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HomeMy WebLinkAbout2013-04-09 - AGENDA REPORTS - HYDROPOINT DATA SYSTEMS (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item• 10 CITY OF SANTA CLARIT." AGENDA REPORT City Manager Approval: Item to be presented by: April 9, 2013 HYDROPOINT DATA SYSTEMS SUBSCRIPTION RENEWAL Administrative Services RECOMMENDED ACTION City Council: 1. Award a five-year service agreement to HydroPoint Data Systems in an amount not to exceed $437,609 for wireless and data management services to support the Landscape Maintenance Districts' weather -based irrigation controllers. 2. Appropriate funds in the amount of $433,557 from Landscape Maintenance District Fund (357) Balance and $4,052 from Transit Fund (700) Balance for a total of $437,609 to the operational accounts identified in Attachment II. 3. Authorize the City Manager or designee to execute all contracts and associated documents subject to City Attorney approval. BACKGROUND In 2009, staff initiated efforts to replace Landscape Maintenance District's (LMD) irrigation controllers with a state-of-the-art irrigation controller that meets the City's high standards for water conservation. Beginning in Fiscal Years (FY) 2010-11 to the present, the City facilitated three competitive bid processes resulting in the awarding of three competitive contracts to purchase and install 540 weather -based irrigation controllers. As a result of this process, HydroPoint Data Systems became LMD's standard Weather -Based Irrigation Controller (WBIC). The incorporation of WBIC has reduced the annual amount of water utilized by LMD for irrigation by more than 180 million gallons, resulting in Santa Clarita being recognized as a leader in water conservation best management practices. A wireless and data management system is required to operate WBICs in order to access real-time weather information and realize operational water savings. An initial three-year subscription for wireless and data management services was included in the base award for each of the three previous contracts. Over the 19 months it took to install the 540 controllers, subscription services were incrementally activated as controllers came online, creating different subscription ending dates. Staff approached HydroPoint Data Systems on providing more competitive pricing by renewing subscription services for each of the City's 540 smart controllers at one time, as opposed to incrementally over the course of multiple years. The following chart identifies potential discounted costs based on prepayment of subscription services over a one-, three-, five-, or seven-year term, as well as the value of remaining subscription services which have yet to expire. # of # Year Common Proposal Controllers Term Discount Annual Monthly Daily End Date Amount 540 1 0% $225.00 $18.75 $0.62 N/A $66,195.00 540 3 15% $191.25 $15.94 $0.52 30 -Jun -16 $259,417.00 540 5 20% $180.00 $15.00 $0.49 30 -Jun -18 $437,609.00 540 7 27% $164.25 $13.69 $0.45 30 -Jun -20 $579,519.00 Proposed pricing reflected in the matrix above reflects service credit on existing subscriptions that will expire after the start of this proposed agreement. Staff recommends award of a five-year agreement with Hydropoint Data Systems to support continued wireless and data management services associated with the City's WBIC. A five-year pre -payment saves the base budget approximately $24,300 each year, or $121,500 over the 60 -month period. In addition, the proposed Agreement will lock in a favorable rate for any additional future controllers installed within the five-year period. Hydropoint Data Systems was established in 2002 and has developed contracts with numerous municipal, state, federal, and private sector entities. Many of these entities have elected to execute long-term contracts with Hydropoint, extending from 5 to 15 years to secure discounted pricing. The vendor's subscription -based solution, known as WeatherTRAK, provides wireless connectivity to all LMD Weather -Based Irrigation Controllers. The service has eliminated the need for the City to maintain its own weather devices, communication networks, and customer service systems necessary to support irrigation management for more than 1,200 acres of irrigated LMD landscape. This solution centralizes management of our irrigation and controller system in a manner which provides real-time diagnostics, as well as tools to help staff spot broken solenoids, disconnected wires, lateral line breaks, main line breaks, and water running outside of an irrigation window, therefore avoiding landscape loss, water misuse, and waste. The WeatherTRAK service also automates rain -pause action to suspend irrigation when rainfall is sufficient to meet irrigation requirements, provides reporting tools which enable staff to effectively oversee and benchmark our water management performance, and provides access to a technical support specialist who assists in training and helping to resolve field-based problems with our irrigation systems. ALTERNATIVE ACTIONS 1. Direct staff to enter into a one-, three-, or seven-year agreement with HydroPoint Data Services. 2. Do not enter into an agreement, and continue to renew smart controller data subscription services as they expire. (103 controllers in FY 2012-13 and 437 staggered in Fiscal Years 2013-14 and 2014-15.) 3. Other action as determined by Council. FISCAL IMPACT Appropriate funds in the amount of $433,557 from Landscape Maintenance District Fund (357) Balance and $4,052 from Transit Fund (700) Balance for a total of $437,609 to Landscape Maintenance District operational accounts identified in Attachment H. ATTACHMENTS I - HydroPoint Proposal II - Recommended Appropriations by Account Number III - HydroPoint Client List 3- Smart irlgman. Mads simple. ATTACHMENT I WeatherTRAK Central Internet Service Terms & Conditions 3/13/13 The City of Santa Clarita 23920 Valencia Blvd Santa Clarita,CA 91355 Attn: Mr. Kevin Tonoian, Administrative Services Manager Dear Mr. Tonoain, Per your request, we have outlined a series of options for the City of Santa Clarita to renew data service agreements for WeatherTRAK controllers at the City of Santa Clarita, CA. HydroPoint and the City of Santa Clarita have been in negotiations since September of 2012 to bring a mutually beneficial solution to provide lasting economic value and facilitate subscription contract management. 2013 Offer: All controllers renewed in bulk, at the same time; all set to expire on the Same End Date of 6/30/XX #of #Year Common Proposal Controllers Term Discount Annual Monthly Daily End Date Amount 540 1 00/6 $225.00 $18.75 $0.662 N/A $66,195.00 540 3 15% $191.25 $15.94 $0.52 6/30/2016 $259,417.00 540 5 20°% $180.00 $15.00 $0.49 6/30/2018 $437,609.00 540 7 27% $164.25 $13.69 $0.45 6/30/2020 $579,519.00 The proposed pricing, reflected in the matrix above, highlights the discounted rates should the City wish to renew subscription services for a term greater than one year AND off -setting credit for time remaining on the balance of controllers with subscription services yet to expire. By renewing all controllers at one-time, future renewals for all controllers will be associated with one common end -date. This alleviates the administrative burden of processing hundreds of separate renewal invoices for individual controllers that have staggered subscription end -dates reflective of when they were originally installed. We value our relationship with the City of Santa Clarita, and are pleased to be able to make you this offer, which expires on June 30th, 2013. If you have any questions, please do not hesitate contacting me. Si er B% Ok ly, VP of Business Development, HydroPoint Data Systems, Inc. 02009 HydroPoint Data Systems, Inc. All rights reserved. VVTPWSA0209 -- y WeatherTRAK Smart h igudon. Made simple, General WeatherTRAK Central Internet Service Terms & Conditions These WeatherTRAK Central Internet Terms and Conditions ("Conditions") apply to a person or entity's access to and use of HydroPoints WeatherTRAK Central InternetTM Service ("Service"). As used in these Conditions, "HydroPoint" means HydroPoint Data Systems, Inc., and "Customer" means the customer, who is purchasing the Service