Department of Financial Management
411 West Ocean Boulevard, 6th Floor
Long Beach, CA 90802
(562) 570-6425
May 2, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Ray Gaskin Service, of Fontana, CA, for the purchase of New Way and Perkins Manufacturing refuse truck parts and repair services, in an annual amount of $550,000, and authorize a 10 percent contingency of $55,000, for a total annual amount not to exceed $605,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and,
Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $302,500, offset by funds available generated by the revenue received through the Fleet Memorandum of Understanding (MOU). (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Ray Gaskin Services for the purchase of parts and service for maintenance of City of Long Beach (City) refuse trucks. Ray Gaskin Service is the sole authorized distributor and service center for New Way and Perkins Manufacturing truck parts and service in California.
There are 84 refuse trucks currently in service in the City fleet. Of these refuse trucks, 72 have either New Way or Perkins’ truck bodies, with 16 New Way refuse trucks currently on order. The increased proportion of New Way refuse trucks requires additional replacement parts and repair services. In addition, 20 refuse trucks are in their seventh and final year of service, and it is anticipated that additional maintenance and service will be required.
The previous contract was authorized by the City Council in July 2018, for New Way, Perkins, and Wayne brand refuse parts and repair services, in an annual amount not to exceed $302,500, with the option to renew for three additional one-year periods. In December 2020, the City Council authorized an increase to the annual contract amount not to exceed $605,000. The amount requested with this action mirrors the previous contract amount. Additional appropriation is required for budget to match the proposed contract spending authority.
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HONORABLE MAYOR AND CITY COUNCIL
May 2, 2023
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
The Fleet Services Bureau obtained sole source documentation letters from New Way and Perkins Manufacturing Company.
This matter was reviewed by Deputy City Attorney Anita Lakhani and Revenue Management Officer Geraldine Alejo on April 13, 2023, and by Purchasing Agent Michelle Wilson on March 29, 2023.
SUSTAINABILITY
Maintenance of vehicles and equipment, including replacement of worn parts, ensures the refuse trucks operate at peak efficiency, reducing downtime and the use of older, less fuel-efficient trucks.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on May 2, 2023, to ensure a new contract is in place expeditiously.
LEVINE ACT
This item is subject to the Levine Act. The Mayor, Councilmembers, and Commissioners who have received a contribution of more than $250 within 12 months prior from a party, participant, or their representatives involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; OR (2) return the portion of the contribution that exceeds $250 within 30 days from the time the elected official knew or should have known about the contribution and participate in the proceeding.
All parties, participants, and their representatives must disclose on the record of this proceeding any contribution of more than $250 made to the Mayor or any Councilmembers within 12 months prior to the date of the proceeding. The Mayor, Councilmembers, and Commissioners are prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party, participant, or their representatives during a proceeding and for 12 months following the date a final decision is rendered.
FISCAL IMPACT
The total annual contract amount will not exceed $605,000, including a 10 percent contingency, and will be paid for by the Fleet Services Fund Group in the Financial Management Department. Of this amount, an appropriation increase of $302,500 is requested in the Fleet Services Fund Group in the Financial Management Department,
HONORABLE MAYOR AND CITY COUNCIL
May 2, 2023
offset by funds available generated by revenues received from user departments. Parts and repair costs for refuse trucks are charged to user departments in the Refuse and Recycling Fund Group in the Public Works Department and are collected as part of the Fleet Services MOU billing process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
KEVIN RIPER
DIRECTOR
FINANCIAL MANAGEMENT
ATTACHMENT - RESOLUTION
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT AND ANY
AMENDMENTS THERETO WITH RAY GASKIN SERVICE ,
OF FONTANA, CA, AN AUTHORIZED DISTRIBUTOR FOR
NEW WAY TRUCKS , AND PERKINS MANUFACTURING
REFUSE EQUIPMENT, WITHOUT ADVERTISING FOR
BIDS FOR THE PURCHASE OF NEW WAY AND PERKINS
MANUFACTURING REFUSE TRUCK PARTS AND REPAIR
SERVICES IN A N ANNUAL AMOUNT OF $550,000, AND
AUTHORIZE A 10 PERCENT CONTINGENCY, FOR A
TOTAL AMOUNT NOT TO EXCEED $ 605,000, FOR A
PERIOD OF TWO YEARS, WITH THE OPTION TO RENEW
FOR THREE ADDITIONAL ONE-YEAR PERIODS
WHEREAS, the City of Long Beach fleet has a total of eighty-four (84) refuse trucks currently in service; and
WHEREAS, of these trucks, seventy-two (72) have either New Way or Perkins’ truck bodies, with sixteen (16) New Way refuse trucks currently on order, another twenty (20) are in their seventh and final year of service; and WHEREAS, the City of Long Beach (City) desires to enter into a contract with Ray Gaskin Services for the purchase of parts and service for maintenance of City refuse trucks; and
WHEREAS, Ray Gaskin is the sole authorized distributor and service center for New Way and Perkins Manufacturing refuse truck parts and service in the state of California; and
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
WHEREAS, as a result, no useful purpose would be served by advertising for bids and to do so would constitute an idle and useless act and an unnecessary expenditure of public funds;
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.
Section 2. The City Manager is hereby authorized to enter a contract and any amendments thereto with Ray Gaskin Service for the New Way and Perkins brand refuse truck parts and repair services in an annual amount not to exceed Five Hundred Fifty Thousand Dollars ($550,000), and authorize a ten (10) percent contingency of Fifty Five Thousand Dollars ($55,000), for a total annual amount not to exceed Six Hundred Five Thousand Dollars ($605,000), for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager. ///
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
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 _________________________, 2023, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s) Councilmembers:
City Clerk