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NJ A T T R F N F R G Y L RIVERSIDE PUBLIC UTILITIES .�19& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 24, 2018 ITEM NO: 6 SUBJECT: PURCHASE TWO FORKLIFT TRUCKS MODEL NUMBERS 25L -7A, AND 20BRP-9, FROM SELECT EQUIPMENT SALES, INC., BUENA PARK, CALIFORNIA, IN ACCORDANCE WITH PURCHASING RESOLUTION 23256, SECTION 602 (e) IN AN ESTIMATED AMOUNT OF $66,860.93 ISSUE: Approve the purchase of two forklift trucks; model numbers 25L -7A and 20BPR-9, from Select Equipment Sales, Inc. of Buena Park, California, for the Public Utilities Central Stores Division in an estimated amount of $66,860.93. RECOMMENDATION: That the Board of Public Utilities approve the purchase with Select Equipment Sales, Inc., Buena Park, California, for two forklift trucks for Public Utilities, Central Stores Division in an estimated amount of $66,860.93. BACKGROUND: The City's Central Stores Division is a separate fund of the City (Fund 640). Public Utilities Department, being the largest user of Central Stores, is the custodian and manager of materials and equipment that are vital for many of the day-to-day operations of the City. Central Stores provides storage and delivery services to the City of Riverside, Riverside Public Utilities, Riverside Police Department, and Riverside Fire Department Costs are charged based on inventory use by each respective department. In order to maintain the smooth operation of the Division and to continue to provide an efficient service to these departments, Central Stores needs to have functioning and reliable forklift truck equipment to complete these essential daily tasks. DISCUSSION: As part of its remit, Public Utilities Central Stores Division (Stores) manages a wide range of assets that are required, on a daily basis, by a breadth of internal customers. Central Stores currently has three forklift trucks, including one rental vehicle however, a number of factors have contributed to the need for replacement vehicles. The two forklift trucks that Stores owns are extremely outdated, with the newest being 15 years old and the oldest truck over 20 years old. It is generally accepted as an industry standard, that these types of vehicles should be functional for in the region of 12,000 hours (approximately 6 years), so at 15 and 20 years old respectively, these are beyond what would typically be considered a useful life. As a result, they are becoming increasingly economically burdensome, as they are costing in excess of $2,000 in repairs every quarter. In March 2018, the third truck was removed from service as it was deemed unsafe due to air quality issues. In the interim, Stores has been obliged to lease a replacement vehicle Page 11