TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract 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, in an annual amount of $180,000, and authorize a 15 percent contingency in the amount of $27,000, for a total annual contract amount not to exceed $207,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager, or designee. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Tait Environmental Services, Inc. (Tait), for technical and project management support for the City’s 17 fueling sites. Tait was first awarded a contract for these services through a competitive procurement process completed in FY 15.
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 18 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 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 Water Department and the West Police station.
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 Monica J. Kilaita on November 8, 2017 and by Assistant Finance Director Lea Eriksen on November 7, 2017.
SUSTAINABILITY
Diligent monitoring and management of the City’s fuel operations, while ensuring compliance with local, state and federal regulations, protects people and the environment from harmful contaminants, while also preventing the City from incurring costly fines.
TIMING CONSIDERATIONS
City Council action is requested on December 5, 2017, to ensure a new contract is in place expeditiously.
FISCAL IMPACT
The cost of this contract will not exceed $207,000 annually, and is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). The cost of this contract is budgeted as part of Fuel Operations Division costs that are charged to user departments through the Fleet monthly billing process. There is no local job impact associated with this recommendation.
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 TAIT ENVIRONMENTAL SERVICES, INC., WITHOUT ADVERTISING FOR BIDS, FOR TECHNICAL SUPPORT, CONSTRUCTION MANAGEMENT SERVICES, AND REGULATORY UPDATES FOR THE CITY'S FUEL OPERATIONS PROGRAM FOR A PERIOD OF TWO YEARS IN AN ANNUAL AMOUNT NOT TO EXCEED $207,000 WITH THE OPTION TO RENEW FOR THREE ADDITIONAL ONE YEAR PERIODS
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER