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Home My WebLink About11 New Vehicle Surplus Old Vehicles Agenda Item # I I ,. DONNER Public Utility District ACTION To: Board of Directors From: Mark Thomas Date: November 17, 2010 Subject: Consideration of 2011 Purchase of New Vehicles and Surplus of 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. Funds are added each year by both the Water and Electric Departments as described in the adopted budget. In FY11, the Water Department plans to replace the following utility trucks: three 2001 F-550's (Units 24, 29, and 30); and one 1999 F-350 (Unit 45). In addition, a 1991 International service truck (Unit 3) has become costly to maintain and is no longer needed by the Water Department. Unit 3 will be surplussed and not replaced. 3. NEW INFORMATION Units 24, 29, and 30 The need to replace or retrofit the existing diesel engines in the F-550 for compliance with California Air Resources Board Title 13 is driving the replacement of these three units. At this time, retrofitting the existing diesel engines with catalytic converters and other required upgrades would cost approximately $9,000 per vehicle. The expected service life of District service utility trucks is typically 10 to15 years. This estimate is based on mileage, maintenance issues and condition of each vehicle. The three F-550's are 10 years old, are experiencing ongoing maintenance issues, and are in fair condition. The vehicles have a current value of $13,000 each. Retrofitting these vehicles for $9,000 each, which is 70% of the present value of each truck, would not extend the vehicle life, enhance the reliability, or increase future resale value, and is therefore not recommended. The three current F-550's will be replaced with new cab and chassis units, and will have gasoline powered engines. The existing utility beds will be reused on the new units for a cost savings to the District of $36,000. The change from diesel to gasoline engines is another price savings of$26,000. The District is able to participate in a competitive procurement from the State of Nevada for the three F-550 cab and chassis trucks. Section 3.08.060 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 November 1, 2009, the State of Nevada awarded the Fleet Vehicle Bid 7662 to Jones West Ford, of Reno, NV. Jones West Ford has agreed to honor the State of Nevada bid pricing with TDPUD for the purchase of the three F-550 cab and chassis trucks in amount of$100,185.00 (Attachment 1). Unit 45 The F-350 utility truck is being replaced due to high mileage and excessive maintenance costs. At the February 3, 2010 meeting, the Board awarded a bid to Champion Chevrolet for a similar utility truck in the amount of $34,928.00. Champion Chevrolet has agreed to honor that same bid price for a second utility truck. (Attachment 2). Surplus Vehicles Unit 3 1991 1 H service truck, 2-wheel drive VI N# 1 HTSDN2 NMH392492 Unit 24 2001 Ford F-550 service truck 4x4 VI N# 1 FDAF57F91 EB 19093 Unit 29 2001 Ford F-550 service truck 4x4 VI N# 1 FDAF57F71 EB 19092 Unit 30 2001 Ford F-550 service truck 4x4 VI N# 1 FDAF57F51 EB 19091 Unit 45 1999 Ford F-350 servi or truck 4x4 VI N# 1 FTSF31 F6XEF00687 4. FISCAL IMPACT Sufficient funds exist in the Water Vehicle Replacement Fund for the purchase of the three F-550 cab and chassis, and one utility truck. All four vehicles 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 will be transferred to the Water Department Vehicle Replacement Fund. S. RECOMMENDATION a) Award the purchase of three F-550 utility trucks to Jones West Ford of Reno, Nevada for the amount of$100,185.00 plus applicable tax. b) Award the purchase of a four wheel drive utility truck to Champion Chevrolet of Reno in the amount of $34,928.00 plus applicable tax. c) Declare Units 3, 24, 29, 30, and 45 surplus and apply the sales proceeds to the Water Vehicle Replacement Fund. . h Michael D. Holley General Manager/Water Utility Manager 10/02/2009 10:10 FAX 17756840169 ST NV Purchasing R0001/0003 Attachment 1 e 'J STATE OF NEVADA DEPARTMENT OF ADMINISTRATION Andrew K.Clinger �« PURCHASING DIVISION Director `��vA •s 515 E.Musser Street, Suite 300 Carson City,Nevada 897014299 Gmg smith Jim Gibbons Phone(775)684-0170 • Fax (775)684-0188 Purchasing Administrator Governor October 2,2009 Bill Fletcher Jones West Ford P.O.Box 12970 Reno NV 89510 FAX DELIVERY: (7 75)829-3364 Dear Mr.Fletcher. This letter is to inform you that the State of Nevada Purchasing Division has awarded the Fleet Vehicle BD 7662 for the most current model year vehicles to all vendors who responded. In accordance with NRS 333.280 this contract will be for two.(2)years starting on November 1,2009 with the option to renew an additional two(2) years,upon mutual agreement and if deemed to be in the best interest to the State.Vendors may withdraw discontinued models and/or add new models for upcoming years. Pricing for newer model years will be adjusted for inflation using an inflation index approved by the Purchasing Division. Parts and labor rates indicated in your bid submitted September 24,2009 will be effective for the first two(2)years of the contract with the option to adjust rates for the remainder of the contract. The Purchasing Division will make the pricing submitted available to all state agencies and political subdivisions within the state on November 1,2009. Prices for all dealers who responded will be posted to our web site at http://purchasing.state.nv.us. All orders for state agencies will be processed through and paid by the Purchasing Division. Political subdivisions will process their orders directly with your dealership;purchase orders received from them should reference the appropriate BID number. Invoice the political subdivision directly upon delivery of the vehicle(s). They will be responsible to pay your dealership. The Purchasing Division will be available to provide assistance when needed to make the vehicle purchase process as efficient as possible. If you have any questions or concerns contact me at(775)684-0182. Sincerely, RMC Ronda Miller, Senior Buyer Nevada State Purchasing Division Please visit our website at http://lurchasingstate.nv.us JONES=WEST FORD P.Q. Box 12970 - Telephone (775) 829-3200 + RENO, NEVADA 89510-2970 Truckee Donner Public Utility District 11570 Donner Pass Road P.O. Box 309 Truckee,Ca. 96160 ATTN:Chris Brouwers 3.6A- F550 Cab/Chassis 44 165" Wheelbase Base Price $27,034.00 A/T Tires 208.00 Upfitter Switches 104.00 4.88 Limited Slip 291 .00 Payload Plus Upgrade 959.00 Molded Black Cab Steps 307.00 Engine Block Heater 62.00 Trailer Brake Controller 191.00 Skid Plate 83.00 165" Wheelbase 228.00 Diagnostic Hardware 500.00 Four Wheel Drive 3,428.00 TOTAL AMOUNT -- $g3,395.00 THAN Bill Fletcher Jones West Ford 775-829-3207 Z0/Z0 39Vd 133-U 3Mf P9666Z89LL S6:80 0Z0Z/00/ZZ Attachment 2 6 W E V R ! L E "�' To: Chris Brouwers Truckee Donner P UD Re: Vehicle Purchase 2011 Champion Chevrolet will honor the bid price of $34,928.00 (excluding any taxes/license/title fees) for a 011 Chevrolet Silverado outlined in the 2010 Vehicle Purchase Bid. Thanks, Kyle Outland Fleet Sales 800 Kietzke Lane * Reno, Nevada 89502-2095 P.O. Box 7277 • Reno, Nevada 89510-7277 • (775) 786-3111 * Fax(775) 786-4397 www.championchevroletreno.com 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 g I X DELIVERY DATE If the bid is awarded to me, I will deliver the vehicle within J- 0 calendar days after receiving formal notice of the award of the bid. Proposal submitted by: Slgnature and title Name,address and telephone Number of bidder: Champion Chevrolet $OD t-,V 414V 8tSoZ 13