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AGENDA ITEM REVIEW FORM |
6.F.
Special City Council Meeting
- Meeting Date:
- 07/19/2023
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding ratification of the purchase of a new 2023 Peterbilt Side Loader Truck with Scorpion body for the Public Works Department's Solid Waste Division. (Manuel Hernandez, Acting Assistant Public Works Director)
SUMMARY:
Back on July 14, 2021, Council approved the purchase of a new Side Loader truck from Rush Truck Centers in the amount of $330,587.00 with a delivery time of 330 days. Due to the Pandemic, supply chain issues and chips shortage this purchase got delayed multiple times pushing the delivery time to almost two years.
For FY23, the department of Public Works budgeted $410,000.00 to cover this purchase on such year upon delivery. As per communication with Rush Truck Centers, they informed us of an increase from Peterbilt (manufacturer) in the amount of $13,163.51. Rush Truck Centers has absorbed the additional flooring cost. Additionally, Staff was able to identify funds paying the purchase in cash rather than financing a loan as was originally presented.
The truck was delivered on the last week of June 2023 allowing no time for this item to be presented earlier for approval of the additional $13,163.51. Thus, the department of Public Works is seeking approval and ratification for the purchase of this truck with the added cost.
For FY23, the department of Public Works budgeted $410,000.00 to cover this purchase on such year upon delivery. As per communication with Rush Truck Centers, they informed us of an increase from Peterbilt (manufacturer) in the amount of $13,163.51. Rush Truck Centers has absorbed the additional flooring cost. Additionally, Staff was able to identify funds paying the purchase in cash rather than financing a loan as was originally presented.
The truck was delivered on the last week of June 2023 allowing no time for this item to be presented earlier for approval of the additional $13,163.51. Thus, the department of Public Works is seeking approval and ratification for the purchase of this truck with the added cost.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND RATIFY THE PURCHASE OF A NEW SOLID WASTE TRUCK WITH SCORPION BODY IN THE AMOUNT OF $343,751.11 FROM RUSH TRUCK CENTERS, FOR THE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $343,751.11
- BUDGETED AMOUNT:
- $410,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay Equipment 320-321-90000 / $410,668.13
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We budgeted $410,000 for the purchase of the side loader truck in FY 2023, hence we have budget capacity to cover for this increase. The purchase cost increased from $330,587 to $343,751.11 from what was presented to council for approval. The truck was delivered on the last week of June 2023 allowing no time for this item to be presented earlier for approval of the additional $13,163.51 of price increases/surcharges that Rush Truck Centers received from Peterbilt over the last two years. Rush Truck Centers has absorbed the additional flooring cost. Thus, the department of Public Works is presenting this purchase ratification item for approval of the additional truck cost.