E-1.2. Azusa AMI MASTER AGREEMENT with exhibits 10.18.2017 V2

231 Pages·2017·3.32 MB·English

MASTER AGREEMENT BETWEEN
CITY OF AZUSA
AND SENSUS USA INC.
FOR THE
ADVANCED METERING INFRASTRUCTURE PROJECT

Dated: October 23, 2017

45635.01000\29905697.19
TABLE OF CONTENTS

1. DEFINITIONS .................................................................................................................1
2. ATTACHMENTS .............................................................................................................9
3. PROJECT SCOPE OF WORK ........................................................................................9
3.1 Overview of Advanced Metering Infrastructure Project ............................. 9
3.2 Project Phasing and General Schedule .................................................. 10
3.3 Contractor Project Management and Professional Services ................... 12
3.4 Contractor Solution Architect and Development Services ....................... 12
3.5 Contractor Application Engineering Manager Services ........................... 12
3.6 Project Responsibilities / Milestones ...................................................... 12
4. COMMERCIAL STRUCTURE ....................................................................................... 24
5. PERFORMANCE AND CONDUCT OF PARTIES ......................................................... 24
5.1 Interrelated Responsibilities & Obligations ............................................. 24
5.2 Acts & Omissions of Personnel .............................................................. 24
5.3 Own Tools & Equipment ......................................................................... 24
5.4 Conditions of Excuse from Responsbilities & Obligations ....................... 24
6. COMPLETENESS OF PLANNING WORK .................................................................... 25
7. [INTENTIONALLY OMITTED] ....................................................................................... 25
8. INVOICING & PAYMENT .............................................................................................. 25
8.1 Invoicing and Payment Procedures ........................................................ 25
8.2 Invoice Disputes ..................................................................................... 25
8.3 Intentionally Omitted ............................................................................... 25
8.4 Retention ................................................................................................ 25
8.5 Securities In Lieu of Retenetion .............................................................. 26
8.6 [RESERVED] ......................................................................................... 26
8.7 Disputed Invoices ................................................................................... 26
8.8 Address for Purchase Orders ................................................................. 26
9. TAXES ..........................................................................................................................2 6
10. PERIOD OF PERFORMANCE ...................................................................................... 26
10.1 Period of Performance ............................................................................. 26
11. EXHIBIT I – SENSUS MAINTENANCE AND SUPPORT SERVICES ............................ 27
11.1 Scope of Maintenance and Support Services Exhibit ............................. 27
12. REPRESENTATIVES .................................................................................................... 27
12.1 City Representative ................................................................................ 27
12.2 Contractor Representatives .................................................................... 27
13. STANDARD OF CARE .................................................................................................. 27
13.1 Professional Standard ............................................................................ 27
13.2 Professional Licenses ............................................................................ 27
13.3 Removal of Contract Personnel .............................................................. 27
13.4 Contractor Means and Methods ............................................................. 28
14. EQUIPMENT PURCHASES .......................................................................................... 28
14.1 Equipment Pricing .................................................................................. 28
14.2 Purchase Order Requirement ................................................................. 28
14.3 Firmware ................................................................................................ 28
14.4 Equipment Invoicing and Payment ......................................................... 28
14.5 Inspection by the City ............................................................................. 28
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TABLE OF CONTENTS

14.6 Title and Risk of Loss ............................................................................. 28
14.7 Documentation ....................................................................................... 29
14.8 Delivery and Packaging .......................................................................... 29
15. CHANGES ....................................................................................................................2 9
15.1 General .................................................................................................. 29
15.2 Contract Change Order Requests by Contractor .................................... 29
15.3 Responses to Change Requests ............................................................ 30
15.4 Failure to Respond to Change Request .................................................. 30
15.5 Authorized Approvals Required .............................................................. 30
15.6 Urgent Changes ..................................................................................... 30
15.7 Change Orders Incorporated into ContractGeneral ................................ 30
15.8 Authorized Approvals Required .............................................................. 30
16. DELAYS, DEFAULTS AND ASSUMPTIONS ................................................................ 30
16.1 Delays and City ...................................................................................... 30
16.2 Delays by Contractors ............................................................................ 31
16.3 Concurrent Delays .................................................................................. 31
16.4 Limitation on Delay Damages ................................................................. 32
17. INSURANCE AND BONDS ........................................................................................... 32
17.1 Time for Compliance .............................................................................. 32
17.2 Commercial General Liabilirty Insurance ................................................ 32
17.3 Other Required Coverages ..................................................................... 33
17.4 Requirements for All Coverages ............................................................. 34
17.5 Payment and Performance Bonds .......................................................... 35
18. INDEMNIFICATION AGAINST THIRD PARTY CLAIMS ............................................... 35
18.1 General Claims ...................................................................................... 35
18.2 Infringement Claims ............................................................................... 35
18.3 Conditions to Infringement Claim Defense ............................................. 35
18.4 Exclusions to Infringement Claim Defense ............................................. 36
18.5 Conditions to Defense ............................................................................ 36
19. LABOR LAWS ...............................................................................................................3 6
19.1 Hours of Work ........................................................................................ 36
19.2 Wage Rates ........................................................................................... 37
19.3 Payroll Records ...................................................................................... 38
19.4 Public Works Contractor Registration ..................................................... 39
19.5 Apprentices ............................................................................................ 39
19.6 Nondiscrimination ................................................................................... 39
19.7 Labor Certification .................................................................................. 39
19.8 Ineligible Contractors .............................................................................. 39
20. CONTRACTOR WARRANTIES & PERFORMANCE REQUIREMENTS ....................... 40
20.1 Warranty Overview & Relationship ......................................................... 40
20.2 Equipment .............................................................................................. 40
20.3 Services Standard of Care ..................................................................... 40
20.4 Installation Warranty ............................................................................... 41
20.5 Network and Software Performance Requirements ................................ 41
20.6 Disclaimer Of Warranties, Limitations And Exclusions ............................ 41
21. LIMITATIONS OF LIABILITY ......................................................................................... 42
22. EMERGENCY REPAIRS ............................................................................................... 42
23. [INTENTIONALLY OMITTED] ....................................................................................... 43
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TABLE OF CONTENTS

24. CITY DATA ...................................................................................................................4 3
24.1 Ownership of Customer Data by the City ................................................43
24.2 Restricted Use of the Data by Contractor ............................................... 43
25. CONFIDENTIALITY ...................................................................................................... 43
25.1 Protection of Confidential Information ..................................................... 43
25.2 [Intentionally Omitted] ............................................................................. 44
25.3 Use of City’s Logo .................................................................................. 44
25.4 Permitted Disclosure .............................................................................. 44
25.5 Exceptions.............................................................................................. 44
25.6 Required Disclosure ............................................................................... 44
25.7 Third Party Information ........................................................................... 44
25.8 Notification ............................................................................................. 44
25.9 Injunctive Relief ...................................................................................... 44
25.10 Return of Confidential Information .......................................................... 44
25.11 Public Records Act ................................................................................. 45
26. INTELLECTUAL PROPERTY ........................................................................................ 45
26.1 Reservation of Intellectual Property Rights ............................................. 45
26.2 Restrictions ............................................................................................ 45
27. DISPUTE RESOLUTION ............................................................................................... 45
27.1 Dispute Resolution Procedure ................................................................ 45
27.2 Agreements in Writing ............................................................................ 46
27.3 Injunctive Relief ...................................................................................... 46
27.4 Duty to Continue Performance ............................................................... 46
28. RESERVED ..................................................................................................................4 6
29. DISENTANGLEMENT ................................................................................................... 46
29.1 Disentanglement Services ...................................................................... 46
29.2 Disentanglement Plan ............................................................................ 46
30. TORT CLAIM PROCEDURES ....................................................................................... 46
31. TERM AND TERMINATION .......................................................................................... 47
31.1 Term.......................................................................................................4 7
31.2 Termination for Contractor Failure to Pass FAT ..................................... 47
31.3 Termination by the City for Cause .......................................................... 47
31.4 Termination by Contractor ...................................................................... 48
31.5 Effect of Termination .............................................................................. 48
32. GENERAL PROVISIONS .............................................................................................. 48
32.1 Entire Agreement ................................................................................... 48
32.2 Captions; Section Numbers .................................................................... 48
32.3 Neither Party Deemed Drafter ................................................................ 49
32.4 Order of Precedence .............................................................................. 49
32.5 Notices ................................................................................................... 49
32.6 Governing Law ....................................................................................... 49
32.7 Jurisdiction; Venue ................................................................................. 49
32.8 Interpretation .......................................................................................... 49
32.9 [Intentionally Omitted] ............................................................................. 49
32.10 Assignment ............................................................................................ 49
32.11 No Third Party Rights ............................................................................. 50
32.12 Survival .................................................................................................. 50
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32.13 Force Majeure ........................................................................................ 50
32.14 Authority of Signatories .......................................................................... 50
32.15 Severability of Provisions ....................................................................... 50
32.16 No Waiver .............................................................................................. 50
32.17 The City’s Right To Audit ........................................................................ 51
32.18 Third-Party Claims (Pub. Contract Code § 9201) ................................... 51
32.19 State License Board Notice .................................................................... 51
32.20 Counterparts .......................................................................................... 51

ATTACHMENTS
Exhibit A – Notification for Spectrum Manager Lease ............................................................... 54
Exhibit B – Contractor Statement of Work ................................................................................. 57
Exhibit C – Harris Statement of Work ........................................................................................ 59
Exhibit D – Functional Acceptance Testing for Phase 1 ............................................................ 98
Exhibit E – UPA Statement of Work ........................................................................................ 123
Exhibit F – Contract Pricing ..................................................................................................... 151
Exhibit G –Equipment Warranties ........................................................................................... 167
Exhibit H – System Acceptance Testing for Full Deployment Phase 2 .................................... 170
Exhibit I – Sensus Maintenance and Support Services .......................................................... 177
Exhibit J – Harris Software License Terms and Conditions .................................................... 202
Exhibit K – Propagation Study................................................................................................. 226

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MASTER AGREEMENT BETWEEN
CITY OF AZUSA
AND SENSUS USA INC.
FOR THE
ADVANCED METERING INFRASTRUCTURE PROJECT
This Master Agreement (“Contract” or “Agreement”) is made and entered into this 23rd
Day of October, 2017, (“Effective Date”) by and between the City of Azusa (“City”), operating
through its Light & Water Department, and Sensus USA Inc. (“Contractor”), for the Advanced
Metering Infrastructure Project (the “Project”). The City and Contractor may be referred to
individually as a “Party” and collectively as the “Parties.”
AGREEMENT
In consideration of the mutual covenants and conditions set forth herein, and for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereby set forth their mutual covenants and understandings as follows:
1. DEFINITIONS
Advanced Metering Infrastructure Project or Project. The term “Advanced Metering
Infrastructure Project” or “Project” means the project summarized in Section 3 of this Contract,
as further outlined in Exhibits to this Contract.
AMI System. The term “AMI System” identifies the Sensus FlexNet Advanced Meter
Infrastructure System comprised of the SmartPoint Modules, RF Field Equipment, Server
Hardware, software licenses, FCC licenses, and other Equipment provided to City hereunder.
The AMI System excludes third party equipment and third party software provided hereunder.

Applicable Laws. The laws, statutes, ordinances, rules, codes, regulations, permits, and
licenses of any kind, issued by local, state or federal governmental authorities to the extent they
apply to the Work.
Available Meter. The term “Available Meter” means an installed Contractor FlexNet meter (with
a SmartPoint Module installed) or a Contractor SmartPoint Module which has been installed on
a third party meter, and which, in either case, is not an Unavailable Meter (or on an Unavailable
Meter in the case of SmartPoint Modules on third party meters) and which satisfies all of the
following criteria: (i) it functions properly, is powered and is not a damaged or failed meter; (ii) it
is in a deployment area of meters for City such that a sufficient number of two-way meters are in
range of each other; (iii) it is serviced by RF Field Equipment that has not been subjected to a
power failure greater than eight (8) total hours; (iv) neither it nor the RF Field Equipment that
serves that meter has been affected by a Force Majeure event; (v) jamming of the radio
spectrum is not preventing or interfering with radio communication to or from the meter; (vi) it is
installed in the Service Territory; (vii) it has not been reported to City under Contractor's or City’s
preventative maintenance; (viii) its functioning or performance has not been adversely affected
by a failure of City to perform its obligations or tasks for which it is responsible under this
Agreement, including, but not limited to, testing and confirming that the socket to which the
meter will be/is connected is in safe operating condition, is fully functional, is not corroded, does
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not contain improperly installed jaws or other deficiencies, complies with ANSI standards, and is
not “hot”, damaged, or otherwise in need of maintenance or repair; (ix) its functioning or
performance has not been adversely affected by a failure or insufficiency of the back haul
telecommunications network of City for communications among the components of the
Contractor AMI System; and (x) it has been installed in compliance with the procedures and
specifications approved by City and Contractor.
Billing Window. The term “Billing Window” for a meter means the four Day period
commencing one Day prior to the relevant billing Day for such meter and ending two Days after
such billing Day. The Billing Window for testing purposes shall be agreed by City and
Contractor.
Change Order. The term “Change Order” means material changes to the Scope of Work for
this Project which warrant additional compensation to the Contractor in excess of the Contract
Price as set forth in Exhibit F - Contract Pricing. Compensation for Change Orders is to be
agreed upon by the City and Contractor pursuant to procedures set forth in Section 15 of this
Agreement and hourly pricing in Exhibit F - Contract Pricing is to be used to guide Parties to
reach agreement on Change Orders.
City Data. The term “City Data” means usage data collected by the meter or distribution
automation device located at the City’s Customer’s premises. To avoid doubt, City Data does
not include Customer usage data collected by the SmartPoint™ Modules, Software, or AMI
System, such as network and equipment status information or the like.
Confidential Information. The term “Confidential Information” shall mean (a) the discussions,
negotiations and proposals related to this Contract, and (b) information, whether provided
directly or indirectly from the other Party (and, in the case of Contractor, from customers) in
writing, verbally, by electronic or other data transmission or in any other form or media or
obtained through on-site visits at the City or Contractor facilities and whether furnished or made
available before or after the Effective Date, that is confidential, proprietary or otherwise not
generally available to the public, including, without limitation, trade secrets, marketing and sales
information, product information, technical information and technology such as AMI System
performance, AMI System architecture and design, information about trade techniques and
other processes and procedures, financial information and business information, pricing, plans
and prospects, together with any excerpts, reports or documents prepared by or on behalf of the
recipient of the information incorporating, referred to or reflecting, in whole or in part, any portion
of any such information. The City’s Customer Data, the City’s Intellectual Property, and
Contractor’s Intellectual Property will be considered Confidential Information. Confidential
Information does not include information that is: (i) rightfully known to the receiving Party before
negotiations leading up to the Contract; (ii) independently developed by the receiving Party
without use of, access to, or relying on the disclosing Party’s Confidential Information; (iii) part of
the public domain through no fault of the receiving Party or is lawfully obtained by the receiving
Party from a third party not under an obligation of confidentiality; or (iv) free of confidentiality
restrictions by agreement of the disclosing Party. Confidential Information shall not include any
portion of this publicly approved Contract that constitutes a public record subject to disclosure
under the California Public Records Act and any other applicable sunshine laws.
Contract Price. The Term Contract Price means an agreed upon total dollar amount that
Contractor will charge to carry out the Scope of Work for this Project; billing amounts are to
reflect progress of actual work performed at Contract Pricing rates, and units of equipment
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delivered are to be billed based on unit pricing included in this Agreement up to Contract Price,
and/or as approved through Change Orders.
Contract Pricing. The term Contract Pricing means the commercial arrangement between
Contractor and the City where Contractor agrees to perform the scope of Work for Project
for Contract Pricing. Under Contract Pricing, as used in this Agreement, the Contract Price may
be amended pursuant to a Change Order. Likewise, under Contract Pricing, if the City does not
require as many meters to be installed as reflected in the Contract Price, then the number of
meters purchased and installation costs would be lower than the Contract Price, as an example.
Contractor-Manufactured Equipment. The term “Contractor-Manufactured Equipment” shall
mean the Equipment manufactured by Contractor and to be provided for the Project by
Contractor for the pricing set forth in Contract Pricing - Exhibit F and included in the scope of
Work for this Project. Contractor-Manufactured Equipment does not include Third-Party
Equipment.
Contractor-Manufactured Equipment Warranty. The term “Contractor-Manufactured
Equipment Warranty” shall mean Contractor’s warranty on Contractor-Manufactured Equipment
as set forth in Exhibits to this Contract.
Contractor-Manufactured Equipment Warranty Term. The term “Contractor-Manufactured
Equipment Warranty Term” shall mean the term of the Contractor-Manufactured Equipment
Warranty identified as set forth in Exhibits to this Contract.
Contractor Software. The term “Contractor Software” shall mean software developed by
Contractor. Contractor Software does not include any Third-Party Software.
Covered Systems. The term “Covered Systems” shall mean the platforms on which the City is
authorized under this Contract to use the Licensed Software.
Customer. The term “Customer” includes any person, persons, corporation, partnership,
limited liability company, or other legal entity of any nature whatsoever that the City supplies
water and/or electricity to or bills or invoices for water and/or electricity consumption.
Customer Data. The term “Customer Data” shall mean any information about the City’s
existing or prospective customers that Contractor acquires through this Contract. Customer
Data may include, without limitation, any personally identifying information relating to an existing
or prospective customer, or any other information that, either individually or when combined with
other information could be used to derive information specific to a particular customer or
prospective customer, which information is not generally available to the public and which
Contractor acquires or derives in carrying out its obligations under the Contract. For the
avoidance of doubt, Customer Data specifically excludes data collected by the SmartPoint™
Modules, Software, or AMI System, such as network and equipment status information or the
like.
Day(s). The term “Day,” shall mean calendar Day, unless otherwise specifically provided.
Delay. The term “Delay” means a delay by the City or Contractor in performing their respective
obligations under this Contract that either Party reasonably believes the other Party caused by
an act or omission and which directly causes a delay in performance or which has a cost
impact.
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Deliverables. The term “Deliverables” shall mean anything that Contractor is required to
provide under the scope of Work on the Project as stated in Section 3 and the Exhibits of this
Contract.
Disentanglement Plan. The term “Disentanglement Plan” means a written plan that: (i)
allocates responsibilities for Disentanglement Services among the Parties and, to the extent
applicable, any third party service providers; and (ii) sets forth in reasonable detail the
respective services and function to be provided by each of the Parties and such third party
service providers.
Disentanglement Services. The term “Disentanglement Services” means those Services to
be provided by Contractor under an agreed-upon Disentanglement Plan to transition Services
from Contractor to the City or a City contracted third party.
Documentation. The term “Documentation” shall mean operating manuals and training
guidance materials related to the Work provided by Contractor.
Echo Transceiver. The term “Echo Transceiver” identifies the Contractor standalone, mounted
relay device that takes the radio frequency readings from the SmartPoint Modules and relays
them by radio frequency to the relevant FlexNet Base Station.
Escalator(s). The term “Escalator” means the following:
i. For services: The labor cost for professional services may be subject to an annual
percentage change adjustment based on the United States Bureau of Labor
Statistics Consumer Price Index for Los Angeles-Riverside-Orange, CO, CA All
Items, 1982-84 = 100 (Monthly)-CWURA421SAO”, not seasonally adjusted, or
substantially similar succeeding index, however, shall not exceed three percent (3%)
in any one year.

ii. For Water Meters:
(a) For bronze and low lead water metering products: the percentage change, for
the relevant period, of the average of; (a) the United States Bureau of Labor
Statistics Producer Price Index, Commodities, Group: Metals and metal products,
Item: Copper and copper-base alloy castings (excl. die-castings), series ID:
WPU102807013, not seasonally adjusted; and (b) the United States Bureau of
Labor Statistics Producer Price Index, Industry Data, Industry and Product:
Plastics material and resins mfg., series ID: PCU 325211325211, not seasonally
adjusted.#
(b) For plastic main case meters: the percentage change, for the relevant period,
of the United States Bureau of Labor Statistics Producer Price Index, Industry
Data, Industry and Product: Plastics material and resins mfg., series ID: PCU
325211325211, not seasonally adjusted.
(c) For Omni meters: the percentage change, for the relevant period, of the United
States Bureau of Labor Statistics Producer Price Index, Commodities, Group:
Metals and metal products, item: other gray and ductile iron castings, other,
series ID: WPU101504, not seasonally adjusted.
iii. Any Escalator which is used to adjust billing charges shall be calculated to the third
decimal point (e.g. 2.576%), and shall commence after 12 months following the
approval of this Contract by both Parties.
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Equipment. The term “Equipment” shall mean, generically, both Contractor-Manufactured
Equipment and any Third-Party Equipment (if applicable) that is within the scope of Work on the
Project.
Field Devices. The term “Field Devices” means the meters and SmartPoint modules.
Firmware. The term “Firmware” shall mean any program code and data stored in persistent
memory, embedded in Contractor-Manufactured Equipment.
FlexNet Base Stations. The term “FlexNet Base Station” identifies the Contractor
manufactured device consisting of one transceiver, to be located on a tower that receives
readings from the SmartPoint Modules (either directly or via an Echo Transceiver) by radio
frequency and passes those readings to the RNI by TCP/IP backhaul communication. For
clarity, FlexNet Base Stations include Metro Base Stations.
Functional Acceptance Testing or FAT. The terms “Functional Acceptance Testing” or “FAT”
means the testing of Phase 1 Work to confirm that the AMI System meets performance criteria
outlined in Exhibit D – Functional Acceptance Testing for Phase 1, including test cases
developed pursuant to Exhibit D following the Effective Date of this Contract, and as agreed
upon by City and Contractor.

Harris Software. The term “Harris Software” refers to software provided by N. Harris Computer
Corporation to City as part of this Project, which includes the MeterSense Meter Data
Management System (MDMS), the SmartWorks Compass Software, and the CustomerConnect
customer portal. The Harris Software includes Software Licenses, Harris Software Updates or
Upgrades to the MeterSense MDMS core software, SmartWorks Compass software,
CustomerConnect software or MeterSense add-on modules.

Hosted Software. The term “Hosted Software” means software hosted at Contractor’s Data
Center or other third party hosting facility and includes those referred to in the Exhibits, including
Maintenance and Support Services Exhibit I “Application” or “Applications”. Hosted Software
under this Agreement refers specifically to the Harris Software, which City is licensing from
Contractor pursuant to the terms and condtions of Exhibit J – Harris Software License Terms
and Conditions. Contractor is providing hosting services for this licensed software as described
in Exhibit I Section II C.

In/Out Costs. The term “In/Out Costs” means any and all costs, expenses and/or liabilities
incurred by the City in transporting a water and/or electricity meter to and/or from a Customer’s
premises and installing it or de-installing it at any Customer’s premises.

Intellectual Property. The term “Intellectual Property” means patents and patent applications,
inventions (whether patentable or not), trademarks, service marks, trade dress, copyrights,
trade secrets, know-how, data rights, specifications, drawings, designs, maskwork rights,
author’s rights, and other intellectual property rights, including any derivations and/or derivative
works, as may exist now or hereafter come into existence, and all renewals and extensions
thereof, regardless of whether any of such rights arise under the laws of the United States or of
any other state, country or jurisdiction, any registrations or applications thereof, and all goodwill
pertinent thereto.

Maintenance and Support Services Exhibit. The term “Maintenance and Support Services
Exhibit” means the Services to be provided under Exhibit I of this Agreement. The term of
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