TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Dresser, Inc., of Houston, TX, 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 two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into an annual contract with Dresser, Inc. (Dresser), for furnishing and delivering rotary-type gas meters and other services and parts. Dresser is the sole direct source and manufacturer of the Dresser meters and instruments product line. Dresser is the only distributor of its products for the California Municipal Gas Market, which includes Long Beach Gas and Oil (LBGO). Therefore, City Council action is requested to adopt a Resolution for a sole source purchase.
For the last 20 years, LBGO has installed Dresser rotary gas meters for a majority of its large commercial customers in Long Beach and Signal Hill. LBGO's staff is fully trained on the operation, maintenance, and repair of Dresser gas meters. By standardizing meter types, LBGO reduces inventory for multiple types of equipment, eliminates staff training time for other types of equipment, and increases safety and consistency. In order to maintain the standardization of the distribution system for the City's large commercial customers, LBGO is requesting to purchase Dresser gas meters and related services and parts.
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 Richard Anthony on March 9, 2015, and by Budget Management Officer Victoria Bell on March 27, 2015.
TIMING CONSIDERATIONS
City Council action to adopt the Resolution and award a contract concurrently is requested on April 21, 2015 to ensure the contract is in place expeditiously.
FISCAL IMPACT
The contract authority requested is in an annual amount not to exceed $150,000, for a term of two years with the option to review for two additional one-year terms, at the discretion of the City Manager. The total contract authority requested is in an amount not to exceed $600,000. The cost of this contract will be budgeted annually in the Gas Fund (EF 301) in the Long Beach Gas and Oil Department (GO). 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 DRESSER, INC., WITHOUT ADVERTISING FOR BIDS, FOR FURNISHING AND DELIVERING ROTARY-TYPE GAS METERS AND OTHER SERVICES AND PARTS FOR A PERIOD OF TWO YEARS IN AN ANNUAL AMOUNT NOT TO EXCEED $150,000 WITH THE OPTION TO RENEW FOR TWO ADDITIONAL ONE-YEAR PERIODS
Respectfully Submitted,
CHRISTOPHER J. GARNER
DIRECTOR OF LONG BEACH GAS AND OIL
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER