TITLE
Recommendation to adopt resolution authorizing City Manager to execute all documents necessary to enter into a contract with The Bolder Group, Inc., of Long Beach, CA , for furnishing and delivering marine fuel, in an annual amount of $150,000, and an additional 10 percent contingency in the amount of $15,000, for a total annual amount not to exceed $165,000, for a period of one year, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and
Amend purchase order No. BPPW1200060 with The Bolder Group, Inc., by adding $14,000 for a total amount not to exceed $303,000. (Citywide)
DISCUSSION
City Council approval is requested to enter into an annual contract with The Bolder Group, Inc., (Bolder) for the purchase of marine fuel and related supplies.
The City purchases fuel from two vendors in a combined annual amount of approximately $134,000 to fuel vessels operated by the Police, Fire and Parks, Recreation and Marine Departments in support of Port Security, Marine Safety, and marine maintenance operations in the Alamitos Bay, Marine Stadium, Shoreline Marina, and along the Long Beach waterfront. Fuel docks in the Alamitos Bay and Shoreline Marinas are operated by Bolder, and an alternate fueling site in San Pedro is operated by The Jankovich Company.
Approximately 75 percent of the marine fuel used by City vessels is supplied by Bolder, with the remainder being supplied by The Jankovich Company. Purchasing marine fuel from Bolder enables City vessels to be fueled within their patrol and operating areas, minimizing the time they would be unavailable to respond if they had to go to external locations for fuel. Therefore, in the interest of public safety, the Department of Financial Management wishes to enter into an annual contract to purchase marine fuel from The Bolder Group, Inc.
Pursuant to Purchasing policy, Blanket Purchase Order (BPO) BPPW12000060 was issued on January 1, 2012, and will expire on January 1, 2015. City Council authorization of an additional $14,000 is requested to pay for fuel purchases in excess of BPO capacity during the term, bringing the three year total of the BPO to $303,000.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Kendra L. Carney on December 5, 2014 and by Budget Operations Officer Grace Yoon on November 26, 2014.
SUSTAINABILITY
The Bolder Group, Inc., must provide marine fuel that is in compliance with the State of California requirements for the purchase of ultra-low sulfur diesel fuel, dispensing, containment and the collection and payment of taxes.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution and award a contract concurrently is requested on December 16, 2014 to ensure that a contract is in place expeditiously.
FISCAL IMPACT
Contract costs will not exceed $165,000 annually, including the recommended 10 percent contingency of $15,000. Sufficient funds are budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM) and in the Tidelands Operating Fund (TF 401) in the Police Department (PD). The costs to the Fleet Services Fund are reimbursed through charges to departments through the Fleet MOU. The costs to the Tidelands Operating Fund are reimbursed through charges to the Harbor Department (HA) through an MOU with the Police Department (PD). This contract will provide continue support to our local economy by assisting in the preservation of employment for two full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH THE BOLDER GROUP, INC., WITHOUT ADVERTISING FOR BIDS, FOR FURNISHING AND DELIVERING MARINE FUEL FOR A PERIOD OF ONE YEAR WITH THE OPTION TO RENEW FOR THREE ADDITIONAL ONE-YEAR PERIODS IN AN ANNUAL AMOUNT NOT TO EXCEED $150,000
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER