City Council
Report
City Council Meeting: February 25, 2025
Agenda Item: 4.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Fleet Services Subject: Approve Acceptance of Environmental Protection Agency Grant and Purchase of Street Sweepers for the Resource Recovery and Recycling Division
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines;
2. Authorize the City Manager to accept a grant awarded in the amount of $945,000 from the United States Environmental Protection Agency for the Clean Heavy-Duty Vehicles Grant Program for the City of Santa Monica Street Sweeper Replacement Project in the Public Works Department, and to accept all grant renewals;
3. Authorize the City Manager to execute all necessary documents to accept the grant, all grant renewals, and modifications;
4. Authorize the Procurement Manager to issue a purchase order with Municipal Maintenance Equipment (“MME”), a California-based company, for the purchase of three Ravo Electric R5-eSeries sweepers for the Public Works Department, Resource Recovery and Recycling Division. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $2,428,833 including a 10% contingency;
5. Authorize the Procurement Manager to issue a purchase order with Mar-co Equipment Company for the purchase of one Compressed Natural Gas (CNG) Tymco Model 600 sweeper for the Public Works Department, Resource Recovery and Recycling Division. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $185,987 including a 10% contingency with future year funding contingent on Council budget approval; and
6. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).
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If the grant is not received, pending the outcome of the Presidential Executive Order:
7. Authorize the Procurement Manager to issue a purchase order with Mar-co Equipment Company for the purchase of two Compressed Natural Gas (CNG) Tymco Model 600 sweepers for the Public Works Department, Resource Recovery and Recycling Division. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $996,976 including a 10% contingency with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Public Works Department provides essential services that maintain clean and safe neighborhoods and open spaces for Santa Monica’s residents, visitors, and City staff. These operations rely on vehicles and equipment managed and maintained by the City’s Fleet Management Division. Many of these vehicles are aging past their useful lives. The Fleet Management and Resource Recovery & Recycling divisions developed a plan to begin replacing existing internal combustion street sweepers with EV street sweepers to reduce emissions and to pursue the goals defined in Santa Monica’s Climate Action and Adaptation plan. To ensure reliable operations, provide uninterrupted services to the community, reduce downtime and maintenance costs, and comply with California Air Resources Board (CARB) Advanced Clean Fleet (ACF) regulations, staff recommends that Council authorize the City Manager to accept the grant awarded in the amount of $945,000 from the United States Environmental Protection Agency (EPA) for the Clean Heavy-Duty Vehicles (CHDV) Grant Program, and to purchase three battery electric street sweepers (EV), and one compressed natural gas (CNG) sweeper. This recommendation is based on competitive contract pricing available to governmental agencies and serves as an exception to competitive bidding per Santa Monica Municipal Code (SMMC) Sections 2.24.250(c).
Current pricing for EV sweepers is cost prohibitive without a grant subsidy, and there is a low inventory for CNG sweepers that meet the City’s specifications. If the Presidential Executive Order to freeze federal funds prevents the City from receiving the grant from the US EPA’s CHDV Grant Program, staff recommends procuring the only two CNG sweepers currently available on the market and postpone the replacement of two of its existing CNG sweepers until the cost of EV sweepers fall within the City’s budget. This 3 of 9
recommendation is based on competitive contract pricing available to governmental agencies and serves as an exception to competitive bidding per Santa Monica Municipal Code (SMMC) Sections 2.24.250(c).
Discussion
The Fleet Management Division is responsible for ensuring that over 800 vehicles in the City’s diverse fleet 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 useful lives through the Vehicle Replacement Fund. The Fleet Management Division and the Resource Recovery and Recycling Division (RRR) Division have collaborated to maximize the useful lifespans of RRR’s vehicles to the greatest extent possible. The vehicles identified for replacement have surpassed their six-year asset lifespans. Due to their age and use, these vehicles require significant maintenance and costly repairs to remain reliable, safe, and operational.
The RRR Division uses these vehicles to provide daily street sweeping services along the City’s approximately 253 curb lane miles. These sweepers are used year-round and are on standby 24 hours per day to respond to cleanup emergencies and to directly support the City Council’s priority of providing a clean and safe environment for our residents, visitors, and the business community. The City depends on the reliability of RRR equipment to carry out street sweeping operations for a clean and sanitary appearance of the city. A lack of functioning and reliable equipment to support operations would result in slower 311 response times. Delays could cause unsanitary conditions and increase the risk to cyclists due to debris remaining on the streets, creating unsightly areas around the city.
In addition to daily activities, RRR utilizes street sweepers for cleanup after major events, as well as in emergencies such as glass and liquid pickup after traffic collisions.
These vehicles would also be used in cleanup efforts in the event of a natural disaster. 4 of 9
The sweeper vehicles are used in street sweeping activities along the city’s curbs to help ensure debris is collected before reaching the storm drain system. These are specialized vehicles with a self-contained water collection and storage system, ensuring the water used does not enter storm drains. The sweepers scheduled for replacement have been used heavily since 2018 and have a typical useful life of six years.
On December 12, 2024, the City of Santa Monica was awarded a $945,000 grant through the competitive, nationwide CHDV Grant Program from the EPA. The grant would be used to purchase EV street sweepers.
Subsequently, a Presidential Executive Order to pause all federal funding was issued which has impacted availability of the grant funds. As a result, staff has developed two paths forward: 1) if the grant is received and 2) if the grant is not received.
Scenario 1 - Grant Received (Pending Outcome of Presidential Executive Order) Staff is requesting approval to purchase the following vehicles and equipment for a total amount not to exceed $2,614,820 including a 10% contingency. The pricing for the CNG sweeper listed below includes the trade in value of three City sweepers.
Vehicle Replacement Program
Fund Description Vendor Purchase Price Quantity Extended Price*
RRR EV Sweeper
Municipal
Maintenance
Equipment
$809,611 3 $2,428,833
RRR CNG Sweeper
Mar-co
Equipment
Company
$185,987 1 $185,987
Total 4 $2,614,820
*Amount noted includes 10% contingency and applicable trade-in value.
Scenario 2 - Grant NOT Received (Pending Outcome of Presidential Executive Order) Staff is requesting approval to purchase the following vehicles and equipment for a total amount not to exceed $996,976 including a 10% contingency. In this scenario, staff would procure the only two CNG sweepers available in the marketplace that meet the City’s specifications. Fleet Management would trade in one existing sweeper and retain 5 of 9
two existing CNG sweepers (that otherwise would have been traded in in Scenario 1) for active use until it becomes financially feasible to purchase EV sweepers. The current available city funds allocated for the replacements of these vehicles are insufficient to purchase un-subsidized EV sweepers.
Vehicle Replacement Program
Fun
d
Description Vendor Purchase
Price Quantity Extended Price*
RRR CNG
Sweeper
Mar-co
Equipment
Company
$498,488 2 $996,976
Total 2 $996,976
*Amount noted includes 10% contingency and applicable trade-in value.
Vendor Selection
Scenario 1 - Grant Received (Pending Outcome of Presidential Executive Order) Exception to Competitive Bidding
Staff recommends 1) Municipal Maintenance Equipment, a distributor of Ravo equipment, to furnish and deliver three EV sweepers, and 2) Mar-co Equipment Company, a local dealer of Tymco equipment, to furnish and deliver one CNG sweeper as an exception to competitive bidding per Municipal Code 2.24.250 (c).
Sourcewell issued an RFP for street sweepers and specialty sweepers, with related equipment, accessories, and supplies. Under the terms of the RFP, and the resulting Sourcewell Agreement with Municipal Maintenance Equipment, similar nationally leveraged purchasing discounts are also available to other government agencies.
Sourcewell is a cooperative purchasing agency that serves government, education, and nonprofit organizations. As a cooperative purchasing agency, they acquire goods or services by aggregating the demand of two or more entities in an effort to obtain more economical pricing. Purchase of the EV Ravo sweeper is contingent upon the vendor successfully providing California Air Resources Board certification for the specified sweeper.
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The Houston-Galveston Area Council (H-GACBuy), a government agency that establishes nationally leveraged and competitively solicited purchasing contracts for education, government, and nonprofits, issued a Request for Proposals (RFP) for purpose-built and commercial cab-chassis mounted street sweeper body designs.
Furthermore, per the cooperative, Tymco would offer a $125,000 trade-in credit per sweeper. This $125,000 trade-in credit per sweeper is a better alternative compared to auction, as this amount is above the average auction price of $86,395 the City has received for sweepers of its kind in the past.
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.
Scenario 2 - Grant NOT Received (Pending Outcome of Presidential Executive Order) Exception to Competitive Bidding
Staff recommends Mar-co Equipment Company, a local dealer of Tymco equipment, to furnish and deliver two CNG sweepers as an exception to competitive bidding per Municipal Code 2.24.250 (c).
The Houston-Galveston Area Council (H-GACBuy), a government agency that establishes nationally leveraged and competitively solicited purchasing contracts for education, government, and nonprofits, issued a Request for Proposals (RFP) for purpose-built and commercial cab-chassis mounted street sweeper body designs.
Under the terms of the RFP and the resulting H-GACBuy agreement with Tymco, similar nationally leveraged purchasing discounts are also available to other government agencies. Furthermore, Tymco would offer a $125,000 trade-in credit per sweeper. This
$125,000 trade-in credit per sweeper is a better alternative compared to auction, as this amount is above the average auction price of $86,395 the City has received for sweepers of its kind in the past.
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.
Environmental Review
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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, this purchase order qualifies for a Class 2 exemption.
Further, in Scenario 1, staff considered an EV version of the sweeper for the replacement of the fourth sweeper. Nonetheless, staff selected a CNG sweeper due to available budget and to address Resource Recovery & Recycling’s operational requirements. The price of the EV sweeper is $248,623 higher than the CNG variant but offers the same approximate useful life.
Use of Grant Funds (Scenario 1)
On December 12, 2024, the City of Santa Monica was awarded a $945,000 grant through the competitive, nationwide Clean Heavy-Duty Vehicles (CHDV) Grant Program from the United States Environmental Protection Agency. The grant would be used to purchase EV street sweepers.
Financial Impacts and Budget Actions
Scenario 1 - Grant Received (Pending Outcome of Presidential Executive Order) Staff seeks authority to accept a grant from the United States Environmental Protection Agency for the Clean Heavy-Duty Vehicle Grant to purchase street sweepers for the Public Works Department and appropriate funds from the Resource Recovery and Recycling Fund to the Vehicle Management Fund to pay for the required local match.
Staff seeks authority to purchase the more expensive EV sweepers since doing so is in accordance with the City’s Climate Action and Adaptation plan, the lack of availability of compatible CNG sweepers for City operations, and since this would reduce emissions in the City and improve air quality.
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FY 2024-25 Budget Amendment
Funding
Source
Establish Revenue Budget Appropriate Funds
Account # Amount Account # Amount
EPA CHDV
Grant 20500006.406130 $945,000 C2009090.689000 $945,000 Vehicle
Management
Fund
70500001.410540 $867,035 C7000010.689000.90535 $867,035 RRR Fund* I5400010.689000 $867,035
*As part of the vehicle replacement program, RRR has already contributed $802,785.
Staff also seeks authority to approve funding from the Miscellaneous Grants and Vehicle Management Funds to award a purchase order with Municipal Maintenance Equipment for purchase and delivery of three EV sweepers and with Marco Equipment Company for the purchase of one CNG sweeper.
FY 2024-25 Purchase Order Request
Vendor Funding Source CIP Account # Request
Amount
Municipal
Maintenance
Equipment
EPA CHDV Grant C2009090.689000 $945,000
Vehicle Management Fund C7000010.689000.90535 $1,483,833 Total $2,428,833
Marco
Equipment
Company
Vehicle Management Fund C7000010.689000.90535 $185,987
Total $185,987
Future year funding is contingent on Council budget approval.
Scenario 2 - Grant NOT Received (Pending Outcome of Presidential Executive Order) Staff would not issue purchase orders to vendors if grant funds were rescinded due to the current Presidential executive order (as of January 28, 2025) since the higher cost of the EV sweepers is cost-prohibitive when compared to natural gas sweepers. As a contingency plan if grant funds are unavailable, staff would instead procure (2) CNG 9 of 9
street sweepers to replace existing equipment. Doing so would be feasible since the cost of (2) CNG sweepers would cost less than the EV sweepers, even without grant funds.
Staff seeks authority to approve funding from the Vehicle Management Fund to award a purchase order with Mar-co Equipment Company for the purchase of two CNG sweepers.
FY 2024-25 Purchase Order Request
Vendor Funding Source CIP Account # Request
Amount
Marco Equipment
Company
Vehicle
Management Fund C7000010.689000.90535 $996,976
Total $996,976
Future year funding is contingent on Council budget approval.
Prepared By: Ernest Kwong, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. MME - Oaks
B. MME - Levine Act
C. Mar-co - Oaks
D. Mar-co - Levine Act