Title
Approval of Budget Revision No. 26-69 in the Amount of $550,000.00 and Approval for the Placement of an Order for a Vactor in the Amount of $549,720.28
Recommended Action
I move that the Board of Public Utilities recommend approval of Budget Revision No. 26-69 in the amount of $550,000.00. I further move that the Board recommend the placement of an order for a Vactor in the amount of $549,720.28 plus applicable NM Gross Receipts Tax and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
This request is for a revision to the FY26 budget to encumber funds that have been approved for FY27 to place an order for a new flushing and utility-scale hydro-vacuum unit (a.k.a. “vactor”.) The vactor unit is the most heavily utilized piece of equipment in not only GWS operations, but also Water Production, Wastewater Treatment, and Electric Distribution.
It is essentially the “Swiss Army Knife” of heavy equipment and has become essential in so many processes. In performing reviews of workflow efficiency, the most recurring theme is that all operations can be improved with a modern, well-functioning vactor unit with specific accessories specified by the GWS operators who understand all of their work challenges. The vactor covers all sewer maintenance workflows, waterline break support, hydro-vac excavation around gas and power lines, and even as support to Public Works to perform emergency storm drain clearing work.
GWS Operations has one functional vactor, with another one that became inoperable last year and needs to be retired through the asset retirement process. This new vactor unit will replace that old unit, and will greatly increase GWS productivity.
Alternatives
The alternative is to not approve the budget revision, which will result in delays to order and receive a new replacement unit. Prices are set to increase considerably, and new DEF engineering rules will be a factor in the unit specifications, increasing purchase costs.
Fiscal and Staff Impact/Planned Item
The FY26 budget will encumber the funds for the purchase of the unit, but it will not actually impact the budget until the invoice is received in FY27, in which the vactor is budgeted as a line item.
Attachments
A - Budget Revision No. 26-69
B - Vac-Con Quote No. 113902