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 Whittier, CA, for the purchase of two battery electric vehicle (BEV) Crane Carrier LNT-26 trucks, with New Way rear loader refuse bodies, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $1,150,727, 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 LNT-26 trucks with New Way rear body loaders. The Department of Public Works, Refuse and Clean Team Divisions will use the proposed units for collecting refuse and removing litter and debris in public rights-of-way. One unit will replace a truck in the Clean Team that has exceeded its lifecycle, and one will be an additional asset assigned to the Public Works Environmental Services Bureau.
The all-electric refuse trucks will be the first in the Public Works fleet, and the first heavy-duty electric trucks in the City of Long Beach’s (City) fleet as well. They support a long-term critical pilot program of this technology for refuse trucks, which are a particularly challenging application due to their range and payload requirements. Test plans include heavy use in refuse and debris collection to help determine the next steps for zero-emission technology in the City. Benefits of this technology include reduced harmful air emissions, fuel cost savings, anticipated maintenance savings, and quieter operation in Long Beach neighborhoods. The testing process enables Fleet Services to validate and quantify these benefits and determine overall suitability. Additionally, these trucks align with State and local regulations to transition to zero-emission electric trucks by 2027.
The units will not only be a crucial test of new technology but will also support the Refuse and Clean Team daily operations and several City programs such as litter abatement, removal of oversized trash, illegally dumped items, and special collection services. Sufficient funds have been collected through the regular Fleet Services Bureau Memorandum of Understanding (MOU) for the purchase of these units. 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 refuse trucks.
The Fleet Services Bureau of the Department of Financial Management researched procurement options for all-electric refuse trucks and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the 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 Anita Lakhani on March 2, 2023, Purchasing Agent Michelle Wilson on February 17, 2023, and by Revenue Management Officer Geraldine Alejo on February 27, 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 EV 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.
The all-electric refuse 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 March 21, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $1,150,727, inclusive of taxes and fees. This purchase is budgeted in the Fleet Services Fund Group in the Department of Financial Management. 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 Department of Public Works. Replacement costs are collected through regular monthly charges and begin when the vehicles are delivered and placed into service. Ongoing maintenance and replacement costs for these units are estimated at $200,000 annually and will be billed to the Department of Public Works 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 OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER