HomeMy WebLinkAbout13 Purchase Electric Dept. Vehicles
AGENDA ITEM #13
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MEETING DATE: February 2, 2022
TO: Board of Directors
FROM: Stephen Moore, Electric Operations Manager
SUBJECT: Consideration to Approve the Purchase of Electric
Department Vehicles
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
A. Authorize the General Manager to execute a contract with Altec Industries of Dixon,
CA, for the purchase of one (1) Altec Digger Derrick on a 2024 Freightliner 108SD 6X4
chassis in the amount of $398,499, plus a 10% change order authorization, for a total
not to exceed amount of $438,348, plus tax and fees.
B. Authorize the General Manager to execute a contract with Altec Industries of Dixon,
CA, for the purchase of one (1) Altec small Bucket Truck on a 2024 Ford 5500 4X4
chassis in the amount of $216,625, plus a 10% change order authorization, for a
total not to exceed amount of $238,288, plus tax and fees.
C. Authorize the General Manager to execute a lease agreement with Global Rental of
Dixon, CA, for the lease of a Digger Derrick for up to two years in a not to exceed
amount of $4,420 per month, plus tax.
D. Authorize the General Manager to execute a lease agreement with Global Rental of
Dixon, CA, for the lease of a small Bucket Truck for up to two years in a not to
exceed amount of $2,964 per month, plus tax.
E. Declare Unit 136 surplus and authorize the General Manager to dispose of the Unit at
public auction, applying sale funds to the Electric Vehicle Reserve Fund.
BACKGROUND:
In 2021, the District identified opportunities to improve operational efficiencies by making
changes to the crew structure and positions within the Electric Department. Staff proposed
to reorganize existing outside crews to the following crew structure and job assignments:
One (1) Troubleman FTE;
Three (3) four person Line Crews consisting of 12 FTE’s; and
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Two (2) Substation Lineman/Inspector FTE’s.
The Board approved these organizational changes on July 21, 2021. In addition, the Board
approved a second Troubleman FTE position at the adoption of the FY22-23 Budget on
November 3, 2021. The creation of a third Line Crew, and the second Troubleman position,
requires the District to purchase additional vehicles to support this organizational change.
These vehicles will be used daily by the Line Crew and Troubleman to perform routine
work in electrical system construction, maintenance, and secondary service operations.
Staff has investigated several vehicle replacement options for these departmental needs
and has determined the best fit for the District is:
Third Line Crew: Altec Digger Derrick on a 2024 Freightliner 108SD 6X4 chassis.
On January 21, 2022, staff requested and received a cost proposal from Altec
Industries. The cost for this vehicle is $398,499, plus tax and fees, (Attachment 1).
Troubleman: Altec small Bucket Truck on a 2024 Ford 5500 4X4 chassis. On
January 21, 2022, staff requested and received a cost proposal from Altec
Industries. The cost for this vehicle is $216,625, plus tax and fees, (Attachment 3).
Due to long lead times to procure the new Digger Derrick, staff has requested a quote for a
lease vehicle. On January 21, 2022, staff received a quote from Global Rental of Dixon,
CA, to lease an equivalent Digger Derrick truck in the amount of $4,420 per month. It is
expected the total cost of the rental vehicle would be approximately $106,080 plus tax,
(Attachment 2).
The small Bucket Truck is not part of the Board approved FY22-23 budget. Due to long
lead times to procure and build the new small Bucket Truck, staff is requesting approval to
order this vehicle which staff expects to take possession of in FY 2024. Staff will include
this purchase in the FY24-25 budget for Board approval. For the second Troubleman to
keep up with current customer demands, staff requested a quote for a lease vehicle. On
January 21, 2022, staff received a quote from Global Rental of Dixon, CA, to lease an
equivalent small Bucket Truck in the amount of $2,964 per month. It is expected the total
cost of the rental vehicle would be approximately $71,136 plus tax, (Attachment 4).
Sourcewell, formerly National Joint Purchasing Alliance, has identified Altec Industries &
Global Rental of Dixon, CA as competitive bidders for Specialized Public Utility Equipment,
and lease vehicles, through an RFP process. Section 3.08.060 of the District Code (Joint
Purchasing with the State of California and other public agencies) permits the District to
take advantage of other agencies competitive procurement processes. Altec Industries and
Global Rental are both qualified Sourcewell vendors, and their quotes are consistent with
District Code requirements.
In 2006, the District purchased Unit 136, which is on a mid-sized pickup truck chassis. This
truck was used daily by the Electric Department in the course of routine electric meter
reading. Since the District’s Electric Advanced Metering Infrastructure system was
deployed in 2019 this vehicle is no longer needed or useful for other work. Due to its size
and smaller payload capacity, this vehicle does not meet the practical needs of Electric
Operational staff daily activities.
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Staff recommends that Unit 136 be declared surplus and sent to public auction, with the
proceeds being used to replenish the Electric Vehicle Reserve Fund. Staff estimates the
value of the existing vehicles to be approximately $4,500.
This item is in support of the following objectives and goals identified by the District.
1.05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient, and fiscally responsible manner.
1.05.030 Goals:
1. Manage for financial stability and resiliency.
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
FISCAL IMPACT:
A. 2024 Digger Derrick - $438,348 + taxes and fees.
This vehicle is budgeted in 2023 for $416,200 plus taxes and the vehicle reserve fund can
afford the purchase cost, including the $22,000 over budget in 2023 or 2024. The
purchased transaction date is based on delivery date. Delay in ordering will likely increase
the cost of vehicle, extend delivery date, and extend similar unit rental costs.
B. 2024 Bucket Truck - $238,288 + taxes and fees.
This vehicle was not included in vehicle purchases cost for FY22-23 Budget. The vehicle
should be added to the 2024 Budget prepared for Board approval in fall of 2023. The
electric vehicle reserve account has sufficient funds to afford this purchase in 2023, if
necessary. Further, the three most recent replacement vehicle auction sales netted
$51,000 more in proceeds than budgeted (auction proceeds credit the vehicle reserve
account). The purchased transaction date is based on delivery date. Delay in ordering will
likely increase the cost of vehicle, extend delivery date, and extend similar unit rental costs.
C. Lease Digger Derrick - $4,420 per month plus tax.
This cost was not included in the FY22-23 Budget and therefore decreases budgeted
operating reserve/general fund balance by approximately $58,000 per year or $116,000 for
the two years. The lease cost directly relates to vehicles, therefore we recommend utilizing
electric vehicle reserve funds for the lease costs, reducing vehicle reserve budgeted
balanced 12/31/2023 of $433,000 to $317,000. Replenishment of this draw down would be
a priority from general fund operating reserves if and when balance exceeding policy goal
balance or during the next budget cycle.
D. Lease Bucket Truck - $2,964 per month plus tax.
This cost is not included in the FY22-23 Budget and therefore decreases budgeted
operating reserve/general fund balance by approximately $39,000 per year or $78,000 for
the two years. Utilizing electric vehicle reserve funds to fund the lease costs reduces the
vehicle reserve budgeted balanced 12/31/2023 of $433,000 to $355,000 and including item
C. as well, reserve balance 12/31/2023 reduces to $239,000. Replenishment of this draw
down would be a priority from general fund operating reserves if and when balance
exceeding policy goal balance or during the next budget cycle.
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E. Dispose of Unit 136 at public auction.
Sale of this asset was not budgeted in vehicle reserves, therefore increasing the reserve
balance a conservative estimate of $4,500.
ATTACHMENTS:
Attachment 1: Sourcewell Digger Derrick quote 11/13/2021
Attachment 2: Global Digger Derrick Quote
Attachment 3: Sourcewell Small Bucket Truck quote 1/21/22
Attachment 4: Global Small Bucket Rental Quote