Council action is requested to issue a purchase order to Altec Industries, Inc. (Altec), in the amount of $299,823.00, for a digger derrick for the Power and Light Department.

Council approval to issue a purchase order.

Power and Light is seeking approval for replacement of unit #5602, a digger derrick. This is a fleet replacement of an existing digger derrick.

Vehicle is assigned to the Transmission & Distribution Service department for constructing and maintaining the electric utility’s infrastructure. The operator station has a two joystick configuration and it is the only one of its kind in our fleet. The joysticks have been having trouble due to age with unexpected movement when they are engaged. There is also a learning curve if another operator has to use this machine and could pose a safety threat especially if they are unaware of the sticky joysticks. Maintenance cost incurred over the past year total $10,954.87 with a past 6 year maintenance cost of $59,340.42. Vehicle miles are 66,661 and hours used are 11,527. Vehicle replacement is recommended at 10,000 hours and will be well over that with the nearly 2 year lead time.

The purchase order, if approved, will be issued against the Sourcewell Contract #012418-ALT Cooperative bid agreement. The cooperative purchasing provisions of paragraph 5 of the Independence City Code allows for the purchase of items competitively bid by other governmental entities.

Approval of this item authorizes the Finance Director to issue change orders up to a total of ten (10) percent of the original authorized amount, so long as appropriations are available.

The fiscal impact to the City is $299,823.00. Funding for the digger derrick is included in the fiscal year 2021-22 adopted budget, page 179, account number F (6123.5404.1851).