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HomeMy WebLinkAbout15 Fleet Vehicle RepairAGENDA ITEM #15 Page 1 of 3 MEETING DATE:April 6, 2021 TO:Board of Directors FROM:Joe Horvath P.E., Electric Utility Director/Assistant GM SUBJECT:Consideration of Approving an On-Call Services Agreement with Altec Industries, Inc. APPROVED BY______________________________ Brian C. Wright, General Manager RECOMMENDATION: Authorize the General Manager to execute an On-Call Services Agreement for the repair of medium and heavy-duty fleet vehicles with Altec Industries, Inc. of Dixon, California in an amount not to exceed $55,000 for FY22. BACKGROUND: The District’s fleet is comprised of over 106 vehicles and equipment, including trucks, heavy machinery, trailers and specialized utility equipment. This equipment is essential for Electric and Water Department daily operations, transportation requirements, and emergency response. The District’s fleet maintenance and repair activities have historically been performed by District mechanics. However, since 2016, the District has utilized outside vehicle service vendors to supplement fleet maintenance workload needs. Altec Industries, Inc. (Altec) of Dixon, California is major supplier of specialized Public Utility equipment and vehicles used by many Investor Owned Utilities (IOU) and Publically Owned Utilities (POU) across the western US including the District. Specialized vehicle types, as manufactured by Altec, in use by the District include medium and heavy-duty service body trucks, crane service body trucks, bucket (aerial lift) trucks, and digger/derrick trucks. For example, the District has three Altec bucket trucks that combine a cab chassis as made by Ford, Freightliner, International or other vehicle manufacturer, with an aerial lift bucket, and control system as manufactured by Altec. Page 2 of 3 ANALYSIS: District mechanics can perform the vast majority of maintenance, service, and repairs for all medium and heavy-duty service vehicles in use by the Electric and Water Departments. However, some repairs are extensive in nature and require specialized facilities, equipment, and licensed re-certification by the manufacturer after completion of repairs. A current example of an extensive repair involves fleet vehicle Unit No. 223, an Altec bucket truck, originally placed in service by the Electric Department in 2014. A problem developed in the ability for the equipment to reliably and safely operate the articulating lift boom and bucket platform during use of the bucket platform. Altec performed an inspection and determined that the main hydraulic lift cylinder, platform leveling hydraulic cylinder, and hydraulic controls require replacement. District mechanics do not have the facilities or equipment to undertake a repair of this magnitude or the credentials to complete the safety re-certification process. Altec’s service estimate cost for the work is $17,530, including testing and re-certification, and is included as Attachment 1. Staff recommends that the District enter into an On-Call Services Agreement with Altec for the repair of medium and heavy-duty fleet vehicles supplied by Altec, with a total not to exceed contract amount for FY22 of $55,000. The Agreement would be used for situations requiring extensive repairs, like the repairs for Unit 223, which exceed District capabilities. Additionally, the agreement would free up District fleet services staff to facilitate the timely repair of Electric and Water Department vehicles, critical to District operations and emergency response. This item is in support of the following objectives and goals identified by the District. OBJECTIVES: 1.Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. 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: Vehicle repair vendor costs are $120,000 for the FY22 Budget, which is less than the actual amount of $159,000 expended in FY21. This reduced budget amount is due in large part to the addition of a vehicle mechanic position. Staff currently estimates that total outside vendor repair costs will remain within the $120,000 to $130,000 range, including the repair of Unit No. 223. Page 3 of 3 ATTACHMENT: 1. Altec Repair Estimate for Unit No. 223