City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: June 21, 2022
ITEM NO: 5.5
SUBJECT: Authorize the Purchase in the amount of $141,448; Award Contract to Custom Truck One Source for a Bucket Chipper Combo Truck; and Approve a Budget Adjustment in the amount of $11,448.
RECOMMENDATION
Authorize the Purchase in the amount of $141,448; Award Contract to Custom Truck One Source for a Bucket Chipper Combo Truck; and Approve a Budget Adjustment in the amount of $11,448.
BACKGROUND
The city received the following three quotes for a Bucket Chipper Truck:
Vendor Cost Delivery
1) Custom Truck One Source $136,948.00 1
st Quarter of 2023**
2) Versalift Forestry $137,500.00 Late 2023/Early 2024
3) Precision Truck & Equip. $162,544.45 Late 2023/Early 2024 **Includes sales tax and shipping/freight.
Staff is recommending Custom Truck One Source due to the lead time for delivery. Currently, the shortage of chips for vehicles due to the pandemic has impacted the lead times for the combo truck. However, Custom Truck One Source is able to deliver the unit in the beginning of 2023.
The other vendors would not be able to deliver until the end of 2023.
This unit is being purchased out of state. Although it is a brand new unit, all RAMs, Fords and Chevys are all carb compliant without modification. In addition, the unit is built with a 2022 chassis, and the CARB fee is only applicable to 2023 models. However, staff is recommending that we add in $4,500 in case the regulations change between purchase and delivery timeframes.
If it is not required, there will be a savings of $4,500.
FISCAL IMPACT
This item was approved in FY 21/22 Mid-Year Budget for the amount of $130,000.00 (Account #600-790-7560, and paid for using 50% Garbage Funds, 10% LMDs, 10% Maintenance CFDs, and 30% General Fund) for the Bucket Chipper Combo Truck. However, the extra cost included in the price is for freight and staff is requesting approval for a budget adjustment to cover the difference of $11,448, using the same budget allocation.