SUBJECT/RECOMMENDATION:
Title
Approve a Services Agreement and Purchase Order to Heath Consultants, Inc. of Houston, TX to provide gas leak surveys, corrosion inspections and meter maintenance in the annual not-to-exceed amount of $217,360.00 with the option for two, one-year renewals, pursuant to Invitation to Bid (ITB) 15-22, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Clearwater Gas System (CGS) is requesting to use Heath Consultants, Inc. to perform gas leak surveys and corrosion inspections on CGS's natural and propane gas distribution pipeline system. In addition, Heath will perform preventive maintenance (i.e., sanding and painting) on natural gas meters at various customer locations. The inspection and maintenance work are required by Title 49 Code of Federal Regulations, Section 192 (49CFR192) and Chapter 25-12 of the FL Administrative Code. The Public Service Commission inspector verifies compliance on these items during the annual audit.
Gas leak surveys consist of walking/riding along the gas distribution system to detect any natural gas/propane present in the air. These surveys must be conducted every year for the Business District and once every three years in Non-Business District locations. As part of the surveys, Heath will inspect customer gas meter sets to verify there is no visible corrosion. If any corrosion is present, they will perform the necessary maintenance based on the Price Schedule of the Agreement noted on the bid tabulation.
Heath was selected under Invitation to Bid 15-22, Surveys and Corrosion Prevention Coating Services. The Agreement with renewal options will be a three-year term. One-third of the Non-Business District locations will be performed each year, along with one third of the Atmospheric Corrosion survey in Business Districts.
APPROPRIATION CODE AND AMOUNT:
CGS has budgeted funds available in account codes 4232066-530300 (Pinellas - Contractual Services) - $130,400.00, 4232173-530300 (Pasco - Contractual Services) - $86,960.00.