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Home My WebLink About _ 4.5(b)--Approve the Second Amendment Purchase Price for REU Line and Inspector Trucks � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: May 21,2024 FROM: Nick Zettel, Director of ITEIVI NO. 4.5(b) Redding Electric I7tility ***APPROVED BY*** � ��. ; � _ � v �� „ �� 1c ct c, yrectc� �ii' e in� tri�ttt32ity 5,'1�"?t�2� rS' �P�tt�,C�i ��t t� ^��'��,{'2{}? nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(b)--Authorize an Increase to the Purchase Price for Three A1tec Underground Line Trucks and Two Altec Ins ector Trucks Recommendation Approve an increase of$39,63$.00, from $868,863.41 to $908,501.41, to the purchase price for three underground line trucks (Trucks E440, E441, & E444) and two inspector trucks (Trucks E442 & E443) for the City of Redding Electric Utility which includes shipping from the Altec Facility in North Carolina to the City of Redding Corporation Yard. Fiscal Impact The acquisition of these vehicles and the first amendment to the increase in purchase price were approved by the City Council on January 1�, 2023, and March 19, 2024, respectively. The City of Redding Electric Utility's (REU) Rolling Stock Fund has adequate funds to cover the additional cost of$39,638 for shipping the completed vehicles. Alternative Action The City Council (Council) could choose not to approve the increased cost for this purchase and provide alternative direction to staff. Backg�ound/Analysis On January 17, 2023, the Council approved the purchase of three Altec underground line trucks and two Altec underground inspector trucks through the Sourcewell cooperative agreement for $796,428.17. On March 19, 2024, the Council approved increasing the total purchase price for five trucks to $868,863.41 due to an increase in build costs. Shipping costs were not included in the additional increase. Report to Redding City Council May 14,Z024 Re: 4.5(b)--Approve the Second Amendment Purchase Price for REU Line and Inspector Trucks Page 2 Based on past practice, REU planned for staff to transport the vehicles from the N�orth Carolina location to Dixon, CA for final outfitting. However, upon receiving a quote for shipping, staff has determined that shipping the vehicles is a lower cost option due to fuel costs, labor costs, and unnecessary mileage on the new trucks. Altec will transport the vehicles via flatbed trucks from the manufacturer's location in North Carolina to Altec in Dixon, CA, where additional outfitting will be done. Once the vehicles are complete, Altec will transport them to the City of Redding Corporation Yard. EnviNonmental Review This is not a project de�ned under California Environmental Quality Act, and no further action is required. Council PrioNity/City NfanageN Goals This agenda item is a routine operational item. Attachments Council Approved Purchase January 17, 2023 A1tec Shipping Quote May 2, 2024 Council Approved Price Increase March 19, 2024 � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: January 17, 2023 FROM: Nick Zettel, Director of ITEIVI NO. 4.5(c) Redding Electric I7tility ***APPROVED BY*** � ��. ; � _ � v �� „ �� :k ct c. ��yrectc� �it e in�� lric�ttti}ity 1.`5,?f��3 � � �p��t�,C`i �� t t�^ � I�`6,''2{}2�: nzettel@cityofredding.org� btippin@cityofredding.org SUBJECT: 4.5(c)--Purchase of three A1tec Underground Line Trucks and two Underground Ins ector Trucks Recommendation Authorize the purchase of three underground line trucks and two underground inspector trucks using Sourcewell contract pricing with Altec Tndustries, Inc., (Altec) at a cost of$'796,428.1'7 for Redding Electric Utility. Fiscal Impact The vehicle purchases were anticipatied, and adequate funding is available within Redding Electric Utility's (REU) Rolling Stock Fund (balance of approximately $3.7 million as of December 31, 2022). REU included funding for replacing all five of these vehicles in its adopted Rolling Stock Replacement Plan for the Fiscal Years 2021-23 at an estimated cost of $547,000, or approximately $250,000 less than the quoted replacement cost. Since the budgetary estimates were developed, there has been a significant industry-wide increase in pricing, resulting in replacement costs far outpacing calculations based on pre-COVID inflationary metrics. REU will likely propose increased funding for its Rolling Stock Replacement Plan as part of the Fiscal Year 2023-2025 biennial budget process. At that time, the long-term financial impacts of these, and other replacements, will be considered. Alternative Action The City Council could choose not to approve the purchase and provide alternative direction to staff. Backg�ound/Analysis REU has three undergraund line trucks (E440, E441, and E444) that are u�ilized for underground distribution line work and two underground inspector trucks (E443 and E442) that are utilized Packet Pg.305 Report to Redding City Council January 9,2023 Re: 4.5(c)--Purchase of three Altec Underground Line Trucks and two Underground Inspector Trucks Page 2 for underground inspections and repairs. These five underground trucks meet the vehicle replacement guidelines set by the City of Redding F1eet Division. The Fleet Division's guidelines take into consideration the vehicle's age, mileage, usage hours, and maintenance costs. The replacement of these trucks is a part of REU's vehicle replacement plan. A1tec participates in a cooperative agreement with Sourcewell, formerly known as the National J�oint Powers Alliance, as the result of a competitive bid process. In addition to being an industry standard, using the Sourcewell contract to purchase equipment saves significant staff time needed to prepare bid specifications and solicit individual quotations from vendors. The City of Redding also receives a significant price discount due to economies of scale realized through the volume of purchases on a multi-agency cooperative contract. Envi�^onmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council PrioNity/City Manage� Goals This agenda item is a routine operational item. Attachments A1tec Industries, Inc. Quote—Replacement Underground Inspector Truck A1tec Industries, Inc. Quote—Replacement Underground Inspector Truck w crane Altec Industries, Inc. Quote—Three Replacement Underground Line Trucks Rolling Stock Request- Replacement Underground Inspector Truck w crane Rolling Stock Request- Three Replacement Underground Line Trucks Packet Pg.30� '� Quote Number: 1038050 t ; Opportunity Number: 1652581 Altec Industries,Ina Sourceweli Contract#: 110421-A�T Date: 5/2/2024 Quoted for.City of Redding(CA) Customer Contact: Phone: / Email: Quoted by:Corbi�Reavis Phone:707-689-6262 / Emaii: rhawnie.kraak@altec.com Aitec Account Manager:Rhawnie Kraak Sourcewell REFERENCE ALTEC MODEL Price (A.) SOURCEWELL OPTIONS ON CONTRACT(Unit) 1 2 3 4 A1. SOURCEWEL�OPTIONS ON CONTRACT General 1 2 3 4 5 6 7 8 9 10 SOURCEWELL OPTIONS TOTAL: $� B. OPEN MARKET ITEMS Customer Re uested 1 UNIT 2 UNIT&HYDRAU�IC ACC 3 BODY 4 BODY&CHASSIS ACC 5 ELECTRICA� 6 FINISHING 7 CHASSIS 8 OTHER OPEN MARKET OPTIONS TOTAL: C. ADDITIONAL ITEMS items are not included i�total above 1 2 3 4 "Pricing vaiid for 45 days" NOTES PRICING:Aitec will make every effort to honor this quotation,subject to the following provisions.Prices for equipment with production start dates 12 months and beyond are budgetary oniy due to irregular cost inflation and market volatility.These prices wili be reviewed based on market conditions and confirmed cioser to the production date.Quotes and orders with chassis model year beyond the current open order bank,shouid be considered estimates only.Altec's turn-key pricing is subject to change in accordance with chassis pricing received from the OEM.Chassis model year,specifications and price will be reviewed and confirmed when specific modei year information becomes available from the OEM and that chassis price difference wiil be passed through to the customer. PAINT COLOR: White to match chassis,unless otherwise specified WARRANTY:Standard Altec Warranty for Aerials and Derricks-One(1)year parts warranty One(1)year labor warranty Ninety(90) TO ORDER: To order,please contact the Altec Account Manager listed above. CHASSIS:Per Altec Commercial Standard DELIVERY: No later than months ARO,FOB Customer Location TERMS: Net 30 days BEST VA�UE: Altec boasts the foliowing"Best Value"features:Altec ISO Grip Controls for Extra Protection,Only�ifetime Warranty on Structural Compo�ents in I�dustry,Largest Service Network in Industry(Domestic and Overseas),Aitec SENTRY We6/CD Based Training,Dedicated/Direct Gov't Sales Manager,In-Service Training with Every Order. TRADE-IN:Please ask your Altec Account Manager for more information BUILD LOCATION: Flatbed Driveaway Sourcewell(2 per flatbed) � � � � � � � � '� ' � � � � ' � CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: March 19,2024 FROM: Nick Zettel, Director of ITEM NO. 4.5(a) Redding Electric Utility x**APPROVED BY**x .,'�°°' � �`"�.