TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 33519 with Walters Wholesale Electric Company, of Long Beach, CA, for furnishing and delivering as-needed electrical supplies, to increase the contract amount by $300,000, inclusive of $50,000 from an interim contract and $250,000 in new authority, for a revised total contract amount not to exceed $1,663,000, and extend the contract to December 31, 2020; and
Authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 33518 with Consolidated Electrical Distributors, Inc., of Los Angeles, CA, for furnishing and delivering as-needed electrical supplies, to increase the contract amount by $300,000, inclusive of $50,000 from an interim contract and $250,000 in new authority, for a revised total contract amount not to exceed $2,106,500, and extend the contract to December 31, 2020. (Citywide)
DISCUSSION
City Council approval is requested to increase Contracts No. 33519 and 33518 with Walters Electric Company (Walters) and Consolidated Electric Distributors, Inc. (Consolidated), respectively, by increasing the contracts by $300,000 each, and extending the term of the contracts to December 31, 2020.
On August 16, 2016, the City Council awarded contracts to Walters and Consolidated, for furnishing and delivering as-needed electrical supplies. Inclusive of subsequent approved amendments, the City Council has authorized an aggregate amount of $3,169,500 in spending authority for Contracts No. 33519 and 33518. The contracts expired on September 30, 2018. To ensure the continuity of services, interim Munis Contracts No. 32000151 and 32000178 were issued for $50,000 each, pursuant to the City purchasing guidelines. These interim contracts will expire on July 30, 2020, and the authorized amounts have been exhausted.
Due to the impacts of COVID-19, it has become more prudent to extend the original contracts to allow for continuity of services while continuing to respond to the public emergency. The requested amendments increasing each contract by $300,000, inclusive of the prior interim amounts of $50,000, plus an additional $250,000, will provide for services through December 31, 2020.
This matter was reviewed by Deputy City Attorney Amy R. Webber on June 26, 2020, Deputy Finance Director Sandy Tsang-Palmer on June 22, 2020, and by Budget Management Officer Rhutu Amin Gharib on June 30, 2020.
TIMING CONSIDERATIONS
City Council action to amend Contracts No. 33519 and 33518 is requested on July 14, 2020, to ensure there is no interruption to services.
FISCAL IMPACT
The original contracts with Walters and Consolidated will increase by $300,000 each, for a new aggregate amount of $3,769,500. This amount includes the previous interim contracts of $50,000 each, which were issued under the City’s purchasing guidelines and are acknowledged as part of the overall contract amount. These recommendations will add an additional $250,000 of new spending authority to each original contract through December 31, 2020. Sufficient appropriation is budgeted across various departments and funds. This recommendation has no staffing impact beyond the normal budget scope of duties and is consistent with existing City Council priorities. The amendments to these contracts 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:
THOMAS B. MODICA
CITY MANAGER