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Black Hills Energy_Memorandum of Understanding for Natural Gas Pilot ProgramMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Black Hills Natural Gas Pilot Program DATE: December 2, 2010 Dubuque bitil Ammaica t y 2007 Smarter Sustainable Dubuque Project Manager David Lyons and Assistant City Manager Cindy Steinhauser are recommending approval to enter into a Memorandum of Understanding with Black Hills Energy Corporation to conduct a natural gas pilot program as part of Smarter Sustainable Dubuque. Smarter Sustainable Dubuque is part of the City of Dubuque's Sustainable Dubuque Initiative, which began in 2006 and seeks to make Dubuque a community that meets the environmental, economic and social equity needs of its residents today without reducing the ability of future generations to meet their needs. The City of Dubuque has been working with IBM Research for over a year now on Smarter Sustainable Dubuque. Efforts successfully underway already include the Smarter Water and Smarter Electricity pilots. Conversation is underway to potentially incorporate Vehicle Miles Traveled (Transit) in the near future. The overall concept is to provide citizens with real time information to be able to assist them in saving money and time, while conserving resources and reducing green house gas emissions, through more effective utilization of resources. Incorporating as many "silos" of energy utilization as possible into the model will give citizens the maximum opportunity to discover long term savings through resource utilization changes. Natural gas is a critical component of Dubuque's energy utilization, particularly as the community's primary source of energy for heat during winter months. As part of Smarter Sustainable Dubuque, Black Hills Energy will install 250 natural gas AMI units (Advanced Metering Infrastructure) for project participants in Dubuque and for a period of two years provide individual gas usage and related data to the City and IBM for research purposes. The pilot will work with volunteer households and data will be provided only in an anonymous manner and individually identifiable data will not be made available. Black Hills Energy, and its vendor ITRON, will handle the purchase, installation and support of all needed equipment. The City would authorize co- location of a transmitter with its existing infrastructure and together with Dubuque 2.0 (a community dialogue conducted by the Dubuque Area Chamber of Commerce and the Community Foundation of Greater Dubuque), assist in the recruitment of the 250 volunteer households for the pilot. The pilot would take advantage of existing infrastructure and processes already in place to support the Smarter Water and Smarter Electricity portions of the initiative. Other than this support, there would be no direct expenses or funding required of the City. concur with the recommendation and respectfully request Mayor and City Council approval. niu II) Michael C. Van Milligen ('�, MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Lyons, Smarter Sustainable Dubuque Project. Manager Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: David Lyons, Smarter Sustainable Dubuque Project Manager Cindy Steinhauser, Assistant City Manager SUBJECT: Black Hills Natural Gas Pilot Program DATE: December 1, 2010 Introduction The purpose of this memorandum is to request City Council approval to enter into the attached Memorandum of Understanding with Black Hills Energy Corporation for the conduct of a natural gas pilot program as part of Smarter Sustainable Dubuque. Smarter Sustainable Dubuque is part of the City of Dubuque's Sustainable Dubuque Initiative, which began in 2006 and seeks to make Dubuque a community that meets the environmental, economic and social equity needs of its residents today without reducing the ability of future generations to meet their needs. Background The City of Dubuque has been working with IBM Research for over a year now on Smarter Sustainable Dubuque. Efforts successfully underway already include the Smarter Water and Smarter Electricity pilots. Conversation is underway to potentially incorporate Vehicle Miles Traveled (Transit) in the near future. The overall concept is to provide citizens with real time information to be able to assist them in saving money and time, while conserving resources and reducing green house gas emissions, through more effective utilization of resources. Incorporating as many "silos" of energy utilization as possible into the model will give citizens the maximum opportunity to discover long term savings through resource utilization changes. Natural gas is a critical component of Dubuque's energy utilization, particularly as the community's primary source of energy for heat during winter months. Dubuque kilkil All- Ameica city r 2007 Discussion As part of Smarter Sustainable Dubuque, Black Hills Energy will install 250 natural gas AMI units (Advanced Metering Infrastructure) for project participants in Dubuque and for a period of two years provide individual gas usage and related data to the City and IBM for research purposes. The pilot will work with volunteer households and data will be provided only in an anonymous manner and individually identifiable data will not be made available. Black Hills Energy, and its vendor ITRON, will handle the purchase, installation and support of all needed equipment. The City would authorize co- location of a transmitter with its existing infrastructure and together with Dubuque 2.0, assist in the recruitment of the 250 volunteer households for the pilot. The pilot would take advantage of existing infrastructure and processes already in place to support the Smarter Water and Smarter Electricity portions of the initiative. Other than this support, there would be no direct expenses or funding required of the City. Request We respectfully request City Council approve the attached Memorandum of Understanding between the City of Dubuque and Black Hills Energy for the conduct of a 250 household pilot on natural gas data and utilization as part of Smarter Sustainable Dubuque. Cc: Teri Goodmann, Assistant City Manager Chris Kohlmann, Information Services Manager Cori Burbach, Sustainability Coordinator Eric Dregne, Dubuque 2.0 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DUBUQUE AND BLACK HILLS ENERGY FOR THE SUSTAINABLE DUBUQUE AMI PILOT PROJECT This Memorandum of Understanding (MOU) is made and entered into by and between the City of Dubuque (City) and Black Hills /Iowa Gas Utility Company, LLC d /b /a Black Hills Energy (Black Hills) to set forth the understandings and obligations of the parties pertaining to City's Sustainable Dubuque AMI Pilot Project to assess energy efficiency technologies (the Project). 1. Scope /Objective The overall objective of the Project is for Black Hills to install 250 Advanced Metering Infrastructure (AMI) meters for Project participants in Dubuque, Iowa and for a period of two years to provide the individual customer gas usage and related data to City for restricted display on a web portal and for independent analysis in accordance with the City's research objectives for the Project and for the City to provide any and all analysis, reports or other deliverables resulting from such analysis to Black Hills. 2. Term a. The term of this MOU shall commence on the date when the last of the two parties has executed this MOU and shall expire upon completion of both parties' Project obligations set forth herein, currently estimated to be no later than December 31, 2012 or earlier as set forth herein. b. Black Hills may terminate this MOU upon prior written notice to City in the event City or its contractors, including IBM, in the sole determination of Black Hills, breaches any term of this MOU, including but not limited to the Data restrictions set forth below. c. In the event of expiration or termination: • Black Hills will immediately cease providing Data to City and City will immediately cease providing anonymized Data to IBM. • City will stop displaying the anonymized individualized customer usage Data on the portal. • City and IBM's limited license to use the anonymized Data provided shall be governed by Section 6 below. 3. Assumptions related to the Project a. The Project participants shall be current customers of Black Hills located within areas mutually agreed by Black Hills and City. b. The Project participants may be screened by Black Hills for elimination from participation in the Project for reasons determined appropriate solely by Black Hills, which may include but are not limited to, insufficient network overage, irregular bill payment history, renter rather than homeowner, or other applicable criteria. c. Customer billing data will not be provided to City. d. The Data will be collected starting approximately January 1, 2011 for a minimum two -year period for each participant. e. Black Hills will provide historical usage data for the previous twelve months for project participants. 4. Obligations of City a. City shall securely provide Black Hills with a complete list of potential participants, including names, addresses, participant's Anonymous ID number, and other applicable information. City shall provide prompt periodic secure updates of this list to Black Hills for additional customers and removal of customers, including dropouts. b. City shall provide secure test and production FTP sites with security consistent with Black Hills policies and requirements, for review and approval by Black Hills prior to implementation of the pilot. Data transmission must comply with best practices for file transfer using Secure FTP. c. City shall provide access and assistance, as reasonably feasible and agreed to by the parties, to existing physical and communication infrastructure that would facilitate equipment installation and data collection and transmission. d. The Data transmitted is confidential information and must be protected by City and its contractors from unauthorized use or users. e. City shall promptly refer any meter and billing related questions, inquiries, or complaint from participants to Black Hills for resolution at 1- 563 - 585 -4010. f. City is the primary point of contact for participants regarding the Project. Black Hills is the primary point of contact for participants regarding meters. g. City may use the Data provided by Black Hills, subject to Section 6 below. h. City shall provide other deliverables to Black Hills for this Project as follows: • Reports, analysis, and derivative works resulting from the Data provided by the Black Hills with unlimited rights for Black Hills, to include at a minimum, the information showing how customers changed their behavior and attained a heightened awareness of their energy usage. • Black Hills may use, reproduce, display, publish, or distribute, in whole or in part, any of City's deliverables and may create derivative works therefrom. 6. Data i. City shall promptly provide drafts of all communications that reference Black Hills for review prior to publication or distribution. Black Hills shall have a reasonable period of time to review such submissions. 5. Obligations of Black Hills a. Black Hills shall develop and provide to City screening criteria that Black Hills will use in screening potential Project participants from the potential participants identified by City. b. Black Hills will review and approve a final list of project participants in accordance with such criteria prior to collection of data. c. Black Hills shall address participants' questions, inquiries and complaints related to meters in accordance with its standard procedures for all customer inquiries at 1- 563 - 585 -4010 or through another referral method to be mutually agreed upon by both parties. d. Black Hills may drop any participants at any time for any reason, upon written notice to the City. e. Black Hills shall provide deliverables to the City for this Project as follows: • Data as further described in Section 6 below • Up to 250 gas AMI meters configured for 1 hour interval reads including installation, trouble shooting, and repair /replacement. • Twelve months of historical usage data for Project participants f. Black Hills shall transfer any customer calls regarding the Project to City's call center at 1- 563 - 690 -6111 or email SSD @cityofdubuque.org. a. City is granted a limited license to reproduce, use and sublicense the Data to IBM only in anonymized form. IBM's rights to the anonymized Data will be a limited, irrevocable, nonexclusive, worldwide, and fully paid -up license to use, reproduce and distribute the anonymized Data furnished by the City under its agreements with IBM for the following purposes: (i) as necessary to perform the work required of IBM; (ii) to demonstrate IBM's resulting Prototype Service to third parties; (iii) to publish the results of the Project in scientific journals, periodicals, and conference papers and presentations; and (iv) for internal use for research purposes. IBM may not sublicense the anonymized Data to any third party. b. City is granted a limited license to use and reproduce the Data in order to display the Data in a restricted web portal so that each customer may only view its own Data and no other customers may view a customer's Data. c. City may not otherwise transfer, sell or license the individual customer Data supplied by Black Hills or used by the City to any third party in written or electronic form. Other than as set forth above, all Data will be used, reproduced, displayed, or published in reports only on an aggregated basis or as specifically approved in advance in by Black Hills. d. Data files to be supplied by Black Hills will consist of the participant's Anonymous ID number and raw read Data files containing mutually agreed -to information that is normally read from the meter and is available from the Remote Network Interface (RNI) e. Black Hills will use commercially reasonable efforts to read meters and to transmit Data to City's secure FTP site at least one time per day. f. For meters designated as one -hour interval read meters, the interval Data reads will be a maximum of 24 one -hour increments per day. g. The parties will mutually agree on the file format for Data transmittals. Black Hills disclaims any responsibility, liability, or warranty related to the Data, including but not limited to, merchantability, fitness for a particular purpose, suitability, accuracy, or completeness. h. City represents and warrants that it has and will maintain adequate systems and other controls in place to protect the Data supplied by Black Hills in accordance with the requirements of this MOU. i. Black Hills will provide one time, in a mutually agreed upon digital file format, historical monthly consumption data covering twelve prior months to the start of receipt of AMI supplied data for 250 pilot participants. Each record in the file shall include an anonymous Identification Number along with a month and /or read date indicating when the reading was done. Consumption or raw reading data or meter reading that consumption can be calculated from is to be included. Estimates should also be included but shall be designated as such. 7. Communication a. Notices or other communications related to this MOU will be sent in writing or electronic mail to: • Notices sent to Black Hills will be sent to: Mark Ernst Eastern Iowa Operations Manager Black Hills Energy Corporation 1015 Cedar Cross Road Dubuque, IA 52003 E -mail: mark.ernst @blackhillscorp.com • Notices sent to the City will be sent to: The City of Dubuque Attention: City Manager 90 West 13 Street Dubuque, Iowa 50301 E -mail: ctymgr @cityofdubuque.org 8. Other Considerations a. Each party will bear its own costs and liabilities of participating in this Project. b. Nothing in this MOU shall be deemed to constitute or create a joint venture, partnership, or any type of permanent arrangement. The parties shall act in all matters related to this MOU as independent contractors. The employees of one party shall not be deemed employees of the other party. Nothing in this MOU shall grant to any party the right to make commitments of any kind or create any obligation, express or implied, for or on behalf of the other party without the prior written consent of the other party. c. No publicity or advertising will be released by City that directly or indirectly references that Black Hills is providing support for this Project or refers to Black Hills or uses Black Hill's name and /or logo without Black Hill's prior written consent. Similarly, Black Hills shall not release publicity or advertising concerning this Project without the prior consent of City. d. Neither City nor its contractor, IBM, may assign or transfer its duties, interests, or obligations under this MOU without obtaining the prior written consent of Black Hills. e. A party shall not be in default because of any failure to perform or delay in performing this MOU if the failure or delay arises from causes beyond the control and without the fault or negligence of such party. The City of ubuque By: Name: Title: Roy D. Buol Mayor Black Hills /lowa Gas Utility Company, LLC By; Tracy Peterson Name: Tracey Peterson Title: VP Gas Operations Authorization for Release of Information to Third Parties Black Hills /Iowa Gas Utility Company, LLC d /b /a Black Hills Energy has agreed to work with the City of Dubuque on its Smarter Sustainable Dubuque Pilot Project, subject to the consent of individual customers. The City is requesting natural gas usage and related data for display in a restricted and secure web portal hosted by a third party, VerityThree, Inc. of McHenry, IL for each customer of Black Hills Energy who agrees to participate in the City's project. Each customer will receive a unique identification number to allow access to only his or her portal. In addition, the City is using the services of IBM to develop the web portal. IBM will have use of the energy usage and related data in anonymized or aggregated form for such product development, for demonstrations of the developed product to third parties, to produce reports to be published by the City or IBM in various forms including public presentations, and for research purposes. At no time will individually identifiable information be released. The data will remain owned by you, the customer, but these three entities will have the rights to use the data as described above. The release of information will be valid for a minimum period of two (2) years. To authorize the City of Dubuque and its two contractors (VerityThree, Inc. and IBM) to receive your energy usage and related data as described above regarding the following utility account(s), please complete the form below, sign it, and return it to: Black Hills Energy, (Pilot Project) 1015 Cedar Cross Rd, Dubuque, IA 52003. Customer Name Address City State Zip Phone Number Email Account Number (if known) Black Hills/lowa Gas Utility Company, LLC has my permission to share my account information with the entities named above. I hereby release Black Hills Energy from any and all liability associated with releasing such information. Customer Signature Date Smarter Sustainable Dubuque is part of the City of Dubuque's Sustainable Dubuque Initiative, which began in 2006 and seeks to make Dubuque a community that meets the environmental, economic, and social equity needs of its residents today without reducing the ability of future generations to meet their needs. The goal of Smarter Sustainable Dubuque is to give residents the information they need to make smarter choices related to how they use resources such as water, electricity, natural gas, and oil. The initiative is engaging Dubuque residents and businesses who, through advanced technology, will be able to actively participate in managing their consumption of resources.