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HomeMy WebLinkAbout22E - AMEND PO WITH LA TRUCK CENTERSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 21, 2020 TITLE: AMEND PURCHASE ORDER WITH LOS ANGELES TRUCK CENTERS, LLC, FOR TWO COMPRESSED NATURAL GAS DUMP TRUCKS IN THE AMOUNT OF $458,827 (SPEC. NO. 18-070) {STRATEGIC PLAN NO. 6,21 /s/Kristine Ridge CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2i1 Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER RECOMMENDED ACTION Amend the contract with Los Angeles Truck Centers, LLC, for the procurement of two additional compressed natural gas dump trucks in the amount of $448,827, plus a contingency of $10,000, for a total amount not to exceed $458,827, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency, Fleet Services Division (Fleet Division) is responsible for the acquisition, maintenance, repair, and replacement of vehicles, trucks, and maintenance equipment. The Public Works Agency, Maintenance Services Division is in need of two new dump trucks (vehicles) to replace the existing aging fleet of work trucks. The vehicles are utilized daily to move heavy equipment, tree trunks, debris and rubbish removal. The vehicles have also been crucial in responding to homeless related request for services to locations with challenging terrain, including the Santiago Creek and railroads. In addition, the vehicles are vital when deployed as part of the City's emergency response to storms, heavy winds, and/or related flooding. Due to their heavy use and age, the trucks on hand are now unreliable, constantly breaking down, and require costly repairs. The existing vehicles are 2002 models and have reached the end of their useful lifecycle. The vehicles exceed the City's Fleet Services Division's recommended Equipment Lifecycle Guidelines, earning a "terrible" rating, based on industry standards from the Municipal Equipment Maintenance Association, the National Association of Fleet Administrators, and the American Public Works Association. Furthermore, the equipment will not comply with the State of California Air Resources Board Portable Equipment Registration Program in 2021. The new equipment will be fueled with compressed natural gas (CNG), which not only meets State requirements, but will also reduce greenhouse gas emissions and lower fuel consumption, resulting in reduced costs and better air quality. 22E-1 Contract Amendment for two Compressed Natural Gas Dump Trucks January 21, 2020 Page 2 On November 20, 2018, the City Council awarded a purchase order to Los Angeles Truck Centers, LLC, for the purchase of two compressed natural gas dump trucks. Four Santa Ana vendors were notified in the original Invitation for Bid and 12 vendors downloaded the bid packet. Ultimately, the City only received one bid. Los Angeles Truck Centers, LLC, has agreed to honor the same pricing for two additional compressed natural gas dump trucks with the same specifications. The purchase price of $448,827 for both trucks represents the best value to the City. To allow for unanticipated commodity surcharges due to the volatility of the existing metals market, a $10,000 contingency has been included in the award amount. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds in the amount of $458,827 are available in the FY 2019-20 Public Works Agency Environment/Sanitation account (No. 06817640-66400) as follows: Fiscal Year Accounting Unit- Fund Description Accounting Unit, Amount Account # Account Description Public Works- FY 2019-20 06817640-66400 Sanitation Fund Environment/Sanitation, $458,827 Machinery & Equipment Total: $458,227 APPROVED AS TO FUNDS AND ACCOUNTS: Nabil Saba, PE Kathryn Downs, CPA Interim Executive Director Executive Director Public Works Agency Finance and Management Services Agency N S/TC/GL/S M 22E-2