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Resolution No. 88641 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8864 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A SOFTWARE LICENSE AND•IMPLEMENTATION AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND ADVANCED UTILITY SYSTEMS CORPORATION FOR UTILITY BILLING AND CUSTOMER SERVICE PROGRAM WHEREAS, the City of Vernon desires to replace an existing obsolete Municipal Utility Information System that operates on an HP3000 platform that is unsupportable after 2006 (hereinafter referred to as the "Utility Billing System "); and WHEREAS, the Director of Finance has requested that the. City purchase CIS Infinity Software together with all the necessary components, licenses, support, conversion, installation, configuration, training, testing, and other implementation services for a Utility Billing System from Advance Utility Systems Corporation ( "Advanced ") because he believes Advanced to be the only vendor that can provide the necessary Utility Billing System meeting the City's specifications and requirements; and WHEREAS, the replacement of the Utility Billing System would improve the effectiveness of the City's operation and enhance the services provided to citizens, residents and businesses within the. Vernon community; and WHEREAS, on October 11, 2005, the Finance Committee of the City of Vernon recommended that an agreement with Advanced by approved and executed WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21. 22 23 24 25 26 27 28 necessity to enter into a contract with Advanced for the purchase of the Utility Billing System and related services. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Software License and Implementation Agreement with Advanced, a copy of which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor to execute said Agreement for, and on behalf of, the City of Vernon and the Acting City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send one fully executed Agreement together with the payment of $16,250.00 to: Advanced Utility Systems Corporation Attn. Patricia Sorbara 2235 Sheppard Avenue East, Suite 1400 Toronto, Ontario M2J 5B5 SECTION 5: The Acting City Clerk of the City of Vernon shall certify to the passage of this Resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 12th day of October, 2005. ATTEST: BRUCE '"V MALKENHORST, JR., Acting City Clerk - 2 - LEONIS C. BURG Mayor • 2 3 4 5 6 7 8 9 10 11 12 13 STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8864, was duly adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council duly held on Wednesday, October 12, 2005, and ther - -fter was duly signed by the Mayor of the City of Vernon. (SEAL) 15 16 17 18 19 20 21 22 23 24 25 26 27 28 V. MALKENHORST, JR. ing City Clerk EXHIBIT A Software Licence and Implementation Agreement Schedule A Detailed Description of Software Schedule B Project Scope of Work Support Agreement Schedule D Fee Structure and Payment Schedule SOFTWARE LICENCE AND IMPLEMENTATION AGREEMENT BETWEEN ADVANCED UTILITY SYSTEMS CORPORATION -and — THE CITY OF VERNON Advanced Utility Systems Corporation 2235 Sheppard Avenue E., Suite 1400 Toronto, Ontario M2J 5B5 TABLE OF CONTENTS Page No. 1RRTICLE I INTERPRETATION 1 1.1 Definitions 1 1.2 Time of the Essence 3 1.3 Currency 3 1.4 Headings 3 1.5 Plurals and Gender 3 1.6 Schedules 3 ARTICLE II SOFTWARE LICENCES 4 2.1 Grant of Licenses 4 2.2 Term of Licenses 4 2.3 Restrictions on Use 4 2.4 Derivation, Modification and Copyright 4 2.5 Acceptance of Software 4 2.6 Ownership of Software and Confidential Information 5 2.7 Escrow 5 2.8 Ownership and Disposition of Documents 7 ARTICLE III CONSULTING SERVICES 7 3.1 The Consultant's Services 7 3.2 Performance by Consultant 8 3.3 Performance by Organization 8 3.4 Support Agreement 9 3.5 Stages of Services 9 ARTICLE IV REPRESENTATIONS AND WARRANTIES 9 4.1 Warranty of Performance 9 4.2 Intellectual Property Rights 10 4.3 Corrections 10 4.4 No Other Warranties 10 ARTICLE V FEES AND PAYMENTS 11 5.1 Fees and Payments 11 5.2 Change Orders 12 ARTICLE VI REMEDIES AND LIABILITY 12 6.1 Remedies and Liability 12 6.2 Intent 14 6.3 Remedies 14 ARTICLE VII INDEMNITY 14 7.1 Indemnity 14 7.2 Insurance 14 ARTICLE VIII GENERAL 16 8.1 Force Majeure 16 8.2 Confidentiality 16 8.3 Termination 17 8.4 Procedure on Termination 17 (i) Page No. 8.5 Arbitration 18 8.6 Accounts and Records 18 8.7 Addresses for Notice 18 8.8 Assignment 19 8.9 Reorganizations 20 8.10 Binding Agreement and Enurement 20 8.11 Entire Agreement 20 8.12 Governing Law 20 8.13 Invalidity 20 8.14 Waiver 21 8.15 Counterparts 21 8.16 Further Assurances 22 Schedule "A" Schedule "B" - Schedule "C" - Schedule "D" - Detailed Description of Software Project Scope of Work Support Agreement Fee Structure and Payment Schedule SOFTWARE LICENCE AND IMPLEMENTATION AGREEMENT BETWEEN: THIS AGREEMENT made as of the day of , 2005. ADVANCED UTILITY SYSTEMS CORPORATION ( "Consultant ") - an d THE CITY OF VERNON ( "Organization ") RECITALS 1 The Consultant owns the Software (as defined below); 2. The Organization wishes to (a) acquire a license to utilize the Software, and (b) retain the Consultant to perform the Services (as defined below); and 3. The Consultant wishes to (a) grant the Organization a license to utilize the Software, and (b) provide the Services to the Organization, all upon the terms and conditions set out in this Agreement. NOW THEREFORE, in consideration of the mutual covenants set out in this Agreement and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties agree as follows: ARTICLE I INTERPRETATION 1.1 Definitions Throughout this Agreement, except as otherwise expressly provided, the following words and expressions shall have the following meanings: (a) "Agreement ", "this Agreement ", "the Agreement ", "hereof', 'herein ", "hereto ", "hereby ", "hereunder" and similar expressions mean this Software Licence and Implementation Agreement, including all of its Schedules and all instruments supplementing, amending or confirming this Agreement. All references to "Articles" or "Sections" mean and refer to the specified Article or Section of this Agreement. 1 (b) "Change Order" means any written documentation between the Organization and Consultant evidencing their agreement to change particular aspects of the Project Scope of Work. (c) "Completion of Services" means that all conversion, installation, configuration, training, testing and other implementation procedures as described in the implementation process checklist and timetable attached hereto as Schedule "B" have been successfully completed and the Software is fully operational and performing in conformity with the specifications set out herein. For purposes of this Agreement, Completion of Services will be deemed to have occurred on the date which the Organization commences using the Software as its predominate billing system. (d) "Designated Staff Members" means those staff members of the Organization designated by the Organization in Schedule "B" as "Designated Staff Members" for the purposes of this Agreement. (e) "Project Manager" has the meaning set out in Section 3.3(c) hereof. (f) "Project Scope of Work" means the scope of work appended hereto as Schedule "B" delineating, among other things, the Services that will be provided by Consultant to Customer pursuant to this Agreement, as such schedule may be amended or modified by mutual specific written agreement of the parties' respective representatives from time to time in accordance with the terms of this Agreement. "Required Programs" has the meaning set out in Section 3.3(b) hereof. "Services" has the meaning set out in Section 3.1 hereof. "Server Licence" means the non - exclusive license granted to the Organization pursuant to Section 2.1(a) hereof, to configure and install the Software on the Organization's server computers to enable Users to access and use the Software pursuant to User Licences. (j) "Software" means the utility billing and customer service computer software programs owned and developed by the Consultant, in machine readable, object code form, collectively called CIS Infinity, together with the media and other related materials, all as more particularly described in Schedule "A" attached hereto. (k) "Support Agreement" has the meaning set out in Section 3.4 hereof. (1) "User" means each individual granted access to the Software pursuant to a User License. (m) "User Licence" means each license granted pursuant to Section 2.1(b) of this Agreement, to allow an individual to access the Software within the Organization's computer network. (n) "Warranty Period" means a period of three months from the date of Completion of Services, during which time the Consultant shall correct any errors or malfunctions reported to the Consultant by the Organization in accordance with Section 4.3 of this Agreement. 1.2 Time of the Essence Time shall be of the essence in and of this Agreement and every part hereof. Any extension, waiver or variation of any provision of this Agreement shall not be deemed to affect this provision and there shall be no implied waiver of this provision. 1.3 Currency Unless otherwise specified, all references to amounts of money in this Agreement refer to U.S. currency. 1.4 Headings The descriptive headings preceding Articles and Sections of this Agreement are inserted solely for convenience of reference and are not intended as complete or accurate descriptions of the content of such Articles or Sections. The division of this Agreement into Articles and Sections shall not affect the interpretation of this Agreement. 1.5 Plurals and Gender The use of words in the singular or plural, or referring to a particular gender, shall not limit the scope or exclude the application of any provision of this Agreement to such persons or circumstances as the context otherwise permits. 1.6 Schedules The Schedules described below and appended to this Agreement shall be deemed to be integral parts of this Agreement. Schedule "A" - Schedule `B" - Schedule "C" - Schedule "D" - Detailed Description of Software Project Scope of Work Support Agreement Fee Structure and Payment Schedule ARTICLE 11 SOFTWARE LICENCES 2.1 Grant of Licenses Subject to the terms and conditions of this Agreement, the Consultant hereby grants to the Organization: (a) a non- exclusive Server Licence; and (b) 5 non - exclusive User Licenses to allow no more than 5 concurrent Users in the Organization to utilize the Software within the Organization's computer network. 2.2 Term of Licenses The licenses granted herein commence on the date of this Agreement and are of indefinite duration unless terminated pursuant to the terms hereof. 2.3 Restrictions on Use The licenses granted hereunder are restricted to use by the Organization to perform the basic functions of billing and customer service organization, which functions are more particularly set out in the chart constituting part of Schedule "A ". 2.4 Derivation, Modification and Copyright The Organization agrees that it will not attempt to derive, or permit or help others to derive the source code relating to the Software or attempt to otherwise convert or alter the Software into human readable code. The Organization further agrees that it will not attempt to duplicate, or permit or help others to duplicate, the source code relating to the Software. (b) The Organization agrees that it will not copy or otherwise reproduce the Software and that any additional copies as are reasonably necessary for the use of the Software shall be provided to the Organization through the issuance of additional User Licenses at the Consultant's then current charges, except that any additional User Licenses required by the Organization within 90 days of signing this Agreement shall be issued to the Organization in exchange for the User License fee specified in Schedule "D" to this Agreement. (a) 2.5 Acceptance of Software The Organization shall promptly test the Software upon delivery and shall accept such Software if it conforms to the specifications set forth in the description of the Software set out in Schedule "A" attached. The Organization shall be deemed to have accepted such Software if the Organization does not give a written statement of errors or malfunctions to the Consultant within the Warranty Period. 2.6 Ownership of Software and Confidential Information (a) The Organization acknowledges that the Software contains proprietary and confidential information of the Consultant which shall, at all times, remain the property of the Consultant. Through the grant of licenses pursuant to Section 2.1, the Organization is only entitled to use of the Software in accordance with the terms of this Agreement. The Organization will ensure that the Universal Copyright Convention symbol and other copyright and proprietary notices of the Consultant will remain on the Software in machine - readable form. The Organization will take the same care to safeguard the Software as it takes to safeguard its own confidential information and such care shall not be any less than would be taken by a reasonable person to safeguard its own confidential information. (c) No third party, other than duly authorized agents or employees of the Organization authorized pursuant to the User Licenses issued hereunder, shall have access to or use of the Software. 2.7 (b) (d) In order to assist the Consultant with the protection of its proprietary rights with respect to the Software and to enable the Consultant to ensure that the Organization is complying with its obligations with respect to the proprietary nature and confidentiality of the Software, the Organization shall permit the Consultant to visit during normal business hours any premises at which the Software is used and shall provide the Consultant with access to such Software. Escrow (a) The Consultant shall keep a copy of the source code for the Software (the "Source ") with a third -party escrow service provider selected by the Consultant from time to time (the "Escrow Agent "). As of the date of this Agreement, the Escrow Agent is Lincoln -Parry and Associates. (b) The Consultant hereby grants the Organization a contingent licence, subject to the conditions of Sections 2.7(c) and 2.7(d) herein, to use the copy of the Source maintained by the Escrow Agent for support purposes only. (c) The contingent licence referred to in Section 2.7(b) shall only be available to the Organization to the extent that the Organization has a Support Agreement in effect with the Consultant immediately prior to the occurrence of any event specified in Section 2.7(d). If no such Support Agreement is in effect, the Organization may retain the licences granted to it pursuant to Section 2.1, but will relinquish its rights to receive any updates or modification of the Software or continuing support from the Consultant. Furthermore, the Organization will relinquish its rights to access the Source upon the occurrence of any of the events specified in Section 2.7(d). To the extent that the Organization terminates its Support Agreement, the provisions in this Agreement respecting the use of the Software and the terms of the licences granted hereby, will continue to apply following any such termination. (d) The contingent licence granted pursuant to Section 2.7(b) shall, to the extent it remains available to the Organization, become exercisable if and when any of the following events occur: (i) the Consultant ceases to do business for any reason whatsoever; (ii) the Consultant fails or refuses to perform its obligations under this Agreement or provide the Organization with support for the Software pursuant to the Support Agreement (except as a result of a failure by the Organization to comply with its obligations under this Agreement or the Support Agreement), the Organization has issued written notice to the Consultant in respect of such failure or refusal pursuant to Section 8.3(a), and the Consultant has not cured the failure or refusal indicated in such written notice or issued a written notice of its own to the Organization disputing the default alleged by the Organization; the Consultant commits any act of bankruptcy within the meaning of the Bankruptcy Act, and fails to cure such act within 30 days of the commission of such act; and (iv) the Consultant institutes or has instituted against it bankruptcy, receivership, insolvency, reorganization, dissolution, liquidation or other similar proceedings under any federal or provincial laws and, in the case of any proceedings instituted against the Consultant, it fails to stay such proceedings or vacate or dismiss any order resulting therefrom within 60 days of the initiation of such proceedings or the issuance of such order, as the case may be. (e) On the occurrence and during the continuance of any of the conditions listed in Section 2.7(d) , and at the Organization's request, validation of Source shall be performed as follows: (iii) (i) the Consultant or a duly qualified computer programmer selected by the Organization (the "Programmer ") shall retrieve the Source from the Escrow Agent and shall perform the necessary Source verification and testing procedures at the premises of the Organization on the Organization's computer systems; (ii) the Programmer shall proceed to carry out the steps necessary to correct any deficiencies in the existing Software utilizing the Source; and (iii) following the completion of said verification and correction procedures, the Consultant or Programmer shall return the Source to the Escrow Agent. (f) The provisions of this Section 2.7, and the requirement of the Escrow Agent to perform its duties in accordance with this Section 2.7, shall be subject to: (i) the Organization executing any standard form documentation containing reasonable terms required by the Escrow Agent in connection with the performance of its duties and obligations hereunder; and (ii) to the extent escrow fees are charged by the Escrow Agent to the Consultant on a per licensee basis or are otherwise charged in such a manner so as to be reasonably allocable to the Organization, the payment by the Organization of such fees specified by the Escrow Agent from time to time, as more particularly set out in Section 5.1(c) of this Agreement (it being acknowledged by the Consultant that, as of the date hereof, no fees are charged in such a manner by the Escrow Agent). 2.8 Ownership and Disposition of Documents The Organization shall be the exclusive owner of all materials and documents which were developed or prepared by the Consultant specifically for the Organization. pursuant to this Agreement. All materials and documents which were developed or prepared by the Consultant for general use and which are not the copyright of any other party or publicly available, including educational materials, the Software and any other computer applications, shall continue to be the property of the Consultant. ARTICLE III CONSULTING SERVICES 3.1 The Consultant's Services Prior to the Completion of Services, the Consultant agrees, subject to the terms and conditions of this Agreement, to perform the following services (the "Services ") for the Organization: (a) Oversee and implement the conversion from the Organization's existing utility billing and customer service system to CIS Infinity substantially in accordance with the implementation process and timetable attached hereto as Schedule `B ". (b) Install the Software, perform necessary set up and configuration operations, perform initial testing and parallel testing as described in Schedule "B" attached hereto. (c) Provide the training outlined on Schedule "B" attached hereto to Designated Staff Members of the Organization. -7 3.2 Performance by Consultant (a) Manner of Performance -- The Consultant shall perform the Services in an efficient, competent and timely manner and exercise reasonable care, skill and diligence in the performance thereof. (b) Consultant's Discretion -- The Consultant shall determine in its sole discretion the manner and means by which the Services shall be performed. (c) Conduct on Organization's Premises -- The Services shall be performed with the Organization's full co- operation, on the premises of the Organization or, if agreed to by both parties, at an alternative location. The Consultant agrees, while working on the Organization's premises, to observe the Organization's rules and policies relating to the security thereof, access to or use of all or part of the Organization's premises and any of the Organization's property, including proprietary or confidential information. (d) Inquiries by Organization -- The Consultant shall respond expeditiously to any inquiries pertaining to this Agreement from the Organization. 3.3 Performance by Organization (a) Co- operation by Organization -- The Organization acknowledges that the success and timeliness of the implementation process shall require the active participation and collaboration of the Organization and its Designated Staff Members and agrees to act reasonably and co- operate fully with the Consultant to achieve the Completion of Services. (b) Required Programs. The Organization acknowledges that the use of the Software requires that the Organization obtain and install additional required software programs (the "Required Programs "), as detailed in the attached Schedule "A ", and the Organization agrees that the acquisition of the Required Programs shall be at its sole cost and that the cost thereof is not included in the fees herein. The Organization further acknowledges that the operation of the Software requires the Organization's hardware to be of sufficient quality, condition and repair, and the Organization agrees to maintain its hardware in the appropriate quality, condition and repair at its sole cost and expense, in order to facilitate the achievement of Completion of Services. Project Manager -- The Organization shall appoint a project manager (the "Project Manager ") who shall work closely with the Consultant to facilitate the successful completion of the implementation process and who shall be responsible for supervising the Designated Staff Members of the Organization and their co- operation with and participation in such process. (c) 3.4 Support Agreement Concurrently with the execution and delivery of this Agreement, the Consultant and the Organization have entered into a support agreement (the "Support Agreement ") in the form of and on the terms set out in the attached Schedule "C" which shall apply in respect of the ongoing services and support to be provided by the Consultant to the Organization following the expiry of the Warranty Period. Notwithstanding the ongoing application of the Support Agreement, the terms and conditions of this Agreement, insofar as they relate to the Software and the Documentation and the rights and obligations of the parties with respect thereto, shall continue to apply and the Support Agreement is not intended to, nor will it, apply to the exclusion of this Agreement. 3.5 Stages of Services For descriptive purposes, this provision is intended to set out the three stages pertaining to the Services and the ongoing support and maintenance of the Software. They are as follows: (a) Start to Completion of Services during this stage, all Services will be performed and the Software will be tested to the reasonable satisfaction of the Organization, until the Organization is prepared to commit to the Software as its predominant billing system. (b) Warranty Period - recognizing that the Software will require additional management and adjustment once it is used as the Organization's predominant billing system, the Warranty Period is the time period during which the Consultant will initially remedy program defects, errors and malfunctions, with a view toward "fine tuning" the Software and tailoring it to the Organization's particular needs. (c) Support Phase — following expiry of the Warranty Period, for so long as a Support Agreement is in effect, the Consultant shall be required to correct any programming defects, errors and malfunctions, and provide the Organization with any updates of, or modifications to, the Software. For greater certainty, during each of the above phases (subject only to the requirement that an effective Support Agreement is in place during the Support Phase), the Consultant will be required to correct any programming defects, errors and malfunctions which may occur in respect of the Software. ARTICLE IV REPRESENTATIONS AND WARRANTIES 4.1 Warranty of Performance The Consultant warrants to the Organization that the Software will perform for the Warranty Period, if the Software is properly used in accordance with the Consultant's instructions. This warranty is void if the Organization or any other third party changes or modifies the Software. Examples of such changes or modifications include, but are not limited -9 to, data modifications from third party software, the de- compiling and modifying of the source code, and tampering with the base set -up of the system. 4.2 Intellectual Property Rights (a) (b) The Consultant warrants: that it has the full right, authority and power to enter into this Agreement and to grant to the Organization the licenses and rights conveyed by this Agreement; and that the Software is an original work of authorship and does not infringe the intellectual property rights of others. 4.3 Corrections The Consultant covenants that it will make corrections of program malfunctions which are reported in writing to the Consultant during the Warranty Period and which are necessary for the Software to conform to the description provided in Schedule "A ". The Organization agrees to allow the Consultant the opportunity to make repeated efforts within a reasonable time to correct programming errors or malfunctions as warranted in this Agreement. 4.4 No Other Warranties The express warranties contained above are in lieu of all other representations, warranties and conditions, express or implied, whether arising by statute or otherwise in law or from a course of dealing, or usage of trade. Without limiting the generality of the foregoing, the Consultant does not represent or warrant and the Organization acknowledges that there are no further representations or warranties: (a) that the functions contained in the Software will operate in the combinations which may be selected for use by the Organization or will meet the Organization's requirements and satisfy its intended results; or (b) that the operation of the Software will be error free or that: (i) any programming errors will be corrected after the Warranty Period, or (ii) any updates of, or modifications to, the Software will be made available to the Organization after the Warranty Period, in each case unless there is an effective Support Agreement in place after the Warranty Period in respect of the period of time during which any such programming errors require correction, or any updates of, or modifications to, the Software, are developed by the Consultant and made available to the other licensees of the Software. ARTICLE V FEES AND PAYMENTS 5.1. Fees and Payments (a) The Organization agrees to pay the Consultant total licence fees of $65,000, consisting of fees for both the Server License and the User Licenses. In addition, the Organization agrees to pay Consultant an hourly rate of $130.00 per hour as compensation for providing the Services to the Organization. The fee structure and payment schedule is outlined in the attached Schedule "D ". (b) The Organization shall reimburse the Consultant for its direct expenses, including, but not limited to: courier services; photocopying, faxing and reproduction; all reasonable travel costs including a travel time rate of $50.00 per hour, meal expenses of not more than $50.00 per diem (receipts provided) and a mileage charge of $.29 per km; long distance telephone calls; and all other reasonable expenses incurred in the performance of the Consultant's duties. (c) In addition to all other amounts payable under this Agreement, to the extent escrow fees are charged by the Escrow Agent to the Consultant on a per licensee basis or are otherwise charged in such a manner so as to be reasonably allocable to the Organization, the Organization shall pay such fees charged by the Escrow Agent for performing its obligations under Section 2.7. The Consultant shall use its commercially reasonable efforts to negotiate the best possible fee structure with the Escrow Agent. The Escrow Agent may charge a one -time annual fee or a fee based on the number of beneficiaries entitled to access the Source. In either case, the Consultant shall be entitled to pass on to the Organization any fees relating to the Escrow Agent reasonably attributable to the Organization, provided that the Organization remains entitled to access the Source pursuant to Section 2.7(c). Upon receiving any invoice from the Escrow Agent that requires payment by the Organization, the Consultant shall submit the relevant invoice to the Organization, together with background documentation confirming the amount attributable to the Organization and evidence that the Consultant has paid the fees that are subject to such invoice. Within 30 days following receipt of such invoice, the Organization shall reimburse the Consultant for the amounts attributable to the Organization, as more particularly set out in the documentation submitted by the Consultant. The Consultant reserves the right to change the Escrow Agent from time to time in order to obtain the most appropriate package of fees and services, as determined by the Consultant, in its sole discretion. In the event that the Escrow Agent is replaced, prompt written notice of such replacement shall be provided to the Organization and the Organization shall execute any documentation reasonably required by the Escrow Agent in order to give effect to the provisions of this Agreement. (d) Any amount not paid by the Organization to the Consultant when due shall bear interest at 2% above the prime rate of interest as set by the Consultant's bank from time to time calculated monthly, not in advance. (e) The fees herein do not include sales, uses, excise, personal property or other taxes or custom charges or duties or other duties of any locality or jurisdiction and any such taxes or duties, including the Goods and Services Tax and Provincial Sales Tax, shall be the responsibility of and be paid by the Organization. 5.2 Change Orders With respect to proposed changes to the Scope of Work that do not materially impact the scope of either party's work effort required under this Agreement, the parties will cooperate in good faith to execute Change Orders in respect thereof, and will not unreasonably withhold approval of such proposed changes. If either party causes or requests a change that, in the reasonable opinion of the other party, materially impacts the scope of the parties' work effort required under this Agreement, such as, but not limited to, changes in the allocation of the resources of the Organization and of the Consultant applied to a task, changes in completion schedules for individual tasks or for overall implementation, and changes in staffing that require a party to provide additional work hours, the other party may propose a change to the Scope of Work to cover the additional work effort required of it. Approval of any such proposed changes to the Scope of Work will not be unreasonably withheld (it being acknowledged that any such material changes to the Scope of Work may require modifications to the consideration paid, and timelines governing, the Services), and any disputes regarding changes to the Scope of Work shall be handled initially by discussions between the parties which will be convened in good faith by the parties to resolve any such matters in dispute. ARTICLE VI REMEDIES AND LIABILITY 6.1 Remedies and Liability (a) Termination of this Agreement shall not affect any right of action of either party arising from anything which was done or not done, as the case may be, prior to the termination taking effect. (b) The Organization and the Consultant recognize that circumstances may arise entitling the Organization to damages for breach or other fault on the part of the Consultant arising from this Agreement. The parties agree that in all such -12- circumstances the Organization's remedies and the Consultant's liabilities will be limited as set forth below and that these provisions will survive notwithstanding the termination or other discharge of the obligations of the parties under this Agreement. (i) FOR BREACH OR DEFAULT BY THE CONSULTANT OR OTHERWISE IN CONNECTION WITH THIS AGREEMENT, INCLUDING A BREACH OF DEFAULT ENTITLING THE ORGANIZATION TO RESCIND OR BE DISCHARGED FROM THE PROVISIONS OF THIS AGREEMENT AND WHETHER IN THE NATURE OF A BREACH OF CONDITION OR A FUNDAMENTAL BREACH, THE ORGANIZATION'S EXCLUSIVE REMEDY, IN ADDITION TO ELECTING IF SO ENTITLED TO RESCIND OR BE DISCHARGED FROM THE PROVISIONS OF THIS AGREEMENT, SHALL BE PAYMENT BY THE CONSULTANT OF THE ORGANIZATION'S DIRECT DAMAGES TO A MAXIMUM AMOUNT EQUAL TO, AND THE CONSULTANT SHALL IN NO EVENT BE LIABLE IN EXCESS OF, THE LESSER OF (X) THE FEES PAYABLE TO THE CONSULTANT PROVIDED FOR HEREIN, AND (Y) THE AMOUNT ACTUALLY PAID BY THE ORGANIZATION UNDER THIS AGREEMENT UP TO AND INCLUDING THE DATE OF TERMINATION, PROVIDED THAT IF THIS AGREEMENT IS TERMINATED FOLLOWING EXPIRY OF THE WARRANTY PERIOD DAMAGES SHALL BE LIMITED TO (1) THE FEES ACTUALLY PAID BY CUSTOMER UNDER ANY CHANGE ORDERS AGREED BY THE PARTIES UNDER THIS AGREEMENT IN RESPECT OF WHICH THE SERVICES OR OTHER DELIVERABLES CONTEMPLATED BY SUCH CHANGE ORDERS HAVE NOT BEEN COMPLETED OR DELIVERED IN CONFORMITY WITH THE REQUIREMENTS OR STANDARDS SPECIFIED IN SUCH CHANGE ORDERS, AND (2) TO THE EXTENT A SUPPORT AGREEMENT IS THEN IN EFFECT AND IS TERMINATED, ANY AMOUNTS WHICH MAY BE CLAIMED BY CUSTOMER UNDER THE SUPPORT AGREEMENT. (ii) IN NO EVENT SHALL ANY DAMAGES INCLUDE, NOR SHALL THE CONSULTANT BE LIABLE FOR, ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMANGES EVEN IF THE CONSULTANT HAS BEEN ADVISED OF THE POSSIBILITY THEREOF. WITHOUT LIMITING THE GENERERALITY OF THE FOREGOING, THE CONSULTANT SHALL NOT BE LIABLE FOR LOST PROFITS, LOST BUSINESS REVENUE, FAILURE TO REALIZE EXPECTED SAVINGS, OTHER COMMERICAL OR ECONOMIC LOSS OF ANY KIND OR FOR ANY CLAIM WHATSOEVER AGAINST THE ORGANIZATION BY ANY OTHER PARTY. - 13 - (iii) CLAUSES (i) AND (ii) SHALL APPLY IN RESPECT OF ANY CLAIM, DEMAND OR ACTION BY THE ORGANIZATION IRRESPECTIVE OF THE NATURE OF THE CAUSE OF ACTION UNDERLYING SUCH CLAIM, DEMAND OR ACTION, INCLUDING, BUT NOT LIMITED TO, BREACH OF CONTRACT OR TORT. 6.2 Intent The parties hereby confirm that the waivers and disclaimers of liability, releases from liability, limitations and apportionments of liability, and exclusive remedy provisions expressed throughout this Agreement shall apply even in the event of default, negligence (in whole or in part), strict liability or breach of contract of the person released or whose liability is waived, disclaimed, limited, apportioned or fixed by such remedy provision, and shall extend to such person's affiliates and to its shareholders, directors, officers, employees and affiliates. 6.3 Remedies Where remedies are expressly afforded by this Agreement, such remedies are intended by the parties to be the sole and exclusive remedies of the Organization for liabilities of the Consultant arising out of or in connection with this Agreement, notwithstanding any remedy otherwise available at law or in equity. ARTICLE VII INDEMNITY 7.1 Indemnity The Organization shall indemnify and save harmless the Consultant, its successors and assigns together with its officers, directors, employees, agents and those for whom it is in law responsible, only from and against any and all liabilities, damages, costs, expenses, causes of action, claims, suits, proceedings and judgments (collectively "Claims ") which they may incur or suffer or be put to by reason of or in connection with or arising from any breach, violation or non - performance by the Organization of any obligation contained in this Agreement to be observed or performed by the Organization, or any wrongful act or negligence of the Organization or its agents or employees which relates to this Agreement, howsoever arising. The Organization acknowledges and agrees that this indemnity shall survive any termination of this Agreement. 7.2 Insurance Vendor shall, at Vendor's sole expense, maintain the following insurance: (a) Commercial General Liability Insurance including contractual coverage: The limits of this insurance for bodily injury and property damage combined shall be at least: (b) Each Occurrence Limit: General Aggregate Limit: $1,000,000 $2,000,000 Business Automobile Liability Insurance: Should the performance of this Agreement involve the use of automobiles, Vendor shall provide comprehensive automobile insurance covering the ownership, operation and maintenance of all owned, non -owned and hired motor vehicles. Vendor shall maintain limits of at least $500,000 per person and $1,000,000 per accident for bodily injury and $500,000 per accident for property damage. These requirements are being met by Vendor through the non -owned auto coverage available under the insurance referred to under (a) above. (c) Workers' Compensation Insurance: Vendor is covered under, and meets the statutory requirements of, the Workers Compensation Act of the Province of Ontario. (d) Employers Liability Insurance: Such insurance shall provide limits of not less than $1,000,000 per occurrence. (e) Professional Liability/Errors and Omissions Insurance. Such insurance shall cover acts, errors and omissions arising out of Vendor's operations or performance of Services in an amount not less than two million dollars ($2,000,000) per occurrence. (f) Premises Operation: Such insurance shall provide limits of not less than $1,000,000 per person and $2,000,000 per accident for bodily injury and $1,000,000 per accident for property damage. (g) Independent contractors: Such insurance shall provide limits of not less than $1,000,000 per person and $2,000,000 per accident for bodily injury and $1,000,000 per accident for property damage. (h) Completed Operations: Such insurance shall provide limits of not less than $1,000,000 per person and $2,000,000 per accident for bodily injury and $1,000,000 per accident for property damage. (i) Contractual Liability: Such insurance shall provide limits of not less than $1,000,000 per person and $2,000,000 per accident for bodily injury and $1,000,000 per accident for property damage. The insurance specified in (a) and (b) above shall: (1) name Customer, its officers and employees as additional insureds, and, (2) provide that such insurance is primary coverage with respect to all insureds and additional insureds. The above insurance coverages may be obtained through any combination of primary and excess or umbrella liability insurance. Customer may require higher limits or other types of insurance coverage(s) as necessary and appropriate. Vendor shall provide Customer certificates evidencing the coverages, limits and provisions specified above on or before the execution of the Agreement and thereafter upon the renewal of any of the policies. Vendor shall require all insurers to provide Customer with a thirty (30) day advanced written notice of any cancellation, non - renewal or material change in any of the policies maintained in accordance with this Agreement. ARTICLE VIII GENERAL 8.1 Force Majeure Neither party shall be liable for delay or failure in performance resulting from acts beyond the control of such party including, but not limited to, acts of God, acts of war or of the public enemy, riots, fire, flood, or other natural disaster, acts of government, strike, walkout, communication line or power failure, failure in operability or destruction of the Organization's computer (unless by reason of the negligence of a party to this Agreement) or failure or inoperability of any software other than the Software. 8.2 Confidentiality (a) Duty Owed to the Organization -- The Consultant acknowledges that it may receive information from the Organization or otherwise in connection with this Agreement or the performance of the Services. Except for information in the public domain, the Consultant agrees: (i) to maintain this information in confidence; (ii) not to use this information other than in the course of this Agreement; (iii) not to disclose or release such information except on a need -to -know only basis; (iv) not to disclose or release such information to any third person without the prior written consent of the Organization, except for authorized employees or agents of the Consultant; and to take all appropriate action, whether by instruction, agreement or otherwise, to ensure that third persons with access to the information under the direction or control or in any contractual privity with the Consultant, do not disclose or use, directly or indirectly, for any purpose other than for performing the Services during or after the term of this (v) - 16 - Agreement, any material or information, including the information, without first obtaining the written consent of the Organization. (b) Duty Owed to the Consultant -- The parties agree that if the Organization shall breach any term of Section 2.6 of this Agreement entitled "Ownership of Software and Confidential Information ", then the Consultant shall have the right to terminate this Agreement and the grant of licences herein forthwith without giving notice as set forth in Section 8.3(b). 8.3 Termination (a) If the Consultant should neglect to perform the Services properly or otherwise fail to comply with the requirements of this Agreement, the Organization must notify the Consultant in writing of such default (a "Default Notice "). Upon receipt of a Default Notice, the Consultant must either correct the default at no additional cost to the Organization, or issue a written notice of its own disputing the alleged default, in either case within 15 days immediately following receipt of a Default Notice. If the Consultant fails to correct the default, or issue a notice disputing the alleged default, in either case within 15 days following receipt of the Default Notice, the Organization may terminate the part of this Agreement relating to the provision of Services and in such case will be responsible for payment to the Consultant of only that part of the fee earned by the Consultant for those Services performed up to the time of communication of such notice of termination to the Consultant. (b) If the Organization should fail to comply with its obligations under this Agreement, the Consultant must notify the Organization in writing of such default (a "Default Notice "). Upon receipt of a Default Notice, the Organization must correct the default at no additional cost to the Consultant, or issue a written notice of its own disputing the alleged default, in either case within 15 days immediately following receipt of a Default Notice. If the Organization fails to correct the default, or issue a notice disputing the alleged default, in either case within 15 days following receipt of the Default Notice, the Consultant may terminate the whole of this Agreement including the grant of licence to the Software and in such case the Organization will be responsible for payment to the Consultant of only that part of the fee earned by the Consultant for that part of the Services performed in accordance with this Agreement up to the time of communication of such notice of termination to the Organization. 8.4 Procedure on Termination If this Agreement is terminated prior to the Completion of Services, then within 15 days following such termination, the Organization shall return the Software to the Consultant and shall . certify, under the hand of a duly authorized officer of the Organization, that all copies of the Software or any part thereof, in any form, within, the possession or control of the Organization have been returned to the Consultant. If this Agreement is terminated following the -17- Completion of Services, then the Organization may retain the copy of the Software in its possession as of the Completion of Services but it shall not be entitled to any additional User Licences, nor will it receive updates of, or modifications to, the Software made by the Consultant. Finally, it will not be entitled to access the Source through exercise of the licence granted pursuant to Section 2.7 of this Agreement. Notwithstanding the foregoing, the Organization will remain subject to the obligations imposed upon it pursuant to this Agreement with respect to the Software, including, but not limited to, such obligations relating to ownership of the Software and confidentiality. 8.5 Arbitration This Agreement shall be governed by the laws of the State of California. The parties agree that any and all disputes arising out of, or in relation to this Agreement, including without limitation any action in tort, shall be resolved exclusively, finally and conclusively by arbitration in Los Angeles County, California, under the auspices of, and pursuant to, the rules of the Judicial Arbitration and Mediation Services Inc. (JAMS). Each party will select an arbitrator. Those two arbitrators will then select a third arbitrator. The three member panel will make the final decision. All decisions of the arbitrators shall be in writing, and the arbitrators shall provide written reasons for their decision. The arbitration decision shall be final and binding on the parties. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award or to obtain injunctive relief. The exclusive jurisdiction and venue for any such action shall be the Superior Court of California, Los Angeles County. Any and all contracts between Consultant and any subcontractor shall include the same arbitration clause. 8.6 Accounts and Records The Consultant shall: (a) keep proper and detailed accounts in accordance with accepted accounting practices of all factors entering into the computation of the amounts payable pursuant to this Agreement; and (b) for a period of two years from the date of Completion of Services by the Consultant, preserve all accounts and other documentation relating to the Organization and keep them available for inspection by the Organization or its representative, at any time. The Consultant agrees that this obligation shall survive any termination of this Agreement. 8.7 Addresses for Notice Any notice required or permitted to be given to any party to this Agreement shall be given in writing and shall be delivered personally, mailed by prepaid registered post or sent by facsimile to the appropriate address or facsimile number set out below. Any such notice shall be conclusively deemed to have been given and received on the day on which it is delivered or transmitted (or on the next succeeding business day if delivered or received by facsimile after - 18 - 5:00 p.m. local time on the date of delivery or receipt, or if delivered or received by facsimile on a day other than a business day), if personally delivered or sent by facsimile or, if mailed, on the third business day following the date of mailing, and addressed, in the case of the Consultant, to: ADVANCED UTILITY SYSTEMS CORPORATION 2235 Sheppard Avenue East, Suite 1400, Toronto, Ontario M2J 5B5 Attention: Patricia Sorbara Telephone: 416- 496 -0149, extension 225 and in the case of the Organization, to: CITY OF VERNON 4305 Santa Fe Ave Vernon, CA 90058 Attention: Willard Yamaguchi Telephone: (323)583 -8811 x175 Fax: (323) 826 -1439 Each party may change its particulars respecting notice, by issuing notice to the other party in the manner described in this Section 8.7. 8.8 Assignment (a) This Agreement is not assignable by the Organization without the prior, express, written permission of the Consultant, which may not be unreasonably withheld. The licenses granted hereunder and the Software may not be sublicensed, assigned or transferred. (b) Without derogating from the Consultant's right to withhold its consent to an assignment of this Agreement, no permission shall be granted unless the assignee executes an assumption agreement in favour of the Consultant, in form and substance satisfactory to the Consultant. Furthermore, as a condition to granting its consent to any assignment of the Agreement by the Organization, the Consultant may require that the assignee agree to pay an additional server license fee based on any additional User Licenses it purchases within a one year period following the assignment. The Server License fee set out in Schedule "D" hereto has been established on the basis of the Server License supporting approximately 5 User Licenses. To the extent that the Agreement is assigned by the Organization, and the assignee requires additional User Licenses to support its customer base, then in addition to the then applicable User License fee, the Consultant shall be entitled to receive, and the assignee shall pay, an additional Server License Fee equal to the then prevailing server license fee for each additional User License required by the assignee within one year following the said assignment. The provisions of this Section 8.3(b) shall apply mutatis mutandis to any subsequent assignments occurring after the first assignment. -19 -` 8.9 Reorganizations The Organization acknowledges that the Server License fee set out in Schedule "D" hereto has been established on the basis of the Server License supporting approximately 5 User Licenses. To the extent that the Organization amalgamates, consolidates or undergoes any similar form of corporate reorganization or transition (a "Reorganization "), and the resulting entity (whether or not the Organization is the resulting or continuing entity) requires additional User Licenses to support its Server License, then in addition to the then applicable User License fee, the Consultant shall be entitled to receive, and the Organization shall pay, an .additional Server License fee equal to the then prevailing server license fee for each additional User License that the resulting entity purchases within one year following its Reorganization. The provisions of this Section 8.9 shall apply mutatis mutandis to any subsequent Reorganizations occurring following the first Reorganization. The provisions of this Section 8.9 shall not apply where the Organization undergoes a Reorganization involving only other organizations that have already purchased a Server License from the Consultant. For purposes of this Agreement, any corporate changes undergone by the Organization will be characterized as either an assignment, in which case Section 8.8 will apply, or a Re- organization, in which case Section 8.9 will apply, but it is not intended that Sections 8.8 and 8.9 will apply to any single sequence of events, if such application would result in a duplication of the fees provided for in those provisions. 8.10 Binding Agreement and Enurement This Agreement shall be binding upon the parties hereto and their respective successors and assigns. This Agreement shall enure to the benefit of the parties hereto and their respective successors and permitted assigns. 8.11. Entire Agreement This Agreement shall constitute the entire agreement between the parties pertaining to the provision of Services, and will supersede all prior and contemporaneous agreements, understandings, negotiations and discussions between the Consultant and the Organization whether oral or written in respect of this matter. There are no representations, warranties, collateral agreements, conditions or other agreements between the parties hereto in connection with the subject matter hereof except as specifically set forth herein. 8.12 Governing Law This Agreement shall be construed and enforced in accordance with the laws of the State of California and the federal laws of the United States of America, applicable therein. 8.13 Invalidity The invalidity or unenforceability of any provision or covenant contained in this Agreement shall not affect the validity or enforceability of any other provision or covenant herein contained and any such invalid provision or covenant shall be deemed to be severable. -20- 8.14 Waiver A term or condition of this Agreement may be waived or modified only by written consent of both parties. Forbearance or indulgence by either party in any regard shall not constitute a waiver of the term or condition to be performed, and either party may evoke any remedy available under the Agreement or by law despite such forbearance or notice. 8.15 Counterparts This Agreement may be executed in counterparts (whether by facsimile signature or otherwise), each of which when so executed shall constitute an original and all of which together shall constitute one and the same instrument. 8.16 Further Assurances The parties shall do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated hereby, and each party shall provide such further documents or instruments required by any other party as may reasonably necessary or desirable to effect the purposes of this Agreement and carry out its provisions. IN WITNESS WHEREOF the parties hereto have duly executed this Agreement on the day and year first written above. ADVANCED UTILITY SYSTEMS CORPORATION Per: Per: Name: Patricia Sorbara Name: hilip P Title: Vice- President CITY OF VERNON Per: Per: Name: Title: Name: Title: Schedule "A" Detailed Description of Software CIS Infinity is 32 -bit object - oriented software that operates in a Windows 2000/XP12003 environment. The basic package is comprised of the following individual modules and sub- modules that perform the basic functions of a billing and customer service operation and includes all related media and other materials: A -1 MODULES AND SUB - MODULES • Alerts/Actions • Customer Service Inquiry • Advanced Reports • Financial Reports • Billing • Inventory Management • Auto Final Bill • Backflow Device • Bill Re -print • Electric Meter • Bill Journal • Gas Meter • Cancel -Re -bill Process • Instrument Transformer • Cycle Billing Key Management • Estimating • Propane Tank • Exceptions • Solid Waste • Final Billing • Streetlight • Pre- Exceptions • Water Heater • Regular Billing • Water Meter • Manual Billing Transformer/Loading • Flat Rate Billing • Loans • Service Add/Remove • Memberships • Cash Register • Meter Reading • Bill Payment • Move In/Move Out • Credit Card Authorization Multiple Receivables • OCR/Barcode Scanning • New Services • Receipt Printing • Payment Processing • Sundry Payments • Adjustments • Collections • Bank File Import • Arrangements • Deposits • Assistance Agency • Payments • Bankruptcy • Penalties • Credit Rating Post Dated Checks • Disconnect/Reconnect • Third Party File Import • Late Charge/Discount • Period End Routines • Notices • Point of Sale • Post -Date Inquiry • Pre- Authorized Payment • Write -Offs • Rate Management • 3rd Party Notification • Scheduler • Contact Management • Service Orders • Correspondence Management Security A -1 Required Programs Windows 2000/XP /2003 Appropriate Network Software Remote access software compatible with the Consultant's Remote Access Policy Schedule B: Project Scope of Work City of Vernon Table of Contents Section 1- Project Overview 6 Implementation of CIS Infinity 6 Project Goals and Objectives 6 Implementation Strategy - Specific Goals and Objectives 7 Timeline 8 Scope of Work (General Obligations) 8 Primary Roles of Advanced: 8 Primary Roles of the City: 8 Specific Obligations of Advanced: 9 Specific Obligations of the City: 9 Modifications, Specifications and Acceptance 11 Project Organization & Staffing 13 Advanced Utility Systems - Proposed Implementation Team 14 Duties of Team Members 14 The City - Proposed Implementation Team 16 Duties of Team Members 16 Section 2 - Project Hours by Category 18 Conversion hours 18 System Installation/Configuration 18 Training 19 Project Management 19 Section 3 - Modification Descriptions 20 Section 4 - Hardware Recommendations 21 Section 5 - Implementation Plan 25 City of Vernon Schedule B: Project Scope of Work Page 2 Project Life Cycle — Overview 25 Project Start-up 25 Project Plan 25 Change Order Process 25 Data Extraction 28 Initial Conversion 28 System Configuration 28 Installation 28 Configuration 29 Training / Soft Parallel 29 Overview and Daily Process Training 29 Daily Process Testing 29 Conversion Testing 30 Billing, Cash, Adjustments, Reports Training 30 Billing, Cash, Adjustments, Reports Testing 30 System Administrator Training 30 Hard Parallel 30 Refreshed Data Extraction 30 Refreshed Data Conversion 31 Trial Balance /Quality Assurance Testing 31 Hard Parallel Process 31 Cut -over and Transition to Live 31 Final Data Extraction 31 Final Conversion — Final Balance 31 Cut over to Live 31 Live Week 32 City of Vernon Schedule B: Project Scope of Work Page 3 CIS Infinity Live 32 Section 6 - Acceptance Testing 33 Overview/Description 33 Baseline Accounts 33 Quality Assurance 33 Testing Protocols: Roles and Responsibilities 34 Testing Phases 35 Data Conversion 35 Functionality Testing (Soft Parallel) 35 Configuration/Process Testing (Hard Parallel) 35 Sample Testing Protocol and Conversion Test Report 37 Section 7 — Project Implementation Plan 46 Implementation Plan 46 Work Back Plans 52 Sample Conversion Work Back Plan 52 Section 8 - Training 53 Overview 53 Classroom Training 53 On the Job Learning 53 Sequence of training modules 53 Classroom Training 54 On the Job Learning 55 Summary of Training Days 56 Training Courses 56 Overview / Daily Process Training 56 Billing Training 57 City of Vernon Schedule B: Project Scope of Work Page 4 Payment / Adjustment Processing 58 Collections Training 59 Creating and Managing Service Orders 59 Reports Interface Training C0 Month / Year End Processes f0 System Administrator Training 61 Conclusion 61 City of Vernon Schedule B: Project Scope of Work Page 5 Section 1 — Project Overview Section 1 - Project Overview Implementation of CIS Infinity The project is defined as the provision of the CIS Infinity comprehensive customer information and billing software, by Advanced Utility Systems Corporation. (Advanced) to the City of Vernon (the City). The project as outlined in this Scope of Work encompasses all aspects of the City's CIS Infinity implementation, including but not limited to project management, data conversion, software control file configuration and training. CIS Infinity will be installed and configured to meet the customer information and billing needs identified by the City through the RFQ process. CIS Infinity will replace the current