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7. Staff Report - Tandem Axle Plow Truck Purchase Approval Staff Report Date of Meeting: 8/2/2023 For: Mayor and City Council From: Charles Fischer – Director of Public Works Subject: Tandem Axle Plow Truck Purchase Approval Background: The Public Works 2011 Mack Granite Tandem Plow truck with Towmaster accessories is due for replacement in 2023 and was to be funded by 2023 Capital Improvement 406 Fund. Upon receiving quotes in January of 2023, Public Works was notified by the Mack truck distributor that they would not be able to supply a Cab/Chassis until the 2024 calendar year and updated pricing within the State Contract would not be available until later in the year(2023). Public Works continued to request a quote in January which was received with an anticipated delivery date of 2024 and estimated cost increase of 15% from the State Contract pricing available at that time. A new quote was received recently, attached within this document, which includes current State Contract pricing and falls below the original quote from January. The quote provided is only good through the end of August 2023, as there is another price increase set for September 1, 2023. The current truck to be replaced is used more than any other dump/plow truck within in the fleet. The purpose of the truck is not only for winter snow and ice removal, but used also as the main hauling truck for bulk material such as; gravel, soil, mulch, and tree debris from trimming or fallen trees. As this truck is consistently used year-round and has reached the end of the replacement cycle, Public Works is proposing replacing the current truck with a new truck with as close to or alike specifications based on current available options. Issue: Should Council approve the purchase of the Tandem Plow Truck and Accessories now with payment upon delivery in 2024. Proposal Details: Public Works seeks the approval to purchase a Mack Granite Tandem cab/chassis at a cost of $168,655.29 and installation of a dump body and plow equipment through Towmaster at a cost of $171,853.00. Fiscal Impact: Although the final budget for the 2024 calendar year is not complete, Public Works is requesting the approval of the purchase to be before any further price increase within the State Contract. Discussions between the Capital Investment Committee and Council have indicated the proposed 2024 budget consists of acquiring an Equipment Certificate for equipment purchases, which this purchase would be included. Options: Option 1: Approve the purchase of the Mack Granite Tandem Cab/Chassis for $168,655.29 and approve the purchase of the dump body and plow equipment through Towmaster for $171,853.00. The current vehicle and plow equipment will be traded in to the dealership upon delivery. Option 2: Table the approval for purchase until the regular Council meeting scheduled for August 15, 2023. Recommendation: Option 1 is recommended to reduce total overall cost of the purchase price before cost increases begin within the State Contract. Justification: Public Works has provided one quote for a Cab/Chassis and truck builder to continue vehicle standardization within the Department. Currently Public Works has three large plow vehicles: two Mack Granites and one Western Star. The Western Star also had plow equipment and accessories installed by a different vendor in 2017 and Public Works would prefer to continue to utilize Mack Cab/Chassis’ and Towmaster as the builder. The goal for Public Works is to phase out the one-off type vehicles within each vehicle classification. The preference of the truck and builder listed in this proposal are based on quality of finished product, parts availability, and customer service within and outside of the vehicle and equipment warranty. By continuing with standardizing the fleet, staff will require less cross training and will be able to use, diagnose issues, and repair equipment more efficiently and effectively. Understanding just one make and model compared to multiple makes and models built differently will benefit the Department and ability to address maintenance requirements in a more effective approach. The quotes provided are based on current competitive State Contract pricing and reflect the best purchase price based on specifications essential to Public Works. Attachments: Mack Granite Quote Towmaster Dump Body and Plow Equipment Quote Picture of current vehicle