HomeMy WebLinkAboutResolutions - No. 2017-35RESOLUTION NO. 2017-35
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
PURCHASE THREE DIGGER/DERRICK TRUCKS FROM
ALTEC GLOBAL RENTAL COMPANY, INC., OF DIXON, AND
FURTHER APPROPRIATING FUNDS
WHEREAS, the Electric Utility (EU) maintains approximately 131 miles of overhead
electric lines and 122 miles of underground cable to provide safe and reliable electric service to
nearly 26,000 customers; and
WHEREAS, to deliver safe and reliable power, EU utilizes a specialized fleet of vehicles
to perform aerial and underground work; and
WHEREAS, digger/derrick trucks are needed for many tasks, some of which include
digging pole holes, setting and handling of poles, moving material, and pulling wire; in addition
to specialized work, digger/derrick trucks are up -fitted to perform work in and around energized
lines, resulting in additional maintenance requirements to protect employees from hazardous
energy; and
WHEREAS, Fleet Policy guidelines indicate a replacement schedule of ten years for
specialized digger/derrick units, of which EU currently has three; with one unit being placed in
service in July 2000 (No. 09-001) and two units placed in service in January 2005 (No. 09-010
and No. 09-011); and
WHEREAS, the three units are past their useful life, with truck No. 09-001 currently out
of service due to a malfunctioning fuel pump; and
WHEREAS, the California Air Resources Board requires each of the vehicles to be
outfitted with an aftermarket emissions system; two of the three units require the trucks to be
plugged into shore power to regenerate the emissions system, taking the vehicles out of service
during regeneration cycles, which are required every 8 to 32 hours; and
WHEREAS, the aftermarket emissions system on truck No. 09-011 has a questionable
status as the onboard diagnostics are misreporting and replacement parts are no longer
available as the manufacturer is out of business; and
WHEREAS, the current EU Capital Improvement Plan (CIP) outlines replacement of
each digger/derrick unit over the next three fiscal years beginning in FY 2017/18; and
WHEREAS, staff recommends the replacement of the three digger/derrick units in the
current fiscal year to avoid costly repairs that do not support additional auction value; and
accelerating the purchase of these units can be absorbed within the current budget
appropriations; and
WHEREAS, EU staff would typically utilize the vehicle purchase process to order
replacement units; however, to design, build, and take delivery of replacement units requires 12
to 18 months lead time; such a timeline impacts staff's ability to construct new development
projects, as well as the CIP work; and
WHEREAS, the purchase of prior fleet vehicles is an economical and timely option,
which results in lower costs to replace these units; and
WHEREAS, consistent with Lodi Municipal Code 3.20.070(5), staff recommends the bid
process be dispensed with and the City Manager be authorized to negotiate directly with Altec
Global Rental Company, Inc., for the purchase of three digger./derrick trucks from their rental
fleet.
WHEREAS, the tables below outline cost comparisons.
EU Truck
Cost -to -Date
In -Service Date
09-001
$49,674*
7/18/00
09-010
$58X982
1/20/05
09-011
$52,654
1/20/05
*Includes pending repair cost of $7,462.31.
Estimated
Altec Truck Retail Base Discount off Equipment Tax,
Number Fleet Price Model Price Base Retail % Additions License &
Fees
160-25069829 $T4-2,125 $185,000 23% 1 $20,000 1 16,225
094-30457872 $229,000 $315,000 1 27% 1 $20,000 j $25,000
094-29638284 $209,750 $315,000 1 33% 1 $20,000 1 $23,000
WHEREAS, staff further recommends that the City Council appropriate funds from
Electric Utility Capital in the amount of $705,100 for the purchase of these trucks.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the
City Manager to negotiate and purchase three digger/derrick trucks from Altec Global Rental
Company, Inc., of Dixon, California, in an amount not to exceed $705,000; and
BE IT FURTHER RESOLVED that funds in the amount of $705,100 be appropriated
from Electric Utility Capital for the purchase of the three trucks.
Dated: March 15, 2017
I hereby certify that Resolution No. 2017-35 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 15, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Nakanishi, and Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS — None
4ityNIFER . FERRAIOLO
Clerk
2017-35