03-01-2013 BPU RPT 02 - Laserfiche WebLink

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W A T E R E N E R G Y l k F E I- W& RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: March 1, 2013 ITEM NO: 2 SUBJECT: INCREASE IN COST TO PURCHASE TWO NEW WATER UTILTY SERVICE VEHICLES ISSUE: The item for Board of Public Utilities consideration is approval of the increase in cost to purchase two utility service vehicles for the Water Field Division. RECOMMENDATIONS: That the Board of Public Utilities: 1. Authorize the additional expenditure of $23,777.79 to cover an increase in cost to purchase one new Water Utility service truck for$166,277.79 (previously approved at$142,500); and 2. Authorize the additional expenditure of $6,247.99 to cover an increase in cost to purchase one replacement Water Utility valve turning truck for$166,247.99 (previously approved at$160,000). BACKGROUND: In the past, Water Division utility vehicles were based on F-650 trucks. A few years ago, F-650 trucks were no longer available and F-550 trucks were selected as the next best alternative. However, when a Water Division utility truck is fully loaded, its weight approaches the rated payload capacity forthe F-550 truck,which leads to excessive wear and tear to its suspension and braking systems. On October 7, 2011,the Board of Public Utilities approved the capital expenditure of$142,500 for one new Water Division utility service truck and$160,000 for one new Water Division utility valve turning truck. These estimates were based on the F-550 trucks. Since then,the F-650 class trucks have become available again. The F-650 truck is preferred due to its larger payload capacity which is better suited for the equipment and gear needed for the Water Division utility vehicles. The cost increases for upgrading to the F-650 trucks are $23,777.79 for the service truck and$6,247.99 for the valve turning truck,which is a total of$30,025.78 over the original estimate. The utility vehicles were selected through a competitive bid process— Bid Nos. 7112 and 7113. FISCAL IMPACT: The total cost to purchase the two utility vehicles is$332,495.78,which is an increase of$30,025.78 from the Board's prior approval. Sufficient funds are available in the Water Automotive Equipment Fund Account No. 6205000-462100. Prepared by: Todd Jorgenson, Interim Utilities Assistant General Manager-Water Approved by: David H.Wright, Utilities General Manager Approved by: Belinda J. Graham,Assistant City Manager Approved as to form: Gregory P. Priamos, City Attorney