01-25-2021 BPU RPT 07 - Laserfiche WebLink

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W A T E R E N E R F. V I T F F RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 25, 2021 SUBJECT: RENTAL PAYMENT EXTENSION TO ALTEC INDUSTRIES, INC. FOR AN ESTIMATED TOTAL EXPENDITURE OF $124,293.30. ISSUE: Consider approval of rental payment extension to Altec Industries, Inc. for an estimated total expenditure of $124,293.30 in Fiscal Year 2020/21. RECOMMENDATION: That the Board of Public Utilities approve the rental payment extension to Altec Industries, Inc. of Birmingham, Alabama, for an estimated total expenditure of $124,293.30 in Fiscal Year 2020/21. BACKGROUND: Riverside Public Utilities (RPU) uses a variety of vehicles to enable crews to maintain a 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 are reaching the end of their economic and useful life need to be replaced. On February 3, 2012, the Board of Public Utilities approved the lease of six Altec vehicles for a seven-year term in the amount of $2,321,689. Under the terms of the Lease, the City could continue to lease the vehicles on a month-to-month basis. The lease terms for each vehicle expired on May 1, 2020 and July 1, 2020, and a purchase order in the amount of $168,078.15, under 10% of the original lease amount, was established to continue to rent these vehicles from Altec until replacements were built and delivered. On November 25, 2019, the Board of Public utilities approved the purchase of six vehicles from Terex Utilities, Inc. (Terex) to replace the Altec vehicles that were at the end of their original seven- year lease. Build time after purchase takes approximately nine to 11 months. Due to Covid-19, Terex has experienced a delay in obtaining parts needed to build four of the replacement vehicles, therefore delivery time has now been delayed approximately six months, until July 2021.