HomeMy WebLinkAbout10 One Ton Mechanic Service Truck AGENDA ITEM # 10
TRUCKEE DONNER
Public
MEETING DATE: May 3, 2023
To: Board of Directors
FROM: Michael Salmon, Chief Financial Officer
Brian Yohn, General Services Manager
SUBJECT: Consideration for Procurement of a 1-Ton Mechanic Service
Truck for the District
APPROVED BY
Brian C. Wrighf, General Manager
RECOMMENDATION:
a) Authorize the General Manager to execute a contract with Champion Chevrolet, for
the procurement of a 1-Ton Mechanic Service Truck for Support Services—Vehicle
Maintenance with a total amount not to exceed $159,195; and
b) Declare Unit 503 Service Truck surplus and authorize the General Manager to
dispose at public auction, applying the proceeds from auction sale to the Vehicle
Reserve Fund.
BACKGROUND:
Code section 3.08.010 — Bid Procedure for Purchase of Commodities or Equipment Over
$15,000
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 Vehicle 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 Vehicle 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 Vehicle 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.
Guidelines for useful life determination and replacement scheduling of District pickup
trucks and service trucks recommends replacement at 10 year intervals and at
approximately 100,000 miles. The guidelines support maintaining a reliable and effective
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fleet for the Districts emergency outage and leak response and daily operation
requirements.
Vehicle No. 503 has over 17 years of service to the district and satisfies the mileage
guidelines for recommended replacement; model year 2006 with 120,103 miles.
Staff solicited bids for a 2024 1-Ton Mechanic Service Truck and received one (1) bid.
Staff recommends awarding the contract to purchase the 1 Jon Mechanic Service Truck to
the lowest responsive bidder, Champion Chevrolet.
Staff recommends declaring the Vehicle No. 503, 2006 1-Ton Mechanic Service Truck
surplus and disposal of the unit at public auction, applying the funds to the Vehicle Reserve
Fund.
ANALYSIS:
The Vehicle Reserve Fund anticipates the replacement of the 1-Ton Mechanic Service
trucks for the Support Services — Vehicle Maintenance Department in FY23.
The Board approved FY22/23 Budget included the budgeted and scheduled replacement
of a 2006 1-Ton Mechanic Service Truck with a budget of $152,633.
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:
The FY22/23 budget for the 1-Ton Mechanic Service Truck replacement expenditure is
$152,633.
Staff solicited bids through the public bid process and received bids for a 2024 1-Ton
Mechanic Service Truck and received one (1) bid. Staff recommends awarding the
contract to purchase the 1-Ton Mechanic Service Truck to the lowest responsible bidder,
Champion Chevrolet.
Estimated total expenses for the vehicle procurements are projected to be:
2024 1-Ton Mechanic Service Truck — Support Services — Vehicle Maintenance -
$145,676, plus all applicable taxes and fees is approximately$159,195, is $6,562 or
4.3% above the FY22/23 Board approved budget.
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The Electric Vehicle Reserve Fund has a 3/31/2023 balance of $1.6 million and has
sufficient funds available for the procurement of the 1-Ton Mechanic Service Truck for
Support Services — Administrative Services Department.
Approval of the truck procurement would ensure preorder of the service truck on the 2024
model year government ordering schedule currently forecast for May 2023. Estimated
production and build times offer estimated delivery in late 2024.
ATTACHMENTS:
None.
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