8G
Date: November 19, 2024
To: Honorable Mayor and Members of the City Council
From: Shant Megerdichian, General Services Director
Craig Bilezerian, Public Works Director
By: Brett Meislahn, Senior Business Manager | [email protected] Subject: Public Works and General Services – Authorize Purchase Order for Six (6) 2026 Autocar/Heil ACX64 Compressed Natural Gas (CNG) Refuse Trucks as a Cooperative Purchase with Sourcewell. Expenditure $3,363,305.37 (Non-General Fund).
RECOMMENDATION
Recommendation of the Public Works Director and General Services Director that City Council authorize a purchase order with Velocity Truck Centers, LLC of Fontana, CA in the amount of $3,363,305.37, for six (6) 2026 Autocar/Heil ACX64 Compressed Natural Gas (CNG) Refuse Trucks as a cooperative purchase with Sourcewell.
FUNDING
Funding Source Amount
Sanitation Vehicle Replacement Fund – Fiscal Year 2024-25 Operating Budget
$2,967,303.70
Fleet Vehicle Replacement Fund – Fiscal Year 2024-25 Operating Budget
$396,001.67
Total $3,363,305.37
DISCUSSION
The Sanitation Division of the Public Works Department provides residential refuse, recycling, and green waste collection to approximately 29,500 homes, collecting approximately 90,000 curbside collection bins on a weekly basis. The Sanitation Division also provides weekly refuse collection to City Facilities and disposal of trash and organic material collected from city parks. In total, the Sanitation Division's fleet consists of thirty-four (34) refuse trucks, thirty-one (31) are CNG and three (3) are diesel that service routes throughout the City.
The proposed vehicle purchases will replace one (1) CNG front-loader refuse truck that is over 15 years old, one (1) roll-off truck that is over 15 years old, two (2) side-loaders that are over 11 years and two (2) side loaders that are over 8 years old and have exceeded their cost-effective useful life. The average annual maintenance costs for the last three (3) years for the front loader City Council
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9 truck is approximately $15,600, the roll-off truck is approximately $9,000 and the side-loaders is approximately $65,300 each; this figure is anticipated to increase given the rising cost of parts, labor, and age of the vehicles. Moreover, due to supply chain issues caused by the COVID-19 pandemic, it is estimated that delivery of the refuse trucks is approximately one (1) year from the issuance of the purchase order. The cost to purchase these trucks is also increasing steadily because of increases in material and personnel costs. As such, delaying this purchase may add additional costs to the purchase price in the future. The estimated cost of six (6) CNG Refuse Trucks is $3,203,147.97, with an additional 5% contingency of $160,157.40 requested for potential manufacturer increases to the forthcoming model year.
South Coast Air Quality Management District Fleet Rule #1193 prohibits governmental agencies from purchasing new diesel-powered refuse trucks. Accordingly, Public Works replaces their retired trucks with alternative-fueled CNG models. The City currently owns and operates thirty- one (31) CNG refuse trucks. At this time, an electric refuse truck option for curbside collection is not feasible due to range limitations. More specifically, electric refuse vehicles simply do not have the ability to operate all day without charging. Over the next three to five years, it is anticipated that full-size electric refuse trucks with the required range capacity will be an available option to explore, along with the infrastructure required to charge heavy-duty vehicles in the City yard.
The City is a member of Sourcewell, a purchasing cooperative that allows participating governmental and municipal agencies to reduce the cost of purchased goods by leveraging their combined purchasing power. Sourcewell establishes and provides nationally competitive, solicited purchasing contracts.
Staff researched and identified cooperative purchase agreements through Sourcewell with Autocar Truck, LLC/Autocar Industries LLC of Birmingham, AL, (Contract #060920-ATC), The Heil Co. of Chattanooga, TN (Contract #110223-THC), and Wastequip Manufacturing Company LLC of Charlotte, NC (Contract # 040621-WQI). The City contacted Velocity Truck Centers, the local distributor for Autocar trucks, and received pricing for one (1) CNG Autocar chassis refuse truck with a Heil HalfPack Sierra 28YD Front End Loader body, one (1) CNG Autocar chassis with a Amrep reeving roll-off unit and four (4) CNG Autocar chassis refuse trucks with Heil DuraPack Rapid Rail 28YD Automated Side Loader bodies. The cost proposal is favorable and includes the purchase price, Sourcewell discounts, and sales tax.
The Torrance Municipal Code (TMC) authorizes participation in cooperative purchasing agreements like those established by Sourcewell while also adhering to the City’s procurement policies. A cooperative purchase is allowable under TMC Section 22.3.100(c), which states:
“The competitive selection processes set forth in this Chapter do not apply in the following categories however purchases shall be made in accordance with procedures and regulations established by the City Manager:
c) Competitive procedures were followed by a governmental agency, including a federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency consisting of one or more such agencies, that are equivalent to the procedures set forth in this Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency.”
Accordingly, staff recommends that City Council authorize a purchase order with Velocity Truck City Council
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9 Centers of Fontana, CA in the amount of $3,363,305.37 for the cooperative purchase of six (6) 2026 Autocar ACX64 Refuse Trucks.