HomeMy WebLinkAbout7 Heavy Duty Vehicle Repairs AGENDA ITEM #7
TRUCKEE DONNER
Public
MEETING DATE: March 15, 2023
To: Board of Directors
FROM: Michael Salmon, Chief Financial Officer
Brian Yohn, General Services Manager
SUBJECT: Consideration of approving an On-Call Services Agreement for
Heavy Duty Vehicle Repairs.
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute an On-Call Services Agreement for the repair of
heavy duty fleet vehicles with Silver State International, Inc. of Sparks, Nevada in an
amount not to exceed $55,000 for FY23.
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 heavydutydiesel 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
process. No bids were received and the District was unable to establish an annual service
contract for heavy duty vehicle repairs for FY23.
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ANALYSIS:
At the March 1, 2023 Board of Directors Meeting, the Board made a finding to dispense
with competitive bidding and authorized the General Manager to negotiate directly with
vendors to establish an On-Call Repair Services Agreement for Heavy Duty Vehicle
Repairs with a budget not to exceed $55,000 for FY23.
Staff is presenting to the Board for consideration for approval of an On-Call Repair
Services Agreement for FY23 with Silver State International, Inc. for heavy duty vehicle
repair needs to reduce out of service time impacts for the Districts heavy duty vehicles.
Staff engaged with three regional heavy equipment mechanical service and repair vendors
utilizing one of the District's electric utility derrick diggers currently in need of repairs as a
"market basket" approach for the purposes of negotiating terms and pricing. Staff was able
to negotiate favorable terms and pricing with Silver State International, Inc. for heavy
equipment repairs and services. The District and Silver State International, Inc. have
maintained a favorable working relationship throughout Silver State International, Inc.'s
extensive history of servicing the Districts heavy duty vehicles.
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 the March 1, 2023 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.
ATTACHMENTS:
None.
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