TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract and any amendments thereto with Bolder Group Inc., for the purchase of marine fuel and related supplies at an estimated cost of $140,000. The term of the contract will be for one year with the option for two additional one-year extension periods, plus a 10 percent contingency if necessary and if funds are available. (Citywide)
DISCUSSION
The Police Department Harbor Security boats and Fire Department Marine Safety rescue boats use fuel and related supplies that are essential to the operation of the City boats. The Police Department is currently using the Harbor Security boats for Homeland Security patrols in the Harbor and around the Oil Islands. The Fire Department is using the Marine Safety rescue boats for fire and lifeguard rescue in the Port of Long Beach, Alamitos Bay, Marine Stadium and the Downtown Marina area.
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 documenting the reason for a sole-source award adopted by the City Council.
Bolder Group, Inc., is the only vendor that has sites in the Long Beach waterfront area, Alamitos Bay and the Downtown Marina thereby allowing the City boats to be fueled virtually within their patrol and operating areas, minimizing the time they are not available for response. Other marine fuel vendors, which are located in Huntington Beach and San Pedro, cannot provide this level of proximity and immediate response if there is an urgent need for additional fueling capacity in the event of an emergency.
Use of these external vendors would take boats out of service for up to an hour or longer and would require increased fuel use for the transit to and from Long Beach for fueling City boats.
This matter was reviewed by Principal Deputy City Attorney J. Charles Parkin on April 2, 2008 and Budget Management Officer Victoria Bell on April 4, 2008.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution is requested on April 15, 2008 to ensure that the contract is in place prior to expiration of the existing blanket purchase order.
FISCAL IMPACT
The total cost of the contract is approximately $140,000: $90,000 for the Police Department (PO) and $50,000 for the Fire Department (FD), 80 percent of the costs incurred by the Police Department will be charged to the Harbor Department (HA), in accordance with the current Memorandum of Understanding. The remaining 20 percent will be funded by the Tidelands Operating Fund (TF). The Fire Department's $50,000 is budgeted in the Fleet Services Fund (IS 386) in the Public Works Department (PW). The fuel costs are funded through the fleet equipment charges of the Fire Department (FD) and the Tidelands Operating Fund (TF). The City will have the option of adding up to 10 percent (or $14,000) above the contract amount if necessary and if the funds are available.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH BOLDER GROUP INC. WITHOUT ADVERTISING FOR BIDS FOR PURCHASE OF MARINE FUEL AND RELATED SUPPLIES
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management/CFO
Michael P. Conway
Director of Public Works
NAME |
APPROVED: |
TITLE |
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PATRICK H. WEST |
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CITY MANAGER |