Discussion and possible action on any and all matters regarding a settlement agreement with Spartan Truck Company, Inc., regarding an inoperable solid waste truck.  (Eulogio Vera, Public Works Director)

In 2022, the city purchased a solid waste truck from RWC International.  Due to the COVID-19 pandemic, which caused supply chain disruptions, the manufacturer of solid waste trucks was affected.  The shortage of solid waste trucks on the market continued into 2022.  The Public Works Department was unable to find the usual reliable brands of trucks on the market.  Also, anything that came up on the market was high-priced.  A vendor that the city used regularly, RWC International, had an unfamiliar brand of truck available, Dennis Eagle.  The side-loading packer for the truck was a familiar and reliable brand, Spartan Truck Company.  However, despite numerous attempts and expert diagnostics, the combination never proved effective.  The truck was inoperable and was never able to complete a single route.

Once it was clear that nothing was working to make the truck operable, the city refused delivery.  Later, the city sent a demand to RWC International (the seller), Dennis Eagle (the truck company), and Spartan (the side loader packer company).  Spartan offered to settle, basically by buying the truck.  The settlement is for $220,000.00, which is in line with today's prices for a similar truck. Spartan will also arrange for and pay for the tow to Casa Grande, Arizona.  Credit goes to Spartan, our Outside Counsel, Ashley and Denis Fitzgibbons, and the leadership team in Public Works.

Attached is the settlement agreement signed by Spartan.