To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Shawn Griffith, assistant Director of Operations
Nicolas Van Kooten P.E., SCADA Superintendent
Title
Resolution Waiving the Formal Written Bidding Requirement on the Basis of Sole Source and Approving an Equipment and Services Acquisition Agreement with Logical Systems, LLC
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) staff requests Town Council approval of a Resolution (see Attachment A) approving an acquisition and services agreement with Logical Systems, Inc. (LSI) for the Supervisory Control and Data Acquisition (SCADA) Master Plan Phase V Ray Waterman and Remotes Sites Implementation project, for the not to exceed amount of $5,921,200, with a 10% Town managed contingency of $592,120, for a total authorization request of $6,513,320.
The SCADA system is crucial to the security and efficient operation of CRW's water and wastewater facilities. In 2019, the SCADA Master Plan (MP) was completed to assess the system and develop a plan for its upgrade, maintenance, and operation. The Town Council approved the SCADA MP on December 17, 2019, which identified approximately $12 million in expenditures over seven years.
In late 2023, the SCADA MP implementation cost was reviewed and updated, revealing a 26% increase in equipment and implementation costs since 2019. Additionally, the update included newly identified work not previously covered in the 2019 scope. As a result, the revised estimated cost, as determined by CRW’s engineering consultant, for full implementation of the plan is approximately $24.1 million, and the schedule has been extended with completion expected within a ten-year period.
SCADA MP costs from 2021-2023 were $4,804,556, which included cybersecurity system segregation, Backhaul radio communications ring, SCADA System server, software, and equipment upgrades. In 2024 through 2025, the SCADA Master Plan Phase IV Miller project was designed and implemented.
The table below shows the total approved expenditures to date on the SCADA MP by vendor as well as the estimated future expenditures:
Remaining estimated costs for full implementation of the SCADA MP include Meadows Water Treatment Plant - Phase VI and its remote sites, currently anticipated to cost on the order of $6.5 million; this figure is included in the chart’s Pending Projects cost estimate.
Budget Impact
Funds have been budgeted each year, through 2028, for the SCADA MP Implementation. Funds for this project will be taken from the Water, Water Resources, and Wastewater CIP SCADA System Improvements line items with phased expenditures per year, as follows:
|
Fund Name |
Account Number |
Cost |
2025 Balance |
2026 Balance |
2027 Balance |
2028 Balance |
|
Water |
210-4275-442.75-41 |
$3,256,660 |
$5,165,123 |
$2,162,770 |
$2,162,770 |
$2,162,770 |
|
Water Resources |
211-4375-443.75-41 |
$1,628,330 |
$519,024 |
$1,081,385 |
$1,081,385 |
$1,081,385 |
|
Wastewater |
213-4575-445.75-41 |
$1,628,330 |
$1,999,233 |
$1,081,385 |
$1,081,385 |
$1,081,385 |
|
Total |
|
$6,513,320 |
$7,683,380 |
$4,325,540 |
$4,325,540 |
$4,325,540 |
Staff Recommendation
Staff recommends an acquisition and services agreement with LSI to complete the SCADA MP Phase V Ray Waterman and Remote Sites System Implementation project, for the not-to-exceed amount of $5,921,200 with a 10% Town managed contingency for a total authorization of $6,513,320.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Staff Report
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Letter from B&McD
Attachment C: Sole Source Justification