City Council
Report
City Council Meeting: June 25, 2024
Agenda Item: 5.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Resource Recovery & Recycling
Subject: Approval of Modification to Purchase Order with Los Angeles Truck Centers, LLC to Furnish and Deliver Side Loader Trucks
Recommended Action
Staff recommends that the City Council:
1. Authorize the Procurement Manager to modify purchase order #22400467 in the amount of $1,401,185 with Los Angeles Truck Centers, LLC to furnish and deliver three additional side loader trucks for the Public Works Department. This would result in a revised purchase order total not to exceed $7,425,559, with future year funding contingent on Council budget approval; and
2. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines.
Summary
With the expansion of the green organics recycling program due to SB 1383 and the need to increase the spare vehicle ratio to a recommended industry standard of 15%, the purchase of three additional side loader vehicles is recommended by the Resource Recovery and Recycling (RRR) Division in the Public Works Department. SB 1383 requires mandatory organics recycling to divert organic materials away from landfills, in an effort to reduce short-lived climate pollutants, such as methane. These vehicles will be used to cover the necessary addition of organics collection routes, and also as spare vehicles when other units are sent to Fleet Services for service or inspection. Staff recommends a modification to the purchase order with Los Angeles Truck Centers, LLC for the purchase of three additional side loader collection trucks, for a total of 15 side loaders. Funding for these vehicles was approved by Council as part of the FY 2023-24 2 of 4
mid-year budget and are essential in supporting the Council’s priority of a Clean and Safe Santa Monica.
Discussion
The Fleet Management Division is responsible for ensuring the City’s diverse fleet of over 700 vehicles are available, dependable, meet the highest environmental standards for a sustainable fleet, and are safe to operate from acquisition through disposal. The Division routinely replaces vehicles that have reached the end of their cost-effective useful lives through the Vehicle Replacement Fund.
On April 25, 2023, Council authorized the Procurement Manager to issue purchase orders with Los Angeles Truck Centers, LLC, as an exception to competitive bid process, under Santa Monica Municipal Code Section 2.24.250 (c): “Competitive procedures were followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services are supplied to the City at the same or better price,” for the purchase of twelve side loader trucks, along with other RRR collection vehicles due for replacement, that had reached the end of their cost-effective useful life. These vehicles carry out the dayto-day collection of recyclable, organics, and landfill trash materials that directly support the City’s priority of a Clean and Safe Santa Monica.
On June 9, 2020, Sourcewell issued an RFP for Class 4-8 Chassis with Related Equipment, Accessories, and Services. Under the terms of the RFP, and the resulting Sourcewell Agreement with Los Angeles Truck Center, a distributor of Crane Carrier equipment, similar nationally leveraged purchasing discounts are also available to other government agencies. The chassis is offered at an additional 20% reduced rate through preferred customer discount pricing. Sourcewell Agreement #060920-CRN was established on August 7, 2020, expires August 1, 2024, and has one, one-year renewal option.
Due to the adoption of SB 1383, it is necessary to reorganize and add additional organics routes, which require additional side loader collection trucks. Further, RRR requires additional side loaders to meet the industry standard of a 15% spare ratio.
Without the spare vehicles, primarily residential routes can go uncollected if that route’s 3 of 4
vehicle is out of commission for service, which would result in increased calls to the 311 system for missed collections.
Environmental Review
The purchase orders for replacement vehicles are Categorically Exempt from CEQA pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines.
Section 15302 exempts Class 2 projects which “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced”. The replacement vehicles would replace existing City fleet vehicles, with essentially the same purpose and capacity.
Therefore, the purchase orders for replacement vehicles are exempt from CEQA pursuant to Section 15302 of the CEQA Guidelines.
Past Council Actions
Meeting Date Description
04/25/23
(Attachment A)
Authorization of Purchase Orders with National Auto Fleet Group and Los Angeles Truck Centers for Vehicle
Replacement Purchases for Various Divisions
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Vehicle Management Fund to increase the amount of the purchase order with Los Angeles Truck Centers, LLC to furnish and deliver three additional side loader trucks.
Purchase Order Modification Request
Agreement #
Current Authorized
Purchase Order
Amount
FY 2023-24
Modified
Request
Amount
Dept/CIP Account # Total Revised
Contract Amount
22400467 $6,024,374 $1,401,185 C7000010.689000 $7,425,559 Future year funding is contingent on Council budget approval. 4 of 4
Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Staff Report 4-25-2023
B. Levine Act Disclosure Form - Los Angeles Truck Centers C. Oaks Initiative Form - Los Angeles Truck Centers