City Council Agenda Report
Meeting Date: June 6, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Services Agreement with Jacobs Engineering Group Inc. for Environmental Compliance Services Recommendation
Approve and authorize the City Administrator to execute the Services Agreement with Jacobs Engineering Group Inc. (Jacobs) for environmental compliance services, in substantially the same form as submitted, for a total amount not-to-exceed $1,465,686, for a three-year term.
Background
Vernon Public Utilities (VPU) serves as an essential resource to the City's business community, providing dependable, high-quality utility services at competitive rates. VPU offers, electricity, water, natural gas, and fiber optic services to businesses in Vernon, often at a lower cost than neighboring utility providers.
There are two generation facilities located in the City, each feeding into the electric transmission and distribution system, with a total output consisting of 150.5-megawatt (MW) of generation.
The Malburg Generating Station (MGS) is a natural gas-fired, combined cycle facility with a capacity of 139 MW. Station A is a historic building built in the early 1930s that houses two 5.75 MW simple cycle natural gas turbines (Gonzales Units) used for reserve purposes. The facility also contains five non-operational diesel generators that were in service between the 1930s and 1990s, and an emergency diesel generator for use in a black start scenario. The average daily load of customer demand on the electric distribution system is 175 MW, with a peak load of 194 MW.
The Natural Gas Division operates a transmission and distribution system, which serves about 9,000,000 MMBtu of natural gas to approximately 125 commercial and industrial customers, including the City-owned generating station.
The Water Division provides about 6,500 acre-feet of potable drinking water to approximately 860 water customers, and 725 acre-feet of recycled water to the generating station.
All of these utility services are regulated and permitted by various regulatory agencies including the South Coast Air Quality Management District (SCAQMD), Los Angeles County Sanitation Districts (LACSD), Los Angeles Regional Water Quality Control Board (RWQCB), California Energy Commission (CEC), the California Air Resources Board (CARB), the U.S. Environmental Protection Agency (USEPA), California State Water Resources Control Board (SWRCB), and the Department of Toxic Substances Control (DTSC).
With ever-changing, stringent environmental compliance mandates and the call for greater social and environmental responsibility, it is vital that VPU continue to obtain environmental compliance support services to assist with its daily environmental operations and long-term plans.
Environmental compliance services are critical in preventing regulatory fines and penalties for violations of environmental regulations. Recent regulatory changes have made environmental compliance a complex process, requiring expertise in multiple highly technical disciplines and thorough knowledge of existing and future environmental laws and regulations. Effective communication regarding environmental laws and regulations is crucial to assist the utility in managing its compliance program and on-going reporting requirements, while maintaining reliable and responsible utility operations.
In accordance with Vernon Municipal Code (VMC) Section 3.32.080, regarding competitive selection, staff issued a Request for Proposals (RFP) for Environmental Compliance Services on April 25, 2023. The RFP was advertised on the City's Planet Bids platform. The scope of work included, but was not limited to, compliance reporting, compliance plan maintenance, daily technical on-call support, timely submittals to regulatory agencies, and periodic support.
Subsequently, proposal packages were received from three firms by the May 9, 2023 deadline.
Those firms were: (1) AARC Consultants, LLC, (2) Jacobs, and (3) Keramida Inc. Pursuant to VMC Section 3.32.090, price was not a factor in the determination of the most qualified bidder.
A qualified panel thoroughly examined the proposals based on qualification, background, and experience (40%); project understanding (30%); references (20%); and responsiveness to the RFP (10%).
While all three firms met the minimum criteria, not all firms were able to validate experience and demonstrate an understanding and ability to support electric generation in the State of California, which accounts for a significant portion of the scope of work. The qualified panel reviewed the work plan as an indication of project understanding. The proposal submitted by Jacobs ranked the highest among the panel and Jacobs was deemed the most qualified environmental consulting firm. Furthermore, Jacob’s proposal demonstrated expertise and experience through a comprehensive approach to the services requested in the scope of work. Their proposal provided a clear plan for all required areas of work. Since 2005, Jacobs has delivered local knowledge and environmental compliance and permitting expertise and has worked closely with VPU to deliver ongoing compliance with environmental laws and regulations. Moreover, in coordination with VPU, Jacobs helped establish VPU’s environmental compliance program in 2011 and has been supporting the maintenance of the program for over 12 years. Accordingly, Jacobs is familiar with VPU’s generation operations and compliance regulations and is well managed and experienced to prepare and complete the required reports accurately, efficiently, and punctually to meet regulatory deadlines.
Therefore, staff recommends approval of a three-year Services Agreement with Jacobs, in an amount not-to-exceed $1,465,686, to provide environmental compliance services. The proposed agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $1,465,686 for a three-year term. Sufficient funds will be budgeted in Fiscal Year 2023–24 and subsequent years in the Vernon Public Utilities Operating Budget, Generation Expense-Account No. 055-050-560-520230, Professional Services-Other Account No. 055-050-580-529215, and Professional Services-Environ-Account No. 055-050- 586-529235.
Attachments
1. Services Agreement with Jacobs Engineering Group Inc.