TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Haaker Equipment Company for the purchase of one liquefied natural gas (LNG) powered Pot Hole Patch Truck, on the same terms and conditions afforded to the County of San Bernardino, in an amount not to exceed $243,150 including tax, with a 10 percent contingency for additional equipment if necessary and if funds are available. The City will have the option of purchasing one additional unit at the contract price, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is being requested to enter into a contract for the purchase of one Pot Hole Patch Truck. In an effort to continue improving the condition of City streets, there is a need for a fifth Pot Hole Patch Truck to provide a back-up for pot hole trucks requiring service and to maintain the City Council's goal of filling potholes within 15 business days from a request for service.
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 Department of Public Works, Fleet Services Bureau, investigated procurement options and learned that the County of San Bernardino had completed a competitive bid process for a Pot Hole Patch Truck and has purchase order No. G1929 with Haaker Equipment Company that meets the City's needs. This cooperative purchase agreement will facilitate the timely acquisition of the Pot Hole Patch Truck and provide cost benefits to the City.
Haaker Equipment Company has agreed to sell one Pot Hole Patch Truck on the same terms and conditions afforded to the County of San Bernardino, in an amount not to exceed $243,150 including tax, with a 10 percent contingency for additional equipment. The Matrix Fleet Review Study also supports the use of cooperative purchase agreements and adherence to a long-term replacement plan.
This matter was reviewed by Deputy City Attorney Amy R. Burton on September 23, 2008 and Budget Management Officer Victoria Bell on September 25, 2008.
SUSTAINABILITY
With the addition of LNG (Liquefied Natural Gas) fuel to the City of Long Beach's supply chain, we have achieved a number of sustainable benefits:
· Environmental benefits-use of LNG results in a 23% reduction in nitrogen oxides emissions, 20-40% reduction in carbon monoxide and 80%-90% reduction in particulate matter emissions compared to petroleum diesel.
· Energy security benefits-utilization of domestic supplies of alternative fuels reduces Long Beach's dependence on foreign oil and provides immediate environmental benefits as the City continues to implement alternative fuel options into our fleet.
· Economic benefits-the cooperative purchasing agreement will provide several cost benefits to the City by securing pricing at a previous bid to another agency. In addition, LNG fuel costs $1.202 per gallon as compared to a cost of $3.538 per gallon for diesel fuel.
· Quality benefits-LNG is registered as an approved alternative to diesel fuel and meets clean fuel standards established by the California Air Resources Board (CARB). Both, CARB and the South Coast Air Quality Management District (AQMD) have officially approved its use.
TIMING CONSIDERATIONS
City Council action is requested on October 21, 2008, to ensure that the Pot Hole Patch Truck is placed into service in 2009.
FISCAL IMPACT
The purchase price of the Pot Hole Patch Truck is $243,150 including tax, and is included in the Fleet Services Fund (IS 386) in the Department of Public Works (PW). Funds will be made available by downsizing Public Works older vehicle/equipment fleet and utilizing vehicle replacement funds accumulated through Fiscal Year 2008. The City will have the option of adding expenditures up to 10 percent (or $24,315) above the contract amount if necessary and if funds are available and purchasing one additional unit at the contract price, at the discretion of the City Manager.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO PURCHASE ONE (1) POT HOLE PATCH TRUCK WITH THE OPTION TO PURCHASE A SECOND POT HOLE PATCH TRUCK THROUGH THE PURCHASE ORDER BETWEEN THE COUNTY OF SAN BERNARDINO AND HAAKER EQUIPMENT COMPANY
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |