TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Bragg Investment Company, Inc., dba Coastline Equipment, a Long Beach distributor of John Deere Construction Retail Sales, of Moline, IL, for the purchase of a John Deere 332G skid steer, with related equipment and accessories, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $153,097, inclusive of taxes and fees. (Citywide)
DISCUSSION
Long Beach Recovery Act
On March 16, 2021, the City Council adopted the Long Beach Recovery Act (LB Recovery Act), becoming one of the first major cities to approve COVID-19 recovery programs made possible through the federal American Rescue Plan Act (ARPA) and other federal and State funding sources. Additional funding adjustments to the LB Recovery Act were made as part of the Adopted Fiscal Year (FY) 2022 Budget and periodic adjustments have been brought to the City Council as needed. Additional information about the LB Recovery Act is available at www.longbeach.gov/recovery <http://www.longbeach.gov/recovery>. As part of the LB Recovery Act, under the Economic Recovery, Clean Cities Category, approximately $3.9 million has been allocated for the Corridor Cleanups Program to address the increase in blight across the City of Long Beach (City) due to financial hardships that have been created by COVID-19.
City Council approval is requested to enter into a contract with Bragg Investment Company, Inc., dba Coastline Equipment for the purchase of a John Deere 332G skid steer, including a hydraulic hammer, multi-purpose bucket, planetary drive auger, pick-up broom, and cold planer. This equipment is a City Manager approved FY 2023 vehicle enhancement request and will be used by the Public Works Department, Street Maintenance Division, to support encampment cleanups, trash collection, and removal of debris. The one-time cost for this vehicle, along with operating cost for the first year of operation, will be funded by the LB Recovery Act. Subsequent years’ operating costs will be covered by the General Fund in the Public Works Department.
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 and John Deere Construction Retail Sales, through its Long Beach distributor, Bragg Investment Company, Inc. dba Coastline Equipment, 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 Marsha Yasuda on May 16, 2023, Purchasing Agent Michelle Wilson on May 5, 2023, and by Recovery Budget Officer Dee Okam on May 17, 2023.
SUSTAINABILITY
Fleet Services researched alternative fueled and zero-emission options and determined there are no viable cleaner market alternatives. The skid steer has a tier-4 diesel engine with advanced emissions controls, certified by the California Air Resources Board, which significantly reduces greenhouse gas, nitrous oxide, and particulate emissions. As with other diesel-powered equipment in the City fleet, it will be fueled with renewable diesel fuel for maximum emissions reduction.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on June 6, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $153,097, inclusive of taxes and fees and will be funded through the Corridor Cleanups Program of the LB Recovery Act. Sufficient funding for the purchase is currently budgeted in the General Fund Group in the Public Works Department. For administration efficiency and for reporting and auditing purposes, the funding source for this program is the General Fund based on funds made available as a result of the City’s approach to using the majority of federal ARPA funds to maintain existing City services in compliance with the U.S. Department of Treasury’s Final Rule, thereby freeing up General Fund monies for the LB Recovery Act programs. Ongoing maintenance, fuel, and replacement costs for this unit are estimated at $22,208 annually and will be billed to the General Fund Group in the Public Works Department and collected through the Fleet Services Bureau Memorandum of Understanding (MOU) process. The first year of operational expenses will also be funded with LB Recovery Act funds. Subsequent years’ costs will be covered by the General Fund in the Public Works Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. This recommendation will continue to provide support to our local economy by assisting in the preservation of employment for 75 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER