TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 33519 with Walters Wholesale Electric Company, of Long Beach, CA, and Contract
No. 33518 with Consolidated Electrical Distributors, Inc., of Los Angeles, CA, for furnishing and delivering as-needed electrical supplies, to extend the term of the contract to November 30, 2021. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 33519 and Contract No. 33518, with Walter’s Wholesale Electric Company (Walter’s) and Consolidated Electric Distributors, Inc. (Consolidated), respectively, for furnishing and delivering as-needed electrical supplies, to extend the term to November 30, 2021. The unexpected impacts created by the COVID-19 pandemic impacted the capacity and ability of City staff to prepare and release a formal Invitation to Bid (ITB). The contract extensions will provide adequate time to complete a formal solicitation in accordance with procurement policies and procedures.
On September 16, 2014, the City Council adopted Specifications No. ITB LB14-110 and awarded contracts to Walter’s and Consolidated, to furnish and deliver as-needed electrical supplies, in an aggregate amount of $650,000, with a 10 percent contingency of $65,000. for a total aggregate amount not to exceed $715,000, for a period of two years, with the option to renew for two additional one-year periods.
On August 16, 2016, the City Council amended Contract No. 33518 with Consolidated and Contract No. 33519 with Walter’s, to increase the aggregate contract amount by $400,000, for a total amount not to exceed $1,115,000, for the period ending October 1, 2016, with the option to renew for two additional one-year periods, at an annual aggregate amount of $700,000, with a 10 percent contingency of $70,000, for annual aggregate amount not to exceed $770,000.
On October 9, 2018, the City Council approved the City Manager to execute interim Blanket Purchase Orders with both vendors, for the purchase and delivery of as-needed electrical supplies, for a total aggregate amount not to exceed $450,000, for a period of six months or until a new contract awarded. Similarly, on March 5, 2019, the City Council approved the City Manager to execute interim Blanket Purchase Orders with both vendors, for a total aggregate amount not to exceed $450,000, for a period of six months or until a new contract was awarded.
Most recently, on July 14, 2020, the City Council approved an amendment to Contract No. 33519, to increase the contract amount by $300,000, inclusive of $50,000 from an interim contract and $250,000 in new authority, for a revised total contract amount not to exceed $1,663,000. The City Council also approved an amendment to Contract No. 33518 to increase the contract amount by $300,000, inclusive of $50,000 from an interim contract amount not to exceed $2,106,500.
The revised Contract No. 33519 with Walter’s is in the amount of $1,613,500, and Contract No. 33518 with Consolidated is in the amount of $2,056,500. The current contract terms expired on December 31, 2020.
This matter was reviewed by Deputy City Attorney Amy R. Webber on April 12, 2021, Business Services Bureau Manager Tara Mortensen on April 1, 2021, and by Revenue Management Officer Geraldine Alejo on April 14, 2021.
TIMING CONSIDERATIONS
City Council action is requested on May 4, 2021, to ensure no interruption to services.
FISCAL IMPACT
The requested amendments will extend the term of each contract to November 30, 2021. No additional contract authority is requested as part of these amendments. Sufficient appropriation is budgeted across various departments and fund groups. This recommendation has no staffing impact beyond the normal budget scope of duties and is consistent with existing City Council priorities. The contract amendments will provide continued support to our local economy by assisting in preserving employment for 14 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN GROSS
INTERIM DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER