CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Change Order #1 to Contract 22-077, Dump Truck Replacement - Units 224 and 228, to JX Peterbilt for an amount not to exceed $30,270 and a total award of $565,909
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 24-077 to JX Peterbilt on April 19, 2022 to purchase two 2024 Peterbilt dump trucks with plows.
DISCUSSION:
Following Council approval, staff ordered the units in April 2022. However, supply chain constraints in 2022 and 2023 led to decreased component availability, increased build times and decreased build slot capacity for many original equipment manufacturers, including Peterbilt. As a result, the City’s trucks were not allocated build slots for the 2024 model. The two trucks have now been allocated 2025 model-year build slots for delivery by the end of 2024.
At the same time, an amendment to the Sourcewell contract in November 2022 decreased the discount percent for the chassis from 30% to 15%.
The newer model year coupled with the decreased discount percent has resulted in increased chassis cost for the two trucks. The updated quotes from JX Peterbilt are $273,465 for Unit 228 and $292,444 for Unit 224, resulting in a request for a $30,270 change order.
FISCAL IMPACT:
CIP#: VEH002
Expenses associated with the replacement of Units 228 and 224 are expensed to the Vehicles and Equipment account listed below. Units 228 and 224 were not budgeted in 2024. However, due to other vehicle replacements being delayed and, in some cases, less expensive than anticipated, this award can be accommodated within the 2024 budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31102200-551505 |
Capital Projects Fund |
$2,662,458 |