utility billing system at the City. The City of Vernon is primarily an industrial city and comprises 5.06 square miles, located approximately four miles southeast of downtown Los Angeles. The City provides services to approximately 1,500 commercial and industrial customers within the city boundaries. The City provides billing for the following services: • Electric Water ■ Sewer ■ Gas (future consideration; services not quoted in this Scope) The project will address solutions for the following major functional areas, as defined by the City: ■` Utility Billing/Customer Information • Customer /Account information • Collection Processing ■ Rate calculation based on the rate configuration in place at project start-up • Payment and Adjustment Processing The following interfaces will be provided through the implementation: • MVRS v5.3 MV90 Project Goals and Objectives Key project goals as agreed upon by Advanced and the City include: ■ The installation and implementation of CIS Infinity as defined in the Scope of Work and Implementation Plan. City of Vernon Schedule B: Project Scope of Work Page 6 Section 1 — Project Overview Training as outlined in the Training Plan. Project Management. Implementation Strategy Specific Goals and Objectives The implementation methodology incorporated into this schedule divides the implementation of CIS Infinity into four strategic stages: ■ Start -up planning and initial configuration. • Training / Testing — system training and testing. • Transition to Live. Stage 1 - Start-up Goals and Objectives ■ Assemble the project teams for Advanced and the City. ■ Requirements Review on -site at the City offices. • Review of bizProfiler (the Advanced on -line orientation questionnaire • Review and finalization of the installation timeline. • Initial configuration. • Installation of software on the City's server. ■ Review of initial configuration. Stage 2 - Training/Testing Goals and Objectives ■ Overview and Daily Processes training. • Testing of initial configuration following training. • Daily Processes Soft Parallel ■ Payment and Adjustment Training. • Payment and Adjustment Soft Parallel. ■ Collection Training. * Collection Soft Parallel • Billing Training. ■ Billing Soft Parallel. • Reports Training. ■ Month / Year End Training. City of Vernon Schedule B: Project Scope of Work Page 7 0 Section 1 - Project Overview • Administrator Training. Stage 3 - Hard Parallel Goals and Objectives • Hard Parallel. • Parallel production issues resolution. Stage 4 - Transition to Live Goals and Objectives ■ Cutover plan execution. • Production issues resolution. • Transition to Live/Post Live/Warranty Period. Timeline An implementation timeline has been established, identifying a target date for live use of CIS Infinity billing and customer service software. An implementation plan has been included in Section 7, Project Implementation Plan. Scope of Work (General Obligations) The implementation of CIS Infinity is to be completed through a shared effort by Advanced and the City, which includes but is not limited to the following: Primary Roles of Advanced: ■ Provide and install CIS Infinity Software on the City's computer server and client workstations. Configure the software to meet the needs of the City as outlined in the Specifications section of the Scope of Work and the bizProfiler (on line, electronic Orientation Questionnaire) that will be completed by the City at the start of the implementation phase. • Provide training services to assist the City with its use of the Software. • Provide on -going issue resolution and software update support. • Provide testing protocol worksheets to support testing. Primary Roles of the City: • Provide specifications approval, where necessary, to enable Advanced to fulfill its duties for data conversion programming and system configuration. • Provide adequate training facilities during implementation. • Phone (or access to a phone) for on -site Advanced staff. City of Vernon Schedule B: Project Scope of Work Page 8 Section 1 — Project Overview • Test CIS Infinity software configuration and modifications to ensure accuracy. • Operate the CIS Infinity software for its own business practices within the parameters of the Software License Agreement. Specific Obligations of Advanced: Delivery of CIS Infinity software and services: • Advanced shall deliver CIS Infinity software and services associated with that delivery and the City shall accept such delivery, based on the installation timeline established during the Start -up Phase. CIS Infinity software installation: • Advanced will provide installation of the CIS Infinity software at the City's location. Advanced will install CIS Infinity on a server(s) and PCs designated by the City. Following the initial installation, the City will be responsible for installing the software on all other PCs. Control File Configuration and Maintenance: ■ Maintain control file responsibility through the Go Live stage. (Responsibility for system control files will transition to the City following Go Live.) Training: • Advanced will deliver training held at the City's location, unless otherwise determined by both parties. The quote included in this Scope of Work identifies the allocation of training hours, as well as the conversion, configuration, consulting and project management hours included in this Agreement. Project Management: • A Project Manager stationed at Advanced shall be assigned to coordinate all implementation activities related to CIS Infinity. The allocation of hours between project management, conversion, configuration, consulting, and training categories may be adjusted from one category to another, by mutual agreement and as may be in the best interest of a successful implementation. Specific Obligations of the City: a) Procurement of hardware. the City shall be responsible, at its expense, for procuring and maintaining the computer hardware and systems software consistent with the specifications set forth in the attached Technical Specifications, and for updating the hardware configuration as may be needed from time to time. If not yet completed, City of Vernon Schedule B: Project Scope of Work Page 9 Section I - Project Overview the City shall complete its procurement and installation of the computer hardware and associated system software at least fifteen (15) days before the CIS Infinity software installation date. Access to facilities and employees. the City shall provide Advanced access to the City's equipment and employees and shall cooperate with Advanced as reasonably necessary for Advanced to perform its project management, installation, configuration, training, support and other obligations under this Agreement. the City shall devote the necessary equipment, facilities, personnel and other resources reasonably necessary to (a) implement the CIS Infinity software, (b) be trained in the use of the CIS Infinity software and (c) begin using the CIS Infinity software in production on a timely basis as contemplated by this Agreement. c) the City will provide competent staff during the implementation phase as identified below: • Project Manager. ■ Core Test Team (the City staff) - for testing accuracy of configuration. • Programmer /Analyst - for specifications related to conversion and configuration. • Database Administrator - for ongoing database management. • Network Administrator - for network and operating system management. • Data Entry Personnel - to enter historical data not electronically converted (where necessary and appropriate). Primary tasks for the City identified in this section are listed below: ■ Manage installation and operation of hardware and network. ■ Identify software configuration requirements. • Document software configuration. ■ Test software configuration and verify results in writing. • Test all system processing before live operation and verify results in writing. ■ Provide ongoing system and database administration. • Assume management and updating of the production account database. d) Training Facility. The City shall provide a suitable training environment for training classes held at the City's location including a computer for each user, network access and access to a photocopier and fax. Class size is not to exceed 8 users. The City shall provide an Internet connection (at least 128 kilobytes of bandwidth), and access to a printer from the training room. Internet access. The City agrees to maintain, for the duration of this Agreement and any renewal hereof, an Internet connection consistent with the Advanced Remote City of Vernon Schedule B: Project Scope of Work Page 10 Section 1 - Project Overview Access policy which will allow unassisted access to the City's server system to facilitate updates and remote support. Obtain third party training. The City shall ensure that its system and database administration staff is sufficiently trained on database management. Training for the database is arranged separately by the City with the respective database vendor. Modifications, Specifications and Acceptance During the implementation phase, should the City require any modifications to the software and/or interfaces not previously identified or included in this Scope of Work, the following approach would apply. Formal Modification and Acceptance Process The following steps are meant to outline the actions that must occur whenever software interface and modifications are proposed: Stage 1 - Specifications When any interface or modification to the software is requested, a thorough process should be undertaken to document the exact results associated with the requested interface. In the case of a Change Order, where the creation of the specification requires considerable work from Advanced, Advanced will notify the City and upon mutual agreement to proceed, Advanced will bill for specification development. The specifications should include the following: • A purpose statement that defines the need for the interface or modifications and clearly describes why the interface or modification is required and how this feature will be used by the City. • A clear defmition of the integration to and from any interfaces with external systems that may be desired. • A description of any variables or required points of flexibility that must be defined into the interface or modification. • If any calculations are to be a part of the interface or modification, the specification must include the logic, which should be used to derive calculated values. This portion of the request for specification should include several examples. • A discussion of any special circumstances or various business rules that many apply. • A description of any checks or edits that may be necessary. • A description of the desired cosmetic presentation. • Any graphical exhibits that will aid Advanced in the creation of the interface or modification. City of Vernon Schedule B: Project Scope of Work Page 11 Section 1 — Project Overview • If magnetic media is to be produced, file layouts with detailed field descriptions must be provided. • The specification should be signed by the City to indicate that the interface or modification does represent complete requirements for the interface or modification and that the City will accept the software interface or modification if delivered according to the specification. • The specification should only be written after a discussion with an Advanced analyst so that the interface or modification can be written in such a way that the existing software design is taken into account. Where the creation of the specification requires considerable assistance from Advanced, Advanced will notify the City and upon mutual agreement to proceed, Advanced will bill for specification development on an hourly basis. Stage 2 - Quote Process • Upon receiving the signed detailed written specification Advanced will verify its original quote to complete the interface or modification. • In the event of a Change Order, if the original programming quote is insufficient, the City must approve proceeding by signature before any work can be done. • Upon the City's approval, the quote is assigned a task number at Advanced and an estimated time for delivery of the interface or modification will be given. Stage 3 - Specification Review • A conference call will be initiated by Advanced to discuss the specification. The City must ensure that the City representatives who are knowledgeable about the interface or modification requirements participate. • Any changes or additions to the specification that are discussed verbally, which are intended to be part of the interface or modification should be sent to Advanced as an amendment to the specification. Amendments to the specification must also be signed by the City. • Interface or modification amendments will likely affect the bid amount; Advanced will therefore produce an updated bid after receiving the interface or modification amendment. Stage 4 - Programming • Advanced programmers will complete the interface or modification as specified. If questions arise during the programming stage, the City must submit amendments to the original specification in writing with signature. City of Vernon Schedule B: Project Scope of Work Page 12 Section 1 — Project Overview Stage 5- Quality Assurance • When the programmer has completed the interface or modification according to the written specifications and any amendments, the program interface or modification and the specifications shall be delivered to the Advanced Quality Assurance division where module testing shall occur. This level of testing is alpha testing. Stage 6- Modificafion Delivery • When the interface or modification passes quality assurance testing within Advanced, it will be delivered by electronic means to the City. The City shall acknowledge delivery of the interface or modification in writing. Stage 7- Acceptance • The City shall have 30 days to complete beta testing to validate that the interface or modification does operate as specified. • Advanced will accept written requests for changes during the 30 day beta test period that are necessary to cause the interface or medification to operate as described in the original specification. • Additional interfaces or modifications outside the scope of the original specification, which may be requested, shall go through this formal interface / modification and acceptance process and will not be considered deliverable as part of the original specification. • Acceptance of the interface will occur when 30 days have passed since the delivery of the interface or modification; or when 30 days have passed since the latest delivery of updates to the interface or modification that make the interface or modification operate as originally specified. Cosmetic preferences of the City or functionality beyond the original specification (with amendments) will not delay acceptance of the interface or modification. Project Organization & Staffing A successful implementation requires a commitment from both Advanced and the City to ensure that expert staff are assigned to the process, and given the tools they need to complete the task. The proposed make-up of the project team is outlined in the chart shown below. This team structure has been successfully used at numerous client implementations throughout the past six years. At this early stage, it is not our practice to propose specific individuals. Instead, Advanced will indicate the level of individual required, and a reporting structure. During start up, we will work with the City to determine the best team. Note: This organizational chart excludes specialists from Advanced who handle non- recurring items. For example, customizations would require system development resources. City of Vernon Schedule B: Project Scope of Work Page 13 Section 1 — Project Overview Advanced Utility Systems - Proposed Implementation Team Project Sponsor(s) Project Manager I i -' , I i • Senior Conversion Specialist Technical Lead 1 Interface Experts Implementation Specialists Duties of Team Members Advanced Team Members Project Sponsor: Training Lead Training Specialists • The Project Sponsor represents a point of escalation for issues that require input beyond the Project Manager or the Core team levels. This person is a senior representative of Advanced who has decision- making authority. Project Manager: Coordination of all activities to make the software operational Report to steering committee to ensure project delivered as projected, or with any changes explained Resource planning and scheduling • Problem solving • Relationship Management — Intra -team and with the City • Coordination of internal and external specialists — i.e. software developers • People Management with the City's Implementation team, and with the steering committees • Assurance of the overall quality of work and contract adherence by Advanced implementation team members. Senior Conversion Specialist: ■ Map data from existing CIS solution to CIS Infinity City of Vernon Schedule B: Project Scope of Work Page 14 Section 1 - Project Overview Ensure data mapped into CIS Infinity is complete and accurate - through active knowledge of processes followed and results tested • Trouble shoot problems ■ Understand existing data structure and new data structure ■ Oversee final data acceptance Technical Lead / Implementation Specialists: • Oversee the set -up of control files and create processes within CIS Infinity • Understand the City's rules, regulations and processes • Work with the City's team to modify /revamp processes and seek Project Manager support ■ Document processes and practices where necessary Assist project manager in project management in areas such as timing and scheduling ■ Responsible to relay business issues to the City's implementation team ■ Assist in system testing and overall quality assurance • Advise testers of work required, sign -off procedures and timing Training Lead/Training Specialists: • Create training plan and collect necessary approvals • Provide training documentation as needed, customized where possible • Lead training classes ■ Address questions, concerns and issues ■ Provide one -to -one assistance in system operation City of Vernon Schedule B: Project Scope of Work Page 15 Section 1 — Project Overview The City - Proposed Implementation Team Project Sponsor n Project Manager System Testers Senior Conversion Expert Duties of Team Members The City Team Members Senior Analysts / Subject Matter Experts Interlace Expert System / Technical Administrators /DBA Advanced recommends that a core team from the City be assembled consisting of representatives from the following areas: Project Manager, Cash Staff, Billing Staff, Collections Staff, Technical Staff, Metering Staff, and Accounting Staff. The Project Manager and Billing representative can expect to devote significant time to the project. The rest of the staff, including an individual responsible for rates, can anticipate spending up to 50% of their time depending on exactly how the City allocates their work and the phase of the project. A description of duties of team members is listed below: Project Sponsor: • The Project Sponsor represents a point of escalation for issues that require input beyond the Project Manager or the Core team levels. This person should be a senior representative of the City who has decision- making authority. Project Manager: • Coordination of all activities to make the software operational ■ Report to steering committee to ensure project delivered as projected, or with any changes explained ■ Resource planning and scheduling • Problem solving • Relationship Management — intra -team and with the vendor • Process Review and Reengineering • Coordination of internal and external specialists • Oversee project communications — to others in the City System Testers: Understand all system functionality City of Vernon Schedule B: Project Scope of Work Page 16 Section 1 — Project Overview • Test critical system functions in different environments to ensure all elements of the implementation are thoroughly tested and operational • Document existing processes and expected results • Use Service WiseTM software to log errors and omissions • Responsible for approval of implementation of software modules Senior Analysts / Subject Matter Experts: • Work with the Advanced team to modify/revamp processes and seek Project Manager support • Document existing processes impacted by CIS • Lead client input into the set-up of control files • Assist project manager in project management in areas such as timing and scheduling • Responsible to relay business issues to the Advanced implementation team Interface Expert(s): • Work with Advanced specialists to formalize requirements, timing, hours of work, and delivery schedule • Develop interface specifications • Coordinate all testing of completed interfaces • Ensure data sharing is optimized System / Technical Administrator: • Oversees logistics to ensure technology is in place and working. • Ensures other systems do not disrupt and configuration of CIS Infinity. • Ensure server and desktop hardware is purchased, tested and operational • Assist Advanced with set-up and configuration efforts • Responsible for administrative details — i.e. preparation of training rooms • Troubleshoot network, hardware and other system problems City of Vernon Schedule B: Project Scope of Work Page - 17 Section 2 - Project Hours by Category Section 2 Project Hours by Category Outlined below is a detailed breakdown of the project hours by category for the implementation of CIS Infinity at the City. This breakdown includes a brief explanation of four main sub - sections: Conversion, System Installation and Configuration, Training and Project Management. Based on visits to the City and ongoing discussions, Advanced understands that the City is very unique, having been fully industrial since 1905. While the City may have a small number of customers, that number is not a reflection of the complexities involved in meter reading and billing. The specific requirements of the City's customers will require labor intensive system configuration and will involve many hours of testing, data conversion and configuration that normally only much larger utilities would incur. Conversion hours To provide an accurate and comprehensive assessment of the conversion process, Advanced would usually propose to spend several days analyzing your current system. At this time, Advanced is prepared to provide a detailed. proposal, including an hourly estimate and a schedule. However, it should be -rccc gnized that changes :night be required once the assessment takes place. It covers most elements of data conversion, assuming your experts lead the data extraction from your current system and provide the data to Advanced in an Access format. esc tiort Ho 4 Diagnose existing system a) Determine what data is available b) Determine what data is not available c) Determine what data can be trusted 40 Map data fields from the existing system to the new system Programming / testing of conversion code 80 100 Perform ongoin conversion and ensure data mapping is correct 80 Total: System Installation /Configuration System Installation includes physically setting up the software at the City's site, activity required to develop interfaces to other systems in place, and extensive system testing. In addition, configuring the control files will involve an assessment of current practices and processes, and input from the City's implementation team on overall "best practices ". The City has a unique situation with its overall customer demography therefore hours for set -up interfaces and test billing are greater than usual for an organization of your size. This approach will insure a strong interface with MV90 that will allow CIS Infinity to be used for all of the City's complex billing and inquiry needs. System Installation includes installing the software at your site on both the application and database server in addition to completion of the client installs. Configuration includes setting up the control files specific to the City's requirements. City of Vernon Schedule B: Project Scope of Work Page 18 4 De Section 2 - Project Hours by Category Install Server Software 10 Install Client Software 20 Configuration of Control Files 300 Set up Interfaces with Third Party software (i.e. Full Testing of MV90 Interface) 100 Test Billings / Cash processing / adjustments with installed settings Full Testing of Processes of CIS Infinity with existing system. Advanced Staff On -site During the Initial Phase of Parallel Testing and Live. Set -up of Reporting Using Ad -hoc Reporting Tool 150 120 100 Total: 800 Training Training is vital to maximizing the benefits of CIS Infinity. Classroom training is assumed, augmented by on the job learning with users throughout the project. A more detailed training outline is included under Section 8 - Training Plan. Given the complexities of many of the City's accounts, training will be intensified with the user to provide the ability to manage these accounts that use MV90 in an effective manner. This training will focus on the MV90 interface, billing of customers who use MV90, Instrument Transformer Inventory, Installation Database (manage feeder and instrument transformer configurations) and the CIS Infinity Rate Engine for complex billing. Total training hours required: 350 hours Project Management The implementation of CIS Infinity will require Project Management efforts from both the City and from Advanced. Advanced proposes the appointment of joint Project Managers, who receive guidance from an executive level steering committee or sponsor. In addition to overseeing day -to -day activities the key activities of the Project Managers will include keeping the implementation schedule on- track, securing proper resources for the project, management reporting and issues resolution. Total project management hours required: 300 hours City of Vernon Schedule B: Project Scope of Work Page 19 Section 3 — Modification Descriptions Section 3 - Modification Descriptions No specific software modifications or customizations are required for the City of Vernon. If during the implementation process a modification is identified as being necessary to meet the City's requirements, the process outlined in Section 1 will be followed. City of Vernon Schedule B: Project Scope of Work Page 20 t Section 4 — Hardware Recommendations Section 4 - Hardware Recommendations CIS Application and Database Server configuration - Intel Based Dual processor server (note: one server will be sufficient to host both the application and database). General Configuration Intel Xeon Dual Processor Server Architecture Form factor Rack Mountable or Tower Design Processor(s) (Intel) Processor (CPU) Dual Xeon 3.6 GHz /1 MB processor with 800 MHz system bus Memory Standard Cache memory 2 MB level 2 cache per processor Memory (RAM) 4 GB DDR SDRAM (preferably 2 x 2 GB chips for future expansion) Network controller(s) Gigabit Ethernet NIC PCI Dual Intel Pro 1000MT Single port copper gigabit network adapters. (10 /100 /1000) Storage Controller(s) SCSI Controller PERC4 /DC 2 internal channels - embedded RAID 128MB cache Storage Diskette Drive 3.5" 1.44 MB CD -ROM 8x DUD -ROM Drive Hard Drives (Universal Hot Plug) Two 36 GB 10,000 rpm Ultra 320 SCSI - RAID1 Four 73 GB 10,000 rpm Ultra 320 SCSI - RAID10 Redundancy Cooling Hot Plug Redundant fan Power Supply Hot Plug redundant power supply Industry Standards Approved certifications (preferred) ACPI 2.0 PCI 2.2 PXE WOL Physical Address Extension (PAE) Support City of Vernon Schedule B: Project Scope of Work Page 21 Section 4 — Hardware Recommendations Operating system Microsoff Windows 2003 Server Standard Edition City of Vernon Schedule B: Project Scope of Work Page 22 Section 4 — Hardware Recommendations CIS Infinity desktop configuration - Intel Based high end user General Configuration 1 Intel Pentium IV Single Processor Architecture Form factor 1 Mini -Tower Processor(s) (Intel) Processor (CPU) 1 Intel Pentium4 3.6 GHz 800MHz FSB Memory Standard Cache memory 512 -KB Integrated ECC L2 Cache Memory (RAM) 2 GB DDR Non -ECC SDRAM, 400MHz Storage Diskette Drive 3.5" 1.44 MB Optical Drive 48x CD -ROM or 16x DVD -ROM Hard Drives 80 GB IDE Hard Drive 7200 rim Communications Fast Ethernet NIC Integrated Gigabit Ethernet NIC PCI 10 /100 /1000 Video Internal Video Integrated Video card with 128 MB of memory Operating system Microsoft Windows XP Professional with the latest service pack. Applications Installed applicatons Microsoft Office 2003 Professional with the latest service pack City of Vernon Schedule B: Project Scope of Work Page 23 Section 4 — Hardware Recommendations Typical CIS Infinity desktop configuration - Intel Based casual end user General Configuration 1 Intel Pentium IV Single Processor Architecture Form factor 1 Mini -Tower or Desktop format Processor(s) (Intel) Processor (CPU) 1 Intel Pentium4 2.8 GHz 800MHz FSB Memory Standard Cache memory 1 MB Integrated ECC L2 Cache Memory (RAM) 512 MB DDR SDRAM Network controller(s) Storage Diskette Drive 3.5" 1.44 MB O • tical Drive 48x CD -ROM or 16x DVD -ROM Hard Drives 40 GB IDE Hard Drive 5200 rpm Communications Fast Ethernet NIC PCI 1 Integrated Fast Ethernet NIC PCI 10/100 Video Internal Video Integrated Video card with 64 MB of memory Operating system Microsoft Windows XP Professional with the latest service pack. Applications Installed applications Microsoft Office 2003 Professional with the latest service pack City of Vernon Schedule 13: Project Scope of Work Page 24 Section 5 — Implementation Plan Section 5 - Implementation Plan Project Life Cycle Overview There are four major stages of a CIS Infinity implementation: Project Start -up, Soft Parallel, Hard Parallel and Transition to Live. Within each project phase are milestones that need to be achieved in order to move to the next project stage. Each phase also includes associated training with worksheets, which need to be generated and submitted to the Advanced Project Manager. Project Start -up During this first phase of implementation, the project teams at Advanced and the City are assembled, the City completes the Orientation Questionnaire and submits it to Advanced, Advanced analyzes the completed Questionnaire, the Advanced team allocates resources and project schedules and plans are solidified. Project Plan The City and the Advanced Project Managers will aiscuss the project plan and internal project dates affecting project milestones (for example, third party delivery dates). the City will manage the timeline of any third party vendors, which may affect project milestone dates and provides these dates to Advanced prior to base lining the project schedule. Any significant changes to the project timeline are to be communicated to and reviewed by Project Sponsors at the City and at Advanced. Significant changes affecting the overall scope of the project may necessitate the use of the Change Order process. Change Order Process Once the project baseline scope has been documented and agreed to by the City and Advanced, any changes to the project which impact project schedules, costs, resources and risk must go through a clearly defined Change Order process. A change must be identified and documented by the Project Managers and the schedule and costs impact assessed and documented. If there is no impact on the project schedule or costs then the change will be implemented in writing by the Project Managers. If the change impacts on the schedule or costs, then the Change Order process must be undertaken. The following checklist will help analyze how proposed changes will impact the project: ■ What are the proposed changes? ■ How will the proposed change impact the schedule? Will it delay the project? ■ Will it speed up the project implementation? ■ Are there additional costs associated with the change? ■ Which phase of the project will the change impact? City of Vernon Schedule B: Project Scope of Work Page 25 Section 5 — Implementation Plan What is the impact? What are the dependency tasks that the change will impact? • What are the deliverables that the change will impact? • What are the changes in resources being proposed? • Does the change increase or decrease the level of risk? Process Flow Diagram The fol lowing diagram depicts how changes will be managed within this project. Change Identified/ Documented Project Managers Owner Assigned Change Logged • Change Communicate d to Impacted PM's Change Impact Assessed & Documented Project Managers Project Specialist roje Schedule act • Approval for Schedule Adjustment rojec Costs acte Approval for • Cost Adjustment App ova eceived9 • Schedule & Implement Change Change Deferred/ Cancelled Regular Status Update • Regular Status Review • Project Specialist Project Managers City of Vernon Schedule B: Project Scope of Work Page 26 Section 5 — Implementation Plan Change Identified and Documented: A Change is usually initiated via the Change Order. When a request is deemed to be a change, the Project Manager enters this change process. Change Owner Assigned: Through project meeting discussions, a single Change Owner is identified (normally a Project Manager). This person speaks to the change, ensures it is analyzed by the appropriate team members and works through any approval processes to determine final disposition. Change Logged: An Access database will be established to control/log changes. The Project Manager logs a new change into the database where the change is given a control number. Included in this document is a copy of the Change form showing the information collected. Change Communicated to Impacted Team Members: The Project Manager will ensure that each new Change is communicated (electronically where possible) to all impacted team members. The Change Owner will determine who these people are. Change Impact Assessed and Documented: Each Project Manager is responsible for analysis of any change that may impact their project deliverables. Impact is documented in the Change database. Project Schedule Impacted: If the change impacts the Project Schedule, the Change must receive the City approval. Project Costs Impacted: If the Change impacts project costs, the change must receive the City approval. No Cost/Schedule Impact: If the change does not result in any revisions to either costs or schedules, the change will be implemented as per the next step. Schedule and Implement Change: If all necessary approvals are received (or none were required), the change is scheduled and implemented. If the project schedule is impacted, a new revised project schedule is created. Change Deferred/Cancelled: If the change is not approved, the reasons are to be documented and it will be cancelled or deferred until after the project is completed. Regular Status Update: Project Managers must be provided with any new information related to Change Status so that the database is kept current and the Change Summary form reflects current information. Project Managers will create a Change Summary report on request only. Regular Status Review: Review of the ongoing status of changes is a mandatory item on each project management meeting agenda. City of Vernon Schedule B: Project Scope of Work Page 27 Section 5 — Implementation Plan Data Extraction The data residing in the existing billing system will be extracted by the City into an Access database and provided to Advanced with detailed file layouts, according to dates established in the Project Plan. Initial Conversion The initial data conversion phase of CIS Infinity will average four to six weeks. The length of time necessary for conversion is dependent on several key factors including the state of the current system, operating platform and the level of cooperation provided by the designers, owners and/or maintenance staff of the existing software package. The Advanced team will assess the specific needs of the City and review the condition of the data to determine the ease of export transition from the existing platform. The City will designate an individual who is familiar with the file structures and field level descriptions of the existing system to work in conjunction with our conversion team. The Advanced technical team will convert the data and configure the software, based on the Orientation Questionnaire completed by the City. The Advanced team will develop a conversion routine and configure the control files to reflect the current process. Once the initial conversion has been completed, the Advanced team will test the data from the perspective of a programmer and an end user. From this testing a list of changes is sent to the Advanced conversion team in order to re -write or modify the conversion routines. After these changes have been implemented the data will go through a second phase of testing at Advanced. System Configuration The initial configuration of CIS Infinity typically takes four to six weeks. Ongoing set -up continues through the Installation, Training, Soft Parallel and Hard Parallel stages and varies depending on the complexity of the overall requirements. The CIS Infinity control forms will be configured to reflect the City's current procedures including rates, estimating, pro- ration, exception checking, penalties, customer types and transaction codes, as well as the creation of bill formats and notices. During the initial configuration of the software, members of the City's team will be available to answer questions regarding work processes as they are typically performed at the City. These interviews will be coordinated by the Project Managers. Installation An Advanced technical specialist will conduct the installation of the software and data with the assumption that all hardware requirements have been met by the City prior to installation. The initial installation of CIS Infinity generally takes place over one to two days. During this time training for the City's technical staff will enable your technical team to perform future client installs on their own. City of Vernon Schedule B: Project Scope of Work Page 28 Section 5 — Implementation Plan The CIS Infinity software and the converted data are loaded onto the server and on individual workstations. The Advanced technical team requires access to the City's server during Installation and the City's technical staff will work closely with Advanced during this time. Overview Training will be conducted for the users following initial installation to ensure that they can access the system and us the converted data for testing purposes. To ensure an efficient and effective parallel process, Advanced recommends setting up a separate area for testing and training. Configuration Following the Start-up Phase, the Advanced technical team will begin configuration of the control files based on the answers provided in bizProfiler (the electronic Orientation Questionnaire). Training / Soft Parallel Overview and Daily Process Training Overview training takes place immediately following the installation of CIS Infinity at the City, with the City's converted data. This training focuses on navigation of the CIS Infinity user interface and is designed to enable users to search for accounts on the system and analyze the results of the initial data conversion. Daily Process training will prepare the users to search for accounts and answer basic customer service questions. It includes processing moves, editing customer information, updating customer notes and interpreting and manipulating reading, transaction and billing history. Following this training, the users will start testing on all daily processes Daily Process Testing After the requisite training, the City's test team will be ready to run parallel on the system, defined as performing identified processes on both systems and the monitoring of results on CIS Infinity compared to the current billing system. After Overview and Daily Processes training, the users will conduct testing on all daily processes. During soft parallel testing, the City's users will have been trained on all functions (daily processes, billing, cash, collections, new services) and will run these functions on the City's current system and on CIS Infinity. The resulting comparison between the systems ensures that the new software is performing accurately and calculating properly. During testing, the City's test team will complete a series of testing protocols that support them through the more complex processes involved in testing. These worksheets are integrated with the training process and provide team members with documentation to refer to during testing. The City's Project Manager will record progress on the testing reports and return them to the Advanced Project Manager. The testing reports enable Advanced to respond proactively to the ongoing needs of staff during parallel stages. the City's Project Manager will provide Advanced with the information needed to adjust set -up if necessary. City of Vernon Schedule B: Project Scope of Work Page 29 i Section 5 — Implementation Plan Conversion Testing During the Conversion Testing phase, the City's core team will undertake testing of the conversion — the mapping of data from the current system to CIS Infinity. Advanced will supply Conversion Test worksheets that will be used by the City's users to report issues with the conversion. The City's project manager will coordinate completion of the Conversion Test reports and submit them to the Advanced Project Manager. This testing will provide the Advanced team with information relating to conversion anomalies to be corrected. Re- testing of identified conversion issues will be necessary. During Conversion Testing, the Advanced team will access the City's server in order to upload data corrections, with the assistance of the City's technical staff. The users will re- test anomalies based on initial test results and established base line accounts. Billing, Cash, Adjustments, Reports Training Billing training includes all aspects of producing and adjusting any type of bill including final bills and billing adjustments and the billing related features unique to CIS Infinity. Collections' training includes exemptions, penalties, payment arrangements, disconnects and reconnects and collections processing. Billing, Cash, Adjustments, Reports Testing As the users complete each module of training they will begin testing those processes. As the users undertakes testing on each module, the Advanced technical and conversion specialists analyze and correct reported testing issues. System Administrator Training This session is intended for the non - technical administrators of the system (department supervisors or system administrators) who will be expected to make changes to the system rules and security parameters to suit the City and individual user needs. Users will be shown how to manipulate Control forms in order to meet their departmental needs, how to add new users to the system and provide them with tailored menus as well as how to administer Service Orders and use the Task, Letter and the Credit Rating systems. Hard Parallel Refreshed Data Extraction The City will extract updated data to be converted for the purposes of conversion and process re- testing. City of Vernon Schedule B: Project Scope of Work , Page 30 Section 5 — Implementation Plan Refreshed Data Conversion Prior to commencing hard parallel at the City, data will be converted. Advanced technical specialists will modify configuration based on testing issues submitted by the City. Trial Balance /Quality Assurance Testing Advanced will complete a trial balance and prepares a CD for delivery to the City. After the refreshed data has been uploaded, the City will pull the Trial Balance reports from the old system; Advanced will be on -site to provide technical assistance. All parties are to reach consensus on the results prior to the City's approval of the trial balance. Hard Parallel Process The City's team will test every cycle during this phase to ensure that every account calculates correctly. The City will perform identified processes on the current system and on CIS Infinity and compare the outcomes. The City's Project Manager will track of the results of the testing of key processes on both systems during the Hard Parallel. Advanced will provide checklists and testing protocols to assist the City's team with tracking cycles and processes both pre and post Live. Cut -over and Transition to Live Final Data Extraction The City will extract updated data to be converted for the purposes of Live. Final Conversion - Final Balance During this phase no activity will occur on the current system in order to enable a final balance to be obtained. Final data extraction will be delivered to Advanced in an expedient manner. The old system will be redundant after this point, and no new data is to be entered into it. The City will run Month End/Year end reports from the old system and produce balance reports and hold this on site until the scheduled Transition Day. Advanced will complete and deliver a refreshed data conversion. Once the trial balance is completed, the Advanced technical specialists prepare a CD for delivery to the City. Cut over to Live At least one complete day is required to transition. During this day inquiry only functionality will be available but entering data on either system cannot occur. Advanced technical specialists will be on -site to assist with the transition including the copying of the new CD to the server, final review of control files and the completion of the final balance. The City will be required to approve the final balance. City of Vernon Schedule B: Project Scope of Work Page 31 Section 5 — Implementation Plan Live Week During the first week of Live, the Advanced Project Manager coordinates all activity. A training specialist will be on -site for at- the- elbow training and support. Advanced conversion specialists will assist with table refreshes where necessary. Advanced technical specialists will assist in the process from the Advanced offices with technical support as needed. The Project Managers from Advanced and the City will develop a Post -live strategy including the development of an outstanding issues list CIS Infinity Live Advanced will assist the City throughout the implementation period to identify and respond to any needs and concerns. If hours permit, Advanced will provide at least one technical and one training team member on -site during the first two weeks post -live to ensure that staff makes a confident transition to CIS Infinity. A meeting will be arranged between the City's Project Manager and the Advanced Project Manager two weeks post live to discuss any remaining issues and scheduling. Advanced will provide high priority support to the City during the immediate post -live period and the Warranty Period. City of Vernon Schedule B: Project Scope of Work Page 32 Section 6 - Acceptance Testing Section 6 - Acceptance Testing Overview /Description Acceptance testing is a key to the successful outcome of the implementation of CIS Infinity at the City. As detailed in the Project Plan, testing occurs throughout the CIS Infinity implementation process to ensure that all software configuration and conversion issues are resolved prior to the Go Live. The primary responsibility of Advanced is to test the CIS Infinity product, in terms of its functionality operating as designed, without errors, and in a manner that meets the needs of all of the users. The primary responsibility of the City is to test the product as it operates in their working environment that includes data converted from the City's existing database and configuration dictated by the City and completed by Advanced staff. Testing falls into four main stages: Data Conversion, Soft Parallel, Custom Modifications and Interfaces and Hard Parallel. During each phase, a set of test protocols is established and must be completed. Data conversion and soft parallel testing is undertaken by the users at the city, fottowing the completion of the preliminary training. The training is designed to provide users with the necessary skills to complete the required testing. Testing will ensure that users understand the flow of the new software and provide an account by account test of calculations that will demonstrate that the software is functioning as expected through the transition to Live. Advanced will provide the appropriate worksheets to support the City's staff during testing. Advanced will provide ongoing consultation each phase of the testing, particularly to ensure immediate identification of major issues that may impact on the Live date. Baseline Accounts The City will select a group of baseline accounts prior to the completion of the first conversion. Baseline accounts provide Advanced staff with a point of reference when creating and reviewing the converted data. The baseline accounts will represent a cross - section of account types and accounts handled differently than "normal" accounts. For example, a sample of an account for each rate code, an account with automatic withdrawal, accounts with multiple meters, and accounts with compound meters. The City will use these baseline accounts to test each data conversion. Quality Assurance Advanced has a quality assurance team who tests the product for the City. Quality Assurance is undertaken for all modules prior to installation. City of Vernon Schedule B: Project Scope of Work Page 33 Section 6 — Acceptance Testing Testing Protocols: Roles and Responsibilities Advanced will provide testing protocols for each module. The City's test team will be responsible for managing and executing tests of the configuration of the control files, as exhibited in the completion of specific software processes and comparison of the existing utility billing system to CIS Infinity. All anomalies or issues identified during testing are provided to Advanced through the Service Wise software. Each item must include specific account examples and is provided a Service Wise identification number. Advanced will review the issues submitted through Service Wise on a daily basis and is responsible for issue resolution as it relates to CIS Infinity. Some will require the issuance of a software executable, in order to resolve program errors. Once an issue is resolved, Advanced will advise the City via Service Wise and indicate that testing of that item should resume. The City will continue to re -test issues and run processes until it is confirmed that all issues are resolved. Advanced provides testing protocols for every aspect of CIS Infinity. • Advanced Reports • Bill Print ■ Payment Processing ■ Cash Register ■ Collections Module • Critical Issues Checklist (Baseline Accounts) ■ Customer Inquiry • Penalties ■ Letter Management • Meter Reading Interface ■ Move In /Out ■ New Services ■ Advanced Reports ■ Rates Master File ■ Scheduler ■ Service Orders • Pick -up Routines • Task Management • Meter Changes City of Vernon Schedule B: Project Scope of Work Page 34 Section 6 — Acceptance Testing As these worksheets are constantly updated, final versions will be available prior to the start of testing. An example of testing protocols for the Letter Management System and a sample Conversion Test Worksheet are attached for reference. Testing Phases There are four primary phases of testing, as follows. Data Conversion • Advanced will provide Overview and Daily Process training to the City's users. • The City will select a series of Baseline Accounts which must include all types of accounts and accounts expected to be problematic or complex, or are large customers. Advanced will provide direction to the City during its selection process. ■ Using the knowledge gained during Overview / Daily Process training, the City will complete initial testing of the data and report issues through the Conversion Worksheets provided by Advanced. The City's Project Manager will compile the testing results and enter them into Service Wise for review by the Advanced team. ■ Advanced will resolve issues and submit corrections to the City for re- testing. Functionality Testing (Soft Parallel) ■ Advanced will train the City's users on each major module, as outlined in the Training Plan. • Following each training exercise, the City will use the baseline accounts to test the modules and processes learned through training. Issues will be reported using the Testing Protocol worksheets provided by Advanced. The City Project Manager will compile the testing results and enter them into Service Wise for review by the Advanced team. Advanced will resolve the issues and submit corrections to the City for re- testing. Configuration /Process Testing (Hard Parallel) • Advanced will provide the End User Training, as outlined in the Training plan. ■ Following the completion of user training, the City will conduct a hard parallel test of the data and overall configuration of CIS Infinity. The hard City of Vernon Schedule B: Project Scope of Work Page 35 Section 6 — Acceptance Testing parallel test is defined as the comparison of all activity completed in the current utility billing system with the same processes in the CIS Infinity system. The City's Project Manager will compile the testing results and enter them into Service Wise for review by the Advanced team. • Advanced will resolve issues and submit corrections to the City for re- testing. City of Vernon Schedule B: Project Scope of Work Page 36 • Section 6 — Acceptance Testing Sample Testing Protocol and Conversion Test Report SAMPLE TESTING PROTOCOL FORM LETTERS / LETTER MANAGEMENT SYSTEM TESTER: DATE: VERSION: In Word, create a form letter ❑ Yes o No and save it as a Word Template in the CIS2 folder, documents folder of the system you are testin_. Click on Add - Form Code is system generated Yes ❑ N Form Description: ❑ Yes ❑ No Form Name: must be exactly as it appears in the Documents folder, including the .dot o Yes ❑ No View / Change Bookmarks a Yes ❑ No Highlight bookmarks and click on the Add button or double- click Yes a No Use Group and Subgroup to change bookmark selection o Yes ❑ No Remove a couple of bookmarks ❑ Yes ❑ No Once all the bookmarks are added, click on Save Changes o Yes o No View / Change Form Letter Yes ❑ No Highlight and drag bookmarks to the area within the form letter you wish them to appear ❑ Yes o No Save the changes to the Word Template ❑ Yes ❑ No City of Vernon Schedule B: Project Scope of Work Page 37 1 Section 6 - Acceptance Testing Click on Add Yes o No Print Date: o Yes ❑ No Letter Name generated o Yes ❑ No Letter Type: (select newly created form letter) ❑ Yes ❑ No Check "Save Letter" Box Yes ❑ No Create Letter o Yes o No Mark Letter as being Printed: NO o Yes o No Save Yes o No Edit o Yes ❑ No Search for customer /account Group: Sub- Group: Bookmark 1: o Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No Bookmark 2: ❑ Yes ❑ No Bookmark 3: ❑ Yes ❑ No Bookmark 4: ❑ Yes ❑ No Type letter in AdHoc Letter Preview Create Letter ❑ Yes ❑ No ❑ Yes 0 No Print Letter from Word ❑ Yes ❑ No Mark the Letter as being printer: YES Save ❑ Yes ❑ No ❑ Yes ❑ No City of Vernon Schedule B: Project Scope of Work Page 38 Section 6 — Acceptance Testing Sample Conversion Test Report - Commercial Account Sample Check the following tabs for the information CUSTOMER TAB SERVICE ADDRESS TAB CUSTOMER/ACCOUNT TAB Starbucks Coffee Current System CIS Infinity ANOMALIES Account # 156253868 -01-01 156253868 Customer # Account status Account type Owner /tenant Name type Primary customer Secondary name Service address SIC code(Canadian clients only) Cycle Book SERVICES TAB Yes no Does this account have the right services? Have all the services converted? Has the correct bill code for each service converted correctly? SERVICE ONE Bill Code: Meter One Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier City of Vernon Schedule B: Project Scope of Work Page 39 Y � Section 6 — Acceptance Testing City of Vernon Schedule B: Project Scope of Work Page 40 Date installed Call # Meter Two Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # Meter Three Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # SERVICE TWO Bill Code Meter One Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) City of Vernon Schedule B: Project Scope of Work Page 40 Section 6 — Acceptance Testing City of Vernon Schedule B: Project Scope of Work Page 41 Billing multiplier Units of measure Date installed Call # Meter Two Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # Meter Three Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # SERVICE THREE Bill Code Meter One Current System CIS Infinity ANOMALIES Meter # Meter type City of Vernon Schedule B: Project Scope of Work Page 41 1 Section 6— Acceptance Testing City of Vernon Schedule B: Project Scope of Work Page 42 Remote type Dial(s) Billing multiplier Units of measure Date installed Call # Meter Two Current System CIS Infinity ANOMALIES Meter tt Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # Meter Three Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # City of Vernon Schedule B: Project Scope of Work Page 42 Section 6 — Acceptance Testing SERVICE FOUR Bill Code Meter One. Current System CIS Infinity ANOMALIES Meter Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call# Meter Two Current System CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # Meter Three Current System - CIS Infinity ANOMALIES Meter # Meter type Remote type Dial(s) Billing multiplier Units of measure Date installed Call # City of Vernon Schedule B: Project Scope of Work Page 43 Section 6 Acceptance Testing ADDRESS TAB ANOMALIES & ADDITIONS Addresses Phone # Internet Addresses READING HISTORY TAB Is all the history present? Yes no Does this customer have any other addresses in addition to the service address? (For example mailing address, property owner, forwarding address.) Read date Did the phone #s, fax #?, business # and/or email address convert correctly? Meter # ANOMALIES & ADDITIONS Addresses Phone # Internet Addresses READING HISTORY TAB Is all the history present? Current System CIS Infinity Is there history for each service? Read date Is the right history on the right service? Meter # Are there any dates passing? Did the read type convert properly? Have all the previous read dates converted (including dates for flat rate services)? Read status Look at the last reading (which is the first record you see on the screen) and check die following: City of Vernon Schedule B: Project Scope of Work Page 44 Current System CIS Infinity ANOMALIES Read date Meter # Meter type Read status Previous read Current read Multiplier # of days Usage City of Vernon Schedule