ADMINISTRATIVE REPORT
MEETING DATE: December 17, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: December 3, 2025
SUBJECT: Amendment No. 2 to Agreement 2021-282 with CANNON (increase compensation $350,000; revised not to exceed $1,000,000 and extend the term to December 31, 2026) for the Programmable Logic Controller Upgrade Project.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
Wastewater Treatment Plant No. 2 and No. 3 have multiple programmable logic controllers (PLCs) that control the plants’ processes based on input variables and manual switches; each one is designed and programmed specifically to control its assigned process . The PLCs communicate with several motor operated valves and variable frequency drives (VFD’s) over a Profibus, Modbus, Modbus +, and RIO communication link. At this time, both plants need upgrades across all PLCs because the hardware and software current ly being utilized has exceeded its designed life and is no longer supported by the manufacturer. This project will consist of procuring the needed hardware and software, installation, and programming each unit accordingly.
City approved Agreement No. 2021-282 with CANNON, on December 15, 2021, for $500,000.
On December 18, 2024, City approved Amendment No. 1 to extend the term of the original contract to December 31, 2025, and increased compensation by $150,000.
Since approval of Amendment No. 1, CANNON has updated most of the PLCs for both plants. Work on this project has been scheduled so that only one treatment process is down at a time and fully function al before work on the next PLC begins. The compensation amount on the original Agreement, and subsequent Amendment No.1, was based on anticipated progress during the active term.
Currently, to ensure the project is fully supported and continues to progress, City staff recommend extending the term by one year and increasing the compensation by $350,000, for a revised amount not to exceed $1,000,000.
FISCAL IMPACT:
Sufficient funds are budgeted in the Sewer Enterprise Fund capital improvement program for this amendment, therefore, there is no impact to the City General Fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Amendment No. 2 to Agreement 2021-282
2. Exhibit B