TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34466 with Los Angeles Truck Centers, LLC, of Whittier, CA, for the purchase of 22 compressed natural gas (CNG)-fueled, rear-loading refuse trucks, and to increase the contract amount by $6,639,387, for a total contract amount not to exceed $10,518,252, inclusive of taxes and fees. (Citywide)
DISCUSSION
On December 20, 2016, the City Council awarded a contract to Los Angeles Truck Centers, LLC, to purchase 13 CNG-fueled, rear-loading refuse trucks, in a amount not to exceed $3,878,865.
City Council approval is requested to amend Contract No. 34466 with Los Angeles Truck Centers, to increase the contract authority by $6,639,387 for a revised total contract amount not to exceed $10,518,252, for the purchase of an additional 22 new CNG-fueled, rear-loading refuse trucks. The age of the existing 22 trucks, coupled with the harsh nature of refuse truck use, has resulted in significant increase in maintenance costs and downtime. Maintenance hours and breakdowns have increased and it is more economical to replace the trucks that are already four years past their useful service life.
Based on experience with the first 13 trucks purchased in 2016, the new units are expected to have much lower maintenance costs. The vendor has agreed to hold pricing on these units to the original bid price from the 2016 purchase. This will save the City approximately $308,000 on the purchase of 22 units, and save staff time in processing, advertising and awarding a new bid. The replacement of these refuse trucks was approved in the FY 18 and FY 19 Vehicle Replacement Plans.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on October 23,2018 and by Budget Analysis Officer Julissa Jose-Murray on October 24, 2018.
SUSTAINABILITY
The new refuse trucks are in full compliance with the California Air Resources Board and local district air quality regulations, which require the use of alternative fuel refuse trucks to reduce air toxic and criteria pollutant emissions. Additionally, these refuse trucks exceed local air quality regulations for particulate matter reduction and control by utilizing near-zero emission engines.
TIMING CONSIDERATIONS
City Council action to authorize the City Manager to amend Contract No. 34466 with Los Angeles Truck Centers, LLC, is requested on November 13, 2018, to ensure the vehicle order can be placed expeditiously.
FISCAL IMPACT
The revised contract amount will not exceed $10,518,252. Sufficient appropriation is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). Costs for replacement of these vehicles have already been collected by the Fleet Services Fund from multiple departments and funds via the capital replacement charges in the Fleet Services Memorandum of Understanding (MOU). The amendment to this contract will provide continued support to our local economy by assisting in the preservation of employment for 16 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER