Siemens Answers to the Questions Asked by City Council Members on May 2, 2016

Prepared by Frank D. Gagliardi (Siemens)

1) Are there any other City asset lease agreements, besides Entergy, that are a part of the
project?
No, there are no other lease agreements that Siemens is aware of. There are monthly
cellular service charges associated with the operation of the AMI collector devices.

2) Will updates to the AMI network be required when new areas of the City are developed?
Yes, new infrastructure will be required if the new developments are not within the
current network coverage. The proper City department has been trained on this subject.

3) What impact will the group of small and large meters that have no installation location
have on the price and savings of the contract?
Until Siemens has the final quantities and locations of meters not installed, it is not
possible to assign a dollar value to this item. There will be some effect on both cost and
savings for uninstalled meters.

4) What is the cost and/or value of the meters that will not be installed?
Until Siemens has the final quantities of meters not installed, Siemens cannot assign a
dollar value to this item. Siemens is still negotiating with the meter vendor to offer a
return option even if it includes a restocking fee.

5) Does Siemens ever allow a City to return left over meters?

Meters sometimes can be and have been returned dependent upon the situation, the
vendors return policy, restocking charges and the time passed since the meters were
purchased. It is usually recommended that a city retain excess meters for replacement
and new account needs.

6) Is there anything that can be done with the large quantity of meters that will not be
installed?
The options for the City are to place excess meters into City stock or to direct Siemens
to return the meters if the vendor offers that option (still waiting on answer from vendor).

7) Is there a clause in the contract that details the 24/7 emergency service responsibility?
No there is not; however, as part of this type of project Siemens provides an afterhours
number for emergencies. Siemens has repeatedly asked for details of claims of nonresponsiveness and has yet to receive the requested details.

8) Will Siemens provide, enforce and track the 24/7 emergency service going forward?
During the meter installation phase, Siemens has and will continue to offer the
afterhours call service for emergencies. The City has been provided with the proper
dispatching process. If required, additional training for City staff on this process can be
provided.

9) Provide a breakdown of all subcontract amounts and the amount paid on each
subcontract to date.
See chart below detailing EBO Plan subcontractor amounts and payments.

Contractor
Garret Enterprises, Inc
Brilliant Minds
Garrett
Ivision IT Consultants
MAC
Total Business
Development
Total Business
Development
US Consolidated
XPS
Totals:

PO Amounts
(6-8-2016)
$4,300,000.00
$420,000.00
$281,407.00
$10,827,075.31
$19,345,572.40

Paid to Date
(6-8-2016)
$4,085,000.00
$387,672.80
$281,407.00
$10,633,550.31
$17,771,102.73

$70,950.00

$70,950.00

$450,000.00
$19,080,897.00
$500,000.00
$55,275,901.71

$450,000.00
$18,963,360.50
$500,000.00
$53,143,043.34

10) Provide a breakdown of the contract total showing costs, overhead and profit.
This contract was awarded through a competitive RFQ process followed by extensive
negotiations with the City resulting in a fixed firm price contract. The requirement for
financial reporting is relative to the subcontractor cost reporting in the approved EBO
Plan. See chart in Item 9.

11) When will the large meters be complete?

Siemens is currently prepared to complete the large meter installation. The date is
contingent on the City water department completing the previously identified City issues
that are preventing the installations from being scheduled.

12) At the point of the Stop Work Order, what percent of the large meters were installed?
396 large meters were installed prior to the shutdown. Siemens expects a total
installation of approximately 438 large meters. This equates to 90% of the installable
large meters being installed at the time of the February 2015 Stop Work Order.

13) Were most of the large meters installed by end of September 2013?
No. The long-delayed contractual Notice to Proceed (NTP) was issued in August of 2013
making it impossible to meet originally proposed milestones.Large meters installed after
NTP are as follows:

Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15

13

Jul-15

39
48
40
19
19
24
31
38
30
28
23
15
18
3
1
6
1
0
0
0
0

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
Total
Installed

0
6
0
5
16
423

14) Is the meter installation off schedule and, if so, what is the cause?
Yes. In addition to the Notice to Proceed delay and Stop Work delays, Siemens is still
awaiting approval to proceed with installation of several thousand remaining meters.
These meters are in Byram and on the Do Not Do/Can Not Do Lists.

15) Why is the billing system not working?

The billing system is working. The current challenges are around the large backlog of
accounts that require operator intervention due to long periods of estimation, incomplete
work orders, incorrect historical data, etc. The Oracle Customer Care and Billing (CC&B)
System went Live on August 31, 2015 and as of April 18, 2016 is being utilized to obtain
AMI reads from the Mueller network. Although the system went live on August 31, 2015,
it was not until April 18, 2016 that the City started the complete utilization of the systemavailable AMI reads. Siemens had recommended a gradual ledger by ledger phase-in of
AMI reading since Go-Live. With the extended time between Go-Live and the actual start
of using the AMI reads the City has continually estimated consumption to produce water
bills. This billing estimation and the associated true-up with the actual AMI reads has
generated an abnormal amount of To-Dos that require operator intervention by the
billing department to correct the issues generated. Due to the comprehensive nature of
the CC&B system, users are not able to wipe an issue clean as was done in the past,
but must actually view, respond and close the issues in a documented, systematic
process.

16) When (date) will the billing system be complete?

The CC&B System is on-line. Due to some policy changes being considered by the City
for Credit and Collections the previously established system parameters will require
rework. The City is currently reviewing these requested changes and after approval and
direction by the City Siemens can implement the changes.
The current Customer portal known as the Oracle Utility Customer Self Service
(OUCSS) has been functional since Go-Live and is ready for roll out. The IT/IS
department is currently attending training for maintaining the system to assure correct

informational distribution through the web links. Once this is complete Siemens will be
able to schedule a workshop to commence the functionality. A date cannot be stated as
it is dependent on City activity.

17) Is the City of Jackson realizing savings on the project?

Yes, according to the first round testing during construction the overall accuracy of
installed meters was above the guaranteed accuracy of 98.5%. An interim Construction
Period Savings Report is being prepared and will be delivered to the City.

18) What specifically is being done to get the billing system on-track?
Siemens has been working with the City to assist with completion of the backlog of
current To-Do items. Siemens have provided the following assistance:

Agreed to reimburse the City for the overtime cost for certain billing department
employees for a limited period of time.
Agreed to reimburse the City for five temporary employees working on clearing of
To Dos for a limited period of time.
Furnished a high level Siemens financial employee to assist with the General
Ledger reporting issues as well as To Do clearing
Furnished three Siemens financial employees to assist with To Do clearing for a
limited period of time.
Furnished one Siemens Project Manager in billing department to assist with
billing issues.
Furnished IVision/Origin resources for software coaching and facilitation of To
Do clearing.
Operational and staffing support to the WSBA since the August 31, 2015 Go Live
of CC&B (9 months thus far). These services were not a part of the original
contract scope.

19) If the experts from Origin / iVision are already on site and the system is still not working
then does Siemens have other experts who know these systems better that can be
deployed?
The billing system is working. The IVision and Origin experts on site are doing their job
which is coaching and facilitating the Citys billing employees to manage the day-to-day
operation of the billing system.

20) Provide an interim construction period savings report.

This report is being prepared and will be delivered to the City.

21) Has any meter testing been done yet? If so, what were the results?
Yes, phase 1 testing of 22 meters was done and results received on 10/26/15. Results
will be provided as part of the interim Construction Period Savings Report.

22) What dates or intervals will meter testing occur?

Siemens had 2 phases of testing scheduled. One was done in September 2015, and the
second phase is being done in the June / July 2016 time frame. Testing is done in
accordance with the Contract Exhibit C.

23) In what month will the City begin seeing a savings on this project?
Once the first meters were installed, the City had the opportunity to capture the
additional revenue from the more accurate meters. The additional revenue potential is
proportional to the number of meters installed. The Contract contains City and Siemens
responsibilities to assure all savings are fully realized.

24) What is the status of the project, what is the status going to be and when?
The project is moving toward completion. Siemens has set some target milestones and
dates, but the accomplishment of those milestones are dependent on both Siemens and
City activity. The current milestones and projected dates proposed by Siemens are:
Small Meters:
Byram City to release for installation by 6/30/16. Completion expected by 9/30/16
DND/CND Lists City to release for installation by 6/30/16. Completion expected by
8/31/16
Large Meters:
City action on pre-existing conditions preventing meter installation by 6/30/16,
Completion expected by by 8/31/16
CC&B:
Credit and Collections City to finalize processes and procedures by 7/31/16.
Implementation by 9/30/16
OUCSS City IS/IT to authorize deployment by 6/30/16. Implementation by 7/31/16
Commissioning / to-do resolution complete by 7/31/16
Infrastructure:
Ongoing commissioning / deployment aligned with meter installations
Mueller Server Migration (City AT&T agreements required) by 7/31/16
Substantial Completion 9/16
Final Closeout 10/16