City Council Agenda Report
Meeting Date: July 21, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Services Agreement with EN Engineering, LLC dba ENTRUST Solutions Group Recommendation
A. Approve and authorize the City Administrator to execute a Services Agreement with EN Engineering LLC, dba ENTRUST Solutions Group (EN Engineering), in substantially the same form as submitted, for Natural Gas Operational and Compliance Support Services for a total amount not-to-exceed $352,000, for a three-year term; and B. Authorize a contingency amount of five percent (5%) or $17,600 in the event of unforeseen services and expenses related to ongoing compliance support needs, staffing limitations, and the new audit format implemented by the CPUC, and grant authority to the City Administrator to approve and execute contract amendments up to the contingency amount, if necessary.
Background
The Natural Gas Division of Vernon Public Utilities was established in 2006 with a large distribution system to serve the City's industrial and commercial sectors. VPU provides natural gas service to approximately 125 industrial and commercial customers. The City's transmission system became operational in 2005. Although Vernon is a small city with a natural gas utility serving approximately 125 customers, VPU is one of the largest municipal gas providers by volume in the United States.
VPU maximizes the operational efficiency of its natural gas system by utilizing fulltime employees to manage day-to-day operations while retaining specialized consultants to provide technical expertise for periodic or otherwise specialized requirements. This strategy maintains efficiencies, keeps internal costs competitive, and ensures that expertise and experience are available and utilized as needed.
The pipeline industry continues to face increased scrutiny by regulators, the media, and the public. In 2018, the Pipeline Hazardous Materials Safety Administration (PHMSA) outsourced the California Pipeline Safety Audits to the California Public Utilities Commission (CPUC). More recently, VPU was notified to expect annual audits. This represents a dramatic increase, as PHMSA audits were previously conducted every two to three years. In addition, the CPUC audits are performed by a team of technical experts, as opposed to PHMSA audits, which are performed by a single inspector. Several factors necessitate continued compliance support services, including increased audit scrutiny, the need to develop and implement feedback from CPUC inspectors in recent years, and compliance with new regulations.
The City has utilized the services of EN Engineering, LLC dba ENTRUST Solutions Group (EN Engineering) for natural gas operational and compliance support services. On June 20, 2023, the City Council approved a three-year Services Agreement with EN Engineering to provide natural gas operational and compliance support services. That agreement expired on June 30, 2026. As per Vernon Municipal Code (VMC) 3.32.080, on May 7, 2026, staff issued a Request for Proposals (RFP) to seek proposals from consultants to continue providing natural gas operational and compliance support services. The RFP was advertised on the City's Planet Bids platform. The RFP identified the following compliance areas: Audit Support, Regulatory Compliance Support, Programs Documents and Procedure, Subject Matter Expertise in the documentation and development of processes, Quarterly Compliance and Record Reviews, General Compliance Support, and Training Resources.
Proposal packages were received from two firms by the May 20, 2026 deadline. A qualified panel of City staff from multiple departments thoroughly examined the proposals based on professional qualifications (45%), demonstrated competence (45%), and responsiveness to the RFP (10%).
Based on the evaluation process, the proposal submitted by EN Engineering demonstrated the strongest combination of expertise and a comprehensive approach that was best suited to fulfill the scope of services that were outlined in the RFP. The proposal submitted by EN Engineering received the highest score following the evaluation process and was therefore deemed the most qualified.
EN Engineering has significant experience in providing natural gas operational and compliance support services to VPU, including successfully assisted VPU in receiving the first known audit that concluded with no findings.
VPU staff recommends that the City Council approve a Services Agreement with EN Engineering for a total amount not-to-exceed $352,000 to provide natural gas operational and compliance support services. Additionally, staff recommends a contingency amount of five percent (5%) or $17,600, in the event of unforeseen services and expenses related to ongoing compliance support needs, staffing limitations, and the new audit format implemented by the CPUC, for a combined total not to exceed $369,600. 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.
Strategic Plan Goals
Goal 6: Optimize Public Utility Operations to Ensure Affordable Services Fiscal Impact
The fiscal impact is not-to-exceed $369,600. Sufficient funds are available in the Electric Fund, Administration, Professional Services – Technical, Account No. 055-050-580-529225 for the current fiscal year and will be budgeted in subsequent years.
Attachments
1. Services Agreement – EN Engineering, LLC dba ENTRUST Solutions Group