HomeMy WebLinkAbout10 Purchase Surplus Vehicle Agenda Item # 10
Public Utility District
ACTION
To: Board of Directors
From: Steve Trevino
Date: September 011 2010
Subject: Consideration of an Award of Contract for Vehicle Purchase &
Surplus of Existing Vehicle
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for expenditures in excess of $15,000 and only the Board
can declare vehicles surplus.
2. HISTORY
In 2008, the District established an Electric and Water Vehicle Replacement Fund. For
Fiscal Year 11, the Electric Department budgeted for a replacement line truck (digger
derrick unit), replacing the existing 21 year old vehicle.
The existing line truck, Unit 10, is very costly to maintain due to the antiquated engine,
hydraulics and chassis. Parts are becoming more difficult to find and the engine is
under-powered for work and has become increasingly unreliable in the Truckee
environment. The outcome of the annually required dielectric testing of the boom is
uncertain. And the boom is showing signs of fatigue. Further, the existing diesel
engine no longer complies with the California Air Resources Board Standards. The
approximate cost to bring the engine into compliance is $18,000.00.
3. NEW INFORMATION
Staff utilized the services of the National Joint Powers Alliance (NJPA) to solicit and
bid the vehicle. The general purpose of NJPA is to create and host a national
municipal association purchasing alliance and bring the benefits of national volume
pricing to members.
Section 3.08.060 of the District's code permits the District to take advantage of other
agency's competitive procurement programs. Although Section 3.08.060(2) requires
the District to reimburse any charge made for purchasing services, there is no cost
through the NJPA.
On August 5th, 2010, the NJPA received the sole bid from Altec Industries, Inc. The
bid submitted met all the line truck specifications. The total cost of the unit is
$312,175.22 which includes State and Federal Excise Tax. This total cost includes the
$12,000.00 trade in value for Unit-10.
Although the vehicle is budgeted for the 2011 fiscal year, build-out of the chassis and
body requires up to 9 months to complete. Delivery is not expected until the second
quarter of 2011.
4. FISCAL IMPACT
$325,000 was budgeted for this vehicle. There are sufficient funds in the Vehicle
Replacement Fund for the purchase.
5. RECOMMENDATION
a) Award the purchase of the Altec Model # D3055-A Line Truck in the amount of
$312,175.22 to Altec Industries, Inc.
b) Authorize a transfer of $312,175.22 from the Electric Department Vehicle
Replacement Fund to the Electric General Fund.
c) Declare Unit-10 as surplus.
JP4�
Stephen Hollabaugh Michael D. Holley
Assistant General Manager General Manager