Submitted By: Christopher Ramos
presenter
Presentation By: Tammi Haslam
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Department: Information Technology
STAFF RECOMMENDATION (Motion Ready):
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Adopt Budget Resolution 2023-166 amending the Fiscal Year 2022-2023 budget to appropriate funds from the American Public Power Association in the amount of $66,545
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Department of Energy (“DOE”) entered into a cooperative agreement with the American Public Power Association (“APPA”), Award Number DE-CR0000007, to develop and deploy cyber and cyber-physical operational technology (“OT”) solutions within the public power community (the “Cooperative Agreement”).
In May 2021, Ocala Electric Utility (“OEU”) and the Information Technology (“IT”) departments began working with APPA on this effort to find a solution to integrate with OEU’s supervisory control and data acquisition (SCADA) network.
On April 21st, 2023, the American Public Power Association entered into a Participation Agreement with the City of Ocala (“Utility”) awarding $431,545.
After reviewing several OT vendors for solutions that fulfill the requirements of the Participation Agreement, OEU and IT selected Schweitzer Engineering Laboratories (“SEL”) to provide OT network infrastructure security.
APPA will contract with OEU through this Participation Agreement to help OEU address and overcome key cybersecurity challenges and maximize the long-term robustness and overall effectiveness of deployed solutions for the benefit of the electric industry.
The Procurement and Contracting Department, Information Technology Department and the Office of the City Attorney finalized the terms and conditions of the Participation Agreement with SEL on July 24th, 2023. SEL requires purchases of equipment to come directly from the City of Ocala and will not accept payments on-behalf of the City via APPA. Therefore, the City of Ocala will purchase the equipment directly from SEL, and APPA will reimburse the City of Ocala.
FINDINGS AND CONCLUSIONS:
Funding for this award is structured to include $365,000 of in-kind donations and $66,545 reimbursement from APPA.
Upon receipt of the SEL invoice, OEU will review and confirm in writing to APPA within 15 days that invoices are accurate.
Upon APPA’s review and verification of undisputed invoices, OEU shall pay the SEL within 30 days of APPA’s verification.
After OEU pays SEL, OEU will provide APPA with proof of payment. Upon receipt and review of such proof of payment, APPA will issue reimbursement within 30 days for all sums OEU paid to SEL.
FISCAL IMPACT:
The APPA has agreed to award the funds totaling $431,545 through reimbursements, equipment, and service donations.
The $66,545 is being appropriated to pay SEL from account #457-060-171-531-69-65010.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Adopt with Changes
• Deny
BUDGET RESOLUTION 2023-166
A RESOLUTION AMENDING THE FISCAL YEAR 2022-2023 BUDGET TO ACCEPT AND APPROPRIATE GRANT FUNDING FROM THE AMERICAN PUBLIC POWER ASSOCIATION WITH IN-KIND DONATIONS TOTALING $365,000 AND REIMBURSEMENTS FOR THE PURCHASE OF EQUIPMENT THROUGH SCHWEITZER ENGINEERING LABORATORIES IN THE AMOUNT OF $66,545
WHEREAS, the Department of Energy (“DOE”) entered into a cooperative agreement with American Public Power Association (“APPA”), Award Number DE-CR0000007, to develop and deploy cyber and cyber-physical operational technology (“OT”) solutions within the public power community (the “Cooperative Agreement”); and
WHEREAS, the APPA will contract with Ocala Electric Utility (“OEU”) through this Participation Agreement to help OEU address and overcome key cybersecurity challenges and maximize the long-term robustness and overall effectiveness of deployed solutions for the benefit of the whole electric industry; and
WHEREAS, on April 21st, 2023, the American Public Power Association entered into a Participation Agreement with the City of Ocala awarding an amount totaling $431,545; and
WHEREAS, funding for the award is structured to include $365,000 of in-kind/donated equipment and services and $66,545 reimbursement for City purchased equipment; and
WHEREAS, the $66,545 equipment expense will be reimbursed by the APPA upon receipt and inspection of the purchased equipment.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the FY2023 budget be amended as outlined below:
SOURCE:
457-331-000-000-09-33132 US Dept Energy-Energy Effic Gr $66,545
USE:
457-060-171-531-69-65010 Construction In Progress $66,545
This resolution adopted this ______ day of ______________________, 2023.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs James P. Hilty Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Peter A. Lee
City Manager