City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 6, 2022 FROM: PUBLIC UTILITIES DEPARTMENT WARDS: ALL SUBJECT: WATER SUPERVISORY CONTROL AND DATA ACQUISITION PHASE II (TECHNOLOGY UPGRADE) PROJECT - REQUEST FOR PROPOSAL NO. 2056 FOR DESIGN-BUILD AGREEMENT WITH TESCO CONTROLS OF SACRAMENTO, CALIFORNIA IN THE AMOUNT OF $9,318,000 PLUS 10% CHANGE ORDER AUTHORITY IN THE AMOUNT OF $931,800; REQUEST FOR PROPOSAL NO. 2109 FOR PROFESSIONAL SERVICES AGREEMENT FOR OWNER’S REPRESENTATIVE SERVICES WITH ERAMOSA INTERNATIONAL OF OVERLAND PARK, KANSAS FOR A TERM THROUGH DECEMBER 31, 2028 IN THE AMOUNT OF $1,303,286 PLUS 10% CHANGE ORDER AUTHORITY IN THE AMOUNT OF $130,329; AND ADDITIONAL PROJECT COSTS OF $306,360 ALL FOR WORK ORDER NO. 2015467 IN THE TOTAL AMOUNT OF $11,989,775 ISSUES:
Consider approval of a Design-Build Agreement for Water SCADA Technology Upgrade from RFP No. 2056 with Tesco Controls of Sacramento, California in the amount of $9,318,000 plus 10% change order authority in the amount of $931,800; and approval of a Professional Services Agreement for Owner’s Representative Services for the Water SCADA Technology Upgrade Project from RFP No. 2109 with Eramosa International, Inc. of Overland Park, Kansas, for a term through December 31, 2028, in the amount of $1,303,286, plus 10% change order authority in the amount of $130,329.
RECOMMENDATIONS:
That the City Council:
Approve the Design-Build Agreement for Water SCADA Technology Upgrade from RFP No. 2056 with Tesco Controls of Sacramento, California in the amount of $9,318,000 plus 10% change order authority in the amount of $931,800; Authorize the City Manager, or designee, to execute the Design-Build Services Agreement including making minor and non-substantive changes and to sign all documents and instruments necessary to complete the transactions; Approve the Professional Services Agreement for Owner’s Representative Services for the Water SCADA Technology Upgrade Project from RFP No. 2109 with Eramosa International, Inc. of Overland Park, Kansas, for a term through December 31, 2028, in the amount of $1,303,286, plus 10% change order authority in the amount of $130,329; and Authorize the City Manager, or designee, to execute the Professional Services Agreement including making minor and non-substantive changes and to sign all documents and instruments necessary to complete the transactions.
BOARD RECOMMENDATION:
This report is published on November 23, 2022 for the December 6, 2022 City Council meeting.
On November 28, 2022, the Board of Public Utilities will hear this item for consideration to approve a total expenditure amount of $10,249,800 for a Design-Build Agreement for Water SCADA Technology Upgrade from RFP No. 2056, and a total expenditure amount of $1,433,615 for a Professional Services Agreement for Owner’s Representative Services for the Water SCADA Technology Upgrade Project from RFP No. 2109, and to approve a total capital expenditure amount of $11,989,775 for Work Order 215467, including additional project costs of $306,360 for the Water SCADA Phase II (Technology Upgrade) Project; and recommend to City Council to approve a Design-Build Agreement for Water SCADA Technology Upgrade from RFP No. 2056 with Tesco Controls of Sacramento, California in the amount of $9,318,000 plus 10% change order authority in the amount of $931,800, and to approve the Professional Services Agreement for Owner’s Representative Services for the Water SCADA Technology Upgrade Project from RFP No. 2109 with Eramosa International, Inc. of Overland Park, Kansas, for a term through December 31, 2028, in the amount of $1,303,286, plus 10% change order authority in the amount of $130,329.
