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Agenda Report
June 16, 2025
TO: Honorable Mayor and City Council
FROIVI: Department of Public Works
SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH
NATIONAL CNG AND FLEET SERVICE LLC FOR LUBRICATION
SERVICES FOR RESIDENTIAL COLLECTION VEHICLES FOR AN
AMOUNT NOT-TO-EXCEED $840,000 FOR UP TO FIVE YEARS
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the proposed action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and Sections 15060(c)(2), 15060(c)(3), and 15378 of the State CEQA Guidelines and, as such, no environmental document pursuant to CEQA is required;
2. Award contract to lowest and best bid dated April 28, 2025, submitted by National, LLC in response to project plans and specifications for Lubrication Services for Residential Collection Vehicles, authorize the City Manager to enter into a five-year contract for an amount not-to-exceed $840,000, which includes the base contract amount of $700,000 and a contingency of $140,000 to provide for any necessary change orders; and
3. Authorize the City Manager to approve no-cost amendments to the subject contract including durational extensions.
BACKGROUND:
The Building Systems and Fleet Management Division (BSFMD) repairs and maintains the City's fleet of over 1,100 vehicles and equipment, including heavy duty vehicles such as refuse collection trucks. While City employees continue to perform a range of maintenance and repairs on City-owned vehicles and equipment, BSFMD outsources specialized and highly technical labor to outside vendors on an as-needed basis to ensure timeliness of repairs and to provide availability of the vehicles with minimal downtime.
The Department of Public Works Resource Recycling and Recovery (RRR) Division operates frontloading, sideloading, and rearloading refuse packers as part of the residential refuse collection program. To maintain optimal functionality, residential refuse I
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MEETING OF6/16/2025AGENDA ITEM NO.3
Contract Award to National CNG Fleet Service LLC
June 16, 2025
collection vehicles require consistent inspection and greasing of components such as suspension, joints, driveshaft, and other fittings. Consistent greasing prevents premature wear and tear caused from dry bearings and dry pivot points and prolongs the life of crucial components such as packing blades and actuator arms. Retaining a knowledgeable and experienced vendor for this preventative maintenance task helps the refuse collection operation continue in a smooth manner while keeping the maintenance costs to a minimum. This allows City technicians to focus on larger repair jobs.
A Notice Inviting Bids for Lubrication Services for Residential Collection Vehicles was posted on OpenGov Procurement and published in the local newspaper on April 8, 2025.
The posting generated notices to all vendors who have previously registered with the City for this particular commodity class. A total of 11 vendors downloaded the specifications, none of which were local. One bid was received electronically by the bid opening date.
Bid Results:
Per the bid specification, bidders were asked to provide pricing per truck lubrication service for specific truck models for daily, weekly, and on-call services. Bid amounts were extrapolated to arrive at estimated annual quantities of service required.
The bid results are as follows:
BidderAmount($)
1. National CNG and Fleet Service LLCOntario, CA$5,497
The lowest and best bidder is National CNG and Fleet Service, LLC. The proposed contract with National CNG and Fleet Service, LLC fully complies with the Competitive Bidding and Living Wage Ordinances. Staff recommends this vendor be awarded a five- year contract term. The City has previously done business with this vendor, paying invoices totaling over $383,000 since Fiscal Year 2016 for vehicle greasing, as well as purchases of replacement parts and repair services for CNG vehicles. Staff estimates an annual need of $140,000.
The proposed contract will be established as follows:
Annual Amount x 5 years
Contingency Allowance
Total:
$ 700,000
$ 140.000
$ 840,000
The 20% contingency allowance is to allow for unforeseen parts and service needs during the life of the contract.
Contract Award to National CNG Fleet Service LLC
June 16, 2025
COUNCIL POLICY CONSIDERATION:
This authorization furthers the City Council's Strategic Plan goals to ensure public safety and maintain fiscal responsibility and stability.
ENVIRONMENTAL IMPACT:
The action proposed herein is not a project subject to the California Environmental Quality Act (CEQA) in accordance with Section 21065 of CEQA and State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378. The authorization of a contract for supplementary labor to be available for routine maintenance is a continuing administrative and maintenance activity. Therefore, the proposed action is not a "project" subject to CEQA, as defined in Section 21065 of CEQA and Section 15378 of the State CEQA Guidelines. Since the action is not a project subject to CEQA, no environmental document is required.
FISCAL IMPACT:
The cost of the recommended actions is $840,000 over five years. The Department will utilize existing budgeted appropriations in the Fleet Maintenance Fund (Fund 511)to support the first year of contract costs. Future contract costs will be budgeted as part of the department's annual operating budget. There is no impact to the General Fund.
Respectfully submitted,
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GREGDEVINCK,P.E.
Director of Public Works
Prepared by:
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Thanos Gauthier
Deputy Director of Public Works
Approved by:
MK
City Manager