Staff recommends the City Council approve purchase of a Front-Load truck from SWS Equipment, LLC in the amount of $358,370.76.

The purchase of three front load collection trucks is included in the approved FY23 Equipment Replacement Plan and FY23 Solid Waste budget. At the 9/26/22 business meeting, Council approved the purchase of two of the front-load collection trucks.  This agenda item will complete the purchases for front-load collection trucks for FY23.  This truck will be equipped with a Crane Carrier chassis with a Newway trash body.  The front-load fleet is all Newway bodies except for two trucks. This Crane Carrier chassis is available now which means Solid Waste would receive a truck in service by the summer of 2023. Utilizing Sourcewell and taking advantage of this opportunity with this chassis will result in getting the truck at least a year sooner than if the truck was bid. 

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 truck.

City Council may:

• Approve purchasing the front-load collection truck through Sourcewell; or,
• Not approve the purchase. If the purchase is not approved, staff will need to bid the truck, resulting in a 2 year delay before receiving the new collection truck.  

The truck is budgeted in FY23 using Solid Waste funds. The purchase price of $358,370.76 is about $3,000 more than what is budgeted. The difference between the budget and the cost of the truck will be made up by delaying other equipment or finding savings when purchasing other equipment.