HomeMy WebLinkAbout04.g. Authorize up to $400,000 to purchase a Vactor Jet-Rodder for Collection System ProgramCentral Contra Costa Sanitary District
BOARD OF DIRECTORS '
POSITION PAPER
Board Meeting Date: April 23, 2015
Subject., APPROVE TRANSFER OF FUNDS FROM THE FISCAL YEAR 2014 -15
CAPITAL IMPROVEMENTS COLLECTION SYSTEM PROGRAM
CONTINGENCY ACCOUNT TO THE VEHICLE AND EQUIPMENT
BUDGET, DISTRICT PROJECT 8215; AUTHORIZE THE GENERAL
MANAGER TO PURCHASE A VACTOR JET - RODDER
Submitted By. Initiating Dept✓Div.:
Don Rhoads, Field Operations Collection System Operations
Superintendent
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
P. Seitz — Division Manager w n %A,
A. Sasaki — Deputy General Manager
Roger S. Baile
General Manage
ISSUE: Board approval is needed to transfer funds between the Capital Improvement
Budget (CIB) program accounts, and to authorize the General Manager to purchase
equipment not in the Equipment Budget in excess of $50,000.
RECOMMENDATION: Approve transfer of $400,000 from the Fiscal Year (FY) 2014-
15 CIB Collection System Program Contingency account into the 2014 -15 Vehicle and
Equipment Budget, District Project 8215, General Improvements Program; and
authorize the General Manager to purchase a Vactor Jet - Rodder at an estimated cost of
$400,000.
FINANCIAL IMPACTS: The Collection System Program has $607,000 of available
Program Contingency remaining in the FY 2014 -15 CIB. Approval of this transfer of
funds will leave approximately $207,000 in the Collection System Contingency account.
Staff has reviewed the Collection System Program and projects and has determined
that the remaining contingency funds are adequate.
ALTERNATIVES /CONSIDERATIONS: Do not transfer the funds; do not authorize the
purchase of the Vactor Jet - Rodder.
BACKGROUND: The Fleet Services section of the Collection System Operations
Division began requesting the replacement of an existing unit during budgeting of the
FY 2013 -14 Equipment Budget. The unit was then approximately 16 years old and had
just met the replacement criteria outlined in the Vehicle Replacement Plan. The unit is
now approximately 17 years old and has had significantly more hours and miles placed
on its frame, equipment, and running gear. Budgetary constraints and larger than
expected Equipment Budget requests District -wide in previous years have necessitated
delaying replacement. With another constrained year ahead, finding funding for such a
large purchase is proving difficult. The existing unit value is estimated at $10,000 if sold
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POSITION PAPER
Board Meeting Date: April 23, 2015
Subject: APPROVE TRANSFER OF FUNDS FROM THE FISCAL YEAR 2014 -15
CAPITAL IMPROVEMENTS COLLECTION SYSTEM PROGRAM
CONTINGENCY ACCOUNT TO THE VEHICLE AND EQUIPMENT
REPLACEMENT PROJECT, DISTRICT PROJECT 8215; AUTHORIZE THE
GENERAL MANAGER TO PURCHASE A VACTOR JET - RODDER
at auction today. It is a concern that with its age, usage history, and condition that a
major component on the unit may fail which would require more than the unit's value to
get the unit up and running again. The monthly cost of renting a similar piece of
equipment is approximately $10,000. Another consideration is there is a significant
amount of lag time from the time of purchase to when the vehicle is actually received
and put into operation.
COMMITTEE RECOMMENDATION: Staff announced that this matter will be reviewed
by the Engineering & Operation Committee at its next meeting; however, the Committee
recommended that it be placed on a Board agenda for action.
RECOMMENDED BOARD ACTION: Approve transfer of $400,000 from the FY 2014-
15 CIB Collection System Program Contingency account into the FY 2014 -15 Vehicle
and Equipment Budget, District Project 8215, General Improvements Program; and
authorize the General Manager to purchase a Vactor Jet - Rodder at an estimated cost of
$400,000.
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