Laserfiche WebLink
M! A i F R E N E R G Y L I F E <br />RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />P U B L I C U T I L I T I E S <br />BOARD OF PUBLIC UTILITIES <br />DATE: JULY 26, 2021 <br />SUBJECT: SECOND RENTAL PAYMENT EXTENSION TO ALTEC INDUSTRIES, INC. FOR <br />AN ESTIMATED TOTAL EXPENDITRURE OF $64,255.52 <br />ISSUE: <br />Consider approval of a second rental payment extension to Altec Industries, Inc. for an estimated <br />total expenditure of $64,255.52 in Fiscal Year 2021/22. <br />RECOMMENDATION: <br />That the Board of Public Utilities approve the second rental payment extension to Altec Industries, <br />Inc. of Birmingham, Alabama, for an estimated total expenditure of $64,255.52 in Fiscal Year <br />2021/22. <br />BACKGROUND: <br />Riverside Public Utilities (RPU) uses a variety of vehicles to enable crews to maintain a reliable <br />electric service to its customers. These vehicles need to be in safe, operable condition and <br />compliant with state and local emissions regulations. To ensure operating efficiency, employee <br />productivity, and public safety, vehicles that are reaching the end of their economic and useful life <br />need to be replaced. <br />On February 3, 2012, the Board of Public Utilities approved the lease of six Altec vehicles for a <br />seven-year term in the amount of $2,321,689. Under the terms of the Lease, the City could <br />continue to lease the vehicles on a month-to-month basis. The lease terms for each vehicle <br />expired on May 1, 2020 and July 1, 2020. <br />In anticipation of the leases ending, on November 25, 2019, the Board of Public Utilities approved <br />the purchase of six vehicles from Terex Utilities, Inc. (Terex) to replace the Altec Vehicles that <br />were at the end of their original seven-year lease. Build time after purchase typically takes <br />approximately nine to 11 months. RPU issued a change order on the original lease agreement <br />with Altec in the amount of $168,078.15 in order to lease the six vehicles from Altec for an <br />estimated additional six months beyond lease expiration to allow time for the replacement vehicles <br />to be built and delivered. <br />RPU received two vehicles in October and December of 2020. However, due to Covid-19, Terex <br />experienced a delay in obtaining parts needed to build the remaining four of the replacement <br />