03-11-2019 BPU RPT 07 - Laserfiche WebLink

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W A E E R ENERGY I LIFE . .- . w - 'i X RIVERSIDE PUBLIC UTILITIES =�J P U B L I C U T I L I T I F 5 Board Memorandum BOARD OF PUBLIC UTILITIES DATE: MARCH 11, 2019 ITEM NO: 7 SUBJECT: PURCHASE OF ONE TRAILER MOUNTED VACUUM EXCAVATOR IN LIEU OF THREE ARROW BOARDS, FOR USE BY THE WATER DIVISION FOR $77,575.15 ISSUE: Approve the purchase of one trailer mounted vacuum excavator, in the amount of $77,575.15, in lieu of three arrow boards, remaining within the previously authorized $2.3 million for new heavy equipment purchases by the Riverside Public Utilities Water Division. RECOMMENDATION: That the Board of Public Utilities approve the purchase of one trailer mounted vacuum excavator, in the amount of $77,575.15, in lieu of three arrow boards, remaining within the previously authorized $2.3 million for new heavy equipment purchases by the Riverside Public Utilities Water Division. BACKGROUND: Riverside Public Utilities (RPU) Water Division uses heavy equipment daily to provide safe and reliable water service to its customers. Heavy equipment needs to be in safe, operable condition, and compliant with state and local emissions regulations. Equipment, operating beyond its economic and useful life, needs to be replaced to ensure operating efficiency, employee productivity, and public safety. Aging equipment is more prone to significant mechanical failure, causing increased maintenance/repair costs and downtime for field employees during vehicle/equipment maintenance. On December 12, 2016, the RPU Board (Board) approved participation in the 2016 City Lease Bond Issuance for the purchase of RPU Water Division heavy equipment in an estimated amount of $2,300,000. On March 14, 2017, the Riverside City Council adopted a resolution approving a cooperative financing agreement with Banc of America Public Capital Corp in the amount up to $10,500,000 for the purchase of vehicles and equipment for Police, RPU, and Community and Economic Development, which included $2,300,000 for the purchase of RPU Water Division heavy equipment. On August 27, 2018, as part of that cooperative agreement, the Board approved the purchase of nineteen pieces of heavy equipment for the RPU Water Division in the total amount of $2,232,977. This equipment purchase enables Water Field crews to support the replacement of vital and critical aging infrastructure efficiently and in a timely manner. In addition, the proposed purchases are essential for the Water Division to support Utility 2.0 Capital Improvement Project (CIP) initiatives.