HomeMy WebLinkAbout09 - Oil Well Pumping Units RepairsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. "
February 24, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
George Murdoch, Utilities Director
718 -3401 or gmurdochO-city .newport- beach.ca.us
SUBJECT: OIL WELL PUMPING UNITS REPAIRS - APPROVAL OF AMENDMENT
NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH LACY OIL
TOOL COMPANY
RECOMMENDATION:
Approve Amendment No. 1 with Lacy Oil Tool Company, for on -call repair and
maintenance services for oil well pumping units and authorize the Mayor and City Clerk
to execute the Agreement.
DISCUSSION:
Background:
On September 25, 2007, the City Council approved a Professional Services Agreement
(PSA) with Lacy Oil Tool Company to provide as needed on -call repair and
maintenance of the oil well pumping units.
Amendment No. 1 incorporates a revised rate schedule sheet and extends the term of
the PSA until January 31, 2010. Lacy Oil Tool Company is only one of a few companies
in Southern California that provide repair and maintenance of oil well pumping units. In
the past six months Lacy Oil Tool Company has made repairs to oil well numbers 6, 13,
15, and 16 at the City s Oil Fields.
Environmental Review:
This action requires no environmental review, as it is not a project pursuant to CEQA.
Fundinq Availabilitv:
Funding is available in Maintenance and Repair 5400 -8160
Repair and Maintenance of Oil Well Pumping Units
— Approval Amendment No. 1 to On -Call PSA With Lacy Oil Tool Co.
February 24, 2009
Page 2
Expenditures more than $30,000 for an individual repair project will require a separate
City Council action in accordance with Policy F -14.
Prepared by:
Q
Cindy AsVkr,,Administrative Manager
Submitted by:
Geor urd ch, Utilities Director
Attachments: Amendment No. 1 With Lacy Oil Tool Company
AMENDMENT NO. 1
TO
PROFESSIONAL SERVICES AGREEMENT
WITH LACY OIL TOOL COMPANY FOR ON -CALL
REPAIR AND MAINTENANCE OF OIL WELL PUMPING UNITS
THIS AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, entered
into this 24th day of February, 2009, by and between the CITY OF NEWPORT BEACH,
a municipal corporation, (hereinafter referred to as "City ") and LACY OIL TOOL
COMPANY, a California Corporation whose address is 340 East "D" Street, Wilmington,
CA 90744 ( "Contractor"), and is made with reference to the following:
RECITALS
A. On September 25th, 2007, CITY and CONTRACTOR entered into an On-
Call Professional Services Agreement, hereinafter referred to as
"Agreement ", for Repair and Maintenance Services of oil well pumping
units. This Agreement is scheduled to expire on January 31St, 2009.
B. City desires to enter into this Amendment No. 1 to extend the term of the
Agreement to January 31, 2010.
C. City and Contractor mutually desire to amend Agreement, hereinafter
referred to as "Amendment No. 1", as provided here below.
NOW, THEREFORE, the parties hereto agree as follows:
1. Contractor shall perform various repair and maintenance services of oil
well pumping units pursuant to this Amendment No. 1 and according to
the Request to Extend On -Call Services Agreement dated January 12,
2009, attached hereto as Exhibit A.
2. Compensation to the Contractor for services performed pursuant to this
Amendment No. 1 for all work performed from February 1, 2009, to
January 31, 2010, shall be based on the attached Schedule of Billing
Rates (Exhibit B).
3. The term of the Agreement shall be extended to January 31, 2010.
4. 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. 1 on
the date first above written.
APPROVED AS TO FORM:
By: 6 - �--
Aaron C. Harp,
Assistant City Attorney
for the City of Newport Beach
ATTEST:
IN
Leilani Brown,
City Clerk
CITY OF NEWPORT BEACH
A Municipal Corporation
22
Edward Selich,
Mayor
for the City of Newport Beach
LACY OIL TOOL COMPANY
M
Title: President
Print Name:
(Financial Officer)
Print Name:
Attachment: Exhibit A — Request to Extend On -Call Services Agreement
Exhibit B — Schedule of Billing Rates
VVL uV
0.1/27/2009 TUB 117:20 FAX 949 6465204 City of NB Utilities
Lacy Oil Tool Co.
January 12, 2009
Ms. Cindy Asher
Administrative Manager
City"of Newport Beach
3300 Newport Blvd.
P.O. Box 1768
Newport Beach, CA 92658
Re: On -Call Professional Services Agreement for Oil Well Repairs
Dear Ms. Asher:
UU1
EXNIBIf W
Lacy Oil Tool Company Is requesting to extend the On -Call Professional Services
Agreement for another year to commence on February 1, 2009 through January
31, 2010. New rate sheet(s) are attached.
Yours truly,
is
en . rry
Enos t e:
Service Rate Schedule
336 Resat D Street / Mai4• A.O. Box 695, WilmiVon, California 90748 / (310) 549 -3240 I I
EXHIBIT "B'
Lacy Oil "Coot Co.
P2,'UMNG ;."I' 5PlLe.aLL�TS
SERVICE
Lacy Oil Tool Company offers 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.
SERVICE RATE SCHEDULE
LABOR
SENIOR FIELD MECHANIC (2 HR. minimum ) ..........................
JUNIOR FIELD MECHANIC (2 HR. minimum ) ...........................
PLANT REPAIR AND SERVICE ............... ...............................
MACHINIST -SHOP OR FIELD (With Tool s)— .... ........................
................. .......................................... $38.00 /H.R.
...... ............................... ..................$36.00 /HR.
.:... ..... . ..... .:....... .. .. ........ ..................... $90.00 /1-113.
........................... ....... ........................ $90.00 1HR.
EQUIPMENT
FULLY EQUIPPED FIELD SERVICE TRUCK WITH PNEUMATIC TOOLS AND H.D.
HYDRAULIC LIFT (2 HR. minimum) .. ............................................... ................ .... ....
,
AIR. COMPRESSOR WITH RELATED TOOLS (2 HR. minimum) ..... ...............................
500 -TON HYDRAULIC PRESS (2 HR. minimum) ................ ................ ............ ................
PUMPING UNIT LUBRICATION AND INSPECTION REPORT ........ ...............................
PICKUP TRUCK WITHOUT DRIVER .............................................. ...............................
Overtime Labor.
Additional hours regular work days ..............
...................$75.00 /HR.
............. $90.00 /1-113.
............ $80.00 /1-113.
................. $75.001UNIT
$45.00/HR.
.............. ...........................Time and One Half
Saturdays ..................... ............................... Time and One Half
...I .........................
After four hours of time and one half ...................................... ........................................................ :........ Double Time
Sundaysand Holidays ..................................................................... ............................... .........................Double Time
Outside Purchases;
Outside purchases of labor and materials ............................................................. ............................... Cost Plus 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 problems with your pumping units, please call us. Our staff has many years of experience.and
know the answers to most problems.
All rates are effective until Jan. 31, 2Df0
SeroiceR atesEffectiveOct2008. doc