TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract with Haaker Equipment Company, of La Verne, CA, for providing Elgin Pelican street sweeper parts and repair services, in an annual amount of $525,000, and authorize a 10 percent contingency of $52,500, for a total annual amount not to exceed $577,500, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into this contract, including any necessary subsequent amendments; and
Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $157,500, offset by funds available generated by the revenue received through the Fleet Memorandum of Understanding. (Citywide)
Levine Act: Yes
DISCUSSION
City Council approval is requested to enter into a contract with Haaker Equipment Company for the purchase of Elgin Pelican street sweeper parts and repair services to support the Public Works Department.
The Street Sweeping Program operates 18 alternative-fueled Elgin street sweepers throughout the City of Long Beach (City) and cleans over 160,000 miles of curbs and gutters annually. The Fleet Services Bureau (Fleet), in the Department of Financial Management, maintains and repairs these units as part of the City's fleet maintenance program. The City’s fleet of Elgin Pelican sweepers are maintenance-intensive and require regular service and parts to sustain street sweeping operations and are one year past their useful life. Currently, Fleet technicians provide daily inspection, parts replacement, and preventive maintenance for the 18 sweepers currently in operation. Additional service assistance is needed for breakdowns that occur more frequently in the older units.
Haaker Equipment Company is the sole authorized distributor for Elgin Pelican street sweeper parts in the region and is the only authorized dealer in Southern California able to perform warranty work on the Elgin Pelican street sweepers. Part replacement work requires the use of proprietary software, which is only accessible by authorized distributors.
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.
The previous contract was authorized by the City Council in October 2018, for Elgin sweeper parts only, in an annual amount not to exceed $440,000, with the option to renew for three additional one-year periods. In April 2019, the City Council authorized to add maintenance services and to increase of the annual contract amount not to exceed $577,500. The amount requested with this action mirrors the previous contract amount. Additional appropriation is required for budget to match the proposed contract spending authority.
This matter was reviewed by Deputy City Attorney Anita Lakhani on April 13, 2023, Purchasing Agent Michelle Wilson on April 10, 2023 and by Revenue Management Officer Geraldine Alejo on April 14, 2023.
SUSTAINABILITY
Maintenance of the City's street sweepers, including replacement of worn parts, ensures
optimal efficiency (lowest carbon emissions possible), operational performance, and safety requirements for operators and
the public.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on May 2, 2023, to ensure a new contract is in place expeditiously.
LEVINE ACT
This item is subject to the Levine Act. The Mayor, Councilmembers, and Commissioners who have received a contribution of more than $250 within 12 months prior from a party, participant, or their representatives involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; OR (2) return the portion of the contribution that exceeds $250 within 30 days from the time the elected official knew or should have known about the contribution and participate in the proceeding.
All parties, participants, and their representatives must disclose on the record of this proceeding any contribution of more than $250 made to the Mayor or any Councilmembers within 12 months prior to the date of the proceeding. The Mayor, Councilmembers, and Commissioners are prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party, participant, or their representatives during a proceeding and for 12 months following the date a final decision is rendered.
FISCAL IMPACT
The total annual contract amount will not exceed $577,500, including a 10 percent contingency, and will be paid for by the Fleet Services Fund Group in the Financial Management Department. Of this amount, an appropriation increase of $157,500 is requested in the Fleet Services Fund Group in the Financial Management Department, offset by funds available generated by revenues received from user departments. Parts and repair costs for street sweepers are charged to user departments and are collected as part of the Fleet Services Memorandum of Understanding (MOU) billing process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with current City Council priorities.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER