TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including subsequent amendments, with Los Angeles Truck Centers, LLC, dba Velocity Truck Centers, of Whittier, CA, an authorized distributor of Crane Carrier trucks, for the purchase of 20 CNG Crane Carrier side loader refuse trucks, with New Way side loader refuse bodies, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $9,322,091, 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 20 CNG Crane Carrier with New Way side loader refuse trucks. The proposed units will replace 20 current side-loading refuse trucks used by the Department of Public Works, Environmental Service Bureau (ESB) for daily operations that include collecting refuse and removing litter and debris in public rights-of-way. Ten of the twenty proposed units are direct replacements of the same Sidewinder design of the current automated side loaders. The remaining 10 are slated to be ordered with the dual-purpose Roto-Pac design, pending a performance review and route study of the newer design. The proposed units will be dual-purpose to support the statewide mandatory organic waste collection program as well as regular refuse pickup, thereby reducing the total number of trucks required. Collection and diversion of organic material was mandated in 2016 when Governor Brown signed into law California Senate Bill (SB) 1383, effective January 1, 2022. With the passage of SB 1383, the City of Long Beach (City) will utilize a third bin to collect the organic material (yard debris and food scraps) from commercial and residential accounts to be processed separately from municipal solid waste.
These units are replacing 20 CNG refuse side loaders and are in the approved Fiscal Years 2023 and 2024 Replacement Plans. Sufficient funds have been collected for the replacement of this equipment. The current units are seven years old and nearing the end of their useful lifecycle. Purchasing the replacement units now enables the City to allow for the industry’s extended build lead times which are currently 12 months and more. Additionally, it 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 purchase of side loader 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, through their local distributor, Los Angeles Truck Centers, provided the best value to the City. Crane Carrier was selected based on their competitive pricing, best overall quality, and selection of equipment/product offerings to meet the needs of cooperative members and other governmental authorities.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor using existing contracts from 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 12, 2023, Purchasing Agent Michelle Wilson on May 10, 2023, and by Revenue Management Officer Geraldine Alejo on May 18, 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 (NAFA) 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 significantly 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 the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $9,322,091, inclusive of taxes and fees. The unit price of the Sidewinder refuse truck is $414,157, and the unit price of the Roto-Pac refuse truck is $433,290. The actual cost to the City for all 20 units will be based on the number of units selected per model depending on operational need, but will remain within the not to exceed contract amount of $9,322,091. 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 $131,377 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 OF FINANCIAL MANAGEMENT
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER