HomeMy WebLinkAbout10 Reject Bid - Hallmark leak trailer AGENDA ITEM #10
TRUCKEE DONNER
Public Utility District
MEETING DATE: April 5, 2023
To: Board of Directors
FROM: Brian Yohn, General Services Manager
Michael Salmon, Chief Financial Officer
SUBJECT: Consideration to Reject Bid for the Hallmark Leak Trailer
Replacement.
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Reject the bid received for the replacement of the Hallmark Leak Trailer and direct staff to
evaluate and modify trailer specifications and re-publish for the public bid process with
updated specifications.
BACKGROUND:
Water Operations currently uses an enclosed trailer to store equipment and materials used
primarily during emergency response to water leak occurrences. The trailer, named the
"Leak Trailer", is a sixteen foot long 2006 Hallmark brand enclosed trailer that is slightly
customized to support emergency responses to water leaks.
The Board approved FY22/23 Budget included the budgeted and scheduled replacement
of the 2006 Hallmark leak trailer for Water Operations. The FY22/23 budget for the trailer
replacement expenditure is $55,208.
Vehicle Maintenance staff collaborated with Water Operations to develop trailer
specifications with additional customizations to include a recreational vehicle (RV) style
toilet restroom and related winterization measures. The custom trailer specifications were
submitted and published to the public bid process in September 2022, for which one (1)
bid was received at bid opening in the amount of$67,975. The bid received is $12,767 or
23% higher than the amount budgeted in the Vehicle Reserve Fund for the trailer
replacement.
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ANALYSIS:
Following the bid opening, staff reviewed the bid submittal to determine the key
contributing factors for the disparity between the Vehicle Reserve Budget approved in the
FY22/23 Budget approval process and the actual bid received. A number of factors were
identified creating the cost escalation for the trailer replacement.
1) Significant customizations to add a recreational vehicle (RV) type restroom facility
and related weatherization measures necessary to permit year round usage.
2) Increased freight and delivery cost from the bidders point of origin located in central
Florida.
3) Supply chain constraint present as a result of the COVID-19 pandemic.
In consideration of the difference between the bid received and available budget, staff is
recommending that the District reject the bid received. Staff has identified opportunities to
modify the specifications to reduce customization costs, yet still provide for functional
requirements in support of Water Operations.
Staff recommends engaging the public bid process for the trailer replacement with updated
specifications to solicit bid estimates for a "leak Trailer" replacement with reduced
customizations.
Staff will present bids and a recommendation for award of contract with the lowest
responsive bidder to the Board at an upcoming regularly scheduled Board of Director
meeting.
GOALS AND OBJECTIVES:
This item is in 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:
There is no fiscal impact associated with this item. The replacement of the 2006 Hallmark
Leak Trailer was included in the District Budget FY22-23 approved Vehicle Reserve Fund.
This trailer replacement will be postponed until additional bids can be received for
consideration for approval, with funding being held in the Districts Vehicle Reserve Fund.
ATTACHMENTS:
None.
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