TITLE
Recommendation to authorize City Manager to execute an amendment to Contract No. 33518 with CED Metropolitan Electrical Distributors, of Los Angeles, CA, and Contract No. 33519 with Walter’s Wholesale Electric Company, of Long Beach, CA, for the purchase and delivery of as-needed electrical supplies, to increase the aggregate contract amount by $400,000, for a total amount not to exceed $1,115,000, for the period ending October 1, 2016, with the option to renew for two additional one-year periods, at an annual aggregate amount of $700,000, with a 10 percent contingency of $70,000, for a total annual aggregate amount not to exceed $770,000, at the discretion of the City Manager. (Citywide)
DISCUSSION
On September 16, 2014, City Council awarded contracts to CED Metropolitan Electrical Distributors and Walter’s Wholesale Electric Company for the purchase and delivery of as-needed electrical supplies, in a total aggregate amount of $650,000 with a 10 percent contingency ($65,000) for a total aggregate amount not to exceed $715,000 for a period of two years, with the option to renew for two additional one-year periods.
City Council action is requested to amend Contract No. 33518 with CED Metropolitan Electrical Distributors and Contract No. 33519 with Walter’s Wholesale Electric Company by increasing the aggregate contract amount by $400,000, for the term expiring October 1, 2016, with the option to renew the contracts for two additional one-year periods, for an annual aggregate amount of $700,000, with a 10 percent contingency of $70,000, for a total annual aggregate amount not to exceed $770,000. The Public Works Department has requested to use these agreements for LED lighting upgrades at City Place Garages A, B, and C, City Hall exterior, and the Junipero and Granada beach parking lots. These projects were originally intended to be completed using contractors, but will now be completed by City staff; thus, additional appropriation is needed for the purchase of electrical supplies. In addition, the Departments of Water and Parks, Recreation, and Marine have recently hired City electricians, and it has been necessary to restock electrical supplies. These Citywide agreements are utilized by various City departments to provide as-needed electrical supplies.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 18, 2016 and by Assistant Finance Director Lea Eriksen on July 25, 2016.
TIMING CONSIDERATIONS
City Council action is requested on August 16, 2016, to ensure the purchase and delivery of as-needed electrical supplies are processed expeditiously.
FISCAL IMPACT
Sufficient funding for the $400,000 increase for the current agreements is budgeted in various funds and departments. If the contracts are renewed for two additional one-year periods, the cost of the contracts will not exceed the annual aggregate amount of $770,000, including the recommended 10 percent contingency of $70,000, and is budgeted in various funds and departments. The approval of this recommendation will provide continued support to our local economy by assisting in the preservation of employment for 31 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER