City Council Agenda Report
Meeting Date: November 18, 2025
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Senior Management Analyst
Subject
Services Agreement with D2 (Squared) Industrial Services, LLC Recommendation
A. Find that the Proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance of the existing cooling tower and involves negligible or no expansion of an existing use;
B. Approve and authorize the City Administrator to execute the Services Agreement with D2 (Squared) Industrial Services, LLC, in substantially the same form as submitted, for scaffolding services, in an amount not-to-exceed $210,642; and
C. Authorize a contingency amount of ten percent (10%) or $21,064.20 in the event of unforeseen services or related project expenses and grant authority to the City Administrator to issue amendments for an amount up to the contingency amount, if necessary.
Background
The Malburg Generating Station (MGS) consists of two Siemens Model SGT-800 Combustion Turbine Generators (CTGs) and one Siemens SST-700 Steam Turbine Generator (STG). The CTGs discharge waste heat into a Heat Recovery Steam Generator (HRSG), which enhances overall efficiency. During major maintenance outages for these units, the use of qualified scaffolding services is crucial to maintain safe working conditions and provide access to critical components that require service. Scaffolding must be professionally installed to ensure secure access to elevated components, such as steam turbine valves and gas turbine hardware, as well as to create work shelters during overhauls.
In compliance with Vernon Municipal Code (VMC) Section 3.32.080, on September 4, 2025, staff issued a Request for Proposals (RFP) for scaffolding services for MGS. The RFP was advertised on the City’s PlanetBids platform. The scope of services encompasses the design, erection, maintenance, and dismantling of scaffolding structures to allow staff to access elevated components such as Steam Turbine Valves, HRSG Catalyst, and Gas Turbine hardware, without compromising the integrity of surrounding equipment and adhering to safety protocols.
Proposal packages were received from four firms by the September 25, 2025 deadline. A qualified panel thoroughly examined the proposals based on professional qualifications (40%), cost and fees to the City (30%), references (20%), and responsiveness to the RFP (10%). Based on the evaluation process, the proposal submitted by D2 (Squared) Industrial Services, LLC (D2 Industrial) demonstrated a combination of expertise, understanding, experience, and a comprehensive approach that was best suited to fulfill the scope of services outlined in the RFP.
The proposal submitted by D2 Industrial ranked the highest score across the panel and was, therefore, deemed most qualified. D2 Industrial specializes in providing scaffolding services for the industrial and commercial sectors, ensuring that all scaffolding structures are safe and adhere to both State and Federal OSHA guidelines.
Staff recommends that the City Council approve a Services Agreement with D2 Industrial for scaffolding services for a total amount not-to-exceed $210,642. Additionally, staff recommends a contingency amount of ten percent (10%) or $21,064.20, to cover any unforeseen services or related project expenses, for a combined total not-to-exceed $231,706.20. Pursuant to VMC Section 3.32.030(A), City Council approval is required for the proposed agreement, as the total value of the contract exceeds $100,000.
The proposed Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is not-to-exceed $231,706.20. Sufficient funds are available in the Electric Fund, Malburg Generation Station, Gas Turbine, Account No. 055-050-586-529005 and Electric Fund, Malburg Generation, Steam Turbine, Account No. 055-050-586-529006 for the current fiscal year and will be budgeted in subsequent years.
Attachments
1. Services Agreement with D2 (Squared) Industrial Services, LLC.