Title
GenTrader Production Cost Software License (NB)
Staff recommends converting the GenTrader Production Cost Software annual license to a perpetual license.
Explanation
In 1996 the City Commission approved the purchase of "Scheduler" software from Power Costs, Inc. (PCI) to assist GRU in the management of its generation assets by asset optimization, asset valuation and risk management of asset portfolios. PCI no longer supports the Scheduler software and has replaced it with GenTrader. GRU contracted with PCI for the GenTrader license on an annual basis, for $39,000 annually which was below the dollar threshold required for Commission approval. Staff evaluated the benefit of converting to a perpetual license and determined that cost benefits would be realized within four years. Staff therefore recommends transitioning from an annual license fee to a perpetual license fee.
Recommendations
The City Commission: 1) authorize the General Manager, or his designee, to convert the annual license to Power Costs Inc. (PCI) for the GenTrader Power Production Cost Software to a perpetual license at a one time cost of $85,800; and 2) approve the issuance of purchase orders to PCI for each year of the agreement for the perpetual license for software maintenance and service, as required, subject to the annual appropriation of funds for each fiscal year.
Fiscal Note Funding for this project is in the Utilities FY09 budget and will be requested for future fiscal years.
Drafter
Prepared by Ed Regan, Assistant General Manager, Strategic Planning
Submitted by Robert E. Hunzinger, General Manager