City Council Agenda Report
Meeting Date: July 7, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Management Analyst
Subject
Report on Contract Award to Arise Incorporated Approved by the City Administrator Recommendation
Receive and file a report on the award of Amendment No. 1 and Statement of Work No. 2 for the Services Agreement with Arise Incorporated for boiler and pressure vessel inspection services at the Malburg Generating Station for an amount not-to-exceed $4,790, as approved by the City Administrator pursuant to Vernon Municipal Code Section 3.32.110(B)(2).
Background
As part of scheduled maintenance outages of the Malburg Generating Station (MGS), boiler and pressure vessel inspections are conducted pursuant to requirements set by the California Department of Industrial Relations. These inspections are necessary to verify that the pressure vessels remain in safe operating condition. For 2026, the MGS maintenance outage took place from May 17-May 24. During this outage, boiler and pressure vessel inspections were necessary on the facility's two Heat Recovery Steam Generators.
On April 29, 2025, the Finance Department approved a Services Agreement with Arise Incorporated (ARISE) in the amount of $3,280 for boiler and pressure vessel inspection services with a term ending on April 30, 2026. To facilitate the required inspections necessary during the May 2026 MGS outage, the City Administrator approved Amendment No. 1 and Statement of Work No. 2 to extend the Services Agreement with ARISE for an additional one-year term through April 30, 2027 for an amount not-to-exceed $4,790.
ARISE is recognized as a preferred and approved vendor by AEGIS Insurance Services, Inc., the City's excess insurance carrier. Utilizing an insurance-approved vendor supported regulatory compliance, operational efficiency, and the timely completion of required inspections. With Amendment No. 1 and Statement of Work No. 2, the total cost of services provided by ARISE totaled $8,070. Typically this value would require a total of three quotes to be obtained for comparison, however, pursuant to Vernon Municipal Code (VMC) Section 3.32.110(B)(2), the City Administrator determined that it was in the City's best interest to assign the work directly to ARISE given that their familiarity with the facility and status as an insurance-approved vendor ensured continuity of service and compliance with applicable regulatory requirements.
The report regarding the direct award of Amendment No. 1 and Statement of Work No. 2 is provided to City Council pursuant to VMC Section 3.32.110 (B)(3).
Fiscal Impact
The fiscal impact of the additional inspection services was not-to-exceed $4,790. Sufficient funds are available in the Electric Fund, Malburg Generating Station, Insurance-Property/Crime Account No. 055-050-586-520035 for the fiscal year 2025-26.
Attachments
None.