BACKGROUND:
The City's water supply is operated by State of California certified water treatment and distribution operators using a Supervisory Control and Data Acquisition (SCADA) system. The SCADA system is the backbone of the water system allowing continuous control and monitoring of water supply production, treatment, and distribution of drinking water using computers, instrumentation, and communication networks. The SCADA system uses specialized automation software to send operational control instructions via radio and fiber communications networks to the City's 150 central processing units (CPU) and programmable logic controllers (PLCs). CPUs and PLCs are mini-computers that allow remote operation of the City's production wells, treatment plants, reservoirs, booster stations, and inter-agency connections.
The water SCADA system consists of 1990s technology. Today, many components of the water SCADA system are obsolete and at the end of their useful life. The current approach to replacing failed parts has been to secure used items found in the marketplace. However, finding replacement parts has become more difficult as many utilities in a similar situation compete for the same components. RPU’s Water System Vulnerability Assessment identified several security improvements which could be made by upgrading the existing SCADA components and the associated control software (which is no longer supported). Due to these potential threats and challenges, the water SCADA team launched a multi-phased SCADA upgrade project. The SCADA Phase I project resulted in the upgrade of the communication network and was completed in 2022 which significantly improved the speed, reliability and security of the data communications. The current proposed SCADA Phase II project is a design-build effort to upgrade the operational software, computers, PLCs, and CPUs. A SCADA Phase III project will be brought back at a later date for consideration and approval for site-specific upgrades.
DISCUSSION:
The water SCADA system is largely unsupported by manufacturers and vendors, and replacement parts necessary for maintenance are difficult to find or are no longer available for purchase. Furthermore, the SCADA computer servers, the firmware running the 150 remote control systems, and the communications systems are in need of upgrades as determined via a third-party SCADA System Cyber Vulnerability Assessment. A new SCADA system (hardware and software) will resolve these issues and provide significant added value to the water system, such as increased reliability and enhanced operational capabilities. Increased reliability will occur via improved remote monitoring, reduction in operational failures, and the ability of the new system to anticipate maintenance needs. Overall, upgrading the aging water SCADA system is vital to ensure the continued operation of a reliable and safe water supply.
A design-build approach instead of the traditional design-bid-build project method will be used as it provides many advantages for technology-type projects. The main advantage lies in that most qualified SCADA engineering design firms also do installation work allowing system design to coincide with construction, thus allowing for a much more streamlined process. It also creates accountability, time savings, and flexibility.
The solicitation of this project began with a successful Request for Proposal (RFP) No. 2031 for the selection of the water SCADA software application. Two qualified vendors submitted proposals and were interviewed and scored. The City's evaluation team selected Inductive Automation as the successful proposer and will use its Ignition SCADA software platform as the basis for the SCADA system.
Staff bid the design-build portion of this project via Request for Proposal No. 2056, which was posted on the City's Online Bid System on June 4, 2021, and closed on August 2, 2021. All bids required the use of Inductive Automation's (RFP No. 2031) software platform proposal to be included in their final proposal costs as a subcontractor. Staff used the engineering technology firm, Westin Technology Solutions, as our project engineer to lend its expertise for the development, software selection, and scoring of the proposals. Two qualified teams were identified as part of RFP No. 2056, with Tesco Controls being selected.
The Final Ranking Criteria was based on the following:
Category
Weighting
Proposal Content
30%
Business Requirements
25%
Vendor Interview
20%
Cost
25%
Tesco Controls from Sacramento, California, demonstrated extensive experience designing and installing large-scale SCADA technology systems. Staff negotiated a Design-Build Construction Services Agreement for this work with Tesco Controls in the amount of $9,318,000 based on a fixed hourly rate. Tesco Controls scored higher in three of the four categories which resulted in the final rating depicted below.
The following table includes the proposal amounts and rankings.
Proposer
City, State
Proposal Amount
Committee's Avg. Rank
Pricing Rank
Overall Rank
Ranking
Tesco Controls
Sacramento, CA
$9,318,000
1497.4
227
1724.4
1 Leed Electric
Santa Fe Springs, CA
$7,257,987
1390.3
250
1640.3
2 Due to this project's complexity and to ensure project success, an Owner's Representative technology engineer will be used and will play a critical role in successfully delivering this project. Request for Proposals No. 2109 was posted on the City's Online Bid System on July 28, 2021, and closed on August 19, 2021. Three Consulting Firms submitted proposals and were evaluated by the City's evaluation team. The two highest-ranked scores were invited to interview. Key staff members considered the proposals based on the RFP criteria. They recommended Eramosa International, Inc. of Overland Park, Kansas, to perform the Owner's Representative role for RPU's Water SCADA Phase II Design-Build project. Staff negotiated a professional services agreement for this work with Eramosa International, Inc. for $1,303,286 based on a fixed hourly rate.
The following table includes the proposal amounts and rankings.
Proposer
City, State
Proposal Amount
Committee's Avg. Rank
Pricing Rank
Overall Rank
Ranking
Eramosa International
Overland Park, KS
$ 1,303,286
1366.13
176
1542.13
1 Northern Digital
Bakersfield, CA
$ 944,746
1028.38
250
1278.38
2 XTRLs International
San Diego, CA
$ 210,494
343.25
NA
0 3
The Purchasing Manager concurs that the recommended actions are in compliance with Purchasing Resolution No. 23914.
The Water SCADA Technology Upgrade project breakdown is as follows:
Task Description
Performed By
Total
Percent of Total
Design-Build Construction Services
Tesco Controls
$9,318,000
78%
10% Construction Contingency
-
$931,800
8%
Sub-total
$10,249,800
Consulting Services – Owner’s Representative Professional Services Eramosa International, Inc.
$1,303,286
11%
10% Professional Services Contingency
-
$130,329
1%
Sub-total
$1,433,615
Annual Maintenance & Service Agreement – 4 Years
Inductive Automation SCADA Software
$120,000
1%
Water Operations Support & Inspections
RPU Operations
$186,360
1%
Sub-total
$306,360
Work Order Total
$11,989,775
100%
Completing this project will eliminate the critical findings identified in the vulnerability assessment completed in 2016. The critical vulnerabilities to the SCADA technology infrastructure present a significant risk as treatment, production, and distribution systems can be jeopardized, causing improper water supply and treatment. Another benefit to this project is the anticipated reduced costs of ongoing critical maintenance and repairs needed to maintain the legacy system. We estimate the time required by staff to maintain the SCADA system can be reduced by one third.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 6 - Infrastructure, Mobility & Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Water SCADA Technology Upgrade project supports efforts to provide safe reliable drinking water and the infrastructure that delivers it to the community we serve.
Equity – Water SCADA Technology Upgrade project supports efforts for water availability to ensure every member of the community has equal access to water.
Fiscal Responsibility – Water SCADA Technology Upgrade project will provide preventative asset maintenance and replacement of infrastructure to ensure they are in proper working order.
Innovation – Water SCADA Technology Upgrade project will use the best available technology to monitor, maintain and replace infrastructure.
Sustainability & Resiliency – Water SCADA Technology Upgrade project will maintain assets to meet life expectancy and beyond.
FISCAL IMPACT:
The total fiscal impact is $11,989,775 over the life of the agreement. There are sufficient funds budgeted and available for Fiscal Years 2022/23 & 2023/24 as detailed in the following table:
Approved 5-Year CIP Plan
Fund
GL Key/Object/Desc.
FY 22/23
Adopted
+ Carryovers
FY 23/24
Adopted
FY 24/25
FY 25/26
FY 26/27
5-Year
Totals
Water Fund
6230200-470655 - Distribution Automation/Reliability
$1,326,811
$620,869
$513,356
$721,152
$662,236
$3,844,424
6230200-470826 - Network Communications System
$1,316,399
-
-
-
-
$1,316,399
6230200-470832 - SCADA Upgrade & Additional Systems Automation $3,165,723
$730,432
$1,502,504
$1,929,081
$1,523,143
$8,850,883
Totals
$5,808,933
$1,351,301
$2,015,860
$2,650,233
$2,185,379
$14,011,706
Appropriations for future fiscal years will be included in the Department’s Budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Todd M. Corbin, Utilities General Manager Certifies availability
of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney Attachments:
Design-Build Construction Services Agreement with Tesco Controls Professional Consultant Services Agreement with Eramosa International, Inc.
RFP 2056 Award Recommendation
RFP 2109 Award Recommendation
Presentation
Design-Build Agreement with TESCO CONTROLS and PSA with ERAMOSA INTERNATIONAL INC ● Page 2