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HomeMy WebLinkAbout11-Consideration of the Purchase of a Replacement Heavy Duty Service TruckAgenda Item #11 To: From: Date: Subject: Board of Directors Jim Wilson February 11, 2015 Consideration of the Purchase of a Replacement Heavy Duty Service Truck 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 Unit 350, a Water Department service truck, is in need of replacement due to age and high mileage. Specifications were prepared and a request for bids was advertised for one heavy-duty service truck with a utility bed and corner mounted crane. A bid opening was held on January 27, 2015. Two bids were received, both were Sacramento, CA. vendors, and both were found to be responsive. Edward R. Bacon price was $84,575, and Downtown Ford submitted the lowest bid price at $72,538 plus tax. Unit 350 will be surplussed and sent to public auction, with proceeds from the sale being deposited into the Water Department Vehicle Replacement Fund. 4. FISCAL IMPACT Sufficient funds exist in the Water Vehicle Replacement Fund for the purchase of the vehicle. Recovery of some of the initial investment will be made through the sale of the surplus vehicle at public auction. Proceeds will be transferred to the Water Department Vehicle Replacement Fund. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager 5. RECOMMENDATION a) Award the purchase of one heavy duty service truck to Downtown Ford Sales of Sacramento, California for the amount of $72,538, plus applicable tax. b) Declare Unit 350 surplus and apply the sales proceeds to the Water Department Vehicle Replacement Fund.