REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute Agreements for Services with Pro Safety & Rescue, Inc. and Hazardous Materials Institute LLC for Confined Space Rescue Team 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 Department, Silicon Valley Power (SVP), operates the Donald Von Raesfeld (DVR) Power Plant, the Gianera Generating Station (Gianera), and various substations and facilities throughout the City of Santa Clara (City). To ensure safety of employees and contractors and to comply with the Occupational Safety and Health Administration (OSHA) requirements regarding permitted and non-permitted space entries, SVP requires a contractor to perform stand-by confined space rescue team services at its facilities. A confined space is defined as not being designed for continuous occupancy by an employee and having a limited or restricted means of entry or exit. For SVP, this includes pressure vessels, transformers, pipelines, boilers, and turbines.
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 Confined Space Rescue Team Services was published on the City’s e-procurement system. Two proposals were received from the following firms:
• Pro Safety & Rescue, Inc.
• Hazardous Materials Institute LLC
The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, including experience, technical capability, and cost. The evaluation panel determined both proposals met the requirements of the RFP. Therefore, staff recommends the following actions with both firms, as detailed in this Report to Council.
Agreement for Services with Pro Safety & Rescue, Inc. (Pro Safety & Rescue)
Staff is recommending entering into a primary master agreement for services with Pro Safety & Rescue for a five-year term to provide Confined Space Rescue Team Services for an aggregate maximum compensation of $750,000.
Agreement for Services with Hazardous Materials Institute (HMI)
Staff is also recommending entering into a secondary master agreement for services with HMI for a five-year term, to provide Confined Space Rescue Team Services for an aggregate maximum compensation of $750,000.
Both agreements are for five-year terms ending on July 31, 2029. Rates for labor, materials, and equipment are established in the agreements and are subject to reasonable annual increases after the initial fixed period. Any rate increases are subject to approval by the City and must be substantiated by the contractors to the satisfaction of the City.
The two proposed agreements have a combined total maximum compensation of $1,500,000. This estimate is based on past usage of the services. However, future requirements for the services may increase due to unanticipated repairs or regulatory changes. Therefore, staff also recommends authorizing the City Manager to negotiate and execute amendments to increase the total aggregate maximum compensation by an additional $500,000 for a total aggregate maximum compensation not to exceed $2,000,000.
SVP will initially assign work to Pro Safety & Rescue. In the event that Pro Safety & Rescue has insufficient resources to respond to the City’s needs (e.g., unplanned services), the City may then assign work to HMI.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations as the services involve maintenance and repair of existing facilities and mechanical equipment.
FISCAL IMPACT
The combined maximum compensation under the proposed agreements with Pro Safety & Rescue and Hazardous Materials, Inc. is $1,500,000 for a five-year term. Sufficient funds are available in the FY 2024/25 Adopted Operating Budget in the Electric Utility Fund and may be included in capital project budgets where appropriate. Any required budget amendments to capital projects will be brought forward for City Council approval.
Funds required for both agreements in future years are subject to the appropriation of funds.
COORDINATION
This report has been coordinated with the Finance Department and the 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, or by email to: clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations;
2. Authorize the City Manager to negotiate and execute an Agreement for Services with Pro Safety & Rescue, Inc. for confined space rescue team services for a five-year term ending on July 31, 2029, with a maximum compensation not to exceed $750,000, to be funded by the SVP Operating or Capital Fund as applicable, subject to the review and approval as to form by the City Attorney;
3. Authorize the City Manager to negotiate and execute an Agreement for Services with Hazardous Materials Institute LLC for confined space rescue team services for a five-year term ending on July 31, 2029, with a maximum compensation not to exceed $750,000, to be funded by the SVP Operating or Capital Fund as applicable, subject to the review and approval as to form by the City Attorney; and
4. Authorize the City Manager or designee to take any actions as necessary to implement and administer the above agreements 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) increase compensation up to an aggregate amount of $500,000 for a total aggregate maximum compensation of $2,000,000 between the two 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