REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Services with HSI Workplace Compliance Solutions, Inc. to Provide Managed Training Services for Silicon Valley Power and a Related End User Licensing Agreement with Focus Learning Corporation and HSI for On-Line Training Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Silicon Valley Power (SVP) operates as a Distribution Provider, Generation Owner, Generation Operator, Transmission Owner, and Transmission System Operator. In these roles, SVP must comply with a number of requirements, standards, and regulations, including the North American Electric Reliability Corporation (NERC) and Western Electricity Coordinating Council (WECC) Reliability Standards.
SVP requires an experienced consulting and training firm to provide on-going Electric Utility Operational training for personnel within the SVP Operations Division including Control, Substation, Generation, Transmission & Distribution, and System Support. These services are necessary to maintain and develop SVP staff qualifications relating to SVP Bulk Electric System (BES). Additionally, SVP requires a firm with the capacity and expertise to provide system operator training in compliance with NERC and WECC regulations.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.”
The RFP for Managed Training Services was published on the City’s e-procurement system. The proposed scope of work included: training design and development using a variety of methods (such as classroom, on-line, on-demand, and simulations), training to support NERC and WECC requirements, and as software to support training management. Two proposals were received by the June 30, 2023, closing date, from the following firms:
• HSI Workplace Compliance Solutions, Inc (HSI)
• Quality Training Systems
The proposals were independently evaluated by a three-member evaluation panel against the criteria published in the RFP. HSI was selected as the overall best value based on cost and experience. In particular, HSI demonstrated a significant depth and strength, including subject matter expertise in system operations, transmission, distribution, substations, and generation with a focus on compliance.
The proposed agreement with HSI has a maximum compensation of $1,500,000 over a five-year term starting on May 1, 2024, and ending on April 30, 2029, with options to extend the term for up to two additional years through April 30, 2031. The agreement includes daily rates for instructor-led training, hourly rates for advisory services, and custom training development services. In addition, various online courses will be available either through prepaid subscription services or individually at a per user cost. Rates for labor and materials are established in the agreements and subject to reasonable increases subject to approval by the City and must be substantiated by the contractor to the satisfaction of the City. Along with the agreement, the City will also enter into an End User Licensing Agreement, which is an Exhibit to the Agreement. This license agreement is required to allow HSI to provide online services.
Furthermore, staff requests authorization for the City Manager to negotiate and execute amendments to this agreement to (1) add or delete services consistent with the scope of services; (b) adjust rates based on market conditions with justification from HSI; (c) exercise options to extend the term for up to two years through April 30, 2031, and (d) increase the maximum compensation by up to $1,000,000 for a total maximum compensation of $2,500,000 over a seven year period, subject to the appropriation of funds and the review and approval as to form by the City Attorney. Approval of these recommendations will provide SVP with flexibility to respond to additional training needs such as in the event of significant changes in regulations or staffing changes requiring additional training services.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378 (b)(5) of Title 14 of the California Code of Regulations in that they are administrative activities that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The maximum compensation under the agreement is $1,500,000 over the five-year term. There is also a recommendation to authorize the City Manager to negotiate amendments to the agreement that could increase the maximum compensation to $2,500,000. The costs associated with this agreement are budgeted as part of SVP’s operating budget. Funding for the first two years of the agreement is included in the Adopted FY 2023/24 and FY 2024/25 Operating Budget in the Electric Utility Operating Fund.
Funds required for this agreement in future years will be included in proposed budgets for corresponding years.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute an Agreement for Services and an End-User Licensing Agreement with HSI Workplace Compliance Solutions, Inc. and Focus Learning Corporation (collectively, “Agreement”) to provide managed training services for Silicon Valley Power with a maximum compensation not to exceed $1,500,000 over a five-year term to be funded by the Electric Utility Funds, subject to appropriation of funds for future years; and
2. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement and negotiate and execute amendments to the Agreement to (a) add or delete services consistent with their scope of services; (b) adjust rates based on market conditions, (c) extend the term up to two additional years, (d) make other no cost or term extension amendments; and (e) increase the maximum compensation by up to $1,000,000 for a total maximum compensation of $2,500,000 over a seven year period, subject to the appropriation of funds and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Proposed Agreement with HSI Workplace Compliance Solutions, Inc.
2. End-User Licensing Agreement (attached as Exhibit D to the Agreement)