REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute Amendments to Agreements for Environmental Health and Safety Consulting and Training Services with Electrical Safety Consultants, Inc., doing business as ESCI, Inc., and BSI America Professional Services, Inc. to Extend the Term, Increase Maximum Compensation, and Add Additional Services for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), is committed to maintaining a safe and compliant working environment by implementing Environmental, Health and Safety Services (EH&S) programs throughout its utility operations. SVP staff uses consultants focused on specific program areas to ensure the highest quality for the programs being developed and maintain SVP’s programs current with the latest local, federal, and other laws and regulations.
For instance, environmental program services require various certifications and compliance activities. A utility of SVP’s size is responsible for a number of environmental compliance activities, such as, air permits, Environmental Protection Agency (EPA) Title V, Spill Prevention Control and Countermeasure (SPCC), Hazardous Materials Business Plan (HMBP), and stormwater permits. Similarly, with safety program services require the development of written plans, training, tracking of completed training, audits, and drills to meet Federal and California OSHA requirements, as well as local or other agency regulations and guidelines.
In 2021, the City published a competitive Request for Proposals (RFP) for EH&S services. On February 22, 2022, the City Council authorized the City Manager to negotiate and execute agreements with (1) Electrical Safety Consultants, Inc., doing business as ESCI, Inc. (ESCI) and (2) BSI America Professional Services, Inc. (BSI), to provide EH&S consulting and training services, with a maximum aggregate compensation amount not exceeding $1,100,000 for an initial five-year term and up to five one-year renewal options.
DISCUSSION
Under their agreements with the City, ESCI and BSI provide all labor, materials, equipment, and technical expertise needed to review and update SVP’s current EH&S programs, develop new ones, provide electrical safety training and drills, and conduct periodic electrical safety audits.
As SVP has refined its safety materials, SVP’s compliance staff has identified the need for additional tasks, such as updating safety manuals specific to power plants. New assignments might also require adjusting the rate schedule to include staff not initially included in the original agreements.
To ensure delivery of essential EH&S consulting services for the remaining term of the agreements, staff recommends increasing the aggregate maximum compensation by $900,000 for a new aggregate maximum compensation of $2,000,000. Compensation is based on time and materials, at the rates established in the agreements. The agreements may be extended through January 31, 2032. Staff requests further authorization for the City Manager to negotiate and execute amendments to extend the term of the agreements through January 31, 2032, in such increments determined by staff to main consistency in projects that may extend longer than one year and increase maximum compensation by up to $1,000,000 for a total aggregate maximum compensation that does not exceed $3,000,000 over a ten-year period.
ENVIRONMENTAL REVIEW
The proposed actions do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15061(c)(3) of Title 14 of the California Code of Regulations as it can be seen with certainty that there is no possibility the environmental consulting services will have a significant effect on the environment.
FISCAL IMPACT
The proposed amendments would increase the aggregate maximum compensation from $1,100,000 to $2,000,000. Sufficient funds are available in the FY 2024/25 Adopted Operating Budget in the Electric Utility Operating Fund. Funding for future years will be requested through the normal budget process.
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute amendments to the agreements with Electrical Safety Consultants, Inc., doing business as ESCI, Inc. and BSI America Professional Services, Inc. (BSI), to increase the aggregate maximum compensation by $900,000 for a new aggregate maximum compensation of $2,000,000, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the agreements as amended and negotiate and execute amendments to (a) add or delete services consistent with the scope of services; (b) adjust future rates to account for reasonable changes in labor and materials rates; (c) exercise options to extend the term of the agreements for up to five years in any increment through January 31, 2032; and (d) increase the maximum compensation for an additional $1,000,000 for a total aggregate maximum compensation not to exceed $3,000,000 over a ten-year period for both agreements, 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. Agreement for Services with BSI America Professional Services, Inc.
2. Agreement for Services with ESCI, Inc., dba Electrical Safety Consultants, Inc.