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Home My WebLink About11 - Lacy Oil Tool CompanyCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 11 January 26, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Utilities Department Cindy Asher, Administrative Manager 644 -3010 or casher(a).newportbeachca.gov SUBJECT: AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH LACY OIL TOOL CO. FOR REPAIR AND MAINTENANCE OF OIL WELL PUMPING UNITS ISSUE: Should the City Council approve an amendment to the Professional Services Agreement with Lacy Oil Tool Co., (LOTC) to extend the contract term to provide on -call services for the. repair and maintenance of oil well pumping? RECOMMENDATION: Approve Amendment, No. 2 to Professional Services Agreement (PSA) with Lacy Oil Tool Co. for on -call repair and maintenance services for oil well pumping units and authorize the Mayor and City Clerk to execute the Amendment. DISCUSSION: Background: On September 25, 2007, the City Council approved a PSA with Lacy Oil Tool Co. (LOTC) to provide on -call repair and maintenance services for oil well pumping units. On February 24, 2009, the City Council approved Amendment No. 1 to the PSA with Lacy Oil Tool Company and the term was extended to January 31, 2010. The scope of work for the amended on -call PSA includes the following services: repair of oil and gas casing, tubing, sucker rods and down hole oil production pumps at the City's Oil Field. Lacy Oil Tool Company has provided a high quality of repair and maintenance service for the City over the last few years. This past year Lacy Oil Tool Company has made repairs to Wells No. 1, 2, 3, 6, 7, 8, 9, 13, 14, and 15 and performed maintenance on 14 of the wells at the City's Oil Fields. Repair and Maintenance of Oil Well Pumping Units — Approval Amendment No. 2 to Professional Services Agreement January 26, 2010 Page 2 The Amendment No. 2 will extend the term of the Agreement to January 31, 2011. Rates included in the agreement are competitive and in line with industry standards. The new fees are unchanged, or are approximately 11% lower than 2009. Please refer to the attached table for rate comparisons. Environmental Review: This action requires no environmental review, as it is not a project pursuant to CEQA. Funding Availability: Funding is available in Maintenance and Repair 5400 -8160. A Expenditures more than $30,000 for an individual repair project will require separate City Council action in accordance with Policy F -14. Prepared by: . C Cindy Asher, A inistrative Manager Submitted by: r ? eor a Murdoch, Utilities Director Attachments: Agreement with Lacy Oil Tool Company LACY OIL TOOL COMPANY Position 2009 Hourly Rates 2010 Hourly Rates Hourly Rate Increase Senior Field Mechanic $38 $38 $0 Junior Field Mechanic $36 $36 $0 Plant Repair and Service $90 $90 $0 Machinist -Shop or Field (with tools) $90 $80 -$10 Equipment 2009 Hourly Rates 2010 Hourly Rates Hourly Rate Increase Fully Equipped Field Service Truck w/ Pneumatic Tools and H.D. Hydraulic Lift $75 $75 $0 Air Compressor w /Related Tools $90 $90 $0 500 -Ton Hydraulic Press $80 $80 $0 Pumping Unit Lubrication & Inspection Report I $75 /unit $75 /unit $0 Pick -up Truck without Driver $45 $45 $0 Date Amount Expended 1/2009- 12/2009 01/13/09 Re -align and Tighten V -belts - Well 915 $ 298.00 01114/09 Disassemble Lacy 456 Air Balanced Unit & Repair Walking Bean, Equalizer & Cylinder - Well # 13 $ 5,978.51 02/20/09 Repairs to Leaking Wrist Pin - Well # 13 $ 1,380.87 02/20/09 Furnish & Install - New Horse head Cable - Well # 15 $ 925.46 04103/09 Lube & Inspect /Minor Repairs to 14 Well Units $ 1,353.04 07/15/09 Weld Repair Lacy 456 Equalizer - Well # 13 $ 8,550.88 07/15/09 Repairs to Well # 15 $ 298.00 10/07/09 Repair to Pumping Cylinders — Well # 15 $ 1,980.62 10/07/09 V -Belt for Vapor Recovery Compressor $ 171.12 10/31/09 Install Sheave & V- belts— Well # 1 $ 298.00 10/31/09 Re -seal Gear Box Cover to Stop Oil Leaks — Well # 6 $ 447.00 10/31/09 Repair Low Speed Cover Plate — Oil Leak — Well # 8 $ 447.00 11/05/09 Lube & Inspect Units — Total of 14 Units $ 1,133.68 11/05/09 Install V -belts & Motor Sheaves — Wells - # 2, 6 & 14 $ 1,192.00 11105/09 Install V -belts & Motor Sheaves — Wells # 7, 8, & 9 1,192.00 and remove motor from Well #3 & Install at Well 47 $ Total $ 25,646.18 1 AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH LACY OIL TOOL COMPANY FOR ON -CALL REPAIR AND MAINTENANCE OF OIL WELL PUMPING UNITS THIS AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT, is entered into as of this 26`h day of January, 2010, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "CITY"), and LACY OIL TOOL COMPANY, a California Corporation, whose address is 340 East "D" Street, Wilmington, California, 90744 ( "CONTRACTOR "), and is made with reference to the following: RECITALS: A. On September 25, 2007, CITY and CONTRACTOR entered into a Professional Services Agreement, hereinafter referred to as "AGREEMENT ", for on -call repair and maintenance of oil well pumping units. B. CITY and CONTRACTOR have entered into one separate AMENDMENT of the AGREEMENT, the latest dated February 24, 2009. C. CITY desires to enter into this AMENDMENT NO. 2 to extend the term of the AGREEMENT to January 31, 2011. D. CITY and CONTRACTOR mutually desire to amend AGREEMENT, hereinafter referred to as "AMENDMENT NO. 2 ", as provided here below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of the AGREEMENT shall be extended to January 31, 2011. 2. COMPENSATION City shall pay Contractor for the services on a time and expense not -to- exceed basis in accordance with the provisions of this Section and shall be based on the attached Schedule of Billing Rates (Exhibit A). 3. SERVICES TO BE PERFORMED Contractor shall perform repair and maintenance services for oil well pumping units pursuant to this Amendment No. 2 and according to the Request to Extend On -Call Professional Services Agreement dated December 29, 2009, attached hereto as (Exhibit B). 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in AGREEMENT shall remain unchanged and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 2 on the date first above written. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: y: M , —�eorllie Mulvihill, Assistant City Attorney ATTEST: IN Leilani Brown, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation In Keith D. Curry, Mayor CONTRACTOR: LACY OIL TOOL CO. NE (Corporate Officer) Title: President Print Name: Mike Quisenberry In (Financial Officer) Title: CFO/ Office Manager Print Name: Dorothy V. Lacy Attachments: Exhibit A — Schedule of Billing Rates Exhibit B — Request to Extend On -Call Services Agreement ice. co, lv.o ci. as me atu 4.34 u:SOtl LACY OIL TOOL CO rrr�� Lacy t?i1 T o'ol Co. R.VMM6: L'?AT SFUCtALLC75 19 001 Xylk,I SERVICE Lacy Oil Tool Company DBers both FIELD SERVICE and SHOP SERVICE to assist you in both Repair and Maintenance. Our experienced technicians and service trucks are available at any hour. SERV= RATE SCf,>EDULE LABOR SENIOR FIELD MECHANIC (2 HR. minimum) ..................................................... ............................... $38.00 /HR. JUNIOR FIELD MECHANIC (2 HR. MINIMUM) .................................................... ............................... $36.00 /HR. PLANT REPAIR AND SERVICE ............ ............................................... ...................................... ......... $90.00 /HR. MACHINIST -SHOP OR FIELD (WITH TOOLS) .. ............................... .................... $80.00 /1-[R. EQUIPMENT FULLY EQUIPPED FIELD.SERVICE TRUCK WITH PNEUMATIC TOOLS AND H.D. HYDRAULIC LIFT" (2 HR. MINI. MUM) .. ............... -.............. .. ............ ..:............................................ $75.00 1HR. AIR COMPRESSOR WITH RELATED TOOLS (2 HR. MINIMUM) .......... .................. — ........................ .. $90.00/HR. 500 -TON HYDRAULIC PRESS (2 HR. MINIMUM) ..... ............................... ........... ............................... . $80.00 1HR. PUMPING UNIT LUBRICATION AND INSPECTION REPORT .............................. ............................... $75.00 1UNIT PICK -UP TRUCK WITHOUT DRIVER .................................................................. ............................... $45.00 /HR. Overtime Labor: Additional hours regular work days ................... ............. Time and One Half Saturdays ....... ...........................Time and One Hall After four hours of time and one half ...... ............................... . ............................. ..................... .......... Double Time Sundays and Holidays ............................................................. ............................... Double rune Oytsidq Purchases: Outside Purchases of labor and materials .................................. ............................... ........................Cost PWs 25% Rush Orders: Orders phoned in by 2:00 PM will be shipped the same day by common carrier, for delivery the next day. Problems- If you have any proMems with your pumping urdts, please call us. Our staff has many years of experience and know the answers to most problems. CgrvirnR alacFffortivaFahJnnR'1nt� rytjjBIT Vy C/n Lacy Oil Tool Co. PUMPING UNIT SPECIALISTS 12 -29 -09 ::r City of Newport Beach Utilities Department - Atta: Cindy .Asher 330 Newport Blvd. Newport Beach, Ca 92658 -8915 Re: Amendment to Professional Services Agreement Dear Ms. Asher Lacy Oil Tool Co. is requesting to extend the Professional Services Agreement for another year to commence on 2 -1 -2010. Rate sheet is attached. I ke Q enbeny, President Lacy Oil Tool Co. 310 -505 -2611 C 310 -549 -3240 W E -mail: C:rolfaia?aol.com 336 Fast D Street ! Mail: P.O. Box 695, Wilmington, California 90748 / (310) 549 -3240