TITLE
Recommendation to adopt resolutions authorizing City Manager, or designee, to execute contracts with Dresser Utility Solutions, LLC, dba NGS Cayman Holdings L.P., of Houston, TX, and Meter, Valve & Control, of Alamo, CA, for furnishing and delivering natural gas meters, other services, and parts, in an annual aggregate amount not to exceed $600,000 for a period of one year, with the option to renew for four additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with Dresser Utility Solutions, LLC, dba NGS Cayman Holdings L.P., (Dresser) and Meter, Valve & Control (MVC), for furnishing and delivering natural gas meters, other services, and parts.
Energy Resources Department (ER) has installed Dresser and Itron natural gas meters for many of its large commercial and industrial customers in Long Beach and Signal Hill. ER’s staff are fully trained on the operation, maintenance, and repair of these types of gas meters and parts as these meters have proven reliable and durable. MVC is the sole distributor of Itron meter equipment used for light-duty commercial and residential customers. Dresser is the sole direct source and manufacturer of the Dresser meters and instruments product line. ER requests authorization to execute contracts with Dresser and MVC to purchase meters, regulators, and miscellenous parts to be used during the course of business.
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. Each requested contract is the sole source supplier of the associated meter types, therefore, City Council approval is requested to adopt the necessary Resolutions to enter into contracts with Dresser and MVC.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on October 6, 2022, Purchasing Agent Michelle Wilson on October 25, 2022, and by Budget Analysis Officer Greg Sorensen on October 31, 2022.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolutions and and award contracts concurrently is requested on November 15, 2022 to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The total annual aggregate amount of the contract will not exceed $600,000. Sufficient funds are appropriated in the Gas Fund Group in the Energy Resources Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with the recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
ROBERT M. DOWELL
DIRECTOR OF ENERGY RESOURCES
APPROVED:
THOMAS B. MODICA
CITY MANAGER