�.� � � �� . . �.,.w.uA . ��., �5 � � : `ck e�te, �rrectc� csf c; i��* ts�ic[JtiCicy 3tt�/?t>2� .' ip��r�,Ci 9ana�,e� �il��"2(}2- nzettel@eityofredding.org btippin@cityofredding.org SUBJECT: 4.5(a)--Approve the First Amendment to the Purchase Price of Three Altec Underground Line Trucks and Two Altec Inspector Trucks Recommendation Authorize price inereases to the previously approved purchase price of $796,428.17 to $868,863.41 for three underground line trucks (Trucks E440, E441, & E444) and two inspector trucks (Trucks E442 &E443) for the City of Redding Electric Utility: (1) Authorize a $54,185.58 increase far the three underground line trucks through Altec Industries, Inc. using Sourcewell contract pricing with a new net delivered cost of $473,826.36, including all applicable taxes and fees; (2) Authorize an $18,249.66 increase for the two inspector trucks through Altec Industries, Inc. using Sourcewell contract pricing with a new net delivered cost of $395,037.05, including all applicable taxes and fees; and (3) Authorize the City Manager to approve future pricing adjustments, terms, and policy changes as needed up to $12,500.00 for all five vehicles. Fiscal Impact On January 17, 2023, the City Council (Council) appraved Redding Electric Utility (REU) to purchase three underground line trucks and two underground inspector trucks at a total cost of $796,428.17. Following the order, there were modifications and changes in the Sourcewell Cooperative Agreement priees, requiring an eXtra $72,43524. REU's Rolling Stock Fund has adequate funds to cover this price increase. Alternative Actzon The Council could chaase not to apprave the increased cost for this purchase and provide alternative direction to staff. P"acket Pg. 102 Report to Redding City Council March 8, 2024 Re: 4.5(a)--FirstAmendment-Increased Purchase Price of REU Line Trucks Page 2 Background/Analysis On January 17, 2023, the Council approved the purchase of three Altec underground line trucks and two A1tec underground inspector trucks through the Sourcewell Cooperative Agreement, totaling $796,428.17. Since the initial approval, there have been adjustments to the pricing of the trucks due to vendor price increases, and modifications have been requested to meet specific requirements. REU sought a conversion from gas engines to diesel engines for the three underground trucks to ensure the vehicle life coincides with planned usage, coinciding with Ford's manufacturer year model price escalation. Similarly, the two Altec underground inspector trucks experienced a price increase associated with the Ford manufacturer year model update. Consequently, the collective adjustment for all five trucks amounts to $72,435.24. Over the past two years, REU has observed a substantial surge in vehicle prices and extended delivery times, ranging from two to four years. Occasionally, vehicle prices for future years can experience increases in the material price. In response to these challenges, REU aims to proactively i.nitiate vehicle orders ahead of theix scheduled replacement year to ensure the continuous functionality of the fleet. REU will consistently monitor and assess the financial implications of each vehicle purchase to guarantee sufficient funding within the Rolling Stock Fund. Environmental Review This is not a project defined under California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments ^Altec Quote 1038048 - Updated 02-09-2024 Original Staff Report - January 17, 2023 PUR000041 - PO 115081 01-18-23 - Q1038050 - E440-E441-E444 Large Canopy - Lead Time 16-20mo PUR000042 -PO 115082 01-18-23 - Q1038048 - E443 - Crane - Lead Time 16-20mo PUR000043 -PO 115083 01-1&23 - Q1038049 - E442 Non-Crane - Lead Time 16-20mo F'acket Pg. 103