REPORT TO COUNCIL
SUBJECT
Title
Action on a Proposed Agreement with HSQ Technology to Upgrade the Supervisory Control and Data Acquisition (SCADA) System to Enable Fiber Communication and to Implement Various System Enhancements
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Water & Sewer Utilities Department (Department) uses a proprietary Supervisory Control and Data Acquisition (SCADA) system from HSQ Technology (HSQ) to control and monitor the City’s water, sewer, and storm drain infrastructure. The system, installed in the 1990s, consists of software, servers, workstations, and field instruments and equipment that collect data from remote sites.
In December 2019, the City Council approved a sole source agreement with HSQ to upgrade the core hardware and software of the SCADA system (2019 Agreement). This 2019 Agreement was the first phase of the City’s modernization plan to increase the level of automation of the SCADA system.
In August 2021, the City Council authorized an amendment to the 2019 Agreement for HSQ to assess the requirements of connecting to the 42 wells, tanks, and pump stations to utilize the City’s new fiber optic network to transfer data to the central monitoring system. As a result of this assessment, HSQ submitted a proposal containing several recommendations including the work required to enable fiber communication, adding the new Corporation Yard Tank to the SCADA system, and implementing various system enhancements.
The purpose of this report is to request authorization to enter into a new agreement with HSQ to complete the work outlined in HSQ’s proposal.
DISCUSSION
This recommendation meets the single/sole source criteria in Section 2.105.160(b)(2) of the City Code “When required to ensure operation or function to match other products with respect to repair, expansion, or completion of a system, existing structure or program currently in use by the City, including, but not limited to, utility and technology purchases required to achieve interoperability with existing systems or programs.”
The estimated total project cost is $1,529,330, as follows:
|
Cost Elements |
Amount |
|
Year 1 Work at two (2) well sites, sewer pump station, and Hetch Hetchy Import 1 (GAP) and |
$105,640 |
|
Add the Corporation Yard Tank to the SCADA system and |
$295,050 |
|
Implement various system enhancements including new screens that display process data in real time, replacing dial in modem, and upgrading the human machine interfaces |
$99,310 |
|
Year 2 and 3 work Upgrade the remote telemetry units (RTUs) located at remaining remote sites to enable communication over the City’s fiber network (~$24,000 per site) |
$890,300 |
|
Subtotal |
$1,390,300 |
|
10% Contingency |
$139,030 |
|
Total Maximum Contract Compensation |
$1,529,330 |
The project is expected to be completed over three years. Typically, staff would recommend entering into an agreement with a maximum compensation that will cover the entire cost of the project. However, the Department wants to assess the project as well as its budget after completion of year 1 work which includes upgrading the RTUs at four sites, adding the Corporation Yard Tank to the SCADA system, and implementing the various system enhancements. Therefore, staff recommends entering into an agreement with an initial maximum compensation amount of $500,000 to complete year 1 work. Thereafter, staff will assess the project and, if successful, amend the agreement to increase compensation by remaining amount for a total maximum contract compensation of $1,529,330 for the remaining work.
HSQ’s pricing is fixed through December 31, 2023. Thereafter, HSQ may request price adjustments, which shall be capped at the lesser amount of 3% or the increase in the Consumer Price Index.
Upon completion of the project, the City will have a state-of-the-art SCADA system deployed on a fast, reliable, redundant, and secure fiber optic ring while retaining the ability to communicate over the existing radio network, providing for multiple layers of failover.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301, “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
The total project cost is estimated at $1,529,330, including the project cost of $1,390,300 and the 10% contingency of $139,030. The proposed agreement, with an initial amount of $500,000 would cover Year 1 work. The Water & Sewer Utilities Department has sufficient budget in the SCADA Improvements Project in the Water Utility Capital Fund to cover the cost associated with this agreement. In the FY 2022/23 and FY 2023/24 Biennial Capital Improvement Program Budget, $500,000 is allocated annually to this project, with the FY 2022/23 allocation covering the initial agreement. The amendments of up to $1,029,330 would be addressed by the annual $500,000 allocations in future years or would necessitate a budget amendment to accelerate the funding, depending on the timing of any amendments.
COORDINATION
There has been project coordination and review from the City’s Information Technology Department. This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute an agreement with HSQ Technology to upgrade the SCADA system to enable fiber communication and to implement various system enhancements, with a five-year term starting on or around October 1, 2022 and ending on December 31, 2027, with an initial maximum compensation of $500,000, subject to the appropriation of funds; and
2. Authorize the City Manager to execute amendments to increase compensation not-to-exceed $1,029,330 for a total maximum contract compensation of $1,529,330, subject to the appropriation of funds.
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Proposed Agreement with HSQ Technology for Upgrade of SCADA System