City Council Agenda Report
Meeting Date: October 20, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Professional Services Agreement with Northwest Electrical 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, repair or minor alteration of existing facilities/equipment and involves negligible or no expansion of an existing use; B. Find that the best interests of the City are served by a direct award of an agreement with Northwest Electrical Services, LLC without a competitive selection process pursuant to Vernon Municipal Code Section 3.32.110(B)(2) given ongoing essential work already underway on the Supervisory Control and Data Acquisition (SCADA) systems in the Utility and significant cost savings to the City;
C. Approve and authorize the City Administrator to execute a Professional Services Agreement with Northwest Electrical Services LLC, in substantially the same form as submitted, to provide technical design, controls, automation, construction, and analytical services for an amount notto-exceed $2,568,805; and D. Authorize a contingency amount of five percent (5%), or $128,440.25, in the event of unforeseen services and expenses, and grant authority to the City Administrator to issue amendments up to the contingency amount, if necessary.
Background
Vernon Public Utilities (VPU) is committed to enhancing its infrastructure and upgrading technology to improve efficiency and strengthen its service offerings. The goal is to provide highquality, reliable, and responsive service at competitive, stable rates. As part of this commitment, VPU is focused on upgrading, streamlining, and standardizing utility services, along with implementing Supervisory Control and Data Acquisition (SCADA) systems across all facilities and equipment in the electric, water, gas, and fiber divisions. The SCADA system plays a crucial role in enabling VPU to deliver essential services more cost-effectively, reliably, efficiently, and safely. This system is vital for troubleshooting, especially during emergencies and service interruptions, to ensure the quick restoration of service to customers.
On November 17, 2023, the City Council approved a three-year Services Agreement with Northwest Electrical Services, LLC (NW) to provide technical design, controls, automation, and analytical services. This agreement will remain in effect until November 16, 2026. During this period, NW has successfully completed numerous projects, including the Power SCADA system.
The design process began with the Station A systems, where Power SCADA servers were deployed, and equipment from Schweitzer Engineering Laboratories was tested and verified for architectural integrity. Additionally, Well 22 has been placed into service, and cybersecurity measures have been continuously updated and maintained in accordance with Federal Industrial Control System best practices. The H. Gonzales Unit 1 (HG1) and H. Gonzales Unit 2 (HG2) also underwent upgrades to their air systems and are both now in service. A fully automated water control system is now operational, alongside automated water production reporting.
The SCADA system enhances VPU's ability to deliver services efficiently, reliably, and safely, particularly during emergencies and service interruptions. The continued partnership with NW over the next three years will enable VPU to further improve efficiency in key areas, such as deploying Power SCADA and ongoing work primarily focused on the Water System. This work includes rehabilitating Pumping Plant 1 and the wells, developing the new Well 23, and enhancing water filtration efforts. Moreover, the development and deployment of the Power SCADA system, which has been delayed due to competing priorities involving water and HG units, will be prioritized. This project will eventually transition into a maintenance phase.
In addition to project-related work, the maintenance of water system controls, networks, and instrumentation will be included in NW's workload, along with ongoing development initiatives.
Training plans for operations staff and technicians are being established, and remote read-only access will be provided for field staff. Significant maintenance will be needed for the HG units and auxiliary systems.
NW will also continue to assist with emergencies, MGS support, and special projects such as engineering studies. Given their extensive expertise, NW can offer support across a wide variety of topics. Furthermore, NW plans to conduct a comprehensive documentation exercise that will include standard operating procedures (SOPs) and troubleshooting and repair processes for most systems. This documentation will help facilitate staff transitions, enhance training, and improve overall crisis management.
NW has actively engaged VPU staff at every stage of various projects. They have shared valuable knowledge of electrical and control systems, significantly enhancing VPU's ability to troubleshoot and operate them more efficiently. With a diverse technical skill set in industrial design, utility operations, and preventive maintenance, NW staff provides specialized services at competitive rates, helping VPU manage costs effectively. Their team brings over 78 years of combined experience in engineering, field services, and plant management across industries such as oil and gas, power generation, and machinery automation.
Over the past ten years, NW has played a crucial role in developing the Water SCADA system and implementing key electronic systems for VPU, both of which are vital to system reliability and future infrastructure. These unique skills and projects are essential for ensuring VPU's success and meeting customer reliability needs. Contracting with NW offers significant advantages in terms of efficiency and cost savings. Awarding this contract is prudent for VPU as it will help maintain, streamline, and upgrade utility facilities, equipment, and processes. This will ensure reliability, achieve safety goals, reduce operational costs, and enhance overall efficiency across all utility divisions. Moreover, as NW has already begun replacing the legacy SCADA system, it is crucial for VPU to retain their services to continue this work. This will help prevent delays that could lead to increased costs or system interruptions. Transitioning to a more industry-standard platform will ultimately provide the utility with greater flexibility in choosing vendors for future support and maintenance.
The proposed agreement is exempt from competitive bidding pursuant to Section
3.32.110(A)(10) of the Vernon Municipal Code (VMC) and can be exempt from competitive selection pursuant to Section 3.32.110(B)(2) if a direct award is found to be in the best interests of the City. Section 3.32.110(B)(3) of the VMC indicates that the City Council has the authority to make such a finding when the proposed contract exceeds $100,000. The City's best interests are served by a direct award based on NW's demonstrated expertise in fields critical to VPU and their ability to provide services in a manner that will result in significant cost savings for the City, as outlined in this staff report.
Staff recommends that the City Council approve a Professional Services Agreement with NW for a total amount not-to-exceed $2,568,805 to provide technical design, controls, automation, construction, and analytical services. Additionally, staff recommends a contingency amount of ten percent (5%) or $128,440.25, in the event of unforeseen services and expenses, for a combined total not to exceed $2,697,245.25. 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 Professional 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 $2,697,245.25. Sufficient funds are available in the Electric and Water Enterprise Funds for applicable Divisions and Accounts for the current fiscal year, and sufficient funds will be budgeted in subsequent years.
Attachments
1. Professional Services Agreement with Northwest Electrical Services, LLC