HomeMy WebLinkAbout15 Annual Procurements for 2023 - Amended TRUCKEE - AGENDA ITEM # 15
Public Utility District
MEETING DATE: December 7, 2022
To: Board of Directors
FROM: Michael R. Salmon, Chief Financial Officer
SUBJECT: Consideration of FY23 Annual Contract and Procurements
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APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
A) Board authorize the routine annual procurements totaling $9,736,522 from the vendors
listed in attachments 1, 2, 3, and,
B) Board authorize the General Manager to execute the required documents necessary
to procure the products and services listed in attachments 1, 2, 3, and 4.
DISCUSSION:
District Code requires Board approval for all procurements over$15,000. Each year, staff
has presented annual procurements to the Board for approval before each fiscal year.
Materials, supplies, and services procured under this action are routine and recurring in
nature. Consideration for approval for these items in one Board action streamlines the
process, providing savings to the District by significantly reducing administrative costs
that would be incurred with multiple actions. Annual procurements approvals have
recently provided additional efficiencies in avoiding increasing supply chain challenges
through early annual bulk procurements.
The following general categories of procurements are summaries of the detailed lists in
Attachments 1, 2, 3, and 4.
1) Sole Source Procurements: Attachment 1 includes a list of vendors that
provide unique products and services to the District totaling $1,466,500 in FY23.
This procurement list includes specialized software, materials, hardware, and
unique services, which have been reviewed per District Code Title 3, Section
3.08's applicable Sole Source Vendors criteria.
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2) Special Services — No RFP Process: Attachment 1 includes a list of vendors
that provide specialized services or products to the District totaling $770,000 in
FY23. This procurement list includes specialized software, hardware, and unique
services. Procurements in this category have been reviewed per District Code Title
3, Section 3.08.050.
3) Competitively Bid Procurements — Joint Procurements: Attachment 2 lists
the vendors which are competitively bid by another agency as allowed by District
Code, Title 3, Section 3.08.060. The advantage of this is that the District is usually
able to take advantage of discounted pricing and reduced administrative costs.
These procurements total $793,847 for FY23.
4) Competitively Bid Procurements - Multi-Year Contracts & Contract
Extensions: Attachment 2 also includes the list of contracts previously bid by the
District that either cover multiple years or have provisions for contract extensions.
These procurements total $1,788,500 for FY23.
5) Competitively Bid Procurements: Attachment 3 is a list of vendors who
provide products and services which went through a Request for Proposal or
Request for Bid process by the district this year for services and materials to be
rendered in FY23. The total procurement of $4,216,475 is broken into two
categories, contracts awarded to the lowest responsive candidates for
$3,953,200 and contracts awarded to the most qualified candidates for
$263,275. These procurements primarily include electric and water materials and
supplies.
6) Professional Services — No RFP Process: Attachment 3 also includes a list
of professional service contracts recommended no Request for Proposal (RFP)
process be utilized. These professional services unique expertise and or prior
services experience/knowledge with the District. These procurements total
$646,200 for FY23.
7) Procurements - Budget Item Approval - Non-Contracted Work: Attachment
3 also includes one unique procurement authorization falling under District Code
3.08.050 Procedure for Entering into an Agreement for Special Services. The
District has a consistent annual need for specialized repair of medium and heavy-
duty fleet vehicles, typically bucket trucks and digger derricks supplied by Altec
Industries, Inc. Due to the specialized and unique nature of each repair need,
Altec does not enter into service contracts. Accordingly, this request is for an
approval for Altec Industries, Inc. to perform specialized vehicle repairs for
situations requiring extensive repairs which exceed District capabilities, as well as
repairs requiring specialized facilities, equipment, and licensed re-certification by
the manufacturer for FY23. This request is for a budget amount of $55,000,
consistent with Altec amount approved for FY22 (YTD Oct'22 repairs expended
with Altec is $27,707). The requested approval amount of$55,000 is a component
of fleet repair and maintenance FY23 budget of $128,750 and is not anticipated to
cause the budget amount to be exceeded.
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8) Procurements - Request for Qualifications: Attachment 4 includes a list of
procurement authorizations that are in response to the supply chain issues the
industry has seen as a result of Covid-19. In 2022 Industry wide transformer
purchases have experienced massive price increases as well as lead times in
excess of two years. For 2023 the District went out for an RFQ to seek qualified
potential vendors to supply transformers to the District. Two qualified vendors were
identified. If this item is approved the District would be requesting a not to exceed
amount of$1,200,000.00 for FY23 for transformer purchase. Each purchase would
go through a quote process and be awarded to the qualified vendor who can best
meet the Districts current transformer need.
FISCAL IMPACT:
Generally, the funding for these procurements is included in the FY23 Budget within
operating expenses and or capital expenditures. Known exceptions to FY23 Budget are
as follows:
a. Hunt and Sons (Town of Truckee Fueling Station)
The $264,000 requested approval amount exceeds FY23 Budget of $123,600 by
$140,400 or 114%. Fuel costs trend: FY22 Forecast $225,000, F21 Actual
$168,000, FY20 Actual $96,000, FY19 Actual $122,000. The FY23 request
includes contingency for further fuel costs escalation, actual will be market
determined.
Fuel costs are distributed to operating expense and work orders/capital projects
based on payroll hours (vehicle usage inherent), water and electric utilities, as
applicable. On average, the cost distribution is 40% Electric Operations, 40%
Water Operations, and 20% Work Orders/Capital Projects.
b. Osmose Utilities Services (wood pole inspections), Electric operating expense.
The $200,000 requested approval amount exceeds FY23 Budget of $186,430 by
$13,570. In April 2021, the Board approved a not to exceed $200,000 for FY23 as
part of a pole inspection contract with Osmose.
c. P31 Enterprises, Inc. (Wildfire Mitigation Plan/Regulatory Line Clearance), Electric
operating expense. The $1,976,000 requested approval amount exceeds FY23
Budget of $1,576,000 by $400,000 or 25%. The requested amount includes an
estimated $153,000 or 10% cost increase per unit to current 2022 contract cost
per unit. Staff recommends the amount in order to ensure adequate funding level
to achieve the volume of work potential planned for FY23. Staff is actively
pursuing grant funds which may offset the majority of the total variance.
The combined three variances to budget noted above total $553,970. With an operating
reserve balance forecasted for 12/31/2022 of$12.3 million ($6.8 million Electric and $5.5
million Water), the District has sufficient funds for the FY23 overage to Budget
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ATTACHMENTS:
1. Sole Source Procurements
2. Competitively Bid Procurements — Other Government Agency and
Competitively Bid Procurements - Multi-Year Contracts & Contract Extensions
3. Competitively Bid Procurements and
Professional Services — No RFP Process and
Procurements - Budget Item Approval - Non-Contracted Work
4. Procurements - Request for Qualifications
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