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HomeMy WebLinkAbout8 Fleet Repair Silver State Truck ServicesAgenda Item # 8 CONSENT To: Board of Directors From: Jim Wilson Date: July 15, 2015 Subject: Consideration of Fleet Repair From Silver State Truck Services 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for expenditures over $15,000. 2. HISTORY Unit 226 is a 1998 International Chassis with a digger derick body. The digger derrick is a critical part of the District's electric crews' equipment and provides the ability to properly place power poles to current code and specifications. Unit 226 is consuming large amounts of motor oil, making it necessary to have it towed to the closest International dealer, Silver State International of Sparks, Nevada, for evaluation. Unit 226 currently has 9,400 hours on the engine; the manufacturer specifications recommend an in -frame rebuild at 10,000 hours. 3. NEW INFORMATION To date this year, the District had one International engine failure which the Board approved the repair cost of just over $15,000. Historicaly, the District spends less than $12,000 yearly with Silver State International for parts and miscellaneous repairs. Currently Silver State International is troubleshooting Unit 226 to pinpoint the exact cause of the excess oil usage. The costs of the repair could vary, however, in the likely event an in -frame rebuild be required the amount will cost aproximately $16,000. Due to the high need for this vehicle, staff is requesting preauthorization of the repairs to Unit 226 to maximize time efficiency. As stated, Unit 226 is a critical piece of equipment for the day to day operations of the Electric Department. It is imperative during this time of year the crews can replace and repair poles, so the quicker this unit is back in service, the more effective the electric crews can operate. 4. FISCAL IMPACT The District's annual parts procurement is above the authorized spending limit of the General Manager and requires Board approval. Sufficient funds exist in the FY15 Electric Budget for this action. A total of $21,000 has been spent with Silver State International this year. Staff is requesting that the Board authorize a new not to exceed amount with Silver State International in the amount of $55,000. 5. RECOMMENDATION Authorize repair of Unit 226, at Silver State International, for for a total not to exceed amount of $55,000. Stephen Hollabaugh Assistant General Manager Michael D. Holley General Manager