TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34878 with Tait Environmental Services, Inc., of Santa Ana, CA, to provide technical support, construction management services, and regulatory updates for the City’s Fuel Operations program, to increase the contract amount by $70,839, for a revised contract amount not to exceed $1,105,839, and extend the term to September 30, 2023. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 34878 with Tait Environmental Services, Inc. (Tait), for technical and project management support for the City of Long Beach’s (City) 16 fueling sites. This amendment will add funds and extend the term of the contract for an additional eight months while a new Request for Proposal (RFP) is advertised, and new contract awarded.
The Financial Management Department, Fleet Services Bureau, is responsible for management of the City’s fuel storage program. Tait has provided services to the City on various projects over the last 23 years and has specifically provided the requested services since January 2015. Tait is a leader in the industry and has acquired significant knowledge of the City’s fuel sites and regulatory environment while guiding policy development, and this background would not easily be transferred to another vendor without significant investment in consultant and City staff time. The City’s fuel program and sites are of sufficient complexity that a new contractor would experience a lengthy learning curve, impacting overall management of the program and possibly increasing the City’s regulatory exposure. Additionally, Tait has successfully managed complex construction and repair projects for underground storage tanks (UST) at Alamitos Bay and Shoreline Marinas, and successfully managed above ground storage tank construction projects at the Utilities Department and the West Police station.
Tait’s service to the City’s Fuel and UST Division began in January 2015 when they were awarded a similar contract for one year, with two additional one-year renewals. That was followed by another contract award by the City Council in December 2017 for two years, with three additional one-year renewals. That contract expired on December 31, 2022, and a new RFP is currently under preparation to be advertised. This contract extension will allow for uninterrupted service until a new contract with the selected vendor is in place.
An amendment to the revised contract amount and contract term period is needed at this time to ensure that Fleet Services is able to meet federal, State, and local regulatory requirements for the City’s fuel sites, while the bid advertisement period, evaluation, City Council authorization and new contract execution processes are completed.
This matter was reviewed by Deputy City Attorney Anita Lakhani and Revenue Management Officer Geraldine Alejo on March 16, 2023, and by Purchasing Agent Michelle Wilson on March 8, 2023.
SUSTAINABILITY
Diligent monitoring and management of the City’s fuel operations ensures compliance with federal, State, and local regulations, and protects residents and the environment from harmful contaminants, while also preventing the City from incurring costly fines.
TIMING CONSIDERATIONS
City Council action to amend Contract No. 34878 is requested on April 4, 2023, to ensure there is no interruption to services.
FISCAL IMPACT
The requested action will increase the contract amount with Tait by $70,839, for a revised total contract amount not to exceed $1,105,839. The cost of this contract is budgeted in the Fleet Services Fund Group in the Financial Management Department, offset by revenue collected through the Fleet Memorandum of Understanding (MOU) regular monthly charges to various fund groups and departments. 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 this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER