TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary amendments, with Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, of Whittier, CA, for the purchase of an Autocar ACX64 front loader refuse truck, on the same terms and conditions afforded to the City of Glendale, CA, in an amount not to exceed $344,807, 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 an Autocar ACX64 front loader refuse truck, in a total contract amount not to exceed $344,807, inclusive of taxes and fees. The refuse truck will replace an existing unit in the Environmental Services Bureau in the Public Works Department. Purchase of this vehicle was approved by the City Manager in the FY 18 Fleet Replacement Plan.
The current vehicle is five years past its useful life and a new unit is necessary to ensure the continuity of operations. This new unit is the same model as the three other front loader trucks currently in the fleet, enabling operators to be assigned to use any of the trucks as needed. Failure to replace the existing unit will result in increased maintenance and replacement costs and could result in increased downtime and possible service interruptions.
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 Glendale had completed an open, fair, transparent, and competitive procurement process. Staff reviewed the City of Glendale’s contract and determined the contract proved to be the best option for this purchase given the price 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 Business Services Bureau Manager Tara Yeats on October 20, 2020 and by Deputy City Attorney Taylor M. Anderson and Budget Management Officer Rhutu Amin Gharib on October 27, 2020.
SUSTAINABILITY
This new refuse truck is compliant with the State of California and local district air quality regulations and uses 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 $344,807, inclusive of taxes and fees, and is budgeted in the Fleet Services Fund Group in the Financial Management Department. The replacement unit is fully funded through regular capital replacement charges previously collected. Ongoing maintenance expenses for the refuse truck are estimated at $26,037 annually, and capital replacement charges based on an asset life of approximately seven years, estimated at $60,581 annually, will be charged to the Refuse and Recycling Fund 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 unit is 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
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER