Department of Financial Management
411 West Ocean Boulevard, 6th Floor
Long Beach, CA 90802
562-570-6425
June 6, 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 subsequent amendments, with Los Angeles Truck Center s, LLC, dba Velocity Truck Center s, 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 t he 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. T he 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 m aterial (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 R eplacement 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 allo w 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.
R-29
HONORABLE MAYOR AND CITY COUNCIL
June 6, 2023
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 offering s 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, 202 3, 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.
HONORABLE MAYOR AND CITY COUNCIL
June 6, 2023
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
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 AN AGREEMENT WITH LOS
ANGELES TRUCK CENTERS, LLC DBA VELOCITY TRUCK
CENTER OF WHITTIER, CA (VELOCITY) , FOR THE
PURCHASE OF TWENTY CNG CRANE CARRIER SIDE
LOADER REFUSE TRUCKS ON THE SAME TERMS AND
CONDITIONS THROUGH THEIR CONTRACT WITH
SOURCEWELL, OF STAPLES, MN, WITH CRANE
CARRIER COMPANY, LLC AND SCRANTON
MANUFACTURING COMPANY, INC. TO BE PROVIDED BY
LOCAL DEALER VELOCITY TRUCK CENTERS , IN A
TOTAL AMOUNT NOT TO EXCEED $9,322,091, INCLUSIVE
OF TAXES AND FEES
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 twenty (20) CNG Crane Carrier side loader refuse trucks with New Way side loader refuse bodies, designated for collecting refuse and removing litter and debris in public rights-of-way; and WHEREAS, Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members ; 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, collection and diversion of organic material was mandated in 2016 when Governor Brown signed into law California Senate Bill SB1383, effective January 1, 2022; and
WHEREAS, currently refuse and recycling are collected in their own separate bins, however, with the passage of SB1383, the City will now utilize a third bin to collect the organic material (yard debris and food scraps) from commercial accounts to be processed separately from municipal solid waste; and
WHEREAS, these twenty high capacity side loader refuse trucks are specialized to pick up large refuse bins, and are critical in servicing the City’s commercial refuse accounts; and
WHEREAS, the truck chassis and service bodies are similar to what is in the current refuse fleet, enabling more efficient and cost-effective service; and WHEREAS, the Fleet Services Bureau and the Purchasing Division for 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; and
WHEREAS, the City reviewed Sourcewell agreement options and determined that Sourcewell’s contract with Crane Carrier and Scranton Manufact uring 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, there are currently no dealers or manufacturers of refuse trucks with these specifications; and
WHEREAS, Crane Carrier and Scranton Manufacturing were selected based on their competitive pricing, service level, and ability to deliver a produce tha t meets City quality standards and the Public Works Department’s implementation timeline; and WHEREAS, Sourcewell has a Contract for the purchase of the twenty CNG Crane Carrier side loader refuse trucks with New Way side loader refuse bodies, Contract
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
No. 060920-CRN with Crane Carrier Company, LLC and Contract No. 091219-NWY with Scranton Manufacturing Company/New Way Trucks (collectively “Sourcewell Contracts”); and
WHEREAS, the City’s participation in the se Sourcewell Contracts 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 these Sourcewell Contracts, 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 agreement with Scranton Manufacturing Company/New Way Trucks and Crane Carrier Company, LLC, via their local dealer, Los Angeles Truck Centers, LLC dba Velocity Truck Center to purchase twenty (20) CNG Crane Carrier side loader refuse trucks with New Way side loader refuse bodies, of the same type and kind identified in the Sourcewell Contracts except as modified by mutual agreement of the City and Velocity, and the purchase by the City shall be on the same terms and conditions afforded to Sourcewell in an amount not to exceed Nine Million Three H undred Twenty Two Thousand Ninety-One Dollars ($9,322,091) including taxes and fees.
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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