TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, an authorized distributor of Crane Carrier Company, LLC, of New Philadelphia, OH, for the purchase of two battery electric vehicle (BEV) Crane Carrier LET2-40 trucks, with Beau-Roc dump bodies, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $1,176,612, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, for the purchase of two BEV Crane Carrier LET2-40 dump trucks. The trucks are used by the Public Works Department for loading and hauling dirt, debris, and material. The proposed units are approved Fiscal Year 2023 (FY 23) replacements and will be used by the Public Service Bureau, Street Maintenance Division, for daily operational use and transportation of construction material in public rights-of-way.
The all-electric dump trucks align with State and local regulations to transition to zero-emission electric trucks by 2035. Benefits of this technology include reduced harmful air emissions, fuel cost savings, anticipated maintenance savings, and quieter operation in Long Beach neighborhoods. The proposed units are replacing two 3-axle dump LNG-fueled trucks that are 15 years old and are at the end of their useful lives. Replacing the units now will minimize repair downtime and ensure the lowest net operational costs for the City of Long Beach (City).
The majority of capital funds to support this purchase have been collected through the regular Fleet Services Bureau Memorandum of Understanding (MOU). A portion of the total cost, $152,507, will be offset by Assembly Bill (AB) 32 funds. AB 32 requires California to return to 1990 levels of greenhouse gas emissions by 2020. AB 32 funding provides funding for capital shortfalls and/or incremental costs of the replacement of existing heavy-duty fossil fuel burning units that are past their useful life with zero emission battery electric versions. The Fleet Services Bureau will use combined annual allocations of AB 32 funds appropriated by the City Council in Fiscal Years 2020, 2021 and 2022 budgets. This purchase supports Fleet’s comprehensive plan for the City’s fleet electrification, which includes extensive planning, procurement, and funding strategies. Grant funding, including the availability and use of AB 32 funds, is needed to support compliance with California Air Resources Board’s (CARB) Advanced Clean Fleet (ACF) regulation adopted in April 2023. Additionally, applications have been submitted to the VW Environmental Mitigation Trust Fund (VW Trust) which could result in award funding up to $200,000 per unit. If awarded, the funds would be used to offset purchase costs of these zero emission dump trucks.
The Fleet Services Bureau researched procurement options for all-electric dump trucks and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed cooperative agreement options and determined that the contract between Sourcewell and Crane Carrier Company, LLC, through their local distributor, Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, provided the best value to the City.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Taylor Anderson on September 13, 2023, Purchasing Agent Michelle Wilson on September 11, 2023, and by Revenue Management Officer Geraldine Alejo on September 15, 2023.
SUSTAINABILITY
The City has a long history of prioritizing sustainability and being an early adopter of new technology. The City is a recognized leader in the use of alternative fuels in its fleet and is embracing zero-emission vehicles (ZEV) as quickly as they become available (along with funding and infrastructure support). The Fleet Services Bureau currently includes 81 ZEVs (including its first fully electric pickup) and 90 plug-in hybrids. To date, 97 charge ports for electric vehicles have been installed for dedicated City use, and another 200 are planned in the near future. On March 21, 2023, the City Council authorized the purchase of two heavy-duty fully electric refuse trucks for long-term piloting of range and capacity in actual working conditions.
The all-electric dumps trucks do not directly produce air toxins, greenhouse gases or particulate emissions and are fully compliant with the State of California and local district air quality regulations. Cleaner air is healthier for all residents, businesses, and visitors to the City of Long Beach.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on October 3, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $1,176,612, inclusive of taxes and fees. This purchase is budgeted in the Fleet Services Fund Group in the Financial Management Department. If awarded, up to $200,000 per unit will be available from the VW Trust to offset the current purchase price, with savings redirected to future unfunded fleet needs within the Public Works Department. Replacement costs are collected through regular monthly charges and begin when the vehicles are delivered and placed into service. Annual maintenance and replacement costs for these units are estimated at $147,100 and will be billed to the Public Works Department through the Fleet Services Bureau MOU process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with the City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER