TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract with McNeilus Financial, Inc., dba McNeilus Truck and Manufacturing Company, of Colton, CA, for the purchase of McNeilus refuse collection truck repair parts, in an annual amount not to exceed $250,000, for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager, or designee, to execute a contract with McNeilus Financial, Inc., for the purchase of repair parts to maintain refuse collection trucks used by the Public Works and other City departments. The refuse truck fleet contains 58 units that require McNeilus truck body parts. Refuse trucks are used heavily in a difficult environment, thereby necessitating frequent replacement of parts to provide the necessary level of service.
The Department of Financial Management, Fleet Services Bureau, maintains and repairs the City’s refuse trucks. McNeilus Financial, Inc., is the sole source provider of McNeilus refuse truck parts in the state of California, and is the only original equipment manufacturer (OEM) of McNeilus parts for the United States. The Fleet Services Bureau must purchase replacement parts for the refuse truck bodies to maintain its McNeilus equipment, and the company does not utilize independent contractors. Therefore, no useful purpose would be served by advertising for bids and to do so would constitute an unnecessary expenditure of public funds.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on February 17, 2017 and by Assistant Finance Director Lea Eriksen on February 27, 2017.
SUSTAINABILITY
Preventive maintenance and repair of the City’s refuse truck fleet affords the effective and continuous removal of waste from businesses and residences, and prevents disease and contamination of beaches and waterways.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution and award a contract concurrently is requested on March 21, 2017, to ensure the purchase of refuse truck parts can take place expeditiously.
FISCAL IMPACT
The cost of this contract will not exceed $250,000 annually, and is budgeted in the Fleet Services Fund (IS 386) in the Department of Financial Management Department (FM). Part costs are charged to user departments through work orders completed during the Fleet monthly billing process. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING• THE CITY MANAGER TO EXECUTE A CONTRACT WITH MCNEILUS FINANCIAL, INC. DBA MCNEILUS TRUCK AND MANUFACTURING COMPANY, WITHOUT ADVERTISING FOR BIDS, FOR THE PURCHASE OF MCNEILUS REFUSE COLLECTION TRUCK BODY PARTS FOR A PERIOD OF TWO YEARS WITH THE OPTION TO RENEW FOR TWO ADDITIONAL ONE-YEAR PERIODS IN AN ANNUAL AMOUNT NOT TO EXCEED $250,000
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER