TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, an authorized distributor of Crane Carrier trucks, of Whittier, CA, for the purchase of three CNG powered Crane Carrier LET2 trucks, with New Way front end loader refuse bodies, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $1,321,756, 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 three CNG Crane Carrier LET2 trucks with New Way front end body loaders. The Department of Public Works, Environmental Service Bureau, will use the proposed units for daily operations that include collecting refuse and removing litter and debris in public rights-of-way. These high capacity, front-loading refuse trucks are specialized to pick up large refuse bins, and are critical in servicing the City of Long Beach’s (City) commercial refuse accounts.
These units are replacing three CNG refuse front loaders and are in the approved Fiscal Year 2023 (FY 23) replacement plan. Sufficient funds have been collected for the replacement of this equipment. The current units are nearing the end of their useful life and are becoming increasingly more expensive to maintain. Purchasing the replacement units now will minimize repair downtime and ensure the lowest net operational costs for the City.
The Fleet Services Bureau of the Department of Financial Management researched procurement options for CNG refuse trucks 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 and Crane Carrier Company, LLC, through their local distributor, Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, 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 April 13, 2023, Purchasing Agent Michelle Wilson on April 7, 2023, and by Revenue Management Officer Geraldine Alejo on April 14, 2023.
SUSTAINABILITY
The City has a long history of prioritizing sustainability and as an early adopter of new technology. The City is a recognized leader in the use of alternative fuels in its fleet and is embracing zero-emission vehicles (ZEV) as quickly as they become available (along with funding and infrastructure support). The Fleet Services Bureau currently includes 81 ZEVs (including its first EV pickup) and 90 plug-in hybrids. We have also recently placed our first order for two (2) heavy-duty EV refuse trucks for long-term piloting of range and capacity in actual working conditions.
These new refuse trucks use “near-zero” CNG-powered engines that are below Nitrogen Oxide (NOx) standards and are fully compliant with the State of California and local district air quality regulations. They will be using clean burning renewable natural gas (RNG) fuel to further reduce air toxic and pollutant emissions.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on May 2, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $1,321,756, inclusive of taxes and fees. This purchase is budgeted in the Refuse and Recycling Fund Group in the Public Works Department. Annual ongoing maintenance, fuel, and replacement costs for each unit are estimated at $89,122 and will be collected 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
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER