CITY OF
LONG
March 21, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Department of Financial Management
411 West Ocean Boulevard, 6th Floor
Long Beach, CA 90802
562-570-6425
C-12
Adopt a Resolution authorizing the 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 L 120H 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 L 120H 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.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2023
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,
J<~ ~/tt-1
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
ATTACHMENT- RESOLUTION
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT WITH VOLVO
CONSTRUCTION EQUIPMENT NOTH AMERICA, LLC, OF
SHIPPENSBURG, PA, FOR THE PURCHASE OF TWO
VOLVO L 120H WHEEL LOADER TRACTORS, WITH
RELATED EQUIPMENT AND ACCESSORIES, ON THE
SAME TERMS AND CONDITIONS AFFORDED TO
SOURCEWELL (FORMERLY THE NATIONAL JOINT
POWER ALLIANCE) IN A TOTAL AMOUNT NOT TO
EXCEED $664,777
WHEREAS, the Charter of the City of Long Beach (the "City"), Section 1802, permits the City to purchase services, supplies, materials, equipment and labor with other government agencies by purchasing under their contracts on a voluntary and selective basis when authorized by resolution; and
WHEREAS, the City desires to purchase two Volvo L 120H Wheel Loader tractors, with related equipment for use by the Department of Parks, Recreation and Marine, Beach Maintenance Division, to provide critical support for the maintenance of the City of Long Beach beaches, especially during storm season when large amounts of debris 23 and sand need to be removed; and
24 WHEREAS, City Council authorized replacing these units in the approved 25 FY21 replacement plan. The current units are four years past their useful life and are 26 becoming increasingly more expensive to maintain;
27 WHEREAS, Fleet Services Bureau researched procurement options for 28 heavy construction equipment and discovered other agencies had completed an open, fair, AL:kd A22-03753 (2-28-23)
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18 transparent and competitive procurement process.
WHEREAS, the City determined that Sourcewell's contract with Crane Carrier and Scranton Manufacturing through their local dealer, Velocity Truck Centers, who will assemble the trucks to meet the City's needs and specifications provided the best value to the City while allowing for timely acquisition and delivery; and WHEREAS, Sourcewell entered into Sourcewell Contract Number 032119- VCE with Volvo Construction Equipment North America, LLC for the purchase of two Volvo L 120H Wheel Loader tractors, with related equipment and accessories ("Sourcewell Contract"); and
WHEREAS, the City's participation in the Sourcewell Contract will facilitate the City's ability to purchase as well as provide considerable cost benefits to the City; and WHEREAS, if the City had to utilize a formal bid process rather than participate in the Sourcewell Contract, considerably more funds would be required; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The above recitals are true and correct and are incorporated herein by this reference.
Section 2. The City Manager or designee is hereby authorized to enter an 19 agreement with Volvo Construction Equipment North America, LLC, for the purchase of 20 two Volvo L 120H Wheel Loader tractors with related equipment and accessories, of the 21 same type and kind identified in the Sourcewell Contract except as modified by mutual 22 agreement of the City and Volvo Construction Equipment North America, LLC, and the 23 purchase by the City shall be on the same terms and conditions afforded to the Sourcewell 24 in an amount not to exceed Six Hundred Sixty-Four Thousand Seven Hundred Seventy- 25 Seven Dollars ($664,777) including taxes and fees.
26 Ill
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28 Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of ___________ , 2022, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal( s) Councilmembers:
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City Clerk
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