TITLE
Recommendation to adopt resolution authorizing City Manager or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Volvo Construction Equipment North America, LLC, of Shippensburg, PA, for the purchase of two Volvo L120H Wheel Loader tractors, with related equipment and accessories, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $664,777, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Volvo Construction Equipment North America, LLC, for the purchase of two Volvo L120H Wheel Loader Tractors. The proposed units will be used by the Department of Parks, Recreation, and Marine (PRM) for Beach Maintenance Division (Beach Maintenance). These loaders provide critical support for the maintenance and support of the City of Long Beach’s (City) beaches, especially during storm season, when large amounts of debris and sand needs to be moved. These units are replacing two tractors for Beach Maintenance in the approved Fiscal Year 2021 replacement plan. The current units are four years past their useful life and are becoming increasingly more expensive to maintain. Delay in replacement would likely result in increased downtime due to the corrosive nature of sand and saltwater conditions. Sufficient funds have been collected for the replacement of this equipment.
The Fleet Services Bureau of the Department of Financial Management researched procurement options for heavy construction equipment and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the cooperative agreement options and determined that the contract between Sourcewell (formerly the National Joint Power Alliance) and Volvo Construction Equipment North America, LLC, provided the best value to the City.
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 governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Anita Lakhani on March 6, 2023, Purchasing Agent Michelle Wilson on February 17, 2023, and by Revenue Management Officer Geraldine Alejo on February 27, 2023.
SUSTAINABILITY
These new tractors are compliant with the State of California and local district air quality regulations, using certified Tier 4 final/Stage IV engines with after devices to reduce particulate emissions. The engines incorporate selective catalytic reduction (SCR) and external exhaust gas recirculation (E-EGR) that not only reduces nitrogen oxide (NOx) emissions, but also enhances engine performance for greater fuel economy.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on March 21, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $664,777, inclusive of taxes and fees. This purchase is budgeted in the Fleet Services Fund Group in the Financial Management Department. Annual maintenance, fuel, and replacement costs for each unit are estimated at $94,693 and will be billed to the General Fund Group in the Parks, Recreation, and Marine Department through the Fleet Services Bureau Memorandum of Understanding (MOU) process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with the City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER