City Council Agenda Report
Meeting Date: August 18, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Services Agreement with 1155 Infrastructure Solutions, 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 contracted services consist of the maintenance, repair, or minor alteration of existing facilities and equipment and involve negligible or no expansion of an existing use; and B. Approve and authorize the City Administrator to execute a Services Agreement with 1155 Infrastructure Solutions, LLC, in substantially the same form as submitted, for natural gas project design, construction, and repair services for an amount not-to-exceed $600,000, for a three-year term.
Background
The Natural Gas Division of Vernon Public Utilities (VPU) was established in 2006 with a large distribution system and transmission system designed to serve the City’s industrial and commercial businesses. VPU provides natural gas service to approximately 125 industrial and commercial customers. Although Vernon is a small city with a natural gas utility serving 125 customers, VPU is one of the largest municipal gas providers in the United States by volume.
VPU maximizes the operational efficiency of its natural gas system by utilizing full-time employees to manage day-to-day operations while retaining specialized consultants to provide technical expertise for periodic or otherwise specialized requirements. This strategy enables operational efficiencies, keeps costs competitive, and ensures that external expertise and experience are available and accessed as needed.
VPU currently contracts with A.M. Ortega Construction, Inc. (AMO) for natural gas project design, construction, and repair services. On August 15, 2023, the City Council approved a three-year Services Agreement with AMO to provide natural gas project design, construction, and repair services. That agreement is set to expire on August 30, 2026. AMO assists the VPU Natural Gas Division staff with various operational needs. These include establishing new customer connections, providing technical engineering, designing projects, conducting pipeline safety assessments, ensuring compliance with current and upcoming regulations, and addressing potential repairs related to system leaks and/or mechanical failures.
As per Vernon Municipal Code (VMC) 3.32.090, on May 28, 2026, staff issued a Request for Proposals (RFP) for Natural Gas Project Design, Construction, and Repair Services. The RFP was advertised on the City's Planet Bids platform. The RFP identified required services, including welding of steel gas pipe, fusion of polyethylene (PE) distribution lines, pressure testing of steel and PE pipe, excavation and installation of steel or PE pipe, shoring of trenches and pits above gas lines, technical and maintenance support of regulator stations, pipeline damage repair, and emergency support services.
Proposal packages were received from seven companies by the July 1, 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 1155 Infrastructure Solutions, LLC (1155 Infrastructure Solutions) demonstrated the strongest combination of expertise and a comprehensive approach, best suited to fulfill the scope of services outlined in the RFP. The proposal submitted by 1155 Infrastructure Solutions received the highest score following the evaluation process and was, therefore, deemed the most qualified.
Accordingly, VPU staff recommends that the City Council approve a Services Agreement with 1155 Infrastructure Solutions for a total amount not-to-exceed $600,000 to provide natural gas project design, construction, and repair services. 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 $600,000. Sufficient funds are available in the Gas Fund, Repairs & Maintenance, Account No. 056-060-600-529000, Professional Services-Technical, Account No. 056-060-600-529225, and Capital Outlay, Account Number 056-060-600-660000, for the current fiscal year and will be budgeted in subsequent years.
Attachments
1. Services Agreement with 1155 Infrastructure Solutions, LLC