3.B.
San Luis Facility Development Corporation
- Meeting Date:
- 07/02/2024
- Department Head:
- Kay Macuil
- Submitted By:
- Janet Taylor, Legal Secretary, Attorney's Office
ITEM:
Discussion and possible action on any and all matters regarding using the Operating/Reserve/Repair/Contingency Account to reimburse for the purchase a new ice machine that has stopped working in the San Luis Regional Detention and Support Center. (David Rivas, Warden of the San Luis Regional Detention and Support Center)
SUMMARY:
The Detention Center's ice machine has stopped working. Due to the severe summer heat, LaSalle Corrections is requesting reimbursement for the purchase a new ice machine and get reimbursed from the Operating/Reserve/Repair/Contingency Account held by the Trustees at U.S. Bank. As of June 24, 2024, U.S. Bank provided a balance of $527,281.35 in the Operating Reserve/Repair/Contingency Account.
Quotes for the Ice Machine
1. The first quote is from Ice Machine Parts for $7,384.00.
The compressor's warranty is two (2) years, and there is no warranty for parts and labor. (The Quote is attached.)
2. The second quote is from Arizona Valley Refrigeration for $9,990.00
The compressor's warranty is five (5) years and one (1) year for parts and labor. (The Quote is attached.)
Option #2 from Arizona Valley Refrigeration is preferred due to having the Ice Machine in stock, the more extended warranty on the compressor by three (3) years, an additional warranty for parts and labor that the other company does not have, and the fact that they are a local company for any future repairs.
On Tuesday, June 25, 2024, Arizona Valley Refrigeration installed the ice machine. (They provided the attached invoice for $9,990.00 and noted warranties that all match their quote.)
If approved by this Board and the Trustees, the balance (not accounting for any new revenue after June 24, 2024) will be $517,291.35.
Aside:
In other updates, the U.S. Bank Vice President in charge of the bond indenture accounting is now Charles "Steve" Hodges. Keith Marshall retired this year. This month, the U.S. Bank Trustee, Zsamé Morgan, also left. The new Trustees are Bla Yang and Diana Lubega.
Quotes for the Ice Machine
1. The first quote is from Ice Machine Parts for $7,384.00.
The compressor's warranty is two (2) years, and there is no warranty for parts and labor. (The Quote is attached.)
2. The second quote is from Arizona Valley Refrigeration for $9,990.00
The compressor's warranty is five (5) years and one (1) year for parts and labor. (The Quote is attached.)
Option #2 from Arizona Valley Refrigeration is preferred due to having the Ice Machine in stock, the more extended warranty on the compressor by three (3) years, an additional warranty for parts and labor that the other company does not have, and the fact that they are a local company for any future repairs.
On Tuesday, June 25, 2024, Arizona Valley Refrigeration installed the ice machine. (They provided the attached invoice for $9,990.00 and noted warranties that all match their quote.)
If approved by this Board and the Trustees, the balance (not accounting for any new revenue after June 24, 2024) will be $517,291.35.
Aside:
In other updates, the U.S. Bank Vice President in charge of the bond indenture accounting is now Charles "Steve" Hodges. Keith Marshall retired this year. This month, the U.S. Bank Trustee, Zsamé Morgan, also left. The new Trustees are Bla Yang and Diana Lubega.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE REIMBURSEMENT OF A NEW ICE MACHINE PURCHASED FROM ARIZONA VALLEY REFRIGERATION IN AN AMOUNT NOT TO EXCEED $9,990.00.