04-22-2019 BPU RPT 07 - Laserfiche WebLink

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PJ A r F R F N F R c v L I F E RIVERSIDE PUBLIC UTILITIES W& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: APRIL 22, 2019 ITEM NO: 7 SUBJECT: PURCHASE THREE (3) VEHICLES FROM ALTEC INDUSTRIES, INC. IN AN ESTIMATED AMOUNT OF $657,377.97 ISSUE: Approve the purchase of three (3) vehicles from Altec Industries, Inc. in an estimated amount of $657,377.97. RECOMMENDATION: That the Board of Public Utilities approve the purchase of three (3) vehicles from Altec Industries, Inc. of Birmingham, Alabama, in accordance with Purchasing Resolution 23256, Section 602 (e) in an estimated amount of $657,377.97. BACKGROUND: Riverside Public Utilities (RPU) uses a variety of vehicles to enable crews to maintain reliable electric service to its customers, these vehicles need to be in safe, operable condition and compliant with state and local emissions regulations. To ensure operating efficiency, employee productivity, and public safety, vehicles that have reached the end of their economic and useful life need to be replaced in a timely manner. On February 3, 2012, the Board of Public Utilities (Board) approved a number of seven-year lease agreements with Altec Financial for a variety of vehicles including a Flatbed Truck, two (2) Lift Bucket Trucks, and four (4) Digger Derricks. These lease vehicles are reaching the end of their lease term and are beginning to require more frequent repairs for which RPU is responsible for the costs. RPU is proposing, in lieu of additional lease agreements, to purchase replacement vehicles for the three (3) vehicles listed below: Table A — Three of the Seven Vehicles Leased by Electric Field 2013-2020 VEHICLE ASSET # CHASSIS MODEL TOTAL COST LEASE END DATE 2012 Ford Flatbed F650 E417 F650 $ 74,673.00 April 1, 2020 2012 Ford Bucket F550 E419 AT37G $103,070.00 June 1, 2020 2013 Freightliner Digger Derrick E421 114SD $358,617.00 July 1, 2020