HomeMy WebLinkAbout19 Replacement Electric and Water Department TrailersAGENDA ITEM #19
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MEETING DATE:April 6, 2022
TO:Board of Directors
FROM:Joe Horvath P.E., Electric Utility Director/Assistant GM
SUBJECT:Consideration to Approve the Purchase of Equipment
Trailers for the Electric and Water Departments
APPROVED BY______________________________
Brian C. Wright, General Manager
RECOMMENDATION:
a. Authorize the General Manager to execute a contract with Felling Trailers, Inc. of
Sauk Centre, MN, for the purchase of one (1) Dump Trailer, Felling Model FT-16-2-
DT in the amount of $35,976, plus a 10% change order authorization, for a total not
to exceed amount of $39,574, plus any other taxes and fees that may apply.
b. Authorize the General Manager to execute a contract with Felling Trailers, Inc. of
Sauk Centre, MN, for the purchase of one (1) Backhoe/Equipment Trailer, Felling
Model FT-24-2-T in the amount of $37,255, plus a 10% change order authorization,
for a total not to exceed amount of $40,980, plus any other taxes and fees that may
apply.
c. Authorize the General Manager to execute a contract with Felling Trailers, Inc. of Sauk
Centre, MN, for the purchase of one (1) Pole Trailer, Felling Model FT-15-UPT in the
amount of $27,998, plus a 10% change order authorization, for a total not to exceed
amount of $30,797, plus any other taxes and fees that may apply.
d. Declare Unit 291 surplus and authorize the General Manager to dispose of the Unit at
public auction, applying sale funds to the Electric Vehicle Reserve Fund.
e. Declare Unit 378 surplus and authorize the General Manager to dispose of the Unit at
public auction, applying sale funds to the Water Vehicle Reserve Fund.
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
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emergency response. Staff maintains a replacement schedule for all vehicles and
equipment in use by the District. The typical replacement schedule for light duty vehicles is
10 years, with medium and heavy-duty vehicles and trailers at 15 or 20 years.
The District maintains a Vehicle Reserve Fund (Reserve Fund) for the Electric and Water
Departments. The funding of replacement vehicles and equipment comes from the
Reserve Fund, which is replenished with budgeted annual contributions from the Electric
and Water Departments, plus revenue from the sale of decommissioned vehicles and
equipment sold at public auction. The Reserve Fund and biannual budget process helps to
ensure the timely purchase and replacement of vehicles and equipment essential for the
District to reliably and safely serve customers.
The Board approved FY22-FY23 Budget included the replacement of the following trailers:
Unit 291 - Electric Department Dump Trailer (2004)
Unit 378 - Water Department Backhoe/Equipment Trailer (1989)
In addition, FY22-FY23 Budget also included the addition of a new Pole Trailer for the
Electric Department. 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 from 2 Line Crews and 1
Service Crew into 3 Line Crews, including a new Troubleman and a second Substation
Lineman position. The Board approved these organizational changes on July 21, 2021 and
adopted the FY22-23 Budget on November 3, 2021. The creation of a third Line Crew,
requires the District to purchase additional vehicles and equipment to support this
organizational change. The new Pole Trailer is required for the third Line Crew to support
their efforts to perform routine work in electrical system construction, maintenance, and
emergency operations.
Staff has investigated several trailer replacement options for these departmental needs
and has determined the best fit for the District is:
Dump Trailer: Felling Model FT-16-2-DT. On February 18, 2022, staff requested
and received a cost proposal from Felling Trailers, Inc. The cost for this equipment
is $35,976, plus any other taxes and fees that may apply, with a 79 week delivery
estimate. (Attachment 1).
Backhoe/Equipment Trailer: Felling Model FT-24-2-T. On February 18, 2022, staff
requested and received a cost proposal from Felling Trailers, Inc. The cost for this
equipment is $37,255, plus any other taxes and fees that may apply, with a 78 week
delivery estimate (Attachment 2).
Pole Trailer: Felling Model FT-15-UPT. On February 18, 2022, staff requested and
received a cost proposal from Felling Trailers, Inc. The cost for this equipment is
$27,998, plus any other taxes and fees that may apply, with a 61 week delivery
estimate. (Attachment 3).
Sourcewell, formerly National Joint Purchasing Alliance, has identified Felling Trailers, Inc.
of Sauk Centre, MN as a competitive bidder for Specialized Public Utility Equipment
through an RFP process. Section 3.08.060 of the District Code (Joint Purchasing with the
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State of California and other public agencies) permits the District to take advantage of
other agencies competitive procurement processes. Felling Trailers, Inc. is a qualified
Sourcewell vendor, and their quotes are consistent with District Code requirements.
In addition, staff recommends that Unit 291 - Electric Department Dump Trailer, and Unit
378 - Water Department Backhoe/Equipment Trailer, be declared surplus and sent to
public auction, with the proceeds being used to replenish the Electric Vehicle Reserve
Fund and Water Vehicle Reserve Funds as appropriate. Staff estimates the value of the
existing trailers to be approximately $5,000 each.
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:
A. 2023 Dump Trailer - $39,574 + any other taxes and fees that may apply.
This equipment is budgeted in 2022 for $38,645 plus taxes and the Vehicle Reserve Fund
can afford the purchase cost. The purchased transaction date is based on the expected
delivery date. A delay in ordering will likely increase the cost of vehicle, and extend the
delivery date.
B. 2023 Backhoe/Equipment Trailer - $40,980 + any other taxes and fees that may apply.
This equipment is budgeted in 2022 for $38,645 plus taxes and the Vehicle Reserve Fund
can afford the purchase cost. The purchased transaction date is based on the expected
delivery date. A delay in ordering will likely increase the cost of vehicle, and extend the
delivery date.
C. 2023 Pole Trailer - $30,797 + any other taxes and fees that may apply.
This equipment is budgeted in 2022 for $44,166 plus taxes and the Vehicle Reserve Fund
can afford the purchase cost. The purchased transaction date is based on the expected
delivery date. A delay in ordering will likely increase the cost of vehicle, and extend the
delivery date.
D. Dispose of Unit 291 at public auction.
Sale of this asset was not budgeted in Electric Department Vehicle Reserves, therefore
increasing the reserve balance a conservative estimate of $5,000.
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E. Dispose of Unit 378 at public auction.
Sale of this asset was not budgeted in Water Department Vehicle Reserves, therefore
increasing the reserve balance a conservative estimate of $5,000.
ATTACHMENTS:
Attachment 1: Sourcewell Dump Trailer quote 4/1/2022
Attachment 2: Sourcewell Backhoe/Equipment Trailer quote 4/1/2022
Attachment 3: Sourcewell Pole Trailer quote 4/1/2022