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 seven CNG powered Crane Carrier LNT-26 trucks, with New Way rear loader refuse bodies, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $2,951,446, 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 seven CNG Crane Carrier with New Way rear body loaders. Four of the proposed units will be ordered with standard, 20-yard bodies. Three will be ordered with a narrow, 16-yard body, which will allow better access to Long Beach’s narrow alleys and thoroughfares. 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, rear-loading refuse trucks are specialized to pick up large refuse bins and are critical in servicing the City of Long Beach’s (City) residential refuse accounts.
These units are replacing seven CNG refuse rear loaders and are in the approved Fiscal Year 2018 and 2019 Replacement Plans. Sufficient funds have been collected for the replacement of this equipment. The current units are 14 years old, five years past their useful life, and are becoming increasingly more expensive to maintain. Failure to replace these units in a timely manner could result in increased downtime and service interruptions.
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 Taylor Anderson on May 10, 2023, Purchasing Agent Michelle Wilson on May 5, 2023, and by Revenue Management Officer Geraldine Alejo on May 17, 2023.
SUSTAINABILITY
The City is a recognized leader in the use of alternative fuels, having been named number two municipal Green Fleet in the nation by the National Association of Fleet Administrators in 2022. The City is embracing zero-emission vehicles (ZEVs) as quickly as they become available (along with funding and infrastructure support). The fleet includes 81 ZEVs (including its first fully electric pickup) and 90 plug-in hybrids. On March 21, 2023, the City Council authorized the purchase of two heavy-duty fully electric refuse trucks for long-term piloting of range and capacity in actual working conditions. The City will be evaluating this technology once those units are delivered, in its pursuit of a viable zero-emissions refuse truck fleet, to enable future purchases such as this to be fully ZEV.
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 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 June 6, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $2,951,446, inclusive of taxes and fees. This purchase is budgeted in Fleet Services Fund Group in the Financial Management Department. Ongoing maintenance, fuel, and replacement costs for each unit are estimated at $100,335 annually, and will be billed to the Refuse and Recycling Fund Group in the Public Works 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
FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER