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Home My WebLink About12 Oracle Fusion Middleware Agenda Item KEE DONNER PublicDistrict Memorandum To: Board of Directors From: Ian Fitzgerald Date: Tuesday, May 29, 2007 Subject: Oracle Fusion Middleware for Information System Integration 1. WHY THIS MATTER IS BEFORE THE BOARD At the last board meeting, board members asked me to either bid the BPEL Software product, or to dispense with bidding and add supporting information on why bidding was being dispensed. 2. HISTORY The last board meeting, an agenda was put on the docket to obtain Board Approval for the purchase of software titled "Oracle Fusion Middleware: Application Server & BPEL Developer". The Board asked for the agenda either to be put to bid, or to be dispensed with bidding. 3. NEW INFORMATION In order for integration software to work within the TDPUD Information Technology environment, certain criterion is required to be met. A. Requirement to work on a multitude of operating systems Currently at the District, although a majority of our computer operating systems are on the Microsoft platform, not all are. In addition to the Microsoft operating suite (Windows XP, Windows Server 2003 and Windows Server 2000), the District also has a UNIX environment running our IVUE applications and OpenVMS for our Electric SCADA system. The new Water SCADA's operating system has yet to be determined. Thus, of operatingsystems.ause BPEL is an integration software, it must operate on and between a mu p B. Integration work will require messaging to and from emails, pagers, and cell phones A lot of the integration we will be performing will be messaging data from our local servers to emails, pagers and cell phones. In order to do this, the BPEL server must be able to transmit to and from these environments. C. Due to the fact that BPEL will be a middleware between our database applications; support should be seamless between the BPEL product and our database applications Currently, the District runs two separate database environments: Oracle and SOLServer. SOLServer is in the progress of being replaced by an Oracle environment for our IVUE ABS application in the near future. This will leave the District's entire database suite running on Oracle software. Any BPEL software company must be able to support both the BPEL software and our Oracle Databases for trouble shooting BPEL integration processes. rate, and run D. Product must be easy to implement,E Le without �eason outside reducing consultants consulting The District is looking to purchase a B product for the fees: to develop and operating the program from within the District's ranks. E. If all things are equal, cost must be considered If there are a multitude of BPEL software that meet all the above criteria, then cost must be a factor Using the above requirements the following BPEUApplication Server Software Products were considered. Microsoft Biztalk Oracle SOA IBM Websphere Fiorano SOA iBolt Integration Sonic ESB * Comparison costs acquired from Wikipedia For each question, each product will be rated a pass or fail A. Requirement to work on a multitude of operating systems Microsoft Biztalk Fail — Does not run on Linux or Unix Oracle SOA Pass IBM Websphere Pass Fiorano SOA Pass iBolt Integration Pass Sonic ESB Pass B. Integration work will required messaging to and from emails, pagers, and cell phones (SMS) Microsoft Biztalk Fail — Can't receive email, or send SMS or Pager data Oracle SOA Pass IBM Websphere Pass Fiorano SOA Fail — Does not work with SMS or Pagers iBolt Integration Fail - Not part of product Sonic ESB Fail — Requires other vendor software to run Application C. Do to the fact that BPEL will be a middleware between our database applications; support should be seamless between the BPEL product and our database applications — must have a specific oracle database adapter Microsoft Biztalk Pass Oracle SOA Pass IBM Websphere Fail — Does not include Oracle Database Adapter Fiorano SOA Pass iBolt Integration Pass Sonic ESB Fail — Works strictly with proprietary databases D. Product must be easy to implement, operate, and run without outside consultants Microsoft Biztalk Pass Oracle SOA Pass IBM Websphere Fail — To many components for implementation Fiorano SOA Pass iBolt Integration Pass Sonic ESB Pass E. If all things are equal, cost must be considered Microsoft Biztalk Cost $29,999 * Requires Development Software Visual Studio Oracle SOA Cost $50,000 IBM Websphere Cost: $153,000 Fiorano SOA Cost: $30,000 iBolt Integration Cost: $50,000 Sonic ESB Cost: $35,000 * Requires other vendor Application Server 4. RECOMMENDATION We are recommending to the board to dispense with bidding on this software product, even though other software companies outside of Oracle offer BPEL software for this reason; Oracle BPEL software is the only software which meets all the criteria critical for implementation and deploying with existing and/or potentially future Truckee Donner Public Utility District ("District") Information Technology. We are also recommending for the Board to authorize the purchase of the "Oracle Fusion Middleware: Application Server & BPAL OraclepCrredit Corporation Payment Schedule price No. of $54,900.00. (See Attached Appendix 21223). 5. SOURCE OF FUNDING (if applicable) Total = $54,900.00 Source: $5847 from Savings from Field Computer Purchase) (07-950-30) $40,000 from Consulting Services budgeted (1.9.923.00/743), but not as yet used, and now offset by use of this software. Additional Money Required to Purchase Software outright this year: $9,053.00 6. BOARD AUTHORIZATION TO TRANSFER FUNDS The board will be required to authorize the transfer of budgeted funds from: 1. 07-950-30 - Field Unit Extension/Upgrade Capital Project 2. 1 .9.923.00/743 — Professional Services I I II I �II I� IIIII Illq TRUCKEE r I"O E Public Utility District 'I Resolution No. 2007- xx Directing that competitive bidding be dispensed with in connection with the purchase of Oracle Fusion Middleware For Information System Integration WHEREAS, the District computer operating systems are primarily on the Microsoft platform (Windows XP, Windows Server 2003 and Windows Server e0u0r ElectricDistrict also has a UNIX SCADA system; and environment running IVUE applications and OpnVMS for o WHEREAS, BPEL (Business Process Engine Language) is an integration software and must operate on and between a multitude of operating systems and databases; and WHEREAS, the integration the District will be performing will be messaging data from our local servers to emails, pagers and cell phones, and the BPEL server must be able to transmit to and from these environments; and WHEREAS, BPEL will be a middleware d and oureen our atabase databasepappliclationsh and remaking support seamless between the BPEL product WHEREAS, five BPEL/Application Server Software Products were considered and rated; and WHEREAS, the following criteria were utilized: requirement to work on a multitude of operating systems; integration work requires messaging to and from emails, pagers and cell phones (SMS); support should be seamless between the BPEL product and our database applications;due to the fact that BPEL will be a middleware between our database must be easy to implement, operate, and run without outside consultants; and WHEREAS, Oracle BPEL software is the only software which meets all the criteria critical for implementation and deploying with existing and/or potentially future Truckee Donner Public Utility District Information Technology; and WHEREAS, various California court decisions, including Graydon v Pasadena Development Acienc , 104 C.A. 3d 631 (1980), hold that if the subject of a contract is such that competitive proposals would be unavailing or would not produce an advantage and the advertisement for competitive bids would thus be undesirable or impractical, a public agency may dispense with competitive bidding; and Resolution 2007-XX 1 Oracle Fusion Middleware WHEREAS, due to the facts set forth above, competitive bidding would be unavailing and would not produce an advantage to the District and the advertising for competitive bids would not produce an advantage to the District and would be undesirable; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors that it adopts the above stated recitals as its findings. BE IT FURTHER RESOLVED BY THE Board of Directors that for the reasons set forth above, the District finds that competitive bids for the purchase of the "Oracle Fusion Middleware: Application Server& BPEL Developer" package would be unavailing and would not produce an advantage to the District and the advertisement for competitive bids would not produce an advantage to the District and would be undesirable and costly. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 6th day of June, 2007 by the following roll call vote: AYES: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By: Tim F. Taylor, Board of Directors ATTEST: Peter L. Holzmeister, Clerk of the Board Resolution 2007-XX 2 Oracle Fusion Middleware Truckee Donner PUD Power Supply Plan Update Agenda Items #13 through #16 June 6, 2007 TDPUD Has Developed a Comprehensive Power Supply Plan • Existingpower supply contract expires at the end of 2007 — Existing contract essentially eliminated price volatility • New Portfolio is intended to balance: — Conservation — Renewable Resources — Resource Diversity — Contact Duration — Cost — Price Volatility 2 Conservation is Considered First Resource • Historic load growth has averaged 4.7% over the last three years • Forecast assumes that load increases by only 1 % over the next three years — Conservation may account for 1-3% of load — Offsets growth that would otherwise require additional resources • Conservation is estimated to shave approximately 1 MW from TDPUD's monthly average energy requirements — Actual load requires market purchases to shape around average requirements — Greater conservation will reduce shaping purchases 3 Renewab le Resources Provide Nearly 25% of Energy • Stampede Hydroelectric Plant — Approximately 3.4MW run of river plant — Output will be shared with the City of Fallon — Majority of energy will be received March-July — Expected cost is $38.00/MWh — Letter Agreement with City of Fallon is ready for Board Approval • _Rye Patch - Geothermal Project — Ten year contract supports developer re-powering — Approximately 4 MW is expected in summer 2008 — Expected cost is about $65/MWh — Contract is substantially complete and ready for Board approval 4 nal Resources are Required uired to Meet Load q TDPUD Resource Requirements • Majority of resource "Gap" is 30 High Load Hours-2008 gg durin high load hours 25 20 • Market purchases will expose 15 10 TDPUD to price volatility 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Additional baseload and ■Existing SCE ■New Geothermal ❑Stampede ■HLHGap peaking resources are TDPUD Resource Requirements Low Load Hours-2008 required 30 25 20 15 10 5 (5) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■HLH Gap ■Existing SCE ■New Geothermal ❑Stampede 5 Additional Resources Available to TDPUD • Payson Natural Gas Project — 145 MW UAMPS owned project in commercial operation — Payson location enables delivery via UAMPS Power Pool — Long-term cost based power purchase agreement is available — Majority of energy is received during high load hours — Expected cost is approximately $80.00/MWh — Price fluctuates with the cost of natural gas and unit dispatch — Project adds to resource and fuel diversity • UAMPS Scheduled Contract Energy ("SCE") Project — Additional capacity is available beginning in summer 2008 — Expected cost is in the mid $50/MWh range — Project fits TDPUD's remaining baseload need at a relatively low cost TDPUD Proposed Resource Plan • Executed Stampede Contract • Execute Geothermal Contract — Rye Patch • Continue diligence on Payson Project life of unit power purchase agreement — 3-4 MW satisfies TDPUD's peaking needs • Execute additional SCE purchase to bridge to 2011 — Allows TDPUD to gain experience with enhanced conservation efforts — Allows TDPUD to continue to explore additional renewable resources Additional SCE Capacity — in MW F72008 2009 2010 2011 Summer 6 4 4 4 Winter 2 2 2 2 TDPUD Proposed Resource Plan - 2008 TDPUD Resource Profile High Load Hours - 2008 30.0 25.0 20.0 15.0 10.0 5.0 (5.0) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■Existing SCE ■New Geothermal ❑Stampede ❑Payson ■Additional SCE _■HLH Gap • Plan results in resource diversity, minimal price volatility and an ex ected all-in cost in the range of $59.00/MWh p • Current gas forecast and average heat-rate 0 Short position in first quarter of 2008 remains to be addressed s m TDPUD Proposed Resource Plan - 2011 TDPUD Available Capacity High Load Hours - 2011 30.0 25.0 20.0 15.0 10.0 5.0 (5.0) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■ Existing SCE ■ New Geothermal ❑ Stampede ❑ Payson ■ Additional SCE ■ HLH Gap • BY 2011 , the plan results in an all-in cost in the range of $60.00/1\ Wh — Expected variability in cost is within $3.00-$4.00/MWh — Expected cost of comparable Constellation renewal for 2008 is approxomately 7 8.5$/MWh 9 TDPUD Proposed Resource Plan - 2011 TDPUD Available Capacity with Additional Geothermal High Load Hours - 2011 30.0 25.0 20.0 15.0 10.0 5.0 (5.0) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■Existing SCE ■New Geothermal 0 Stampede El Payson ■Additional SCE ■HLH Gap tes an additional 2MW of Geothermal • Plan accommoda Capacity in 2011 Excess energy will cover load growth in excess of presumed • conservation or be sold via the DAMPS power pool 10 I TDPUD Resource Portfolio - 2011 January-No Additional Geothermal July- No Additional Geothermal Market Market Natural Gas 2% Natural Gas 7% 14% 12% Hydro Hydro 3% 10% SCE Geothermal 55% SCE 16% 62% Geothermal 19% January-With Additional Geothermal July-With Additional Geothermal Natural Gas Natural Gas ( 12% 13% Hydro Hydro 3% 9% i SCE Geothermal 52% 23% SCE 62% Geothermal 26% i 11 Plan Requires Balancing Capability • Current power supply contract includes puts and calls to balance hourly load • TDPUD has neither transmission access nor staff to manage hourly buys/sells in house • UAMPS manages a power pool to aggregate its members' balancing needs — Pool purchases surplus energy from members F — Sells energy to members as necessary to meet load requirements — Supplements member-member transactions with market purchases and sales t Pool charges r es an administrative fee of $0.50 MWh • UAMPS transmission arrangements enable deliveries to Gonder • UAMPS All-In-Pool Agreement is ready for approval 12 Summary • Resource Plan balances conservation, renewable resources, fuel diversity, long-term contracts and medium term purchases. This puts uts the District well on its way to address the p Districts RP S goals • Achieves an expected all-in cost in the range of $60-OO/M)" • Minimizes price volatility due to fuel and weather risk • Summary of Action Items — Approve Stampede Letter Agreement with City of Fallon — Approve Geothermal Project Power Purchase Agreement — Approve Additional DAMPS SCE Agreements — Approve DAMPS All-In-Pool Agreement • Future Actions Required — Approve Payson Project Power Purchase Agreement (after due diligence) 13