HomeMy WebLinkAbout7 Digger Derrick AGENDA ITEM #7
Public Utility District m
MEETING DATE: September 20, 2023
TO: Board of Directors
FROM: Brian Yohn, General Services Manager
Michael Salmon, Chief Financial Officer
SUBJECT: Consideration of a Rental Agreement for a 2020 Freightliner Model:
2106 COMM 6060 Digger Derrick for Electric Utility Operations.
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to enter into a rental agreement with Custome Truck
One Source for the rental of a 2020 Freightliner Model: 2106 COMM 6060 Digger
Derrick for Electric Operations for a monthly rental cost of $9,851, with a budget not to
exceed $50,000 in FY2023.
BACKGROUND:
The District's Electric Utility owns and operates two Digger Derrick rolling equipment
vehicles. One unit (#210) is experiencing a mechanical issue and having two units
operational, particularly during this busy fall construction season, is vital to the safety
and reliability of services provided by our electric utility operations crews.
ANALYSIS AND BODY:
In late August, Vehicle No. 210, a 2012 International Digger Derrick from Altec, incurred
an electrical system or control system problem associated with the boom during normal
Electric Department operations. District vehicle maintenance staff was able to perform
a temporary remedy to allow for the boom to retract and be returned to its cradle so that
it could be returned to the main headquarters for more thorough testing and inspection
by an Altec mobile technician. Troubleshooting efforts have been challenged with the
equipment working and experiencing failures infrequently and intermittently. The Altec
Mobile technician was unable recreate the failure of the unit during testing and
inspection, thus no diagnosis or repair was identifiable. Despite efforts by the Altec
mobile technicians to identify and remedy the issue, unit #210 continues to experience
intermittent failures of the boom control systems. Staff and Altec have determined it
necessary to deliver the unit to the Altec service shops for further diagnosis and repair.
The District fleet currently owns.
2 — Digger Derricks — District owned
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1 — Backyard Machine (mobile — District owned
Staff recommends renting a 2020 Freightliner Model: 2106 COMM 6060 Digger Derrick,
or equivalent to temporarily replace Vehicle No. 210 to support Electrical Operations
activities until it can be repaired and restored to service.
Rental companies Global Rental, Inc., PAR Electric, and Custom Truck One Source
were contacted for rental availability of similar sized Digger Derricks.
- Global Rental has trucks available in Roanoke, VA and offered the TDPUD the
option to pay freight ($7k), in addition to the rental cost, to have the truck brought to
Dixon, CA. Freight would take a several weeks and the truck would need to be
inspected per CA standards in Dixon, CA prior to release to rent.
- PAR Electric did not reply to the District's rental request
- Custom Truck One Source has a 2020 Freightliner Model: 2106 COMM 6060 Digger
Derrick Digger Derrick truck available at its Bakersfield, CA. facility that would support
TDPUD operational needs.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
2. Provide a healthy and safe work environment for all District employees.
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1 .05.030 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 request is for General Manager Authorization to contract with Custom Truck One
Source Rental for the rental of a 2020 Freightliner Model: 2106 COMM 6060 Digger
Derrick with a budget not to exceed $50,000. While the not to exceed amount is not
currently forecasted to be fully utilized, the amount allows for contingency as the period
of out-of-service is not readily known at this time.
Custom Truck One Source was the only vendor with regional availability of an rental
equivalent to unit #210, the 2020 Freightliner Model: 2106 COMM 6060 Digger
Derrick. Staff has established an account, credit terms, and set Custom Truck One
Source as a vendor through a prior heavy duty vehicle rental in 2023.
The truck is located at their Bakersfield, CA facility and has a monthly rental cost
estimate of$9,851 per month inclusive of tax and fees. To reduce cost to the District,
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an alternative to freight is to fly staff to Bakersfield, CA to pick up the vehicle and drive it
back to the District.
Custom Truck One Source Rental terms include completion of a rental application,
master rental agreement, credit application, and to provide a certificate of insurance to
required limits and language.
Electric's operating reserve of $6.5M is sufficient to fund this non-budgeted up to
$50,000 expense items.
ATTACHMENTS:
None
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