TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 33664 with Ferguson US Holdings, Inc., formerly Ferguson Enterprises Inc., of Pomona, CA, for furnishing and delivering as-needed plumbing supplies, to increase the contract amount by $641,500, inclusive of $516,500 from an interim contract and $125,000 in new authority, for a revised total contract amount not to exceed $3,671,500, and extend the term of the contract to December 31, 2020. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 33664 with Ferguson US Holdings, Inc. (Ferguson), by increasing the contract by $641,500 and extending the term to December 31, 2020.
At its meeting on January 6, 2014, the City Council awarded a contract to Ferguson, as part of the adoption of Specifications No. ITB LB15-010 for as-needed plumbing supplies. Inclusive of subsequent approved amendments, the City Council authorized $3,030,000 in spending authority for Contract No. 33663. On June 18, 2019, the City Council also authorized a total interim Munis Contract amount of $516,500. All remaining contract authority expired on April 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 contract to allow for continuity of services while continuing to respond to the public emergency. The requested amendment for the total increase amount of $641,500, inclusive of the prior authorized and expended interim amount of $516,500 plus an additional $125,000, will provide for services through December 31, 2020.
This matter was reviewed by Deputy City Attorney Amy R. Webber on June 17, 2020, Deputy Finance Director Sandy Tsang-Palmer on June 22, 2020, and by Budget Management Officer Rhutu Amin Gharib on June 29, 2020.
TIMING CONSIDERATIONS
City Council action is requested on July 14, 2020, to ensure there is no interruption to services.
FISCAL IMPACT
The original contract will increase by $641,500 for a total contract amount not to exceed $3,671,500. This amount includes the previous interim contract of $516,500, which was previously authorized and is being acknowledged as part of the overall contract amount. This recommendation will add an additional $125,000 of spending authority to the original contract through December 31, 2020. Sufficient funds are budgeted across various user departments and fund groups. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The extension of the contract will provide continued support to our local economy by assisting in the preservation of employment for 20 employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER