TITLE
Recommendation to adopt resolution authorizing City Manager to execute an annual contract with DMD Dresser, of Houston, TX (not a MBE, WBE, SBE or Local), for furnishing and delivering rotary-type gas meters and other services and parts without advertising for bids, in an annual amount not to exceed $150,000, for a period of one year, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
For the last seventeen years, the Long Beach Gas and Oil Department (LBGO) has installed DMD Dresser rotary gas meters for residential and industrial customers in Long Beach and Signal Hill. Since the majority of LBGO's large commercial customer delivery sites contain DMD Dresser proprietary equipment, LBGO has fully trained staff on the operation, maintenance, and repair of the DMD Dresser gas meters. In order to maintain the standardization of gas meters for the City's large commercial customers, LBGO is requesting to purchase DMD Dresser gas meters and the related services and parts. This effort will eventually reduce stock requirements for multiple types of equipment and eliminate additional staff training requirements for other types of equipment. Therefore, City Council action is requested to adopt a resolution for a sole source purchase.
LBGO has its Field Meter Proving Program, which involves the calibration and replacement of slow running out-of-specification meters. This program, if not performed, may result in incorrect recording and billing of the natural gas commodity. The purchase of new meters is necessary for the continued support of the Field Meter Proving Program. The contract will also provide for annual recertification services and parts for LBGO's field meter prover equipment.
The 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 Amy R. Webber on October 6, 2011 and Budget Management Officer Victoria Bell on October 14, 2011.
TIMING CONSIDERATIONS
City Council action is requested on November 8, 2011 to ensure the purchase of necessary meter inventory items. The current blanket purchase order expired on October 1, 2011 with no renewals and no interim contract.
FISCAL IMPACT
The total cost of this contract, in an annual amount not to exceed $150,000, is budgeted in the Gas Enterprise Fund (EF 301) in the Long Beach Gas and Oil Department (GO). The cost associated with this action will be recovered through revenue generated from LBGO gas customers. There are no local jobs impacted by this action.
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 DRESSER, INC., WITHOUT ADVERTISING FOR BIDS, FOR FURNISHING AND DELIVERING ROTARY-TYPE GAS METERS AND OTHER SERVICES AND PARTS FOR A PERIOD OF ONE YEAR IN AN AMOUNT NOT TO EXCEED $150,000 WITH THE OPTION TO RENEW FOR TWO ADDITIONAL ONE-YEAR PERIODS.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
CHRISTOPHER J. GARNER
DIRECTOR OF LONG BEACH GAS AND OIL
APPROVED:
PATRICK H. WEST
CITY MANAGER