TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, including any necessary amendments, with Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, of Whittier, CA, for the purchase of eight Autocar ACX64 side loading refuse trucks, on the same terms and conditions afforded to the City of Pasadena, in an amount not to exceed $2,866,808, 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 eight Autocar ACX64 side loader refuse trucks, in a total contract amount not to exceed $2,866,808, inclusive of taxes and fees. The refuse trucks will replace existing units in the Environmental Services Bureau in the Public Works Department. Purchase of these vehicles was approved by the City Manager in the FY 18 Fleet Replacement Plan.
The current vehicles are an average of 6.5 years past their useful life and are consequently incurring increased repairs. The new trucks are necessary to ensure the continuity of refuse collection operations, as downtime has steadily increased with the complexity and length of repairs. These new units are the same model as the other newer side loader trucks currently in the fleet, enabling operators to be assigned to use any of the trucks as needed.
The Fleet Services Bureau and the Purchasing Division in the Financial Management Department researched procurement options for refuse trucks and found that the City of Pasadena had completed an open, fair, transparent, and competitive procurement process. Staff reviewed the City of Pasadena’s contract and determined the contract proved to be the best option for this purchase due to the competitive pricing and their ability to provide the exact configuration needed for field operations.
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 government agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on October 27, 2020, Business Services Bureau Manager Tara Yeats on October 19, 2020, and by Budget Management Officer Rhutu Amin Gharib on November 2, 2020.
SUSTAINABILITY
These new refuse trucks are compliant with the State of California and local district air quality regulations and use clean burning, renewable natural gas fuel to reduce air toxins and pollutant emissions.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on November 17, 2020, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The cost of the contract will not exceed $2,866,808, inclusive of taxes and fees, and is budgeted in the Fleet Services Fund Group in the Financial Management Department. All eight replacement units are fully funded through regular capital replacement charges previously collected. Ongoing maintenance expenses for the eight refuse trucks are estimated at $208,296 annually, and capital replacement charges based on an asset life of approximately seven years, estimated at $503,688 annually, will be charged to the Refuse and Recycling Group in the Public Works Department. Ongoing charges will be collected through the regular Fleet Services Memorandum of Understanding (MOU) monthly billing process starting when the units are delivered and in use. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER