HomeMy WebLinkAbout#9 Fleet Vehicle Purchase AGENDA ITEM #9
Public Utility District m
MEETING DATE: August 7, 2024
TO: Board of Directors
FROM: Brian Yohn, General Services Manager
Michael Salmon, Chief Financial Officer
SUBJECT: Consideration of Approval for Procurement of Five Fleet Vehicles
and Declaration of Six Fleet Vehicles as Surplus for Sale at Public
Auction.
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
a) Authorize the General Manager to execute a contract with Champion Chevrolet for
the purchase of five (5) 2025 Chevrolet 2500HD Service trucks in the amount of
$428,226.25, plus a 10% change order authorization, or $42,822.63, for a total of
$471,048.88, plus taxes and fees.
b) Make a finding to declare vehicles 206, 308, 345, 306, 307, and 508 surplus and
authorize the General Manager to dispose of the vehicles at public auction, applying the
proceeds from the auction sale to the Water and Electric Department's Vehicle Reserve
Funds.
BACKGROUND:
Code section 3.08.060 — Joint Purchasing with the State of California and other Public
Agencies
Through analysis of the District Fleet, staff have identified vehicles reaching the end of
their useful life and meeting the qualifications for replacement due to exceeding ten
years of age and/or having mileage nearing or in excess of 100,000 miles.
The vehicles were included in the 2024/2025 Budget approval process, and are
scheduled and budgeted for replacement this year.
Additionally, reassignment of fleet vehicles offers the opportunity to reduce the fleet by
one vehicle, declare vehicle no. 508 surplus, and sell at public auction. While having
low mileage due to limited use, vehicle no. 508 is now one of the oldest vehicles in the
fleet.
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Vehicle 206 — 2012 Chevrolet K2500 Service body is 14 years old with 108,298 miles
Vehicle 308 — 2018 GMC K1500 pickup is 6 years old with 93,489 miles
Vehicle 345 — 2011 Chevrolet K2500 Service body is 13 years old with 130,213 miles
Vehicle 306 — 2013 GMCK2500 Service body is 11 years old with 96,434 miles
Vehicle 307 — 2013 GMC K2500 Service body is 11 years old with 89,890 miles
Vehicle 508 — 1997 GMC K2500 Pickup is 27 years old with 68,212 miles
ANALYSIS AND BODY:
Staff considered Zero Emissions Vehicle (ZEV) options for vehicle replacements.
However, ZEV's that can perform the functions that meet the District's needs are not
commercially available at this time. ZEV's in Class 2, greater than 8,500lbs GVWR are
not currently available with a four-wheel drive configuration.
Staff investigated several vehicle replacement options and determined the best fit
based on the needs of the District is a 2025 Chevrolet 2500HD Double cab 4x4 Service
body truck with factory applied Wheatland Yellow paint. Staff collaborated with utility
operations to develop vehicle specifications. They received a cost proposal from
Champion Chevrolet, with a cost of $85,645.25, plus taxes and fees for each vehicle.
On July 1, 2021, the State of Nevada competitively bid and awarded the Fleet Vehicle
Bid Number 99SWC-NV21-8903 to Champion Chevrolet in Reno, Nevada. The
Statewide Procurement contract period is July 1, 2021 — June 30, 2025. 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.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
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 FY24/25 Vehicle Reserve Fund Budget for the purchase of five (5) 2025 Chevrolet
2500HD Service trucks is $631,316.
Champion Chevrolet provided a cost proposal for the procurement of five 2025
Chevrolet 2500HD Double cab service trucks in the amount of $428,226.25, and a 10%
change order authorization, or $42,822.63, for a total of $471,048.88, plus taxes and
fees.
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The Vehicle Reserve Fund currently has sufficient funds for the scheduled vehicle
procurement. Consistent with budget's fleet replacement split, four of the five or
$376,839 are water fleet/reserve purchases and one of the five or $94,210 is an electric
fleet/reserve expenditure.
ATTACHMENTS:
None
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