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HomeMy WebLinkAbout10-Consideration of the Purchase of Four Replacement Sport Utility VehiclesAgenda Item #10 To: From: Date: Subject: Board of Directors Jim Wilson February 11, 2015 Consideration of the Purchase of Four Replacement Sport Utility Vehicles CONSENT 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for purchases in excess of $15,000 and only the Board can declare vehicles surplus. 2. HISTORY In 2008, the District established Electric and Water Vehicle Replacement Funds to provide a source of funds for periodic vehicle replacement. Funds are added each year by both the Water and Electric Departments as described in the adopted budget. 3. NEW INFORMATION Four existing District management and pool vehicles, Units No. 101, 102, 103, and 104 are in need of replacement due to failing hybrid drive motor batteries and age. These vehicles will be replaced with four new Jeep Cherokee SUV's which get equivalent fuel economy to the competitors comparable models. These vehicles will be operated by the Water Superintendent, Electric Engineer, and serve as pool vehicles. These vehicles will be utilized to transport District personnel, equipment, and materials to and from meetings, various District projects, facilities, and job sites. The District is able to participate in a competitive procurement from the State of Nevada for the replacement vehicle. Section 3.08.060 of the District's code (Joint Purchasing with the State of California and other public agencies) permits the District to take advantage of other agencies low bids providing that competitive procurement procedures were followed. On November 1, 2014 the State of Nevada awarded the Fleet Vehicle Bid Number 8255, Item Number 5.2A, to Carson Dodge Chrysler Jeep, of Carson City, NV. Carson Dodge has agreed to honor the State of Nevada bid pricing with TDPUD for the purchase of four Jeep Cherokee's in amount of $94,417 ($23,604.25 ea.) plus tax. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager 4. FISCAL IMPACT Sufficient funds exist in the Electric and Water Department Vehicle Replacement Funds for the purchase of thesr vehicles. Recovery of some of the initial investment will be made through the sale of the surplus of four vehicles at public auction. Proceeds will be transferred to the Water and Electric Department Vehicle Replacement Funds. 5. RECOMMENDATION a) Award the purchase of four Jeep Cherokee's to Carson Dodge Chrysler Jeep of Carson City, Nevada for the amount of $94,417 plus applicable tax. b) Declare Units 101 and 102 as surplus and apply the sales proceeds to the Water Department, Vehicle Replacement Fund. c) Declare Units 103 and 104 as surplus and apply the sales proceeds to the Electric Department, Vehicle Replacement Fund.