to be signed by both parties. The change order shall also set forth any changes to delivery dates and/or fixed or maximum prices that the parties agree are fair in light of the changed scope or assumptions. 8. Travel, meals, lodging, communications, photocopies and other reasonable expenses. If a Statement of Work specifies that Client is to pay Consultant's expenses for travel, meals, lodging, communications, photocopies and other reasonable expenses. Client shall reimburse Consultant for actual, necessary and reasonable expenses 9. Invoices. Client shall not be billed or be liable for any charges other than those described and authorized in the Statement of Work, in this Agreement or in a subsequent writing signed by Client. Each invoice must clearly indicate the services, materials and expenses for which Client is being charged, and must include an invoice number, the time period covered by the invoice, the amount of any applicable tax, and sufficient detail to allow Client to determine the accuracy of the invoice. Client shall be billed only for services actually performed and for expenses actually incurred. Invoices for any allowable expenses must include itemization of each expense and documentation of amounts actually paid for expenses. If the Statement of Work lists specific additional items or categories of information that must be included on Consultant's invoices, that information shall be provided. Except to the extent Client has the right to withhold payment pursuant to an express provision of this Agreement or a Statement of Work, timely invoices shall be paid within 30 days after the later of: (a) the invoice date; or (b) the date Client receives a correct paper invoice or a correct electronic invoice file in a format that meets Client's electronic invoicing requirements. 10. Address for invoices. All invoices shall be sent to City of Dubuque, Iowa, 50 West 13~h Street, Dubuque IA 52001-4864, attn: City Manager. Consultant agrees not to send duplicate invoices to any other persons or departments in Client's enterprise. 11. Disputed invoices. Consultant shall use commercially reasonable efforts to ensure the accuracy of invoices. Client will provide written notification of any disputed invoice within 30 days after receipt, and shall have an additional 30 days in which to resolve the dispute with Consultant and pay the agreed-upon amount. The parties agree to use commercially reasonable efforts to resolve the disputed items within the 30-day additional time period. 12. Client's responsibilities. In connection with each Statement of Work, Client shall: (a) designate one employee of Client as coordinator who shall be Consultant's primary point of contact for all new or unresolved questions and issues relating to the engagement (b) provide such Client information and data as is reasonably necessary to enable Consultant to perform its obligations; and (c) perform such other duties and tasks as may be specifically identified as Client obligations on a Statement of Work, or as may be otherwise agreed upon in writing by Client and Consultant. Client shall have no obligations which it must perform as a condition of the full and timely performance by Consultant of its obligations under a Statement of Work, except for those obligations specifically identified as Client obligations in a writing signed by Client. 13. Client-owned items. If Client provides for Consultant's use in connection with a Statement of Work any hardware, software or other items which are owned, leased or licensed by Client, no title to any such items shall pass to Consultant, and Consultant shall return all such items to Client upon conclusion of the engagement. Consultant agrees to use such items in a manner consistent with their intended use and to exercise at least the same degree of care in their use as it does with its own similar items, but in no event less than reasonable care. 14. Progress reports. If a Statement of Work specifies that Consultant is to furnish periodic progress reports, the provisions of this paragraph shall apply. The frequency of the required reports shall be monthly unless the Statement of Work specifies a different frequency, in which case the references to "monthly' in this paragraph shall be changed accordingly. Once every month during the course of the engagement, Consultant shall provide Client with a report briefly describing the progress of the project. The report shall also specify in detail: (a) any known problem or circumstance encountered by Consultant during the preceding month period which may tend to cause any delay in Consultant's performance or which may tend to cause any project cost overrun for time-and-materials charges; (b) Consultant's best estimate of the length of any such delay and/or of the amount of any such cost overrun; and (c) a description of the cause of each such problem or circumstance and the specific steps proposed to be taken to remedy such problem. Any problem or circumstance which Consultant fails to timely include in such a report to Client shall not later serve as a basis for Consultant to claim additional payment from Client or to claim an excuse for failing to complete any task by the completion date specified in the Statement of Work. 15. Acceptance of Deliverables. No Deliverable will be deemed accepted by Client until Client states that it is accepted. Client shall have no obligation to pay any invoice received from Consultant to the extent any Deliverable furnished or required to be furnished to Client through the date of Client's receipt of the invoice has not been accepted by Client as provided below. If the Statement of Work specifies a certain number of business days in which Client is to review Deliverables, Client shall notify Consultant in writing of the acceptability or non-acceptability of 2 the Deliverable(s) within the specified number of business days after Client's receipt of the Deliverable(s). Otherwise, Client shall provide such notice within a reasonable time. Any non- acceptance notice shall state the particulars in which the Deliverable is deficient. If acceptance criteria are specified in the Statement of Work, the notice shall specify which criteria are not satisfied. Consultant shall be allowed a reasonable time to correct deficiencies. 16. Warranty for services. Consultant warrants that it shall perform the services required under each Statement of Work in a professional manner, by qualified personnel, in accordance with all applicable industry standards, and in accordance with the terms of the Statement of Work. If this warranty is breached, Consultant at Client's option shall either: (a) promptly and at Consultant's own expense re-perform the applicable services as warranted, or (b) refund to Client the entire amount paid for the applicable services and for any other services that become substantially without value to Client as a result of the breach. 17. Independent contractor. It is agreed and understood that Consultant's relationship to Client is that of an independent contractor. Neither party shall be deemed to be, or hold itself out as, a partner, agent, employee or joint venturer of the other party. All persons performing Consultant's obligations under this Agreement shall be considered to be solely the employees, contractors or agents of Consultant or its contractors, and Consultant and its contractors shall be responsible for ensuring there is payment of any and all salaries, wages, payroll taxes, insurance and other items payable to or on behalf of such personnel, and for maintaining worker's compensation insurance on such personnel. Consultant shall indemnify and hold Client harmless against any claims, costs or expenses that may arise out of any breach of this paragraph by Consultant or its contractors. 18. Compliance with law. In performing Consultant's obligations under a Statement of Work, Consultant and its personnel shall comply with all applicable city, state and federal laws, ordinances, rules and regulations. 19. General indemnification. Each party agrees to indemnify, defend and hold the other harmless against any third party claim involving personal injury or damage to tangible property arising from alleged negligent or willful acts or omissions of the indemnifying party or its employees, agents or subcontractors in connection with this Agreement. 20. ®wnership of work product. Except as expressly stated in the paragraph of this Agreement entitled "Consultant's retained rights," Consultant agrees that all rights, title and interest in and to any works and materials created by Consultant or created jointly by Consultant and Client pursuant to this Agreement, including but not limited to copyrights, will at all times belong exclusively to Client. 21. Consultant's retained rights. Client's ownership rights shall not extend to or include the ideas, concepts, know-how or techniques used by Consultant in furnishing services or providing Deliverables to Client. Consultant shall retain sole title to and ownership of all works and materials created by Consultant other than pursuant to this Agreement, but for all such works and materials incorporated into any Deliverable under this Agreement, Consultant grants to Client an irrevocable, royalty-free, non-exclusive, non- transferable perpetual license to use, duplicate, alter and modify such works and materials in the normal course of Client's activities. 22. Confidentiality. Each party acknowledges that, in connection with the performance of this Agreement or otherwise in the course of its dealings with the other party, it may receive or learn confidential, business, trade secret, proprietary or other like information concerning the other party or third parties to whom the other party has an obligation of confidentiality ("Confidential Information"). Each party agrees to the extent permitted by law that it will not disclose to any third party, either orally or in writing, any Confidential Information of the other party without the prior written consent of the other party, and that it will not appropriate any Confidential Information to its own use or to the use of any third party. Confidential Information that is provided by one party to the other shall be used by the recipient only for the purpose for which it was provided, and access to it shall be restricted to individuals who require the information (or access to the information) to further that purpose. Without limiting any of the foregoing, each party agrees to take at least such precautions to protect the other party's Confidential Information as it takes to protect its own Confidential Information, and in any event shall take all precautions that are reasonably necessary to protect the security of the other party's Confidential Information. Each party further agrees that upon request of the other party it will return to that party all tangible items containing any of that party's Confidential Information, including all copies, abstractions and compilations thereof, without retaining any copies of the items required to be returned. The obligations of this paragraph extend to the employees, agents, affiliates and contractors of each party, and each party shall inform such persons of their obligations hereunder. 23. Prohibition on publicity. Consultant may include the name "City of Dubuque" on a listing of Consultant's clients, provided that such listing does not state or imply that Client endorses Consultant or its services. Otherwise, neither party may advertise or promote itself using the name, service mark or description of the other party without the written consent of the other party in the case of each such use. 24. Termination for convenience. Client may terminate a Statement of Work at any time for any reason with or without cause by giving Consultant 5 days' notice in writing of Client's intention to so terminate. Following the effective date of such termination and upon delivery to Client of all items required by this Agreement and the Statement of Work to be delivered by Consultant to Client upon termination, Client shall pay Consultant for services performed and reimbursable expenses incurred through the termination date. In the case of fixed price work, the amount paid for services performed shall be an equitable portion of the fixed price based on the amount of the fixed price work completed prior to termination. 25. Cancellation for material breach. Either party may terminate any Statement of Work upon 15 days' written notice to the other party if such other party has committed a material breach of its obligations under the Statement of Work (including the incorporated provisions of this Agreement), and such breach is not cured within the 15-day notice period. 26. Effect of termination. Termination or cancellation of a Statement of Work shall not terminate this master Agreement, and the parties shall remain free to enter into future Statements of Work pursuant to this Agreement. In addition, termination, cancellation or completion of a Statement of Work shall not relieve either party of any previously accrued obligations or of any obligations, which by their nature are intended to survive termination, cancellation or completion. Obligations which survive shall include but not be limited to obligations in connection with payment, warranties, Confidential Information and indemnification. 27. Dispute resolution. In the event of any dispute arising out of or relating to this Agreement, the parties agree to attempt in good faith to resolve the dispute first by direct negotiation and then, if that is not successful, by mediation with a neutral third- party mediator acceptable to both parties. Mediation expenses will be shared equally by the parties. 28. Partial invalidity. If any provision of this Agreement or any Statement of Work is held to be unenforceable, the remaining provisions shall continue in full force and effect. The parties shall in good faith negotiate a mutually acceptable and enforceable substitute for the unenforceable provision, which substitute shall be as consistent as possible with the original intent of the parties. 29. Remedies not exclusive. Unless this Agreement expressly states that a remedy is exclusive, no remedy made available under this Agreement is intended to be exclusive. 30. Non-waiver. No term or provision of this Agreement shall be deemed waived and no breach shall be deemed excused unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. No consent by any party to, or waiver of, a breach by the other shall constitute a consent to, waiver of, or excuse for any different or subsequent breach. 31. Assignment. Neither party's rights or obligations under this Agreement (except the right to receive money) shall be assigned or delegated without the prior written consent of the other party, except that either party may without such consent assign all of its rights and delegate all of its obligations under this Agreement to an entity: (a) which such party owns or controls; (b) which is owned or controlled by such party; or (c) which is under common ownership or control with such party. Any consent required by this paragraph shall not be unreasonably withheld, conditioned or delayed. In the case of any assignment permitted hereunder without the other party's consent, the assignor shall promptly notify the non-assigning party in writing of the assignment and shall include in its notice a statement of the facts that permit assignment without consent. Nothing in this paragraph shall restrict a party's right to transfer property to which it has obtained ownership rights under this Agreement. 32. Successors and assigns. This Agreement and each Statement of Work hereunder shall inure to the benefit of and be binding upon the respective successors and assigns, if any, of the parties. Nothing in this paragraph shall be construed to permit any attempted assignment which would be unauthorized pursuant to any other provision of this Agreement. 33. Construction. The paragraph headings in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. The wording used in this Agreement is the wording chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against either party. 34. Entire agreement; amendment. This Agreement, including the attached exhibit referenced herein and the Statement(s) of Work entered into pursuant to this Agreement, constitute the entire agreement between the parties with respect to the consulting services to be provided by Consultant to Client. This Agreement may be altered only by a written amendment identified as such and signed by authorized personnel of both parties. All such amendments to this Agreement shall be binding on both parties despite any lack of consideration. 35. Governing law. This Agreement shall be governed by the laws of the state of Iowa, without reference to conflict of law principles. 36. Notices. All notices which are required by this Agreement to be in writing: (a) shall be delivered by hand, by overnight courier, by facsimile, or by certified or registered mail, postage prepaid, return receipt requested; (b) shall be deemed given upon receipt by the transmitting party of machine confirmation of successful transmission of a facsimile to the correct facsimile number, or on the date of actual delivery when the written notice is not sent by facsimile; and (c) shall be directed to the contact persons listed below at the respective addresses or facsimile numbers listed below, or to such other contact person, address or facsimile number as was last designated in a written notice by that party for notices to itself. THE P~~~1~~ F(,~VE F~EAD TF9;`5 at~REEMENT, k1tVCs~RSTAND 1'r, nPtD `! St+~~(tN~ ~Et.ow AGREE ~C C3E t3CkdND ICY IT. EACH PARTY REPRESE#~TS TF~AT THE t(VDIV(DU.!~t, NtNt~a pN ITS SEHAL~ t-tAS; ~ULt. ~4UT~ICRI'7`Y ~"4J DINIJ ^~i1CFi W';4RTY. ~L(~NT City of Dulzuque c(ty Hali 641Nesk 9 Sin 5t. Dubuque, IA 524b'i-9805 , ,, P'hane: {583} 5&9.411 By. ,~ ~~~,~ -~ Michael C. V n M(II(gen CGkd~Ul.l~'AI~T pav9cl ns 71i 6804 Fit sank Drive F]a~ M es, taws 51)312 Phatte: T668 By: ~.' • De i Lyons (ks; C(fy Manager J {~~t~}....... i#s: Title}~ ~ ~`~~~'~ (Date} ~x~tibit ,~. THE PARTIES HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND BY SIGNING BELOW AGREE TO BE BOUND BY IT. EACH PARTY REPRESENTS THAT THE INDIVIDUAL SIGNING ON ITS BEHALF HAS FULL AUTHORITY TO BIND SUCH PARTY. CLIENT City of Dubuque City Hall 50 West 13th St. Dubuque, IA 52001-4805 Phone: (563) 589-4110 R By: Michael C. Vin Milligen Its: City Manager . ` (D~te) CONSULTANT David Lyons TII 5804 Pleasant Drive Des Moines, Iowa 50312 Phone: (515) 279-7559 By: David Lyons Its: (Title) (Date) ~X~llbi~ ~ STATEMENT OF W®RK Client: City of Dubuque Date Client signed Master Consulting Services Agreement: This Statement of Work is made pursuant to a Master Consulting Services Agreement ("Agreement") between the consulting services provider identified above as "Consultant" THE Iowa Institute and David Lyons ,City of Dubuque and its related entities included in the definition of "Client" in the Agreement (collectively, "Client"). The Agreement was signed by Client on the date indicated above. This Statement of Work incorporates all terms and provisions of the Agreement. Start Date --Consultant is to begin providing the consulting services: (choose only one) _ immediately after this Statement of Work is signed by both parties X on the following date: 10/1/09 other (such as occurrence of an event): This Statement of Work will: (choose only one) X have an Initial Term of 3 months _ have an Initial Term ending on the following date: ® terminate on completion of all tasks and final acceptance or non-acceptance of all Deliverables described in this Statement of Work Consulting services will be performed at: (indicate ALL that apply) X_Client's premises in Dubuque Client's premises in X Consultant's premises in Des Moines X Other locations to be determined by client X Check here if Client will pay travel, meal, lodging, communications, photocopies and other reasonable expenses. (See Agreement for details.) Indicate invoicing terms: monthly X Check here if Consultant is to provide progress reports every month. If this Statement of Work is connected with a specific Client project, state name of project: SMART SUSTAINABLE DUBUQUE Project coordinators Each party designates one of its employees to serve as the other party's primary point of contact for new or unresolved questions/issues relating to this Statement of Work. Either party may change its designated project coordinator, but shall promptly inform the other party of the change. Client designates: Michael Van Milligan Consultant designate: David Lyons Names and roles of key Consultant personnel David Lyons Brief overview of the enpapement Consultant is to facilitate and coordinate the relationships, partnerships, funding, regulatory and other issues required to put the client in the position to successfully launch and implement SMART SUSTAINABLE DUBUQUE - AN IBM AND CITY OF DUBUQUE PARTNERSHIP. Tasks and Deliverables Over the period of this statement of work, deliverables include at a minimum (1) agreements with IBM, Alliant Energy and such other businesses as sufficient for client to proceed with and successfully implement the project; (2) completion of short term fund-raising and grant development efforts and planning sufficient to provide client with evidence that there will be at least minimally required funding for the project; and (3) a recommended outline for, and implementation of, a public roll-out of the project, including coordination with all primary and secondary partners and outreach and community engagement within the community, should client choose to proceed with the project. Fees Fees for this Statement of Work will be: (choose only one) X fixed price only (see further information below) time-and-materials only (see further information below) combination fixed price and time-and-materials (see further information below about each category) -- state here which tasks and Deliverables will be in each category: Fixed price information: Total fixed price for: (choose only one) X this Statement of Work: $ 10,000 per month fixed price portion of this Statement of Work: $ Consultant to invoice Client as follows: (choose only one) _ entire fixed price upon satisfactory completion of all fixed-price tasks and acceptance of all fixed-price Deliverables X other (specify): Monthly Each party represents that the individual signing on its behalf has read this Statement of Work, understands it, and has full authority to bind such party. CLIENT CONSULTANT City of Dubuque David Lyons City Hall TII 50 West 13`h St 5804 Pleasant Drive Dubuque, IA 52001-4805 Des Moines, Iowa 50312 Phone: (563) 589-4110 Phone: (515) 279-7559 By: Michael Ce VanMilligen By: (Print Name) (Print Name) k _.. (Signature) (Signature) Its: City Manager Its: (Title) (Title) ~`. l ~ E~ F (Date) tl (Date) of Short term fund-raising and grant develapmerit Offorts and planning sui~cien~ i provide clign# with evidence will be at least minlr»alfy ragrtired funding for the project; and (3) ~ recr5rz7rnenc~ outline for, and trnpternentai pubiio rolt~out of the project, including coordination with alt primsry and second parfners and outreach and a engagement wttftln the comntunity,. should client choose to emceed with tl}e p~ ct. f Fees far this ~taterrtent of Work will be: (chopS4 pnly pne} K fixed price only (see further infarma#ton below) „~ tirne4and-rrtaterials only {se$ further information b~31ow) cornkaination fixe~f price and time-and-materials (see further intormatior~ bet about eaclt ca#egary) -~ state which tasks and Detivcrebles Witt b+~ iii Bach category; Fixed,~rioe infatmatiosti: Total fried pace for: (aRooss only c~rre} .C this Statement of Work: $ 9 t).000,~ter month ,_, fixed price portion of this Stat~m~nt of Wank: ~~ Cottsuttant to invoice ~li¢nt as faltaws; (cf7oosa only one} entire fXed prfGe upon satisfactory corrrptetiun of alt fxed-price tasks rand X ether (s~ecify)° Mon#hly Each #aarty represents that the indtviduat signtnr~ an its ttehalf has read and has full authority t~ bind ~ueh party. CLtEt3T __.,_ City of Dubuque Pa~td 'Fit City HatE 60 West 13ef' St SBtlk I dulauqu®, to 52Ut11.48Q~ t7eh N t}hone pitons: (54~)5Q9.441Q t3y: ~li~ha~~ ~• VartNtii3.i~en Cairy l~an~c~e~ _ lts; Its; (Title) r' ' .,,~ ~! i.' r ! , t72te~~~~ cif att fixed-price St$ternent of ttllork, rt [)rive tew2 5034 } 279-'7559 .[~ ~. lhare it, TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Funding for the Smart Sustainable Dubuque Project and Project Manager and Reduction of the Fiscal Year 2010 Water Rate DATE: September 16, 2009 Information The purpose of this memorandum is to recommend funding for the Smart Sustainable Dubuque Project and project manager and a reduction of the Fiscal Year 2010 water rate. Discussion The Fiscal Year 2010 adopted budget included an increase to City water rates by 5%. The city-wide installation of new water meters and a low flow metering device manufactured by AY McDonald, as well as financing the meter change-out project with debt over a 20 year term rather than a 15 year term produces the possibility to reduce the water rate increase in Fiscal Year 2010 by 2%. Through better monitoring of Water Department energy usage it is hoped that further reductions in the cost of the City processing and delivering water will be possible. In addition, there is enough additional capacity created in the Water Fund with the installation of new water meters and low flow metering devices to provide funding of the following: • $500,000 in Fiscal Year 2010 and $350,000 in Fiscal Year 2011 for payments to IBM for water conservation efforts • $23,058 in Fiscal Year 2011 and $51,809 thereafter for a Utility Billing Help Desk position • $10,000 in Fiscal year 2010 for the creation of an annual Water Leak Assistance Program • $176,680 in Fiscal Year 2010 for an Electrical Usage Integrated Sustainability Monitoring project to provide the Water Department with the ability to monitor near real-time electrical usage on all pumps and motors These additional costs are related to the Smart Sustainable Dubuque Project. The Utility Billing Help Desk position in Fiscal Year 2011 would only be requested if the scope of the pilot project increased from 250 to 1,000 participants. Through the Fiscal Year 2011 budget process, the Water Department will be requesting an additional Water Meter Repair Worker and a Water Utility Engineer at a cost of $146,826. These requests are unrelated to the Smart Sustainable Dubuque Project and are necessary for day to day operations of the Water Department. The additional expenses for these two positions are covered by the additional capacity created in the Water Fund from the water meter change-out program. In order to effectively manage the Smart Sustainable Dubuque project, additional staff support is needed. It is necessary to contract a project manager for this project for on- going management. The cost for this recommendation of a project manager