19-1105_SANTA MARGARTIA WATER DISTRICT_Agenda Report_E9City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City Council
Ænj^ in Siegel, City Manager
SUBMITTED BY Steve May, Public Works and Utilities Director ,/øtt',-
PREPARED BY: Eric P. Bauman, Assistant Utilities Director
DATE November 5,2019
TO
FROM
SUBJECT
11t5t2019
E9
lnter-Agency Agreement for the SCADA System Build Project (ClP
17806) (Santa Margarita Water District)
RECOMMENDATION
1. Waive the formal request for proposal process for the Supervisory Control and Data
Acquisition (SCADA) System Build Project (ClP 17806) pursuant to Municipal Code
Section 3-4.306 (eX3); and,
2. Approve and authorize the City Manager to execute an Inter-Agency Agreement with
the Santa Margarita Water District for the Project in the amount of $445,000; and,
3. Authorize the City Manager to approve amendments to the lnter-Agency Agreement
for a total aggregate amount not to exceed $44,500.
EXECUTIVE SUMMARY:
The City owns, maintains, and operates 34 water sites for the storage, distribution, and
production of clean, safe drinking water throughout the city and at the City's Groundwater
Recover Plant (GWRP). The 34 water sites and the GWRP are networked together using
the City's existing Supervisory Control and Data Acquisition (SCADA) system, which
allows staff to continuously monitor and control water treatment, storage, and distribution.
Many of the components making up the existing SCADA system date from 1998 to 2002
and have become obsolete, difficult to replace at failure, and are no longer supported by
their manufacturers. The proposed SCADA system replacement project will encompass
the upgrade and integration of hardware and software that will provide a stable SCADA
base station. lt will also allow full and rapid integration with the SCADA system operated
by Santa Margarita Water District (SMWD).
SMWD has the qualified staff and specific knowledge of equipment, software, and
programming needed to build a SCADA system that can easily integrate with the SMWD
City Council Agenda Report
November 5,2019
Page 2 of 3
SCADA system in the future. Accordingly, staff recommends approval of an lnter-Agency
Agreement with SMWD in the amount of $445,000 to provide the equipment and services
for this Project. Staff also recommends that the City Manager be authorized to approve
contract amendments up to ten percent of the base contract amount, for a total aggregate
amount not to exceed $44,500 should unforeseen conditions be encountered during the
course of the Project. Given the SCADA expertise, specific knowledge of SMWD staff,
and probable future integration of both agencies' SCADA systems, staff recommends
waiving the purchasing procedures for a formal RFP/RFQ process.
DISCUSSION/ANALYSIS:
Utilities staff have been experiencing more frequent issues with the City's SCADA system
that affected remote operation and monitoring of water facilities, and that ultimately
resulted in a complete shutdown of the SCADA base station. Staff requested and received
assistance from SMWD to restore the City's SCADA system in a matter of days. The
temporary, short-term solution stabilized the SCADA system. However, the existing
hardware and software components are still in need of replacement to avoid system
failures and to ensure long term reliability of the SCADA system. SMWD has a robust
SCADA system and staff with expertise in both the City's existing SCADA system and the
system to which the City is migrating. SMWD's staff is capable of maintaining and
integrating both SCADA systems.
San Juan Capistrano Municipal Code section.3-4.306(e)(3) provides an exception to the
standard RFP/RFQ process in cases when extenuating circumstances would make the
formal RFP/RFQ process not the most cost-effective approach. Due to the time-sensitive
nature of the Project, and considering that SMWD has staff with expertise to best set up
a SCADA system that can integrate with its system (or operate independently), staff
recommends bypassing the RFP/RFQ process and contracting directly with SMWD for
the SCADA System Build Project. Obtaining proposals from other vendors would not be
a cost-effective approach since SMWD provides design and installation with in-house
staff at very reasonable costs.
FISCAL IMPACT
The Water Facility Control Systems Project (ClP 17806) has a current budget of
approximately $768,000 that will cover the total expected Project cost of $489,500, which
includes a 10o/o contingency.
ENVIRONMENTAL IMPACT
ln accordance with the California Environmental Quality Act (CEQA), the recommended
action is exempt from CEQA per Section 15061(bX3), which is the general rule that CEQA
applies only to projects that would have the potential for causing a significant effect on
the environment. Where it can be seen with certainty that there is no possibility that the
activity in question could have a significant effect on the environment, the activity is not
subject to CEQA. The project outlined in this report would not be an activity with potential
to have a significant effect on the environment, and therefore is exempt from CEQA.
City Council Agenda Report
November 5,2019
Paqe 3 of 3
PRIOR CITY NCIL REVIEW:
There has been no prior City Council review of this item.
COMM ISSI ON/COM M ITTEE/BOARD REVI EW AN D RECOMMEN DATIONS:
The Utilities Commission reviewed this item at its meeting of October 15, 2019, and
recommended that the City Council approve the lnter-Agency Agreement.
NOTIFICATION:
Dan Ferons, General Manager, Santa Margarita Water District
ATTACHMENT:
Attachment 1: lnter-Agency Agreement with Santa Margarita Water District
SANTA MARGARITA WATER DISTRICT AND
CITY OF SAN JUAN CAPISTRANO
INTER-AGENCY AGREEMENT FOR
SCADA SYSTEM BUILD
This lnter-Agency Agreement _ for SCADA System Build Services
("Agreement") is entered into to be effective this day of 2019 by and
between the City of San Juan Capistrano ("City") and the Santa Margarita Water District
("District"). The City and the District are sometimes referred to herein as the "Parties".
RECITALS
A. The City owns and operates a water production and distribution system ("City
Water System") to serve the residents of the City of San Juan Capistrano. The
District is a California Water District organized under Division 12 (commencing
with Section 30000) of the California Water Code. The District operates a water
system throughout Mission Viejo, Rancho Santa Margarita, and the communities
of Coto de Caza, Las Flores, Ladera Ranch, Villages of Sendero and Esencia,
and Talega in San Clemente.
B. The City desires to contract with District to upgrade its Supervisory Control and
Data Acquisition (SCADA) system, which provides for monitoring and control of
the various facilities that make up the City's Water System, including the Ground
Water Recovery Plant (GWRP).
C. The District is willing to provide the SCADA system upgrade services ("Services")
required by the City pursuant to the terms and conditions of this Agreement.
TERMS AND CONDITIONS
NOW THEREFORE, in consideration of the mutual promises contained in this
Agreement, the Parties agree as follows:
1. Services. The District will provide the City with the Services as more fully
described in the Scope of Work attached hereto as "Exhibit A" and incorporated
herein by this reference.
2. Subcontractors. At its discretion, and with prior written approval from the City,
the District may utilize third-party subcontractors to perform services pursuant to
this Agreement. District shall ensure that its subcontractors comply with all
applicable laws, including applicable prevailing wage laws.
3. Compensation and Reimbursement. The total not-to-exceed amount payable to
the District under this Agreement is four hundred forty-five thousand dollars
($445,000). Subject to the limitations set forth in this Agreement, the City shall
compensate the District for services performed under this Agreement in
accordance with the District fee schedule set forth in "Exhibit 8". The City shall
also reimburse the District for the actual costs of any approved third-party
subcontractors the District utilizes to perform Services under this Agreement.
Attachment 1, Page 1 of 9
-2-
4. lnvoices. District shall address billing statements to Assistant Utilities Director,
City of San Juan Capistrano, 32400 Paseo Adelanto, San Juan Capistrano, CA
92675. The District's billing statements shall include an itemization of the hours
and services rendered by each employee, the applicable hourly rates, and the
costs of any materials provided. The City shall make payment for all undisputed
amounts invoiced within thirty (30) days of receipt of the invoice.
5. Term. Unless terminated earlier pursuant to the terms of this Agreement, the
term of this Agreement shall be for a period of seven (7) months from the
effective date of this Agreement as first set forth above. The term may be
extended by mutual written agreement of the Parties.
6. Standard of Care. The District will perform the Services under this Agreement in
a manner consistent with the level of care and skill ordinarily exercised by other
members of the District's profession currently practicing in the same locality
under similar conditions.
7. Status of the District as an lndependent Contractor. lt is understood and agreed
that the District is, and shall be, acting at all times as an independent contractor
herein, and not as an employee of the City.
8. Control of City Water System. The City agrees that the City is now, and shall
remain, in control of the City Water System for all purposes at all times. Except
as required by law, the District is not required to report to any federal, state,
county, or local public agencies having jurisdiction over the subject matter, any
conditions existing at the City Water System at any time that may present a
potential danger to public health, safety, or the environment.
9. Performance of Work. All work done under this Agreement shall conform to
applicable construction codes and safety procedures relating to such work and
shall be done in a good and workmanlike manner.
l0.lndemnification. Each Party shall indemnify, defend and hold the other Party, its
officials, officers, employees, agents, consultants and contractors free and
harmless from any and all claims, demands, causes of action, costs, expenses,
liabilities, losses, damages or injuries, in law or in equity, to property or persons,
including wrongful death, in any manner arising out of or incident to any negligent
acts or omissions or willful misconduct of the indemnifying Party, its officials,
officers, employees, agents, consultants or contractors in the performance of the
indemnifying Party's obligations under this Agreement, including the payment of
all reasonable attorneys' fees.
11.lnsurance. The District agrees to deliver evidence of self-insured coverage
providing general liability insurance, coverage of bodily injury liability and
property damage liability, naming the City, its officers, employees and agents as
additional insureds in the amounts of $1 million per occurrence and $2 million
general aggregate. Coverage shall be evidenced by a certificate of insurance in a
form satisfactory to the City that shall be delivered to the City.
Attachment 1, Page 2 of g
3-
l2.Limitation of Liability: With the exception of either Party's gross negligence or
willful or reckless misconduct, neither City nor District shall be liable to the other
or shall make any claim for any incidental, indirect or consequential damages
arising out of or connected to this Agreement or the performance of the services
hereunder. This mutual waiver includes, but is not limited to, damages related to
loss of use, loss of profits, loss of income, diminution of property value or loss of
reimbursement or credits from governmental or other agencies.
l3.Written Notices. All notices permitted or required under this Agreement shall be
given to the respective Parties at the following address, or at such other address
as the respective Parties may provide in writing for this purpose:
CITY: DISTRICT:
City of San Juan Capistrano Santa Margarita Water District
32400 Paseo Adelanto 26111Antonio Parkway
San Juan Capistrano, CA 92675 Rancho Santa Margarita, CA 92688
Attn: Steve May, Utilities Director Attention: Dan Ferons, General Manager
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be
deemed adequate notice on the date actual notice occurred, regardless of the
method of service.
14. Unavoidable Delays and Defaults: Either Party to this Agreement will be
excused for any delays or defaults by that party in the performance of this
Agreement that are unavoidably caused by any of the following: an act of the
other Party; an act of any agent of the other Party; an act of any governmental
authority; an act of any public enemy; an act of God; the elements; war; war
defense conditions; riots; litigation; strikes; walkouts; or any other causes beyond
that Party's control.
l5.Termination. Each Party has the right, at any time, in its sole discretion and with
or without cause, by notice to the other Party, to cancel or suspend this
Agreement and terminate any obligations hereunder, other than payments for
Services satisfactorily rendered prior to the effective date of termination. This
right to terminate shall be in addition to, and not in lieu of, any other rights and
remedies which either party may have at law or in equity. However, each Party,
shall provide the other Pafi with thirty (30) days' written notice of such
termination.
16.Successor. ln the event the City contracts with a successor agency to operate
the City's Water System, this Agreement shall automatically terminate as of the
date of the successor contract.
lT.Applicable Law. The validity, performance and construction of this Agreement
shall be governed by the laws of the State of California. Venue shall be in a court
of competent jurisdiction located in Orange County, California.
Attachment 1, Page 3 of 9
-4-
lS.Amendments. Any and all amendments or modifications to this Agreement shall
be in writing and signed by the Parties to this Agreement.
19. Severability. lf any provision of this Agreement shall be adjudged invalid by any
court, the remaining provisions of this Agreement shall remain valid and enforced
to the fullest extent permitted by law.
20.Agreement Negotiated. The text of this Agreement is the product of negotiation
among the Parties, each of whom had the opportunity to have it reviewed by
counsel of their choice and is not to be construed as having been prepared by
one Party or the other.
2l.Counterparts. The Parties hereto recognize and agree that separate counterpart
signature pages may be used to execute this Agreement, but that all such pages
constitute one and the same Agreement.
22.Assignment. Neither party may assign or transfer its respective rights or
obligations under this Agreement without the express written consent of the other
party. Any purported assignment or transfer by one party without the express
written consent of the other party shall be null and void and of no force or effect.
23.Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed
as a waiver. No consent or approval of either party shall be deemed to waive or
render unnecessary such party's consent to or approval of any subsequent act of
the other party Any waiver by either party of any default must be in writing and
shall not be a waiver of any other default concerning the same or any other
provision of this Agreement.
24. Survival. All rights and obligations hereunder that by their nature are to continue
after any expiration or termination of this Agreement, shall survive any such
expiration or termination.
25. No Third Party Beneficiaries. This Agreement is intended solely for the benefit of
the Parties hereto, and no third party will have any right or interest in any
provision of this Agreement or as a result of any action or inaction of any party in
connection therewith.
26. Entire Agreement. This Agreement constitutes the entire agreement between the
Parties hereto with respect to any matter mentioned herein. No prior agreement
or understanding with respect to any such matter shall be effective. This
Agreement may be modified in writing only when executed by both Parties.
lN WITNESS WHEREOF, this Agreement has been executed in the name of the District
and City, by their respective officers thereunto duly authorized, as of the date and year
first above written.
Attachment 1, Page 4 of 9
Ã
''D¡STRICT"
SANTA MARGARITA WATER DISTRICT
Dan Ferons, General Manager
"clTY"
CITY OF SAN JUAN CAPISTRANO
Benjamin Siegel, City Manager
Approved as to form
City Attorney
Attachment 1, Page 5 of 9
September 25,2019
Mr. Steve May
Public Works and Utilities Director
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA^92675
RE: Proposal for the SCADA System Build Project for the City of San Juan Capistrano
Mr. May,
The Santa Margarita Water District (District) appreciates the opportunity to provide the following
proposal to rebuild the City of San Juan Capistrano's (City) SCADA System. This proposal is
based on the following:
o Conversations with various members of the City's staff
¡ Review of the various sites
¡ Work that the District has already completed on the City's system
¡ District's SCADA system which it is anticipated that the City's will be incorporated into
following the acceptance of the annexation process
¡ District personnel's knowledge and expertise in the design, development and maintenance
of SCADA systems
The following is a description of the various tasks that are necessary to complete the rebuild of the
City's SCADA system. With the exception of Task 6, the work is proposed to be completed in the
same manner as is numerically presented below.
Task 1 - On-Site Investigation of Existing Network and System Configuration
The previous work on the system performed by the District has been limited to the purpose of
identiffing known issues for the purposes of "spot" correcting the problems.
a. Scan Network - The work will include performing a complete scan of the City's SCADA
network to allow for the full documentation of the existing network structure and to identi$
the IP and Gateway addresses in use.
b. Evaluate Hach WIMMS configuration - The current configuration will be documented and
evaluated so reports are retained and transferred to the new SCADA system configuration.
Improvements to application use will be made where applicable.
c. Tag Identification - The actual tag count of the existing system will be verifìed. Unused or
redundant tags will be marked for deletion.
d. Evaluate Firewall Configuration - Existing configuration will be evaluated, and corrections
will be made to fix immediate reporting problems. This task will require cooperation of the
City's current consultant to gain access to existing Meraki fìrewall.
Exhibit A
Page 1 of3
Attachment 1, Page 6 of 9
City of San Juan Capistrano
SCADA Upgrades
Page2
Task 2 - Hardware/Software Procurement
It is recommended that the District identiff and purchase the necessary hardware and software.
The District has established long term trusted relationships with hardware and software vendors
who understand the District's strict requirements and with whom we have established discounts.
The licenses and warranties will be transferred to the City after the system is tested and installed
unless this work is completed after the annexation has been completed.
Task 3 - I)evelopment System Setup (SMWD Sandbox)
It is proposed that the development of the new system be done at the District's SCADA division
located within the District's administration building. By performing this work within the District's
SCADA work area, all the team members will have access to the equipment over the District's
network. This will increase the efficiency of the development work. This includes the following
equipment:
a. Rack
b. Servers
c. Controllogix PLC
d. Specialty modulds
All the software and licenses will be loaded into the servers to complete the development system
Task 4 - Hardware Installation (San Juan Capistrano)
Once all servers and soflware described in Task 3 have been verified, the rack with Firewall,
Controllogix and specialty modules will be moved to the Ground Water Treatment Plant and
installed. Space will have to be provided by the City for the new rack to be placed next to the
existing computer rack located in the electrical room.
Task 5 - SCADA System Development
This task provides the necessary effort to develop the new SCADA software. The work proposed
to be performed under this task is as follows:
a. Utilizing the clean tag base from Task 1.c above, a master framework will be created for
all team members to use for creation of the Controllogix Tag database for the system. This
approach will allow multiple team members to work on the project simultaneously.
b. Configure the Win9l l Mobile Application for all tags including the Ground Water
Treatment Plant.
c. Test Win9l I alarms for each site from alarm banner to push notification to mobile devices.
Testing of the alarms will be performed on-site.
d. Validate writes from site to site through the Prosoft module. Communication will be
disabled from the existing data concentrator during this test.
e. Individual site screen development.
Exhibit A
Page 2 of 3
Attachment 1, Page 7 of 9
City of San Juan Capistrano
SCADA Upgrades
Page 3
Task 6 - Ground Water Treatment Plant
The following is the work that can be done somewhat independently of the other tasks
a. A predevelopment meeting will be held to discuss existing operational problems with the
treatment plant existing SCADA design so these problems can be addressed in the new
SCADA system design.
b. Review control code in existing treatment plant PLC.
c. Treatment plant screen development.
d. Hach WIMMS Data Log implementation and testing.
Task 7 - SCADA System Commissioning and Acceptance
This task will provide the necessary testing of the system to confirm the various components
individually and collectively perform properly in the held. Work required to bring the system into
full operational mode is included as part of this task.
Additionalwork is anticipated to be required to rehabilitate/replace the PLC's at each ofthe remote
sites as a second phase to this upgrade project. This work will be completed after the SCADA
system improvements outlined in this proposal are completed. This work isn't necessary to provide
the City a fully operational system following the completion of this Phase I work but will enhance
and increase the robustness of the City's SCADA system when implemented.
We estimate the project duration to be six months considering our current and scheduled fìscal
workload. We propose to perform the work on a time and materials basis with a not to exceed
without written authorization for the amount provided in the attached anticipated fee schedule. The
project will be fully integrated into the SCADA Division work schedule and work will be
performed daily unless unforeseen emergences arise that divert our resources from normal
scheduling. We look forward to working on this project with the City's team. If you hav'e any
questions or comments, please feel free to contact me at (949) 459-6602 or at donb@smwd.com.
Sincerely,
Santa Margarita Water District
Don Bunts
Deputy General Manager
Exhibit A
Page 3 of 3
Attachment 1, Page 8 of 9
Total Cost$ 21,120$ 130,861$ 23,000$ 31,770$ 194,380$ 26,s10$ 16,940$ 444.561DirectCosts$$$$$$$50024,5761700600500s 126.876Totel District LaborHrsCost140 $ 11,40060 $ 5,0s0161 $ 't3,680201 $ 16,0801,296 $ 98,280170 $ 13,500120 $ 10,4002,148 $ 16E,390AdminHrsCost$40$$$$$$$2080020 $ E00no¡neerHrsCost$7040403060040402,8002,8002,10042,OOO2,8002,80055.300790Sen¡or EnqineerHrs Cost$8080 $ 6,4005$ 40081 $ 6,480161 $ 12,880676 $ 54,080120 $ 9,60040 $ 3,2001.163 $ 93,040Proiect ManaoerHrsCost$ 11020 $ 2,20035 $ 3,85040 $ 4,40010 $ 1,10020 s 2,20010 $ 1,10040 $ 4,400r75 S 19.250TeskOn-Site lnvestigat¡on of Exist Network & Syst Conf¡gHardware/Software ProcurementDevelopment System SetupHardware lnstallat¡onSCADA System DevelopmentGround Water Treatment PlantSCADA System Commission¡ng & Acceptance1234567City of San Juan Cap¡stranoSCADA Rehabilitation ProjectExhibit BPage 1 of 1Copy of Copy of SCADA Proposal v59l25lZ0r9Attachmenb.tu,Page 9 of 9