02-03-2012 BPU RPT 08 - Laserfiche WebLink

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W A T E R E N E R G Y , i F RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: February 3, 2012 ITEM NO: 8 SUBJECT: ENERGY DELIVERY REPLACEMENT VEHICLE LEASES ISSUE: That the Board of Public Utilities consider approval of seven Lease Agreements with Altec Financial for four Derrick Line Trucks, two Man Lift Bucket Trucks and one Flat Bed Truck from Altec Industries. RECOMMENDATION: That the Board of Public Utilities approve seven Lease Agreements with Altec Financial for the lease of four Derrick Line Trucks,two Man Lift Bucket Trucks and one Flat Bed Truck from Altec Industries in an amount not-to-exceed $2,321,689 over the term of the seven year lease. BACKGROUND: The Electric Field Division identified the need to replace and add the following trucks to support construction and maintenance operations. Year Manufacturer Acme Unit ID Type 2002 Freightliner 11 E329 Overhead Digger Derrick Line Truck 2002 Freightliner 11 E330 Overhead Digger Derrick Line Truck Addition for staff added in FY 11/12 NA Overhead Digger Derrick Line Truck Addition for staff added in FY 11/12 NA Overhead Digger Derrick Line Truck Addition for staff added in FY 11/12 NA Man Lift Material Bucket Truck Addition for staff added in FY 11/12 NA Man Lift Bucket Truck Addition for staff added in FY 11/12 NA Flat Bed Truck Riverside Public Utilities (RPU) uses these vehicles daily to provide safe and reliable electric service to its customers. Vehicles need to be in safe operable condition and compliant with state and local emissions regulations. Vehicles at the end of their economic and useful life need to be timely replaced to ensure operating efficiency, employee productivity, and public safety. Vehicles operating beyond their economic life of 10 to 12 years need replacement. These aging vehicles suffer frequent breakdowns causing increased maintenance/repair costs, and downtime for field employees during vehicle maintenance by the Central Garage. Replacement parts are not readily available on these aging vehicles causing further repair delays. In addition to vehicle replacements five new vehicles are needed due to additional staff added in Fiscal Year 2011/12 and the existing workload.