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HomeMy WebLinkAbout11 Surplus Old Vehicles Agenda Item ## I I Public Utility District CONSENT To: Board of Directors From: Mark Thomas Date: February 03, 2010 Subject: Consideration of Purchase of New Vehicles and Surplusing Old Vehicles 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for purchases in excess of $15,000 and only the Board can declare vehicles surplus. 2. HISTORY In 2008, the District established Electric and Water Vehicle Replacement Funds to provide a source of funds for periodic vehicle replacement. Rate based monies are added to this fund each year by both the Water and Electric Departments. In FY10, the Water Department plans to replace one 1989 International 10 yard dump truck (Unit # 6). The Electric Department plans to replace one 1998 GMC service truck (Unit #44). A 2000 GMC Jimmy SUV (Unit #7) is no longer needed by the Electric Department and will not be replaced. Units #7 and #44 have become unreliable and costly to maintain. The existing dump truck no longer complies with the California Air Resources Board Category Title 13 current standards, and in the near future the truck would require a new engine to remain in the fleet. 3. NEW INFORMATION Staff looked into comparing two different options for the 10 yard dump truck: Option 1) Replace with New - Meet all current needs of District - Lower annual maintenance - Lower fuel cost - Will meet all current and future Category Title 13 requirements - Higher salvage value of existing unit Option 2) Rebuild existing unit - Unit is 21 years old, and costly to maintain - Part are hard to find - Engine needs to be replaced $45,000 - Dump bed needs to be replaced $30,000 Staff recommends option 1. For the procuring the 10 yard dump truck, staff was able to "piggy back" on a competitive procurement from the County of San Bernardino. Section 3.08.050 of the District's code (Joint Purchasing with the State of California and other public agencies) permits the District to take advantage of other agencies low bids providing that competitive procurement procedures were followed. On February 5, 2009, the County of San Bernardino awarded a bid to Miramar Truck Body & Equipment for an International 7600 SBA 6X4 with a Warren WAR700-16FT dump body. This dump truck meets all of the specifications developed by the Water Department. The total cost of the unit is $155,025.16 including tax and delivery to Truckee (Attachment 1). For the procurement of the service truck, the District issued a request for bids on January 7 and advertised in the Sierra Sun on January 13, 2010. The bid opening for the service truck was held at 2:00 PM on January 27, 2010. One bid was received from Champion Chevrolet of Reno in the amount of$34,928.00 (Attachment 2). 4. FISCAL IMPACT Sufficient funds exist in the Vehicle Replacement Funds for the purchase of both the 10 yard dump truck and the service truck. Both bids were within the programmed replacement amount used to calculate contributions to the Vehicle Replacement Fund. Recovery of some of the initial investment will be made through the sale of the surplus vehicles at Public Auction. Proceeds of these sales will be transferred to the respective Electric and Water Department Vehicle Replacement Funds. District Code requires that prior to selling any excess vehicle, the Board must first declare that vehicle surplus. In the case of units #6 and #44, the vehicles are being replaced and are no longer needed in the fleet. Unit #7 has become un-reliable and costly to maintain. Replacement of unit #7 is not required, or recommended at this time. 5. RECOMMENDATION 1) Award the purchase of a International 7600 SBA 6X4 with Warren WAR700-16FT Dump Body to Miramar Truck Body & Equipment for the amount of$155,025.16. 2) Award the purchase of a four wheel drive service truck to Champion Chevrolet of Reno in the amount of $34,928.00 plus applicable tax. 3) Declare vehicles in Attachment 3 surplus and apply the sales proceeds to the Electric and Water Vehicle Replacement Funds. AZ�2, Michael D. Holley General Manager/Water Utility Manager ATTACHMENT 1 MIRAMAR TRUCK BODY & EQUIPMENT QUOTATION: 6066 Miramar Road, San Diego, CA 92121 1DAT ERMS: Net 30 Phone(858)450-0707 Fax(858)450-1182 E: 0 1-21-10 QUOTATION VALID FOR 30 DAYS CUSTOMER Truckee Donner Public Utility District CONTACT: Mark Thomas ADDRESS 11570 Donner Pass Road UNIT# Truckee, Ca 96160 LXNE 1(530)587-5056 530)587-3896 DESCRIPTION T9BOR HOURS MATERIALS Reference: County Of San Bernardino Proposal# K-25 Purchase Order# K-2037 Supply And Install Warren WAR700-16FT Dump Body On 2010 Year Per Unit $ 145,966.40 Model International 7600 SBA 6X4 In Accordance With County Of San Bernardino Proposal# K-25 Note: Tailgate Has Been Changed To A Water Tight Tailgate With A Center Mounted Material Door, Cab And Body To Be painted School Bus Yellow With Black Under Structure Optional Pricing: *AM/FM/CD Radio Per Unit $ 481.00 *Diagnostic Equipment(Software And Cable Interface) Per Unit $ 575.00 *Standard Hydraulics In Lou Of Electric/Hydraulic Central Hydraulics Per Unit $ (7,562.66) *Deletion Of XATA GPS Unit/Installation Per Unit $ (1,750.00) *Whelen LED Amber Beacon Light Mounted On Self Leveling Bracket Per Unit $ 1,800.00 (2)Two Grill Mounted, (2)Side Mounted In Rear Corner Posts, Two Rear Facing Mounted In Rear Corner Posts *Front And Rear Axles Power Dividers Per Unit $ 1,182.00 *Frame Mounted Snow Chain Holders Per Unit $ 575.00 Note: 2010 Year Model Engines Are Extremely Limited, If A 2011 Year Model Is Required Add $8000.00 To Base Price Above Pricing Does Not Include Applicable DMV Registration Fees Quoted By: James Day MATERIAL $ 141,266.74 SALES TAX $ 12,537.42 DELIVERY FOB SAN DIEGO $ 1,200.00 CALIFORNIA STATE TIRE FEE $ 21.00 ACCEPTED BY: TOTAL $ 155,025.16 HIS ESTIMATE IS BASED ON OUR INSPECTION AND DOES NOT COVER ADDITIONAL PARTS OR LABOR WHICH MY BE REQUIRED AFTER THE WORK HAS BEEN STARTED,BECAUSE OF THIS THE ABOVE PRICES ARE NOT GUARANTEED. ATTACHMENT 2 Bid Schedule Four Wheel Drive Service Truck with Utility bed Electric Department Unit Cost (FOB Truckee) Description Tax Not Included One (1)9200 LBS. GVW 4x4 Service Truck I X DELIVERY DATE If the bid is awarded to me, I will deliver the vehicle within calendar days after receiving formal notice of the award of the bid. Proposal submitted by: Signature and title Name, address and telephone Number of bidder: Champion Chevrolet o , At y 131So Z Attachment 3 Unit Description V.I.N. Miles 6 1989 Dump Truck, 10 yd 1 HTGGGRROLH232109 34,600 7 2000 GMC Jimmy 4WD 1 GKDT13W4Y2396856 1071100 44 1998 GMC Service Truck 1 GDHK34J5WF020702 91,000 as of 1/28/10