HomeMy WebLinkAbout13 Procurement Substation Lineman Inspector vehicle - AGENDA ITEM #13
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MEETING DATE: September 7, 2022
TO: Board of Directors
FROM: Michael Salmon, Chief Financial Officer
Brian Yohn, General Services Manager
SUBJECT: Consideration to Approve the Procurement of A Substation
Lineman/Inspector Vehicle
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a procurement contract with Altec Inc. for the
purchase of one (1) 2023 Chevrolet 3500HD truck in the amount of$107,000, plus a 10%
change order authorization, for a total of$117,700, plus any other taxes and fees that may
apply.
BACKGROUND:
District Code section 3.08.010— Bid Procedure for Purchase of Commodities or Equipment
Over $15,000.
The District's fleet is comprised of over 214 vehicles equivalents, including trucks, heavy
machinery, trailers and specialized utility equipment. In March 2021, the Electric
Department added a new Substation Lineman Inspector position. Planning for the
additional position included FY22-FY23 Budget for the purchase of a new vehicle, deemed
essential for Electric Department daily operations, transportation requirements, and
emergency response.
The District maintains a Vehicle Reserve Fund (Reserve Fund) for the Electric and Water
Departments. The funding of new and 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. Upon Board of Director approval and
purchase, new vehicles are added to the Reserve Fund and assigned an estimated useful
life where a replacement schedule for all vehicles and equipment is used by the District for
future Budget development.
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Sourcewell, formerly National Joint Purchasing Alliance, has identified Altec Inc. as
competitive bidders for Specialized Public Utility Equipment 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 Inc. is a qualified Sourcewell vendor, with provided quotes
consistent with District Code requirements.
Goals and Objectives:
This item is in the support of the following goals and objectives:
District Code1.05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible manner
Strategic 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:
The purchase of a new Substation Lineman Inspector vehicle for the Electric Department
was approved for FY22-FY23 Budget in the amount of $103,704 plus taxes and fees.
Estimated total cost of the purchase, inclusive of tax, fees, and a contingency amount is
approximately $16,000 or 16% above the FY22-FY23 Board approved budget. With a
$259,508 12/31/2021 balance in electric vehicle reserves fund, there are sufficient funds
in the vehicle reserve account to cover the overage to budget.
ATTACHMENTS:
None.
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