SUBJECT/RECOMMENDATION:
Title
Authorize an increase and extension on purchase order to Heath Consultants, Inc. of Houston, TX for gas leak surveys, corrosion inspections and meter maintenance in the annual amount of $85,072.22 for year three, increasing the annual not-to-exceed amount from $217,360.00 to $302,432.22 and extend by 149 Calendar days, through December 31, 2025, pursuant to Invitation to Bid (ITB) 15-22 and authorize the appropriate officials to execute the same.
Body
SUMMARY:
On August 4, 2022, Council approved a purchase order to Heath Consultants, Inc. in an annual not-to-exceed amount of $217,360.00 with two, one-year renewal options pursuant to ITB 15-22 for gas leak surveys, corrosion inspections and meter maintenance. Gas leak surveys and atmospheric corrosion monitoring inspections on CGS Energy’s natural gas distribution pipeline system are required by the Code of Federal Regulations - Title 49, Part 192; and, by the “Natural Gas Safety Rules” of the Florida Public Service Commission (FPSC), Chapter 25-12 - FL Administrative Code (FAC). The FPSC verifies compliance with these code requirements through an annual inspection of leak survey and atmospheric corrosion monitoring records. These records are based on a calendar year inspection cycle.
By extending this contract, CGS will ensure all 2025 annual surveys be performed by Heath Consultants and satisfy the calendar year survey completion requirement. CGS intends to rebid this contract in September and award a new contract with an effective date of 1/1/26, to ensure only one contractor will perform survey work under a regulated calendar year. Subsequently, all future leakage and atmospheric corrosion survey bid/contracts will be synchronized to a calendar year (i.e. 12/31) to avoid potentially having two different (2) contractors performing survey work under a single compliance year.
APPROPRIATION CODE AND AMOUNT:
Funding is budgeted and available in the Gas Department cost codes 4232066-530300 (Pinellas- Contractual Services) and 4232173-530300 (Pasco-Contractual Services). The Gas Department is funded by revenues from the Clearwater Gas Utility Enterprise Fund.
STRATEGIC PRIORITY:
Deliver effective and efficient services by optimizing City Assets and Resources. 1.2, 1.3.
