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HomeMy WebLinkAbout10 Consideration to Purchase a Replacement Light Duty TruckMLLA TRUCKEE DONNER Public Utility District CONSENT To: Board of Directors From: Stephen Moore Date: April 15, 2020 Subject: Consideration to Purchase a Replacement Light Duty Truck 1. WHY THIS MATTER IS BEFORE THE BOARD Board authorization is required for procurements in excess of $15,000. 2. HISTORY In 2008, the District purchased Unit 228, a GMC K2500 utility truck. This truck is utilized daily by the Substation Lineman / Inspector in the course of routine work for transporting testing equipment, materials and other equipment. This truck and equipment are used to inspect underground electrical distribution infrastructure and the maintenance of the Districts Substations. 3. NEW INFORMATION Unit 228 is twelve years old and has in excess of 118K miles. Over the course of normal use it has reached the end of its useful service life. Staff has investigated several vehicle replacement options and has determined the best fit based on the needs of the District is a Altec service body on a 2020 Chevrolet 2500 4X4 chasis. On March 9, 2020, staff requested and received a cost proposal from Altec Industries. The cost is $79,688, plus tax and fees. Sourcewell, formely National Joint Purchasing Alliance, competitvely bid equipment from Altec Industries of Dixon, CA, and other vendors through a competitive bid 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 is a qualified Sourcewell vendor, and their bid is consistent with the District Code requirements. The existing Chevrolet Unit 228 can be declared surplus and sent to public auction, with the proceeds being used to offset the purchase of the new vehicle. Staff estimates the value of the existing vehicles to be approximately $7,500. After the sale of unit 228, the net cost of the new vehicle will be approximatly $72,168, plus tax and fees. 4. FISCAL IMPACT Unit 228 is budgeted for replacement in FY20. Sufficient funds exist in the Electrical Vehicle Reserve Fund for the purchase. 5. RECOMMENDATION 1. Declare Unit 228 surplus and authorize the General Manager to dispose of this Unit at public auction, applying sale funds to the Electric Vehicle Reserve Fund. 2. Authorize the General Manager to execute a contract with Altec Industries of Dixon, CA, for the purchase of a Altec service body on a 2020 Chevrolet 2500 4X4 in the amount of $79,688, plus a 10% change order authorization, for a total not to exceed amount of $87,657 plus tax and fees. Joe Horvath Electric Utility Director Michael D. Holley General Manager