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HomeMy WebLinkAbout14 Heavy Duty Vehicle RepairsAGENDA ITEM #14 Page 1 of 3 MEETING DATE:March 1, 2023 To:Board of Directors FROM:Michael Salmon, Chief Financial Officer Brian Yohn, General Services Manager SUBJECT:Consideration to Dispense With the Public Bid Process for Heavy Duty Vehicle Repairs. APPROVED BY______________________________ Brian C. Wright, General Manager RECOMMENDATION: a) Dispense with competitive bidding. b) Authorize the General Manager to negotiate directly with vendors for Heavy Duty Truck Repair services DISCUSSION: Code section 3.08.030 – Bid Procedure for Issuance of Service Contracts Over $15,000 Estimated amount for FY23: $55,000 Budget Account GL: 2.7.950.00.838 The District utilizes International and Freightliner brand heavy duty diesel trucks during the normal maintenance and repair of electrical and water distribution systems within the District. District mechanics can perform the vast majority of maintenance, service, and repairs for all medium and heavy-duty service vehicles in use by the Electric and Water Departments. However, certain repairs are extensive in nature and require specialized facilities, equipment, and licensed re-certification by the manufacturer after completion of repairs. There are occasional repair and maintenance needs for our heavy duty diesel fleet that may exceed the capabilities of on-staff fleet mechanics due to limitations of maintenance shop size and configuration and heavy duty vehicle repairs requiring specific expertise. During October and November of 2022, staff engaged the public bid process to solicit bids for heavy duty vehicle repair services in preparation for the annual procurement approval Page 2 of 3 process. No bids were received and the District was unable to establish an annual service contract for heavy duty vehicle repairs for FY23. ANALYSIS: A current example of an extensive repair involves fleet Vehicle No. 225, a 2016 International/Navistar 7400 Digger Derrick. Vehicle No. 225, originally placed into service for the Electric Department in 2016, is an essential vehicle that supports electric operations with emergency outage response, electric line repairs, and planned electric distribution infrastructure improvement projects. Vehicle No. 225 is currently out of service and in need of heavy duty repairs. Staff is soliciting competitive quotes for the repairs; however, establishing an annual service contract with a service vendor for these and future heavy duty vehicle repair needs reduce out of service time impacts for the Districts heavy duty vehicles. The District fleet currently includes the following: 2 – International Bucket Trucks 2 – International Dump Trucks 2 – International Digger Derricks 1 – International VAC-CON 1 – Freightliner Bucket Truck Pending approval to dispense with competitive bidding, staff would negotiate directly with vendors and bring back a proposed service agreement for review and approval by the Board. This item is in support of the following objectives and goals identified by the District. 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: This item is related to approval by the Board of Directors to dispense with the competitive bidding and to negotiate with vendors for heavy duty truck repair services with an estimated cost of $55,000. The FY23 budget for account GL: 2.7.950.00.836/838 (vehicle repair and maintenance accounts) combine for a total of $128,750 and is estimated to be sufficient to fund this item. As indicated, the negotiation for contract resulting Page 3 of 3 recommendation will be presented to Board at a subsequent board meeting for review and consideration for approval. ATTACHMENTS: None.