Staff recommends purchasing two (2) automated side loader refuse trucks from Solid Waste Systems in the amount of $876,000.

In the fall of 2021, City Council awarded a contract for two side-load and one front-load garbage trucks to Billings Peterbilt.  Due to supply chain issues and price increases, the contract for these three trucks was mutually canceled in the fall of 2022 as Billings Peterbilt could not deliver the trucks.   Staff is recommending procurement of two of these trucks using the cooperative purchasing agreement (Sourcewell) as the pricing is similar to competitive bid pricing.  The purchase of the other truck was approved at the March 13, 2023 Council meeting. The new trucks are replacing existing units in the fleet and the older units will be retained to be used as spare trucks.

City Council may:

• Approve this purchase from Solid Waste Systems for $876,000 or,
• Not approve the purchase.  If the purchase is not approved, repair costs and equipment downtime will continue to increase.

The purchase of these trucks was budgeted in the FY22 budget.  However, the price per truck is approximately $80,000 higher than originally budgeted.  The funds for this purchase are available in the solid waste budget from the previous contract that was canceled and from other equipment deferrals.