02-27-2023 BPU RPT 13 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES P U B L I C U T I L I T I E S Board Memorandum BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 27, 2023 SUBJECT: VEHICLE PURCHASE ORDERS WITH ALTEC CAPITAL SERVICES, LLC FOR TWELVE REPLACEMENT VEHICLES IN THE AMOUNT OF $4,710,868, WITH ANNUAL SERVICE AGREEMENTS OF $100,000 FOR A TERM OF TEN YEARS — SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $3,210,868 ISSUES: Consider approval of vehicle purchase orders with Altec Capital Services, L.L.C. for twelve replacement vehicles in the amount of $4,710,868, plus annual service agreements of $100,000 for a term of ten (10) years; and authorize a supplemental appropriation in the amount of $3,210,868 from the Electric Fund Undesignated Reserves. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve vehicle purchase orders with Altec Capital Services, L.L.C. for 12 replacement vehicles in the amount of $4,710,868, plus annual service agreements of $100,000 for the term of ten (10) years; 2. Authorize a supplemental appropriation in the amount of $3,210,868 from the Electric Fund Undesignated Reserves and appropriate expenditures in the same amount to the Electric Field Automotive Equipment Account No. 6105000-462100; and 3. Authorize the City Manager, or designee, to execute all documents and instruments necessary to complete the transactions, including making minor, non -substantive changes. BACKGROUND: On June 21, 2022, the City Council approved the Fiscal Year 2022-2024 Biennial Budget which included $1.5 million for the Electric Operations and Field divisions to replace vehicles. There are currently nine existing work trucks that are leased from Altec Capital Services, L.L.C. ("Altec") and are approaching the end of their service life and lease period. One vehicle lease expired in November 2022 and the remaining eight leases expire in March 2023. Additionally, there are three City owned vehicles that have aged considerably requiring more frequent and costly maintenance; resulting in a recommendation to replace the vehicles earlier than regularly scheduled. Therefore, there are a total of 12 vehicles currently in need of replacement.