B: Project Scope of Work Page 44 Section 6— Acceptance Testing City of Vernon Schedule B: Project Scope of Work Page 45 TRANSACTION HISTORY TAB flO Check the Total Tab for the A/R balance Is them a tab for each of the A/R types? Do you see transactions in the grid? Check the balances owing Do all the A/R's have the correct balance? Are all of the credits and debits showing? TRANSACTION HISTORY DEPOSIT SUB TAB TAB Current System CIS Infinity ANOMALIES Does this customer have a deposit? Is there a date beside the deposit? , NOTES AND COMMENTS TAB Current System CIS Infinity ANOMALIES Are there comments for this customer? City of Vernon Schedule B: Project Scope of Work Page 45 Section 7 - Project Implementation Plan Section 7 — Project Implementation Plan .... Implementation Plan The Project Plan for the City identifies the activities and resources required for the successful installation of CIS Infinity, based on six month implementation timeline. During the Orientation meetings at the beginning of the implementation, Advanced and the City will finalize the project plan within the timeframe agreed upon in this Scope of Work. The Project Plan includes key phases, activities, tasks, milestones and deliverables. Months One and Two Project Start Up Project Team assembled. Agenda for Orientation Meeting approved by both team prior to beginning of planning stage of the project. Advanced Project Manager Orientation During this initial stage, the Advanced Project Manager and technical team, on site at the City, will interview all related departments to establish the conversion, technical set-up and training phases of the project. This is the critical first step that will drive the project. Project Manager Technical team (includes implementation specialists) Project Manager Cash Staff Billing Staff Collections Staff Technical Staff Metering Staff Accounting Staff Data Extraction Technical staff at the City will extract the first set of data and detailed information on file structures / screen prints from current billing system and forward to Advanced so that the conversion process can begin. Data mapping begins as part of data quality assessment. Project Manager Technical Team Training Specialists Project Manager Technical Department Initial Conversion A unique conversion routine will be prepared and conversion to the new interface undertaken. The City Team will be available for further interviews coordinated through the Project Managers. Project Manager Conversion Team Technical Team Testing Team Project Manager Cash Staff Billing Staff Collections Staff Technical Staff Metering Staff City of Vernon Schedule B: Project Scope of Work Page 46 Section 7 - Project Implementation Plan Initial Configuration Configuration / Control file manipulation of system for the City. During this period, members of the City team will be available for further interview / clarification of processes performed as coordinated through the Project Managers. Project Manager Conversion team Technical team Testing Team Project Manager Cash Staff Billing Staff Collections Staff Technical Staff Metering Staff Accounting Staff Installation Installation of software and data on server. Client installs for all using CIS Infinity. The City technical staff to work closely with Advanced installers. Data conversion ongoing - data mapping, error tracking, programming. All necessary hardware and software to be in place and tested on network prior to installation. Technical Team Conversion team Project Manager Technical Staff Month Three and Four Overview / Daily Process Training Overview training to be performed at the City. Three days are required for a complete overview, with classes of 8 users. Classroom training will ensure the basics of system operation are provided, and that system features are presented and understood. Project Manager Training Specialists Project Manager All Staff - the City, Utility billing City of Vernon Schedule B: Project Scope of Work Page 47 Section 7 - Project Implementation Plan 4;1 & ' & I ;'; Team Conversion / Testing A modified conversion routine will be run to correct anomalies identified by the City team. Re-testing of identified issues will be necessary. Project Manager Technical Team Conversion Team Testing Team Project Manager Technical Staff Cash Staff Billing Staff Collections Staff Technical Staff Metering Staff Collections Training Training to be performed at Process / Cash (1 day) / Collections). the City (Daily Training Specialist Project Manager CSRs Cash Staff Billing Staff Billing Training Classroom Billing Training to be performed at the City. Training Specialist Project Manager Billing Staff System Configuration Continues Set-up activities on-going - conventional set-up, product tests, development activities if required. Project Manager Technical Team Testing Team Project Manager Technical Staff Remaining Training Asset Management Training, Reports Training, Month End/Year End Processes, Administrator, Service Orders, Scheduler Project Manager Training Specialists Project Manager Metering Department Accounting Staff City of Vernon Schedule B: Project Scope of Work Page 48 Section 7 — Project Implementation Plan Soft Parallel The City will undertake soft parallel processes (testing of all processes learned through training). This will help identify further conversion issues not found during the conversion- testing phase and will familiarize staff with the new interfaces. Training will address how to identify, prioritize and report issues to the Project Manager Training services shift from a classroom setting to "at- the - elbow ", direct assistance. This training assists users learning the software and provides users with direction on how to deal with "live" problems. A successful soft parallel is heeded prior to moving forward. Approval required before proceeding. Project Manager Trainer Technical Team Conversion Team Testing Team Project Manager Metering Staff Accounting Staff Billing Staff Cash Staff CSRs Month Five and Six Refreshed Data Conversion A new, refreshed data conversion will be run to bring both systems to the same timeframe. New data will be extracted and forwarded to Advanced staff at month end close off of the current billing system. Project Manager Conversion Team Technical Team Project Manager Technical Staff Accounting Staff City of Vernon Schedule B: Project Scope of Work Page 49 Section 7 — Project Implementation Plan City of Vernon Schedule B: Project Scope of Work Page 50 Trial. Balance Project Manager Project Manager A trial balance will be necessary to ensure that all Technical Team Accounting Staff dollars (A/R and Deposit) are being transferred through the conversion process. The trial balance will mark a key milestone in terms of moving forward to the hard parallel. Conversion Team Advanced staff will work with the City team to ensure that there is a system balance (to the penny, aside from identified, unavoidable, agreed upon issues that arise) as the live date approaches. Hard Parallel Project Manager Project Manager The City will undertake a hard parallel that will Training Specialist Technical Staff include all processes being compared in both systems — old and new. This will include all Technical Team Cash Staff interface testing / parallel that is necessary and Conversion Team Billing Staff finalization of bill print, notice, letters and service order output. Testing Team Collections Staff Technical Staff Training continues to ensure that users understand the new software. At this time, Advanced trainers will ensure that users understand both the CIS solution and CIS Infinity. Metering Staff Accounting Staff Advanced staff will work with the City team to perfect the operating system as the live date approaches. Approval will be required prior to moving forward to go live. City of Vernon Schedule B: Project Scope of Work Page 50 • 0 Section 7— Project Implementation Plan Transition to Live Milestones Advanced Team , Final Data Conversion A final data conversion will be run to ensure both systems are running on the same timeframe. Any data previously excluded will be extracted and forwarded to Advanced staff as before. Final data conversion will take place. Accuracy and completeness testing continues with both the Advanced and the City teams ensuring results are as planned. Project Manager Conversion Team Project Manager Technical Staff Accounting Staff . LIVE Final Balance will be achieved and approval of balance obtained. Final check of all control files and clearing of temporary files from testing will be cleared. A down day will ensure that final checks are in place prior to moving to the LIVE on the system. Project Manager Trainer Technical Team Conversion Team ng Team Training . Project Manager City Staff Post — LIVE A post-live strategy will be developed during the project. This will include any outstanding implementation issues. This will also include post-live training necessary on any re-designed or new processes that are necessary. If hours are available, Advanced will be on site for the first billing with a trainer and implementation specialist to ensure a smooth transition. The Project Managers from both teams will monitor post live activities through the warranty period to ensure that all outstanding issues are addressed and to ensure a successful transition to the new billing system. Project Manager Training Specialists Technical Team Project Manager All Users City of Vernon Schedule B: Project Scope of Work Page 51 Work Back Plans Section 7 - Project Implementation Plan The Project Plan above identifies the activities and general milestones associated with a typical implementation of CIS Infinity. Advanced utilizes work back plans in addition to the timeline above in order to highlight specific roles and responsibilities of each milestone. A sample work back plan is provided below. Once the project begins, the project managers from both organizations will work together to identify the roles and responsibilities and specific timeframe for each milestone. Sample Conversion Work Back Plan Data extracted from the current database and uploaded to the Advanced 1-TP site. CDs to be couriered to Advanced. Client Technical Team Record Count Document to be completed and returned with data Conversion/Configuration Advanced Technical Team Preparation of new data In house up-size complete Preparation of CD Cut CD for delivery - upload data to FT P site Client Up-size On-site up-size completed City of Vernon Schedule B: Project Scope of Work Page 52 Section 8 - Training Section 8 - Training Overview The primary responsibility of Advanced is to train users on the CIS Infinity product, using the functionality as it is designed to operate and taking into consideration the software configuration completed based on the BizProfiler questionnaire. The primary responsibility of the City is to overlay its business processes with the functionality available in CIS Infinity and ensure, via testing, that CIS Infinity is operating in a way that meets its organizational requirements. Classroom Training Training will be performed based on the training plan that is prepared by the project managers from both teams to ensure that the needs of the users are met at the City. All staff will be trained according to their job requirements. Training is usually conducted over four consecutive weeks. Training assumes a maximum of ten (10) users for Overview / Daily Process training and eight (8) users for all other classroom sessions. On the Job Learning The Training Plan also includes a section for On the Job Learning. Advanced has found On the Job Learning to be highly effective in supplementing regular classroom training. On the Job Learning meets the learning needs of users who perform more technical or complex tasks, and/or users with unique leaming needs. For example, On the Job Learning is quite often the best solution for users who upload and download meter reading files and for those representatives that perform and monitor billing at the client site. On the Job Learning is a supplement to classroom training, and is ideally delivered one -to- one or in small groups of 2 or 3. It is conducted with the user at their workstation with the trainer's guidance. Sequence of training modules The following draft sequence of training was developed based on examples of training schedules from previously implemented customers of Advanced. This schedule may change to take into account information gathered during ongoing discussions. The skill level of the City's users (particularly their experience with Windows) and the way staffing resources are allocated (whether staff is assigned individual aspects of the billing process or whether all staff uses all aspects) are the primary factors which will be taken into consideration when a final training plan is determined. City of Vernon Schedule B: Project Scope of Work Page 53 • • Section 8 — Training Classroom Training City of Vernon Schedule B: Project Scope of Work Page 54 Sequcnce Training Module Duration of Training 1 Overview and Daily Process 3 days 2 Payment / Adjustment Processing 1 day 3 Collections 2 days 4 Service Order Processing and Creation 1.5 days 5 Billing 2 days 6 Reports 1 day 7 Electric Meter /Service Management 1 day 8 Water Meter /Service Management 1 day 9 GL & Month/Year End .5 day 10 Security .5 day 11 Scheduler .5 day 12 System Administration 2 days Tel Nam l er of Classroom Days 16 days City of Vernon Schedule B: Project Scope of Work Page 54 Section 8- Training On the Job Learning Throughout the implementation phase and the first several weeks live on CIS Infinity users will have full access to the same Advanced Training Specialists who trained them. This ensures Advanced is totally familiar with the needs of users and that users have a high level of comfort when they first go live on the system. Our commitment to training and client support means that we do not leave until your staff has everything they need to do their jobs. Sequence Number Training Module Participants Duration 1 Billing Processes - Practical Application & Structured Practice Time All users expected to process billing who may benefit from additional scheduled practice time under the guidance of a training specialist. 4 days 2 Customer Service Processes - Practical Application & Structured Practice Time All users expected to process daily customer service functions who may benefit from additional scheduled practice time under the guidance of a training specialist. 3 days 3 Hard Parallel All. Staff as they parallel their normal functions on both systems and encounter questions 4 days 4 Live Week / Post Live Week All Staff as they process their normal functions during the first week of live and encounter questions 8 days Total On the Job Learning Days City of Vernon Schedule B: Project Scope of Work Page 55 Summary of Training Days Section 8 - Training Type of Training Days Total Classroom Training Days 16 days Total On the Job Learning Days 19 days Total Days 35 days Training Courses Overview / Daily Process Training Prerequisite: None. Overview training is the first in the series and is a prerequisite for most other courses. Overview training should be taken by anyone who will be using the system — on a regular or irregular basis. The training focuses on the Main Customer Service Form. Daily Processing training will prepare Customer Service Representatives, or other staff who regularly access customer accounts, to provide basic information, to search for accounts and answer basic customer service questions. The objective of this course is to enable the participant to confidently navigate the Main Menu, the Main Customer Service form and search for customers. Users will end the course with a basic understanding of the structure of the system and some of its basic concepts. Software Function • Core product concepts • Online help • Searching ■ Basic inquiry ■ All customer and account information tabs • Changing customer information • Meter and/or service changes • Changing address information City of Vernon Schedule B: Project Scope of Work Page 56 Section 8 - Training • Interpreting and manipulating reading, transaction and billing history • Printing copies of bills ■ Requesting to cancel bills • Lining to equipment inventories • Maintaining customer contact information • Generating ad hoc and form letters • Processing moves ■ Auto generation of actions • Manually entering readings ■ Making payment arrangements • Generating tasks • Updating customer notes ■ Entering meter reading notes • Quoting and managing deposits and pre - authorized payment plans • Advanced searches and filters Billing Training Prerequisite: Overview training, Daily Processes training Requirements: Attend with updated, date appropriate billing journals. The accounts on these journals can be used for training examples with manual, final, cancelled and regular bills. Billing training is necessary for anyone producing or adjusting any type of bill. Participants will learn how to process bills, check for anomalies, and how to deal with final bills and billing adjustments. They will also learn about other `billing related' features within CIS Infinity. Software Function • General billing concepts • Manual bills ■ Final bills ■ Cancelled bills ■ Regular /cycle bills City of Vernon Schedule B: Project Scope of Work Page 57 • Online billing • Miscellaneous billing features • Interpreting billing journals Section 8 - Training • Billing information on the customer account inquiry form Payment / Adjustment Processing Prerequisite: Overview training, Daily Processes training Requirements: Course participants should bring with them either date appropriate, payment stubs that have already been updated to the production system or a list of accounts with a debit AR balance. They will use these accounts to mimic entering cash payments. In Cash Processing, participants will learn either `heads up' cash processing (for example, taking payments from customers) or `heads down' cash processing (for example, processing payments from the mail). This session will teach participants how to enter cash, produce cash reports and how to balance cash batches and look for anomalies. In Cash Register training, participants will learn `heads up' cash processing (dealing with customers at the counter). Participants will learn how to enter cash, produce cash reports and how to balance cash batches and look for anomalies. Software Function • Cash, adjustment, deposit processing ■ Interpreting journals • Updating payment / adjustment batches • Retrieving archived batches • Payment information on the customer account inquiry form • Entering payments • Producing cash reports • Balancing cash batches • Finding anomalies City of Vernon Schedule B: Project Scope of Work Page 58 �r v. slab Si vv1 • ava, v1 vc1 11 V111 111G iVtGLG1 IY anagy1IIGnU lurm City of Vernon Schedule B: Project Scope of Work Page 59 ■ Section 8 — Training Collections Training Prerequisite: Overview training, Daily Processing The Collections training will cover all aspects of the utility's collections routines. Participants will learn how to process penalties and notices, how to allow for exemptions, record a bankrupt account, record collection agency information, set up disconnects and reconnects and make single and group payment arrangements. The Collections training will show participants how to follow through an account from the first to last step in the collection process. Software Function • Notice routine • Penalty /discount routine • Credit Rating System • Single and Group Payment Arrangements • Collections Exemptions • Disconnects & Reconnects • Bankruptcies • Collection Agencies • Write off System Creating and Managing Service Orders Prerequisite: Overview training Note: Generating Service Orders could be included in this session. This training session is intended for those users who would be responsible for creating new service order template documents — for either field or internal work. Participants will also learn how to manage the service order system, create reports and produce multiple service orders. Software Function • Creating Service Order form templates Service Order Management form • Service Order system control forms ■ Service Order reports • Closing service orders from Billing and Meter Changes • Producing a Service Order from the Meter Management form City of Vernon Schedule B: Project Scope of Work Page 59 Section 8 — Training Reports Interface Training Prerequisite: Overview training This session is intended for those users that are expected to produce reports from the system. The training can be further broken down into the type of reports, for example — customer management reports, asset management reports or accounting reports. Software Function ■ Standard Report interface • Accounting reports • Customer reports • Asset management reports ■ Pre- authorized payment reports • Service order reports • Quick reports • Advanced Search • Filter Month / Year End Processes Prerequisite: Overview training, Reports Interface training This session is intended for those users that are involved in the monthly or yearly minor accounting processes like closing an old month and opening a new month, producing reconciliation reports and other detailed reports for analysis. Software Function Month end procedures • Year end procedures • Auditing service orders • Write off system • Deposit refunds ■ General Ledger interface City of Vernon Schedule B: Project Scope of Work Page 60 Section 8 — Training System Administrator Training Prerequisite: Overview training This session is intended for the non - technical administrators of the system (department supervisors or system administrators) who will be expected to make changes to the system rules to suit user needs. Participants will be shown how to manipulate Control forms in order to meet their departmental needs. They will also be shown how to add new users to the system and provide them with tailored menus, how to administer service orders, use the task system, the letter system and the credit rating system. Software Function • Editing and establishing user menus ■ System control forms ■ Task system • Service Order Management form • Letter system • Credit rating system Advanced search/filter Reports • Month/year end ■ Understanding system dates Conclusion The Training Plan outlines the training modules designed to serve core and end users, through a combination of classes that address varying skill levels and needs. Changes to the Training Plan will only be made following consultation between the Advanced Project Manager and the City's Project Manager. City of Vernon Schedule B: Project Scope of Work Page 61 Schedule "C" Support Agreement This support agreement (the "Agreement ") is entered into pursuant to a software license and implementation agreement (the "Software License and Implementation Agreement ") dated , 2005 between Advanced Utility Systems Corporation ( "Consultant ") its principal place of business at 2235 Sheppard Avenue East, Suite 1400, Toronto, Ontario, M2J 5B5, and City of Vernon ( "Organization "), with its principal place of business at 4305 Santa Fe Avenue, Vernon, California, 90058 and becomes effective immediately upon the expiry of the Warranty Period. Unless otherwise defined herein, all defined terms used herein shall have the meaning ascribed to them in the Software License and Implementation Agreement. 1. Subject to the terms and conditions of this Agreement, Consultant shall provide subscription and support service which includes revisions, updates and enhancements to CIS Infinity and related materials for the version of CIS Infinity specified in Schedule "A" attached to the Software License and Implementation Agreement. Subject to the terms and conditions of this Agreement, Consultant shall provide software support via telephone and electronic mail, and site visits when necessary consistent with the hours of operation for Gold Level Support, all as described in Exhibit 1 hereto and in effect as of the date hereof and provided to the other licensees of Consultant who subscribe for "Gold Level Support", as such services may, at the discretion of Consultant, be modified or supplemented from time to time (provided that any changes generally apply to all licensees of Consultant who subscribe for the same level of support). To enable Consultant to provide effective support, the Organization will establish auto remote access based on remote access procedures compatible with Consultant's practices. For emergency situations occurring on Consultant's observed holidays, Consultant will be available to the Organization by pager number and electronic mail to provide support. In consideration for the support services specified in Section 2, Organization shall pay the Annual Support Fee set forth in Schedule "D" attached to the Software License and Implementation Agreement. Consultant may change the Annual Support Fee from time to time, provided that any such change must be made for substantially all clients of Consultant who have subscribed to the same level of support. In addition to the Annual Support Fee, Organization shall reimburse Consultant for its direct expenses in providing support services pursuant to this Agreement, including, but not limited to: (a) courier services; (b) photocopying, faxing and reproduction services; (c) all reasonable travel costs, including a travel time rate of $50.00/hour, meal expenses of not more than $50.00 per diem (receipts provided) and a mileage charge of $.29/km; (d) long distance telephone calls; and C -1 (e) all other reasonable expenses incurred in the performance of Consultant's duties hereunder. Consultant may update its reimbursement policies from time to time, in which case such updated policies shall apply for purposes of this Agreement, provided that such updated reimbursement policies must generally apply to all clients of Consultant. All support services provided by Consultant to Organization other than those specified in Section 2 (such as, but not limited to, on -site support), shall be provided to Organization by Consultant at Consultant's then prevailing prices, hourly rates, policies and terms. For certainty, any updates of, or enhancements to, the Software will be made available to Organization free of charge (with respect to the actual updates or enhancements), but all services provided by Consultant with respect to such updates or enhancements will be subject to the Consultant's then - prevailing prices, hourly rates, policies and terms, meaning that such then - prevailing prices will apply to matters such as set -up and training relating to such updates or enhancements. 5. All payments hereunder shall be in U.S. dollars and shall be net of any taxes, tariffs or other governmental charges. 6. The initial term of this Agreement shall be for one year beginning on the date set out above. The Agreement shall continue thereafter on an annual basis provided that Organization shall pay the then prevailing Annual Support Fee set forth in Schedule "D" attached to the Software License and Implementation Agreement, unless terminated by either party upon giving to the other not less than 90 days notice in writing prior to the end of the first year or any subsequent anniversary of such date. If the Support Agreement is terminated by Organization, it shall be entitled to retain the Software licensed to it as at the date of such termination, but it will relinquish its rights to receive upgrades of, or enhancements to, the Software, services for the Software, or access to the Source in escrow upon the occurrence of any event specified in Section 2.7(d) of the Software Licence and Implementation Agreement. For certainty, and without mitigating the application of the Software Licence and Implementation Agreement during the term of this Support Agreement, the terms and conditions of the Software Licence and Implementation Agreement relating to the license of the Software and the Documentation and the rights and obligations of the parties with respect thereto will continue to apply to Organization following the termination of this Agreement. Title to and ownership of all proprietary rights in the Software and all related proprietary information shall at all times remain with Consultant, and Organization shall acquire no proprietary rights by virtue hereof. Unless terminated pursuant to Paragraph 6 hereof, this Agreement shall remain in full force and effect except as terminated as follows: (a) if either party neglects or fails to perform, observe or cure within (30) days of written notice of such failure to perform any of its existing or future obligations. C -2 (b) If Organization attempts to assign this Agreement or any of its rights hereunder, or undergoes a Reorganization, without complying with the Software License and Implementation Agreement. Unless otherwise agreed to by the parties, all notices required hereunder shall be made in accordance with the provisions of the Software License and Implementation Agreement. 10. Either party's lack of enforcement of any provision in this Agreement in the event of a breach by the other shall not be construed to be a waiver of any such provision and the non- breaching party may elect to enforce any such provision in the event of any repeated or continuing breach by the other. 11. A valid contract binding the parties hereto shall come into being only upon execution of this Agreement by a duly authorized agent, officer or representative of both parties. 12. This Agreement is the exclusive statement of the entire support agreement between Consultant and Organization. No change, termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced. 13. The parties hereto agree that the terms and conditions contained herein shall prevail notwithstanding any variations on any orders submitted by Organization. 14. The particular provisions of this Agreement shall be deemed confidential in nature and neither Organization nor Consultant shall divulge any of its provisions as set forth herein to any third party except as may be required by law. 15. (a) Termination of this Agreement shall not affect any right of action of either party arising from anything which was done or not done, as the case may be, prior to the termination taking effect. (b) The Organization and the Consultant recognize that circumstances may arise entitling the Organization to damages for breach or other fault on the part of the Consultant arising from this Agreement. The parties agree that in all such circumstances the Organization's remedies and the Consultant's liabilities will be limited as set forth below and that these provisions will survive notwithstanding the termination or other discharge of the obligations of the parties under this agreement. (i) FOR BREACH OR DEFAULT BY THE CONSULTANT OR OTHERWISE IN CONNECTION WITH THIS AGREEMENT, INCLUDING A BREACH OR DEFAULT ENTITLING THE ORGANIZATION TO RESCIND OR BE DISCHARGED FROM THE PROVISIONS OF THIS AGREEMENT AND WHETHER IN THE NATURE OF A BREACH OF CONDITION OR A FUNDAMENTAL BREACH, THE ORGANIZATION'S EXCLUSIVE REMEDY, IN ADDITION TO ELECTING IF SO ENTITLED TO RESCIND OR BE C -3 DISCHARGED FROM THE PROVISIONS OF THIS AGREEMENT, SHALL BE PAYMENT BY THE CONSULTANT OF THE ORGANIZATION'S DIRECT DAMAGES TO A MAXIMUM AMOUNT EQUAL TO, AND THE CONSULTANT SHALL IN NO EVENT BE LIABLE IN EXCESS OF, THE AMOUNT OF FEES ACTUALLY PAID BY THE ORGANIZATION TO THE CONSULTANT UNDER THIS AGREEMENT DURING THE THEN - CURRENT TERM OF THE AGREEMENT UP TO AND INCLUDING THE DATE OF TERMINATION. (ii) IN NO EVENT SHALL ANY DAMAGES INCLUDE, NOR SHALL THE CONSULTANT BE LIABLE FOR, ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES EVEN IF THE CONSULTANT HAS BEEN ADVISED OF THE POSSIBILITY THEREOF. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE CONSULTANT SHALL NOT BE LIABLE FOR LOST PROFITS, LOST BUSINESS REVENUE, FAILURE TO REALIZE EXPECTED SAVINGS, OTHER COMMERCIAL OR ECONOMIC LOSS OF ANY KIND, OR FOR ANY CLAIM WHATSOEVER AGAINST THE ORGANIZATION BY ANY OTHER PARTY. (iii) CLAUSES (i) AND (ii) SHALL APPLY IN RESPECT OF ANY CLAIM, DEMAND OR ACTION BY THE ORGANIZATION IRRESPECTIVE OF THE NATURE OF THE CAUSE OF ACTION UNDERLYING SUCH CLAIM, DEMAND OR ACTION, INCLUDING, BUT NOT LIMITED TO, BREACH OF CONTRACT OR TORT. 16. The parties hereby confirm that the waivers and disclaimers of liability, releases from liability, limitations and apportionments of liability, and exclusive remedy provisions expressed throughout this Agreement shall apply even in the event of default, negligence (in whole or in part), strict liability or breach of contract of the person released or whose liability is waived, disclaimed, limited, apportioned or fixed by such remedy provision, and shall extend to such person's affiliates and to its shareholders, directors, officers, employees and affiliates. 17. Where remedies are expressly afforded by this Agreement, such remedies are intended by the parties to be the sole and exclusive remedies of the Organization for liabilities of the Consultant arising out of or in connection with this Agreement, notwithstanding any remedy otherwise available at law or in equity. 18. This Agreement shall be governed by, subject to and construed in accordance with the laws of the State of California. 19. This Agreement may not be assigned by the Organization unless, concurrently with any such assignment, the Organization assigns its rights under, and complies with the provisions of, the Software License and Implementation Agreement. C -4 20. This Agreement shall be binding upon the successors and assigns of the parties and enure to the benefit of the successors and permitted assigns of the parties. 21. Time shall be of the essence of this Agreement. 22. The invalidity or unenforceability of any provision or covenant contained in this Agreement shall not affect the validity or enforceability of any other provision or covenant herein contained and any such invalid provision or covenant shall be deemed to be severable. 23. The parties shall do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated hereby, and each party shall provide such further documents or instruments required by any other party as may be reasonably necessary or desirable to effect the purposes of this Agreement and carry out its provisions. 24. This Agreement may be executed in counterparts (whether by facsimile signature or otherwise), each of which when so executed shall constitute an original and all of which together shall constitute one and the same agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the date first written above. ADVANCED UTILITY SYSTEMS CORPORATION Per: Name: Patricia Sorbara Per: Name: ' hilip Pla Title: Vice- President CITY OF VERNON Per: Name: Title: Per: Name: Title: C -5 • EXHIBIT 1 Common Components: • Full access to new software upgrades and product releases • Access to your own Support Web page • Access to Support Knowledge Base via the Web • Access to Frequently Asked Questions page via the Web • Access to useful Advanced Searches via the Web • Access to Build Logs and Build Download via the Web • Access to the Support Department via the Web, e-mail, fax and 1 -800 Support Hot Line • Regular updates issues to users regarding the status of your support items and the option of having them posted on your Web page Gold Components: • 24 hour, 7 days a week Support (weekends must be scheduled in advance). This pertains not just to the support desk, but also to activities during evening and night hours when the system is not in use (for example, Builds) • Up to five Individual Users may send items to the Support Department for investigation • All changes to documents requiring less than 30 minutes to complete, for example, Bill Prints, Form Letters and Notices + Two Days of Workshop Training at Advanced Utility Systems provided free of charge to a User at your organization (per year) Set -up and support of a test system at your organization, and training for your staffon how to maintain the test system Schedule "D" Fee Structure and Payment Schedule Note: Fees for Services listed below are based on best estimates of the number of hours of work required to complete the Services outlined on Schedule "B" to this Agreement. Accordingly, the total of such fees will increase or decrease as the number of actual hours worked is greater than or less than such estimates. Payment Schedule: A. Licence Fees: 1. On execution of this Agreement: (25% of license fee) $16,250.00 2. On completion of Set -up and Installation:(75% of licence fee) $48,750.00 Consulting and Training Fees: Invoiced monthly on the basis of actual hours of work to the completion of the project. Annual Support Fee $16,250.00 Units Unit Cost Total Software Licenses CIS Infinity Server Licenses 1 $50,000 $50,000.00 CIS Infinity User Licenses 5 $ 3,000 $15,000.00 Professional Services Conversion 300 $130 $39,000.00 Installation and Configuration 800 $130 $104,000.00 Training 350 $130 $45,500.00 Project Management 300 $130 $39,000.00 Total $292,500.00 Payment Schedule: A. Licence Fees: 1. On execution of this Agreement: (25% of license fee) $16,250.00 2. On completion of Set -up and Installation:(75% of licence fee) $48,750.00 Consulting and Training Fees: Invoiced monthly on the basis of actual hours of work to the completion of the project. Annual Support Fee $16,250.00 SUPPORTING DOCUMENTS 8.16 Further Assurances The parties shall do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated hereby, and each party shall provide such further documents or instruments required by any other party as may be reasonably necessary or desirable to effect the purposes of this Agreement and carry out its provisions. IN WITNESS WHEREOF the parties hereto have duly executed this Agreement on the day and year first written above. ADVANCED UTILITY SYSTEMS CORPORATION Per: Name: hilip P1 Title: Vice - President CITY OF VERNON Per: • Leonis C. Malbu Title: Mayor ATTEST:\ Per: APPROVED AS TO FO Eric T.'i esch City Attorney ruce V. Malkenhorst, Jr. Title: Acting City Clerk CITYOFVNON 4305 SANTA FE AVENLIE VERNON, (cA32Ist)F°58R.4‘ °°54105 38811914-4 PAY TO, .. fH('' Cfg) fRI;ii: Bank pth,, rtierica CHECK 16/6B NUMBER 308387 CHECK DATE 14 20 6:5; CHECK AMOUNT $16 g54 00 DAYS 030E13871' 'L 2200066 LI: iallScilluq04830 CITY OF VERNON • 4305 SANTA FE AVE • VERNON, CALIFORNIA 90058-0805 'VENDOR NO. VENDOR NAME DATE CHECK ISSUED CHECK NO. ADVANCE UTILITY SYSTEMS 10/20/05 308387 CITY ACCOUNT NUMBER YOUR INV. NO. YOUR INV. DATE PAYMENT DESCRIPTION DISC. TAKEN NET AMT. PAID 011-500-1004-9000 LICENSE FEES FOR CIS INFINITY SOFTWARE FILE DATE: 11/02/05cm 16,250.00 • BILL TO City of Vernon Attention: Willard Yamaguchi 4305 Santa Fe Ave Vernon, CA 90058 Invoice DATE INVOICE NO. 9/26/2005 849 DESCRIPTION QTY RATE AMOUNT 25% of License Fees for CIS Infinity Software due on Execution of Agreement APPROVED FOR PAYMENT CHARGE V! DATE. C - Sts-R62 MORSEL 16,250.00 16,250.00 TOTAL US$16,250.00 2235 SHEPPARD AVENUE EAST SUITE 1400 TORONTO ONTARIO M2) 5B5 TEL (416) 496 0149 FAX (416) 496 3910 www.advancedutility.c0m