#07 - Tandem Plow Change Order - Laserfiche WebLink

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STAFF REPORT DATE: 4/4/2023 Regular TO: City Council FROM: Marty Powers, Public Works Director AGENDA ITEM: 2022 Tandem Plow Truck Change Order REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: The City of Lake Elmo Council approved the replacement of the 2006 Sterling single axle plow truck with the purchase of a Tandem Mack plow truck at the January 18th, 2022 council meeting. The order was placed with Nuss Truck & Equipment the following day using the state contract pricing. Later that year, our Mack sales representative resigned from Nuss with no notice to us. After his resignation, Mack canceled a large number of heavy and medium duty truck orders due to supply chain issues. This cancelation was not relayed to us until I reached out for a delivery update March 15th, 2023. The 2022 state contract prices have expired for both Mack and Towmaster. The current 2023 state contract prices for Mack have increased and include surcharges. Towmaster is the outfitter who adds the controls, boxes, spreader and plows on the chassis. Their current 2023 state contract price has increased significantly. If the number of allotted truck chassis are again cut later in the year, our next option would be to purchase a 2024 chassis under new state contract pricing with potential price increases again. The new 2023 or 2024 Mack Tandem plow truck chassis and plowing equipment will exceed the councils approved 2022 budget of $291,000. ISSUE BEFORE COUNCIL: Should Council approve purchase of a Tandem Plow Truck at an increased cost? PROPOSAL DETAILS/ANALYSIS: Approving the change to the 2022 Tandem plow truck order and proceeding with this purchase will benefit the city and its citizens by replacing 2006 Sterling plow truck that has already exceeded the recommended 12 year replacement policy. FISCAL IMPACT: The Purchase of this vehicle, tax, license, registration, and logos shall not exceed $360,000. Note $291,000 was approved in January 2022, the cost of a 2023 build will be $340,457. If the 2023 Mack Chassis order gets cut prior to being built, we will we need to reorder a 2024 Mack truck chassis under a new 2024 state contract price. Increases on a 2024 chassis are expected to be around 10-12%. Towmasters current contract includes 2024 builds. The total cost for a 2024 build is expected to be around $355,889. The sale of the 2006 Sterling is expected to bring in around $25,000 when retired. This purchase will be funded through the vehicle replacement fund as proposed. OPTIONS: Approve purchase of the Mack Tandem plow truck Do not approve purchase Direct staff to further research need for purchase ATTACHMENTS: 2023 Nuss Mack State Contract Price 2023 Towmaster State Contract Price