Staff recommends the City Council approve the purchase of two Automated Side-Load Collection trucks from Floyd's Truck Center in the amount of 837,812.

The purchase of two automated side-load collection trucks is included in the approved FY23 Equipment Replacement Plan and FY23 Solid Waste budget. Solid Waste is utilizing the Sourcewell cooperative contract for this purchase. These trucks will replace trucks with high mileage However, Public Works intends to retain the old trucks until the route optimalization project is complete, and it is determined if additional routes and trucks are needed. If we later find the trucks are not needed, the City will sell or trade the during the next truck purchase process.

Sourcewell is a relatively new tool to the city for use in procurement. Historically, the city has been allowed to use state contracts to procure items if it was beneficial to the city. The purchasing policy has been updated to allow cooperative agreements beyond just the state contracts. Staff evaluates the procurement options to determine which option is the most beneficial for the city. In this instance, using Sourcewell is more beneficial to the city than bidding the trucks.

City Council may:

• Approve purchasing the side-load collection trucks through Sourcewell; or,
• Not approve the purchase. If the purchase is not approved, staff will need to bid the trucks, resulting in an 18-24 month delay before receiving the new collection trucks.

The trucks are budgeted in FY23 using Solid Waste funds. The purchase price is approximately $75,000 more per truck than what is budgeted due to inflationary cost increases for equipment and deferring the trade-ins of the old trucks. The difference between the budget and the cost of the trucks will be made up by delaying other equipment or finding savings when purchasing other equipment.