5.1. ERMUSR 03-20-2012 - Laserfiche WebLink

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Elk River Municipal U 13069 Orono Parkway • P.O. Box 430 Elk River, MN 5 5 3 30-04 3 0 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 www. elkriveruti li ti es. com TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. -Utilities Director John Dietz -Chair Daryl Thompson -Vice Chair Al Nadeau -Trustee MEETING DATE: AGENDA ITEM NUMBER: March 20, 2012 5.1 SUBJECT: Review and Consider 2012 Purchase of Bucket Truck BACKGROUND: As part of the 2012 Budget process, the Commission and Staff review the vehicle replacements and replacement postponements. Included in this review was the analysis to replace our Bucket Truck #5. The estimated replacement cost at that time was $175,000. This was included in the 2012 Budget which was approved by the Commission on December 13, 2011. DISCUSSION: This type of equipment is not available through the Minnesota State Bids. However, National Joint Power Alliance (NJPA) is a government service cooperative that had been created through MN Stature 123A.21 and they have government contracts for this type of construction equipment. This agency provides a similar service as the Minnesota State Bids and is enable to do so by MN Statue 471.59 and 471.345. Altec has the contract with NJPA for this type of equipment. The quote on the replacement bucket truck was $199,329.00 and the trade in for Bucket Truck #5 is $20,000. The net cost for the new bucket truck is $179,329.00 which exceeds the budgeted amount by $4,329. The overage would be a reduction to the electric department's capital equipment /construction budget which for 2012 is $2,038,300.00. Attached is the quote from Altec. ACTION REQUESTED: Staff recommends approval of the purchase of the bucket truck and trade in of Bucket Truck #5 from Altec for the net amount of $179,329.00 s vowteta er MATURE P a ... ~. z T 5~ x i