HomeMy WebLinkAbout#8 Global Rental Company Contract AGENDA ITEM #8
Public Utility District m
MEETING DATE: June 5, 2024
TO: Board of Directors
FROM: Brian Yohn, General Services Manager
Michael Salmon, Chief Financial Officer
SUBJECT: Consideration to Approve the Procurement Contract With Global
Rental Company
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute a procurement contract with Global Rental
Company Inc. for the purchase of one (1) 2022 Ford F550 AT40G bucket truck in the
amount of $111,250, plus a 10% change order authorization, for a total not to exceed
contract amount of $122,375, plus any other taxes and fees that may apply.
BACKGROUND:
In February 2022, the Board of Directors approved the purchase of a second boom
truck for the fleet, with a quote provided by Altec Industries, Inc. The second boom
truck was ordered, with delivery unfortunately not anticipated until December 2025.
In February 2023, the Board of Directors approved the rental of a 2022 Ford F550
AT40G bucket truck for the Troubleman position in Electric Operations. The 2022 Ford
F550 AT40G rental was new when placed into service with the District, with mileage
accumulated and maintenance performed solely by District staff. The rental boom truck
appropriately equips the District's second Troubleman to provide safe and timely
electric utility service needs. The monthly rental cost is $3,200, plus taxes and
insurance, making the total $3,662.83 per month, with a new rental period beginning
February 1, 2023, with a monthly renewal option through December 31, 2025.
The District fleet currently operates with the following bucket trucks:
3 — Large bucket trucks — District owned
1 — Small bucket truck — District owned 2016 Ford F550 — currently 96,039 miles
1 — Small bucket truck — Rented — Recommended for buyout option
ANALYSIS AND BODY:
Global Rental Company, Inc. offers a Rental Purchase Option (RPO) for its rental
vehicles, which offers a 50% credit for rental expenses incurred within the first 12
months credited from the purchase price, and a 35% rental credit each month in
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subsequent years. The District will accumulate rental credits totaling $28,720 through
June 17, 2024, which can be applied to the purchase price of $139,970.00, for a rental
purchase buy out option of $111,250.00, plus taxes, registrations, and fees.
District owned vehicle no. 219, a 2016 Ford F550 Troubleman bucket truck, is a heavily
utilized vehicle and has a recommended useful life of 10 years or 100,000 miles.
Vehicle no. 219 is currently (8) eight years old, with 96,039 miles, and mileage is
expected to exceed 115,000 miles before its scheduled replacement in 2026. The
purchase of the 2022 Ford F550 AT40G from Global Rental Company, Inc. will advance
the fleet replacement of vehicle no. 219 to help the District support customer demand
until receipt of the 2025 Ford F550 Altec Custom SB40 bucket truck expected in late
2025.
Upon receipt of the new 2025 Troubleman truck, the District intends to retire vehicle no.
219 which permits surplus at public auction. The advancement of the purchase of the
rental AT40G from Global Rental Company, Inc. will help mitigate the long timelines
necessary to procure and build a new vehicle replacement for vehicle 219 in 2026 as
experienced during the procurement of the 2025 Ford F550 Altec Custom S1340, which
was ordered in February 2022.
Sourcewell, formerly the National Joint Purchasing Alliance, has identified Global
Rental Company, Inc. as a competitive bidder for Specialized Public Utility Equipment
through an RFP process. Section 3.08.060 of the District Code (Joint Purchasing with
the State of California and other public agencies) permits the District to take advantage
of other agencies' competitive procurement processes. Global Rental Company, Inc. is
a qualified Sourcewell vendor, with provided quotes consistent with District Code
requirements.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
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:
The purchase of 2022 Ford F550 AT40G rental vehicle for the Electric Department has
an estimated total cost of $111,250.00, plus a 10% change order authorization, for a
total not to exceed of $122,375, plus any other taxes and fees.
The Electric Vehicle Reserve Fund currently has sufficient funds for the expenditure
and expenditure was anticipated in the District's Financial Master Plan.
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ATTACHMENTS:
None
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