from HydroPoint under these Conditions. THIS IS A LEGAL AND BINDING AGREEMENT BETWEEN CUSTOMER AND HYDROPOINT. BY ACTIVATING OR USING THE SERVICE, CUSTOMER ACKNOWLEDGES THAT IT HAS READ ALL OF THESE TERMS AND CONDITIONS, UNDERSTANDS THEM, AND AGREES TO BE LEGALLY BOUND BY THEM. If Customer does not agree to these Conditions, it may not activate or use the Service. These Conditions, together with any quotation issued to Customer by HydroPoint ("Quotation"), constitute the entire contract between Customer and HydroPoint (together, the "Agreement'), and supersede all prior agreements and understandings between them, whether written or oral, relating to the Service. In the event of a conflict, a Quotation takes precedence over these Conditions, and a written contract signed by both parties takes precedence over both. The effective date of this Agreement is the date that Customer activates the Service. Any purchase orders shall be valid for the purpose of identifying this Agreement for reference purposes only, and any terms included in such purchase orders are void and shall be of no effect. Terms and Conditions 1. Service Inclusions/Exclusions. Customer Is ordering the Central Internet Service for use with the HydroPoint smart controller (the "Controller") purchased by Customer. Upon activation of the Service and as long as Customer performs the obligations for the length of Service, HydroPolnt will provide the Customer access to the Service as follows: • Central Internet log in - access to a secure internet-based Software providing real-time, remote access to all controllers within Customer's account • Accurate daily, local weather updates • Toll-free Customer technical support within stated business hours 2. Term. If Customer elects to renew their subscribbon to the Service, customer shall be obligated to pay the entire subscription fee for the Renewal Term in accordance with Section 4 below. if no subscription period is selected by the Customer, the default Renewal Term is one year. For purposes of determining the duration of the subscription period, the Initial Term shall begin on the day Customer activates the Service (i.e., the first day of Customers Trial Period). The Renewal Term shall begin on the day after the last day of the Initial Term, or some other date as identified in the Quote. The subscription for the Service shall be automatically renewed for successive one-year periods (each a "Renewal Term') at the end of the Initial Term or the then -current Renewal Term unless either parry provides at least thirty (30) days written notice of termination of the Service to the other party prior to the end of the Initial Term or the then -current Renewal Term. The Initial Term and all Renewal Terms are collectively referred to herein as the 'Term." This Agreement shall remain in full force and effect throughout the Term. HydroPoint Customer Service may contact Customer via email prior to the expiration of Service date providing renewal options. For Customers who choose to decline further Service, the following process of notification will be conducted: • Phone contact with the Customer will be attempted to understand the reason for non -renewal. • Written notice will also be sent to the Customer notifying of HydroPoint's intent of stopping service • The controller's radio will be disabled. • Any field service calls or technical support requests will be billed at the current hourly service rate. 02009 HydroPoint Data Systems, Inc. All rights reserved. WTPWSA0209 WeatherTRAK" -' Smum higa^.an. Made simple, WeatherTRAK Central Internet Service Terms & Conditions 3. Service Availability. Upon activation of the Service and so long as Customer performs its obligations under this Agreement, HydroPoint shall provide Customer access to the Service during the Term; provided, however, that HydroPoint shall have no obligation to provide the Service in any particular geographical location and may discontinue the Service in any geographical location In its sole discretion. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, CUSTOMER ACKNOWLEDGES THAT, DUE TO CAUSES BEYOND HYDROPOINT'S CONTROL, THE SERVICE IN CERTAIN GEOGRAPHICAL LOCATIONS MAY NOT BE AVAILABLE FROM TIME TO TIME OR AT ALL. 4. Fees. Customer shall pay HydroPoint the applicable subscription fee for the Renewal as identified in this quote, within 30 days of receipt of an invoice from HydroPoint. All billing and payment will be in United States dollars only. All payments are exclusive of all taxes, and Customer shall pay any taxes, whetherfederal, state or local, or municipal that may be imposed upon or with respect to the Service, exclusive of taxes on Hydro Point's net income. Following the renewal Term and for the remainder of the Term, Customer shall pay HydroPoint the applicable subscription fee for each Renewal Term in an amount determined by HydroPoint in its sole discretion within 30 days of the commencement such Renewal Term and receipt of an invoice from HydroPoint; provided, however, that Customer shall not be obligated to pay a subscription fee for any Renewal Term In excess of the rate quoted by HydroPoint at the time Customer activates the Service unless and until HydroPoint provides Customer with at least thirty (30) days prior written notice of the increased subscription rate. S. Service Level Agreement HydroPoint Data Systems agrees to provide WeatherTRAK Central Internet Service along with WeatherTRAK ET Everywhere Service to all customer controllers covered under this agreement for which Service has been purchased. If weatherTRAK Central Internet Service is unavailable to customer for three consecutive days(72 hours), customer shall notify HydroPoint who will then have 30 days to cure. H HydroPoint Is unable to cure within 30 days, customer shall be eligible upon written request for a pro -rated refund of unused Service for the affected controller(s). Refund shall be issued within 30 days of qualified requests. 6. Responsibilities of Customer. The Customer shall: A. Pay all fees and other charges for the Service in accordance with this Agreement. B. Give at least thirty (30) days written notice of Customer's desire to terminate the Service priorto the end of the Initial Term orthe applicable Renewal Term. C. Pay all reasonable costs of collection and expenses including, without limitation, attorneys' fees, in the event of any default in this Agreement that requires legal action against Customer by HydroPoint. 7. Default. If Customer fails to pay any amount hereunder when due and such failure continues unremedied for a period often (10) days after notice thereof is given by HydroPoint to Customer, then HydroPoint shall have the right to exercise anyone or more of the following remedies: A. Terminate this Agreement and the Service. B. Declare the entire amount remaining unpaid hereunder for the balance of the then current Initial Term or Renewal Term, as applicable, at once due and payable, without notice or demand. C. Take legal action to recover all payments then accrued or accruing under this Agreement. D. Pursue any other remedy available at law or in equity, including the termination of the Service. 8. EXCLUSION OF DAMAGES AND LIMITATION OF LIABILITY. IN NO EVENT SHALL HYDROPOINT OR ITS LICENSORS OR SUPPLIERS, INCLUDING THIRD -PARTY COMPANIES WHOSE FACILITIES ARE USED IN PROVIDING OR ESTABLISHING TRANSMISSION OF COMMUNICATION UNDER THIS AGREEMENT OR IN OTHERWISE PROVIDING PRODUCTS OR SERVICES UNDER 02009 HydroPoint Data Systems, Inc. All rights reserved. WrPWSA0209 WeatherTRAK° Smart krigaoan. Made ample. WeatherTRAK Central Internet Service Terms & Conditions THIS AGREEMENT OR THE LIKE OR ANY OF ITS OR THEIR OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES OR AGENTS, BE LIABLE UNDER THIS AGREEMENT FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS, REVENUE, DATA OR USE OR DAMAGE TO PROPERTY, PLANTS OR OTHER FOLIAGE, SUFFERED BY CUSTOMER OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT, TORT, STRICT LIABILITY OR OTHER LEGAL THEORY, EVEN IF HYDROPOINT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. In no event will HydroPoint's liability for any damages, losses and causes of actions whether in contract or tort (including negligence or otherwise) based upon the Service or in any way arising under this Agreement exceed the greater of $250.00 or the total amounts paid by the Customer under this Agreement during the twelve (12) month period immediately preceding the event giving rise to liability]. 9. DISCLAIMERS. THE SERVICE WILL BE PROVIDED "AS IS" AND HYDROPOINT DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON INFRINGEMENT AND ALL WARRANTIES THAT MAY ARISE FROM COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE, AND ALL OTHER OBLIGATIONS AND LIABILITIES OF HYDROPOINT AND ITS EQUIPMENT MANUFACTURERS WITH RESPECT TO ANY DEFECT OR DEFICIENCY APPLICABLE TO OR RESULTING DIRECTLY OR INDIRECTLY FROM THE SERVICE, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE. HYDROPOINT DOES NOT REPRESENT THAT USE OF THE SERVICE WILL BE UNINTERRUPTED OR ERROR FREE. LIABILITY UNDER THIS AGREEMENT SHALL UNDER NO CIRCUMSTANCES EXCEED THE AMOUNT SET FORTH IN PARAGRAPH 7.A ABOVE FOR WHICH A WARRANTY CLAIM IS MADE. 10. Binding Nature; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Should their be a sale of a property owned by the customer under this agreement, then the Customer may assign this Agreement or any of Its rights under this Agreement to another party or parties without the prior written consent of HydroPoint. 11. Force Majeure. HydroPoint shall not be liable forfailure or delay in performing its obligations hereunder if such failure or delay is due to circumstances beyond its reasonable control, including, without limitation, acts of any govemmental body, war, insurrection, sabotage, embargo, fire, flood, strike or other labor disturbance, interruption of or delay in transportation, unavailability of interruption or delay in telecommunications or third party services, failure of third party software or inability to obtain raw materials, supplies, or power used in or equipment needed for provision of the Service. 12. Remedies and Severability. Some jurisdictions may limit the exclusion or limitation or disclaimer of warranties or incidental or consequential damages, so that the exclusions or limitations or disclaimers in this Agreement may not apply to Customer, in such jurisdictions, HydroPoint's liability (and the liability of its affiliates and agents) shall be limited to the greatest extent permitted by applicable law. All rights and remedies of HydroPoint hereunder are cumulative and maybe exercised concurrently or separately. If any provision of this Agreement, or the application of any provision to any person or circumstance, shall be held invalid, the remainder of this Agreement, or the application thereof to persons or circumstances other than those as to which it is held invalid, shall remain in full force and effect. 13. Amendment and Waiver. Except as otherwise provided herein, this Agreement may not be amended except upon the written consent of Customer and HydroPoint. No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, or power hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, or power provided herein or by law or in equity. The waiver by any party of the time for performance of any act or condition hereunder shall not constitute a waiver of the act or condition itself. 14. Entire Agreement. This Agreement, and any other document or agreements specifically identified in this Agreement, supersedes all previous representations, understandings or agreements. 15. Governing law. The laws of the State of California shall apply to all disputes, claims, or causes of action arising out of or relating to this Agreement or the relationship between the parties. The federal and state courts within the State of California will have exclusive jurisdiction to adjudicate any dispute arising out of this Agreement and the parties hereby irrevocably 02009 HydroPoint Data Systems. Inc. All n9hts reserved. WTPWSA0209 -q— Weather`s Smon irTipaocn. Madeaimple. WeatherTRAK Central Internet Service Terms & Conditions consent to the exclusive jurisdiction and proper venue of, the state and federal courts located in San Diego County, California, U.S.A., and waive any objections thereto based on any ground including improper venue or forum non-conveniens. 16. Survival. The parties' rights and obligations under Sections 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15 and 16 will survive expiration termination of this Agreement and termination of the Service. 17. Notices. Notices hereunder shall be in writing and sent by overnight commercial courier or deposited in the US mail, certified or registered and postage prepaid and addressed to the party as set forth at the start of this Agreement, and shall be deemed delivered when received. Notices to HydroPoint shall be sent to the Attention of its Chief Executive Officer. 02009 HydroPoint Data Systems, Inc. All rights reserved. WTPWSA0209 li _ ATTACHMENT II Attachment II Recommend Approprations by Account March 26, 2013 Zone/Facility Account Code jAcct. Name I Controllers Percentage Cost Estimate 1 12523 5161.028 WBIC Services 8 1.48% $6,483.10 3 12525 5161.028 WBIC Services 2 0.37% $1,620.77 4 12526 5161.028 WBIC Services 6 1.11% $4,862.32 5 12527 5161.028 WBIC Services 8 1.48% $6,483.10 6 12528 5161.028 WBIC Services 3 0.56% $2,431.16 7 12529 5161.028 WBIC Services 8 1.48% $6,483.10 8 125305161.028 1WBIC Services 1 0.19% $810.39 15 125335161.028 WBIC Services 6 1.11% $4,862.32 16 12534 5161.028 WBIC Services 5 0.93% $4,051.94 17 125355161.028 WBIC Services 5 0.93% $4,051.94 18 125385161.028 WBIC Services 12 2.22% $9,724.64 19 125395161.028 WBIC Services 3 0.56% $2,431.16 20 12540 5161.028 WBIC Services 1 0.19% $810.39 27 12550 5161.028 IWBIC Services 18 3.33% $14,586.97 28 125515161.028 WBIC Services 4 0.74% $3,241.55 T-1 ADV 125425161.028 WBIC Services 19 3.52% $15,397.35 T-1Faircliff 125015161.028 WBIC Services 1 0.19% $810.39 T-2 12502 5161.028 WBIC Services 11 2.04% $8,914.26 T-3 125035161.028 WBIC Services 12 2.22% $9,724.64 T-4 12504 5161.028 WBIC Services 10 1.85% $8,103.87 T-5 12505 5161.028 IWBIC Services 16 2.96% 1 $12,966.19 T-6 12506 5161.028 WBIC Services 4 0.74% $3,241.55 T-7 12507 5161.028 WBIC Services 16 2.96% $12,966.19 T-8 12508 5161.028 WBIC Services 34 6.30% $27,553.16 T-17 125115161.028 WBIC Services 3 0.56% $2,431.16 T-23 125125161.028 WBIC Services 43 7.96% $34,846.64 T -23A 12513 5161.028 WBIC Services 30 5.56% $24,311.61 T -23B 125145161.028 IWBIC Services 9 1.67% $7,293.48 T-29 12515 5161.028 WBIC Services 2 0.37% $1,620.77 T-31 125165161.028 WBIC Services 13 2.41% $10,535.03 T-46 125205161.028 WBIC Services 83 15.37% $67,262.12 T-47 125215161.028 WBIC Services 44 8.15% $35,657.03 T-52 125225161.028 WBIC Services 20 3.70% $16,207.74 T -65B 12556 5161.028 WBIC Services 2 0.37% $1,620.77 2008-1 125415161.028 IWBIC Services 73 13.52% 1 $59,158.25 Via Princessa Metro 14509 5161.028 Transit Facilities 1 0.19% $810.39 Soledad Metro 14509 5161.028 Transit Facilities 1 1 0.19% $810.39 Jan Heidt Metro 14509 5161.028 Transit Facilities 2 0.37% $1,620.77 McBean Transfer 14509 5161.028 Transit Facilities 1 0.19% $810.39 Total 1 540 1 100.00% $437,609.00 -19- ATTACHMENT III HydroPoint Data Systems Makers of WeatherTrak "Standardized" Program Customer Controller Inventory < 40 40 - 75 75 - 150 151 - 250 251 - 500 501 + Municipal Customers Los Angeles County Parks X City of Cupertino, CA X City of Santa Clarita X City of Charleston, SC X City of Laguna Beach, CA X City of Petaluma — Parks / Schools X City of Hope Hospital X City of Houston, TX X City of Loredo, TX X City of Moorpark, CA X City of Foley, AL X City of Newport Beach X City of Barstow, CA X Federal Customers Fort Carson (Net Zero Army Base) X U.S. Dept of Veterans Affairs X National Customers Wal-Mart X Target X "Very Large" Church Org. X Lowes X Equity Residential X Regency Shopping Centers X Kohl's X Holiday Retirement X Apple X The Irvine Company X GH Palmer Lone Star Community College (TX) Santa Barbara School District X X X Stanford University X Davis School District X Old Dominion University _ X Home Owners Associations Shea Trilogy— Vistancia X Summit Community HOA — Anaheim X Oso Valley Greenbelt Association X Porter Ranch HOA X Niguel Shores HOA X Sun Lakes CC X Anaheim Hills Planned Master Assoc. X