TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Lou Vargas, Utilities Manager
Nicholle Petroff, Management Analyst
SUBJECT:Title
Consideration of a Purchase of Programmable Logic Controllers for Various City Water Facilities from Control Automation Design, Inc. in the Amount of $81,694.30 (Public Works Director Lee).
A) WAIVE FORMAL BIDDING
B) APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council waive formal bidding per Manhattan Beach Municipal Code (MBMC) Section 2.36.140 (waivers) and approve the purchase of four Programmable Logic Controllers (PLCs) from Control Automation Design, Inc. in the amount of $81,694.30.
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FISCAL IMPLICATIONS:
The cost to purchase four PLCs from Control Automation Design, Inc. is $81,694.30. Sufficient funds exist as part of the budget for the City’s Replace & Modernize SCADA System project in the Water Fund. As the cost of the four PLCs exceeds the City Manager’s awarding authority per the City’s purchasing policy, City Council approval is required. There are no additional fiscal implications at this time.
BACKGROUND:
On January 18, 2022, the City Council approved Resolution No. 22-0008 to amend the existing Professional Services Agreement with Control Automation Design, Inc. (CAD). The approved amendment increased the contract amount to cover additional services related to the upgrade of hardware and software for implementation of new City's Supervisory Control and Data Acquisition (SCADA) system.
The City utilizes the SCADA System to gather and process real time data access and provides both local and remote monitoring and control of the citywide water/wastewater infrastructure, including water sources, reservoirs, valves, pumps and other equipment and instrumentation. The monitoring data includes information such as flow rates, water pressures, reservoir levels, equipment runtime, and site security. This system also controls pump and valve operations.
DISCUSSION:
CAD, Inc. is the City’s existing programmer and integrator for all of its standardized water and wastewater utility facilities controls. Due to the complexity of the system and the vendor’s knowledge of how the City’s utilities infrastructure operates, the City has used this vendor for many years for its SCADA maintenance and support services.
During the SCADA upgrade process, it was determined that the PLCs at four City facilities (Block 35, Well 11A, Well 15, and the City’s connection with the Metropolitan Water District) are obsolete and need upgrades. The PLC is the hardware used to operate the SCADA software. Once a PLC is obsolete, the functionality of the SCADA system is affected and vulnerability to cyber security system issues increase.
On June 25, 2022, staff obtained a quote from CAD for the purchase of the PLCs in the amount of $81,694.30. Under MBMC Section 2.36.140, the City Council may waive purchasing procedures to fit a specific purchase. Although other vendors can provide acceptable solutions, CAD, Inc. obtained direct pricing that would not have been available to the City if the quote had been requested independently.
Based on the information provided, staff recommends that the City Council waive formal bidding per Manhattan Beach Municipal Code (MBMC) Section 2.36.140 (waivers) and authorize the purchase and programming of four PLCs from CAD, Inc. for Block 35, Well 11A, Well 15 and MWD in the amount of $81,694.30. The PLCs are estimated to be delivered six to nine months after the purchase order is issued.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. Quote Dated September 13, 2022