CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 21-111, Unit 274 (Semi-tractor) Equipment Replacement, to JX Peterbilt for an amount not to exceed $149,772.71
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Vehicles are scored for replacement based on four criteria: age, usage, condition and repair costs. Recommending a vehicle for replacement requires a score 28.0 or greater. Unit 274 scored 40.40.
Unit 274 was reviewed and approved by the Fleet Economic Committee and Fleet Services Manager for replacement in the 2021 budget.
DISCUSSION:
Unit 274 is a 2003 Sterling LT9500 semi-tractor with a fifth wheel type coupling for heavy-duty trailers. The unit is used year-round by the Department of Public Works - Streets Division. When the unit is attached to a 40-cubic yard trailer it is used to haul materials including gravel, spoils, demolition material and asphalt, as well as snow removal. When connected to the lowboy trailer, it is used to haul fleet equipment to various work sites throughout the City.
Unit 274 will be replaced with a 2022 Peterbilt 567 and will be used in the same capacity.
The new vehicle is available on the Sourcewell Cooperative, an approved cooperative through JX Peterbilt, Contract #060920-PMC.
JX Peterbilt offered a trade-in credit of $8,000 towards the purchase of the new unit. Staff researched auction sale values through our auction service provider. Comparable units sell for $15,000-$20,000. When the replacement unit arrives, the current unit will be sold at auction.
Using the City's specifications, JX Peterbilt has quoted the semi-tractor truck in the amount of $149,772.71; a cost breakdown is provided below:
Original Price
Less Cooperative Discount
Net Price
$252,092.71
$102,320.00
$149,772.71
The vehicle will be delivered in approximately 90 days.
FISCAL IMPACT:
CIP #: N/A
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