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STAFF REPORT - PSA WITH VERTECH FOR SCADA SYSTEM CYBERSECURITY ASSESSMENT.pdf

Corona City Council
August 5, 2026

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STAFF REPORT - PSA WITH VERTECH FOR SCADA SYSTEM CYBERSECURITY ASSESSMENT.pdf
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August 5, 2026
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Corona City Council
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DATE: 08/05/2026
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2026-277

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

PROFESSIONAL SERVICES AGREEMENT WITH VERTECH INDUSTRIAL SYSTEMS, LLC. FOR THE UTILITIES DEPARTMENT SCADA SYSTEM CYBERSECURITY

ASSESSMENT PROJECT
EXECUTIVE SUMMARY:

This staff report asks the City Council to approve a Professional Services Agreement with Vertech Industrial Systems, LLC. for cybersecurity assessment services. The project will assess the SCADA network, establish security best practices, prioritize upgrades, and develop a multi-year redesign roadmap to improve security, reliability, and efficiency.

RECOMMENDED ACTION:

That the City Council:
a. Authorize an appropriation in the amount of $288,090 to the Penetration Testing, Operating and Maintenance Project No. PJ_00000112 and increase estimated revenues by the same amount in the Information Technology Fund (FD_1681). b. Authorize an appropriation in the amount of $288,090 to the Utilities Department’s operating budget for additional allocation costs incurred as a result of an increase to the Information Technology Fund (FD_1681), an Internal Service Fund. c. Award Request for Proposal No. 26-027AT to Vertech Industrial Systems, LLC. for the Supervisory Control and Data Acquisition Cybersecurity Assessment Project. d. Authorize the City Manager, or his designee, to execute the Professional Services Agreement with Vertech Industrial Systems, LLC. for the Supervisory Control and Data Acquisition Cybersecurity Assessment Project and issue a purchase order in an amount not to exceed $562,730, including the ability to negotiate and execute non-substantive changes and extensions, purchase orders and amendments up to $56,273 or 10% of the contract amount as authorized by Corona Municipal Code Section 3.08.060(H).

That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.

BACKGROUND & HISTORY:

The Utilities Department operates and maintains a complex software network system referred to as operational technology (OT). The OT network is the main foundation for the Supervisory Control and Data Acquisition (SCADA) system. The Utilities Department’s Operations teams utilize the SCADA network to effectively and efficiently operate and monitor the City’s water treatment facilities, distribution system, water reclamation facilities, groundwater wells, booster stations, water storage tanks, pressure regulation stations and monitor electric utility Wholesale Distribution Access Tariff. The Utilities Department’s SCADA system consists of seven primary control centers interconnected through licensed radio communication devices. Each treatment plant is supported by multiple remote facilities, which communicate with the main plant via either licensed radio or fiber optic networks. The Utilities Department operates over 100 programmable logic controllers that enable automated system operations, as well as remote monitoring and control of facilities throughout the system.

These components are essential for the Utilities Department’s operation and services provided. Therefore, care must be taken to ensure that the SCADA system is well protected from cybersecurity threats. A key component of the SCADA system’s cybersecurity policy is its general isolation from external networks. However, this means that system hardware does not receive periodic software updates. In addition to software upgrade needs, given the age of the SCADA system hardware, hardware upgrades also may be required. While strong cybersecurity practices and procedures are vital for the protection of the SCADA system, updated software and hardware components also play a role in ensuring a resilient system.

ANALYSIS:

The Utilities Department submitted Request for Proposal (RFP) documents to the Purchasing Department for the procurement of SCADA Cybersecurity Assessment services. On January 15, 2026, the Purchasing Division issued RFP 26-027AT following the Corona Municipal Code Section 3.08.110 Non-public projects formal bidding procedure. A total of 700 vendors from the PlanetBids vendor network and 623 vendors from the City’s vendor list were notified. Twenty-six (26) proposals were received through the PlanetBids bidding service portal by the proposal due date of February 16, 2026. Eight (8) proposals were disqualified from evaluation due to missing forms or exceptions on the Professional Service Agreement. Eighteen (18) remaining proposals were then evaluated from the following vendors:

Vendor Proposal Evaluation
Ranking
Proposed Fee
Vertech Industrial Systems, LLC. 1 $562,730
Michael Baker International 2 $620,241
Securance, LLC 3 $169,880
Global Solutions Group, Inc. 3 $73,968
AESI-US 4 $188,200
Trublood Technology Solutions, Inc 5 $200,200
N2W Engineering 6 $221,030
Net Force Corporation 7 $253,595
Dotwave Solutions 8 $91,050
Enterprise Risk Management Inc. 8 $96,250
Armexa 9 $1,650,475
GCorp Consulting 10 $112,000
Patterson and Dewar Engineers 10 $79,802
Archer 11 $241,256
Cogent Infotech Corporation 12 $589,784
Lancesoft 13 $130,000
Control Infotech, Inc. 14 $384,000
Murgreen Environmental 15 $242,094
Proposals were evaluated on the completeness of the response, the qualification of the firm, the qualification of key personnel, the work plan/project understanding, and total fee value. The proposals were evaluated by two staff members from the Information Technology department (Deputy Chief Information Officer and Senior Network Architect) and one staff member from the Utilities Department (Senior SCADA Engineer).

Interviews were then conducted with the top four vendors, and the following rankings were determined:

Vendor Interview Evaluation
Ranking
Vertech Industrial Systems, LLC. 1
Securance, LLC 2
Michael Baker International 3
Global Solutions Group, Inc. 4
Interviews were evaluated on the presentation content, the technical content, key team members, communication skills, project understanding, and accommodation of City needs. The interview evaluation team was composed of the same three staff members as the evaluation team.

Post-interview questions were then sent to the top two ranked vendors following the interview evaluations. The follow-up questions were asked to ensure that the listed project management team will manage the entire project. Vertech confirmed their designated staff have experience with the Utilities Department’s SCADA components and configuration. Following the proposal, interview evaluation process, and post-interview questions, Vertech was selected as the top choice vendor.

The SCADA system’s real-time monitoring and control capability of water and wastewater treatment infrastructure makes it a vital part of the Utilities Department’s ability to maintain regulatory compliance with respect to drinking water health and effluent discharge standards. To maintain continuous essential services, the SCADA system incorporates multiple cybersecurity protective measures designed to safeguard critical infrastructure and ensure system integrity. However, as software and hardware components become older, their capabilities become less suitable for the SCADA system’s needs and more vulnerable to failures. Consequently, it is vital to perform regular inventory assessments of the SCADA system to identify components that may need to be replaced. Due to hardware and software upgrade needs, as well as evolving cybersecurity threats, a cybersecurity assessment of the SCADA system is essential to provide in-depth system knowledge and development of a future roadmap that will ensure long-term reliable operations and minimal risk.

Vertech’s proposal for the SCADA Cybersecurity Assessment Project includes a more indepth approach consisting of a local engineering team and 22 years of experience in providing such services to public and private sectors.

Staff recommends that the City Council award a Professional Services Agreement in an amount not to exceed $562,730 to Vertech Industrial Systems, LLC., as the vendor that will best serve the interests of the City. All licenses, references, and required documentation for Vertech Industrial Systems, LLC. have been reviewed and verified by City staff.

FINANCIAL IMPACT:

Approval of the recommended actions will result in an additional appropriation in the amount of $288,090 to the existing Penetration Testing, Operating and Maintenance Project No. PJ_00000112, and an estimated revenue increase by the same amount in the Information Technology Fund (FD_1681).

Total Contract Amount Needed $562,730
10% Contingency $56,273
Total Funds Needed $619,003
PJ_00000112 Penetration Testing (Balance) $330,913
Additional Funds Needed $288,090
Information Technology Fund (FD_1681) is an Internal Service Fund. This fund is used to improve the management of resources and generally provides goods and services to departments on a cost reimbursement basis. The Penetration Testing, Operating and Maintenance Project No. PJ_00000112, within the Information Technology Fund (FD_1681), currently has a balance of $330,913. Approval of the recommended actions will also result in a total appropriation in the amount of $288,090 to the Utilities Department operating budget within the funds noted below:

Fund Description Fund # Amount
Reclaimed Water Utility Fund FD_1567 $2,881
Water Utility Fund FD_1570 $144,045
Sewer Utility Fund FD_1572 $129,640
Greenfield Electric Utility
Fund FD_1578 $11,524
Total Appropriations $288,090
ENVIRONMENTAL ANALYSIS:

This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination is exempt from CEQA. This action involves SCADA assessment, maintenance, and replacement of existing equipment. Therefore, no environmental analysis is required.

PREPARED BY: AFTAB HUSSAIN, ASSISTANT UTILITIES DIRECTOR REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENT:

1. Exhibit 1 – PSA

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