is estimated to be $125,000 in Fiscal Year 2010 and $150,000 in Fiscal Year 2011 and beyond. This cost includes $10,000 per month for consulting services as well as $2,500 per month for incidentals, which includes mileage, per diem, and miscellaneous. The proposed source of funds for the project manager for Fiscal Year 2010 is as follows: Water Usage Fees $ 55,000 Petrakis Field Project $ 30,000 General Liability Insurance Policy Savings 40 000 Total $125,000 The proposed source of funds for the project manager for Fiscal Year 2011 and beyond is as follows: Water Usage Fees $112,500 Sewer Usage Fees $ 19,500 Parking Usage Fees 18 000 Total $150,000 Action I respectfully recommend the approval of funding as outlined above for a project manager for Smart Sustainable Dubuque and $850,000 in payments to IBM for water conservation efforts. In addition, I respectfully recommend the approval of the water rate revisions to City of Dubuque Code of ®rdinances Section 44-201(a) fixing water rates for residential and industrial use which reduces the Fiscal Year 2010 water rate increase from 5% to 3%. JML TO: Michael C. Van Milligen, City Manager FROM: Bob Green, Water Department Manager SUBJECT: Rate Revision to City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Article C Section 13-1 C-1 (a) DATE: September 16, 2009 INTRODUCTION The purpose of this memorandum is to submit to you a copy of a proposed ordinance change for your review and approval. This ordinance changes would revise City of Dubuque Code of Ordinances Title 13 Public Utilities Chapter 1 Article C Section 13-1 C- 1(a) fixing water rates for residential and industrial use. DISCUSSION It is being recommended that the FY'10 adopted 5% rate increase be reduced by 2% to a net increase of 3%. This decrease is possible due to the upcoming installation of low flow metering devices and the financing term of the water meter change out project being changed from 15 years to 20 years. The old and new rates are shown on the following pages. RECOMMENDATION Staff and I are recommending that the attached proposed ordinances be submitted to the City Council for adoption and effective upon publication. BG:jml Attachments cc: Barry Lindahl, Corporation Counsel Jenny Larson, Budget Director Ken TeKippe, Finance Director Jeanne Schneider, City Clerk File ORDINANCE NO. 46 -09 AMENDING THE CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES CHAPTER 1 ARTICLE C SECTION 13-1C-1(A) FIXING WATER RATES FOR RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND ALL OTHER USES Section 1. Title 13 Public Utilities Chapter 1 Article C Section 13-1 C-1 (a) of the City of Dubuque Code of Ordinances is hereby amended to read as follows: Section 13-1 C-1(a). Residential, Commercial, Industrial and All Other Uses. (a) The rates to be charged for water for residential, commercial, industrial and all other uses and purposes by any person, firm or corporation within the City shall be based on units of one-hundred cubic feet (748 gallons) as follows: Monthly Consumption (in Hundreds of Cubic Feet) Charae per Hundred Cubic Feet First 30 $2.12 Next 120 $1.73 Next 350 $1.61 Next 500 $1.42 Next 1,000 $1.25 Rates shall be subject to the following minimum monthly charge according to the size of the meter: Monthly Consumption Meter Size (In Hundreds of Inches Cubic Feet) Minimum Charge 5/8 2 $ 4.24 3/4 5 $ 10.61 1 8 $ 16.97 11/2 26 $ 55.17 2 46 $ 91.34 3 106 $ 195.16 4 168 $ 300.22 6 368 $ 621.58 8 625 $1,011.36 A property owner shall pay a $30.00 disconnect fee for water service that is disconnected by city staff (meter not in service). When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the $30.00 disconnect fee. A $5.00 minimum monthly charge will be assessed for meters not in service. Section 2. This ®rdinance shall take effect upon publication. Passed, approved and adopted this 17th day of September, 2009. `~~ /; . Attest: .~eanne F. Schneider, CMC City Clerk Roy q~l3uol, Mayor T U U f ~ MNTHLY CONSUMPTION (IN HUNDREDS OF CURR NT NE CUBIC FEET) TE Fl(10 RATE FY10 First 30 $2.16 $2.12 Next 120 $1.76 $1.73 Next 350 $1.64 $1.61 Next 500 $1.45 $1.42 Next 1,000 $1.27 $1.25 MONTHLY CONSUMPTION METER SIZE (IN HUNDREDS CURRENT UNIT CHARGE (INCHES) OF CUBIC FEET) (CUBIC FEET) (CUBIC FEET) 5/8 I NCH ES 2 $4.32 $4.24 3/4 INCHES 5 $10.80 $10.61 1 INCH 8 $17.28 $16.97 1 1/2 INCHES 26 $56.16 $55.17 2 INCHES 46 $92.96 $91.34 3 INCHES 106 $198.56 $195.16 4 INCHES 168 $305.52 $300.22 6 INCHES 368 $633.52 $621.58 81NCHES 625 $1,031.25 $1,011.36