TO: Members of the Governing Board
FROM: Christopher Silke - District Engineer
REPORT BY: Annamaria Martinez - Assistant Engineer
SUBJECT: Amendment No 1 to Agreement No 230381B with Telstar Instruments for the Water and Wastewater Facility SCADA Upgrades Project, LB 22-05
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Agreement No. 230381B (LBRID) with Telstar Instruments to increase the total contract amount by $17,726 for a new maximum of $302,175 for the Water and Wastewater Facility SCADA Upgrades Project, LB 22-05; and approve a Budget Amendment. (Fiscal Impact: $10,000 Expense; Lake Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The President authorized the American Rescue Plan Act (ARPA) in March 2021 to allocate $1.9 trillion in stimulus monies across a variety of programs. Of the total, $350 billion is allocated to state, local, territorial and Tribal governments to enable them to continue to support the public health response and to lay the foundation for a strong and equitable economic recovery. The U.S. Department of the Treasury released Final Interim Rule regulations on May 10, 2021 defining eligible use of ARPA monies that includes investments into water and sewer utility infrastructure. Local Fiscal Recovery (LFR) funds must be obligated by December 31, 2024 with projects completed no later than December 31, 2026. The County of Napa received $26,755,157 for ARPA appropriations.
Based on the Final Rule guidelines, water and sewer utility projects that would qualify for funding under the Safe Drinking Water and Clean Water Act Programs are deemed as eligible under ARPA. The District has four (4) high priority projects that satisfy ARPA and the Drinking and Clean Water Act funding criteria - one of the projects being the subject of this agenda report - Water and Wastewater Facility SCADA System Upgrades Project.
A Supervisory Control and Data Acquisition (SCADA) system is a computerized system primarily used to monitor and control system assets from a central location. System assets for the District include the water treatment plant, pump stations, potable water tanks, sewer lift station, and sewer tanks. The existing system is over 10 years old and provides limited automation and control of the system assets. Data collected by the system is required to populate regulatory reports, and while District staff and operators are able to query the system for the data, file corruption and system glitches have prevented completion of the required reports in the past. Additionally, the current system is able to shutdown certain plant processes in the event a pre-set alarm is triggered during monitoring, but the system is not able to send the alarm notifications to District staff or operators when offsite. In general, the existing older generation SCADA system currently in use does not provide the advanced level of automation, remote control, alarm alerts, sufficient network speed, trend analysis, and dependability needed by the District in a more stringent regulatory environment.
Based on the requirement of ARPA program, on February 8, 2022, the District and Napa County executed a Memorandum of Understanding (MOU) outlining the terms of the transfer of ARPA funding for the SCADA project.
On February 24, 2023, staff publicly advertised a Request for Proposals (RFP) detailing the scope of work, submittal instructions and deadline for the Water and Wastewater Facility SCADA System Upgrades Project. Staff led interested parties on a mandatory tour of the District’s onsite office in Pope Valley - where the bulk of the SCADA system is housed - and two of the eligible attendees submitted a proposal by the deadline. Both RFP submittals were evaluated and scored by the District Engineer and two Assistant Engineers based on each firms project experience, demonstrated understanding of LBRID’s SCADA requirements, Project Team credentials, fee proposal, and SCADA competence to oversee a successful project. Final deliberations by staff arrived at a decision to recommend that the Governing Board approve and enter into an agreement with Telstar Instruments for $284,449. Agreement No 230381B with Telstar Instruments to initiate the Water and Wastewater Facility SCADA System Upgrades Project was executed by the Board on May 16, 2023.
During implementation of the project, incidences of cyber-attacks at water and wastewater facilities across the country increased prompting Lake Berryessa Resort Improvement District (LBRID) staff to request installation of cyber-security measures for the SCADA Replacement Project. Approval of Amendment No. 1 to Agreement No. 230381B (LBRID) will increase the total contract amount by $17,726 for a new maximum of $302,175. Total appropriations remaining in the Project budget are $14,884, requiring the approval of the requested budget amendment to increase appropriations sufficiently to cover the Amended scope of work and estimated additional staff time for the duration of the Project.
Requested Actions:
1. Approve and authorize Amendment No. 1 to Agreement No. 230381B;
2. Increase appropriations of $10,000 to Construction Services (LBRID Subdivision 5220500, Project 22016 Account 52360);
3. Increase revenue of $10,000 to Intrafund Transfers-In (LBRID Subdivision 5220500, Project 22016, Account 49900) offset by the increase of Intrafund Transfers-Out in the LBRID Operations Budget; and
4. Increase appropriations of $10,000 to Intrafund Transfers-Out (LBRID Operations Subdivision 5220000, Account 57900) offset by the use of its available fund balance.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Installation of a firewall is necessary prior to commissioning of the SCADA replacement project to prevent cyber-attacks from compromising operations of LBRID water and wastewater facilities. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
The SCADA system and all water and wastewater facilities connected to it will be at risk of cyber-security threats and compromise. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed activity is categorically exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15301, as the repair or maintenance of existing facilities involving negligible or no expansion of existing or former use.