TITLE
Recommendation to authorize City Manager to execute amendments to Contract No. 34037 with Meter, Valve & Control, Inc., of Alamo, CA, and Contract No. 34041 with Elster American Meter Company, LLC, of Nebraska City, NE, to furnish and deliver gas meters and other services and parts, to increase the annual contract amount by $180,000, for a total aggregate annual amount not to exceed $530,000, for a period of two years, with the option of renewing for one additional one-year period, at the discretion of the City Manager. (Citywide)
DISCUSSION
On July 21, 2015, the City Council adopted a resolution authorizing the City Manager to execute contracts with Meter, Valve & Control, Inc. (MVC), and Elster American Meter Company, LLC (Elster), in an aggregate annual amount not to exceed $350,000 for a period of two years with the option of renewing for one additional one-year period. These actions were requested by Long Beach Gas and Oil (LBGO) to purchase gas meters and related equipment and parts to support the Advanced Metering Infrastructure (AMI) project that was authorized by City Council on June 10, 2014. The implementation of AMI includes the installation and/or retrofit of approximately 150,000 gas meters.
To support timely material procurement for the AMI project’s Beta (test) Phase, LBGO estimated the parts and materials needed at commencement of the test phase deployment in August 2015. In November 2015, the selected installation contractor, Utility Partners of America (UPA), finalized its installation schedule, which identifies the complete inventory of replacement and retrofit meters and supplies needed to complete the project. After review of the UPA installation schedule, LBGO determined it necessary to increase the number of replacement gas meters and related equipment, parts and supplies for the AMI project. Therefore, LBGO is requesting additional contract authority of $180,000, increasing the aggregate annual contract amount not to exceed $530,000.
This matter was reviewed by Deputy City Attorney Richard Anthony on December 17, 2015, and by Budget Management Officer Victoria Bell on December 21, 2015.
TIMING CONSIDERATIONS
City Council action is requested on January 5, 2016, to ensure the additional funds are in place expeditiously and to prevent any delay in AMI project implementation.
FISCAL IMPACT
The recommended action will increase the total aggregate contract costs by $180,000 per year, for a revised annual total not to exceed $530,000. Sufficient funds for these contracts are currently budgeted 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.
Respectfully Submitted,
EDWARD FARRELL
ACTING DIRECTOR OF LONG BEACH GAS AND OIL
APPROVED:
PATRICK H. WEST
CITY MANAGER