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HomeMy WebLinkAbout9 Forklift Purchaseenda Item # To: Board of Directors From: Stephen Hollabaugh Date: November 02, 2016 Subject: Consideration of Purchase of a Heavy Duty Forklift NJ 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for procurements in excess of $15,000 and only the Board can declare a vehicle surplus. 2. HISTORY In 2008, the District established the Electric Utility and Water Utility Vehicle Reserve Funds, to provide a source of funds for periodic vehicle purchase and replacement. Funds are added each year by both Electric and Water Departments as described in the adopted budget. Unit 560 is a 1978, heavy duty, rough terrain, forklift, which has reached the end of it's useful life. 3. NEW INFORMATION On October 13, 2016, the District sent out specifications and requests for bids to vendors in the Sacramento and Reno areas. On October 19, 2016, the District advertised a request bids in the Sierra Sun for the purchase of a heavy duty forklift with a tier 4, California Air Resources Board (GARB) compliant engine. On October 26, 2016, a bid opening was held and the District received three bids and all were responsive. Name Responsive Amount of Bid Valley Forklift I Reno Forklift Yes $967299 Toyota Material Handling Yes $103,766 District staff has reviewed all the submitted documents and has determined Valley Forklift to be the lowest responsive bidder. 4. FISCAL IMPACT Sufficient funds exist in the Electric Utility Vehicle Reserve Fund for the purchase of this equipment. Recovery of some of the initial investment will be made through the sale of the surplus equipment at public auction. Proceeds from the sale of Unit 560 will be transfered to the Electric Utility Vehicle Reserve Fund. 5. RECOMMENDATION 1) Award the purchase of one rough terrain forklift to Valley Forklift for an amount of $88,755 with a 10% change order authorization, for a not to exceed amount of $97,630.50, plus tax. 2) Declare Unit 560 surplus and and authorize staff to dispose of Unit 560 at public auction, applying recovered funds to the Electric Utility Vehicle Reserve Fund. Stephen Hollabaugh Assistant General Manager Michael D. Holley General Manager