TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Carmenita Truck Center for the purchase of three Altec LRV57RM aerial trucks per quote dated December 27, 2007, on the same terms and conditions afforded to the County of Ventura, California, Bid No. 5384, in an amount not to exceed $657,458 including tax, plus a 10 percent contingency for additional equipment if necessary and if funds are available. (Citywide)
DISCUSSION
City Council approval is requested authorizing the City Manager to execute a contract for the purchase of three Altec LRV57RM aerial trucks for the Department of Public Works, Street Maintenance, Street Tree Division.
The Department of Public Works currently utilizes four large aerial trucks and four smaller aerial trucks, staffed by 27 employees, for the performance of tree maintenance and removal Citywide. Of the 100,000 trees that make up the City's Urban Forest, 16,000 to 20,000 per year are trimmed by outside contractors through an organized grid system that provides economies of scale and a more cost-effective service. City crews address public service requests for the remainder of the trees and respond to emergency and storm-related events Citywide, including City parks, a service that does not allow for cost effective outsourcing. City crews are available 24 hours per day, seven days a week, responding to an average of 8,000 requests per year, providing specialized and responsive services to the community.
The three trucks to be replaced range in age from 16-22 years with a scheduled life expectancy of 15 years. One truck is currently out of service due to the need for extensive repairs, including refurbishment of the aerial assembly, which alone is estimated to cost $100,000. Annual maintenance expenses for the other trucks have nearly doubled from 2006 to 2007, increasing on average from $9,700 to $18,300. The replacement of these trucks was previously deferred as staff researched various equipment options and fuel alternatives. The fourth large aerial truck is also 16 years old, but will remain in service beyond its scheduled life as there is sufficient reliability and acceptable maintenance costs to delay replacement.
The Department of Public Works, Fleet Services Bureau, investigated procurement options and learned that the County of Ventura had completed a competitive bid process for Altec aerial trucks and awarded a contract to Carmenita Truck Center of Santa Fe Springs, CA (not a MBE, WBE, local or SBE), the lowest responsible bidder. This cooperative purchase agreement will facilitate the timely acquisition of these aerial trucks and provide cost benefits to the City.
The City Charter provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council. The awarded aerial truck specifications have been reviewed and meet the City's fleet requirements.
Carmenita Truck Center has agreed to sell three Altec LRV57RM aerial trucks to the City of Long Beach under the same terms and conditions competitively bid and contracted to the County of Ventura in an amount not to exceed $657,458 including tax, plus a 10 percent contingency for additional equipment if necessary and if funds are available. The Matrix Fleet Review Study supports the use of cooperative purchase agreements and adherence to a long-term replacement plan. The Fleet Review Committee approved this request on September 21, 2006. The acquisition price is firm through the end of April 2008. Beginning May 1, 2008, the price is expected to increase 3 percent, which reflects an additional $6,570 per truck, totaling $19,710.
The funding for these acquisitions is provided through the periodic payments by the user of the truck into a replacement fund, which amount is based on the cost of the vehicle and the scheduled life. The replacement fund fully covers the cost of these three vehicles.
These new aerial trucks will be powered by liquefied natural gas (LNG) to meet Air Quality Management District (AQMD) requirements. This will allow for the retirement of three trucks that consume diesel fuel, reducing the carbon footprint and particulate matter generated by the City. The three trucks will be sold at auction to a buyer outside of the State of California, ensuring that the environmental benefits are not offset within the State. The acquisitions will serve to reduce expenses and increase efficiency, both of which are negatively affected by increasing repairs and extended down times. This purchase will also maintain a consistent standardization of the City's LNG vehicle fleet and eliminate the need for additional training for mechanics and operators.
This matter was reviewed by Deputy City Attorney Amy R. Burton and Budget Management Officer Victoria Bell on March 6,2008.
TIMING CONSIDERATIONS
City Council action is requested on April 1, 2008, to ensure that these new aerial trucks are built and placed into service in a timely manner.
FISCAL IMPACT
The cost of this contract is $657,458, including tax, and is budgeted in the Fleet Services Fund (IS 386) in the Department of Public Works (PW). The City will have the option of adding expenditures up to 10 percent (or $65,746) above the contract amount for additional equipment if necessary and if funds are available.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO ACQUIRE THREE (3) AL TEC LRV57RM AERIAL TRUCKS, WITH THE OPTION TO PURCHASE ADDITIONAL EQUIPMENT, THROUGH THE PURCHASE ORDER BETWEEN THE COUNTY OF VENTURA AND CARMENITA TRUCK CENTER
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management/CFO
Michael P. Conway
Director of Public Works
NAME |
APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |