CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 24-121, Digger Derrick Line Truck Vehicle Replacements, to Altec Industries, Inc., for an amount not to exceed $1,373,024 and for a one-time purchase
body
DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The fleet units listed below were reviewed and approved by the Fleet Economic Committee and Fleet Services Manager for replacement in the 2024 budget. Vehicles are scored for replacement based on four criteria: age, usage, condition and repair costs. Recommending a vehicle for replacement requires a score of 28.0 or greater.
|
Unit # |
Year/Make/Model |
Division |
Score |
|
007 |
2005 International 4400 Altec Digger Derrick |
Distribution |
40.54 |
|
010 |
2000 Freightliner FL70 Altec Digger Derrick |
Distribution |
39.49 |
|
031 |
2005 International 4400 Altec Digger Derrick |
Distribution |
45.24 |
|
032 |
2002 Sterling M7500 Altec Digger Derrick |
Distribution |
40.05 |
DISCUSSION:
The units listed above in the background are used daily by the Electric Utility - Distribution Division to install/set electric equipment, such as transformers and poles.
The units will be replaced with 2024 Altec DH50 Digger-Derricks specified identically to maintain fleet and operational conformity. The new vehicles are available on the Sourcewell Cooperative, an approved cooperative through Altec Industries, Inc., Contract #110421-ALT. The cooperative contract has an expiration date of December 27, 2025.
The four retired vehicles will be traded into Altec Industries, Inc.
Using the City’s specifications, Altec Industries, Inc. has quoted the 2024 Altec DH50 Digger Derricks in the amount of $343,831 per unit (totaling $1,373,024 for four units); a cost breakdown is provided below:
|
Sourcewell Price |
Less Trade-Ins |
Net Price |
|
$1,405,524 |
$32,500 |
$1,373,024 |
The vehicles will be delivered in approximately six months. The term is from the date of award through December 31, 2024.
FISCAL IMPACT:
CIP#: VE24-007, VE24-010, VE24-031, VE24-032
Vehicle replacements for the Electric Utility are expensed to the Vehicles and Equipment the account listed below. The Electric Utility budgeted $1,392,000 to replace the listed Digger Derrick Line Trucks in 2024. The requested award is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551505 |
Electric Utility Fund |
$2,186,000 |