ITEM TITLE:
Approval to Purchase a 2019 Labrie/Leach 2R III Refuse Truck on a 2019 Peterbilt 520 Chassis from Yukon Equipment Inc., in the Amount of $258,539.00
SUBMITTED BY: Rob Comstock, Public Works Director
FISCAL NOTES:
Expenditure Required: $258,539.00
Unencumbered Balance: $250,000
Funding Source: 350-0400-58000
RECOMMENDATION:
Administration recommends approval the purchase of a 2019 Labrie/Leach 2R III Refuse Truck on a 2019 Peterbilt 520 Chassis from Yukon Equipment Inc., in the amount of $258,539.00
SUMMARY STATEMENT:
The purchase of this new refuse truck is in accordance with the City’s Ten Year Major Equipment Replacement Plan and can be found in the 2019 Major Equipment Budget under the Solid Waste Department. In order to meet the City of Valdez procurement code, and secure the best available price, this purchase will be made using government negotiated pricing through Sourcewell (formerly NJPA). The purchase price of $258,539.00 includes delivery of the truck to Valdez.
Largely due to a recent spike in steel prices, which affects both the collection body and the chassis, this purchase is $8,539.00 more than the budgeted amount, however no additional funds are anticipated to be needed in the Major Equipment Budget primarily due to the savings the City will receive on the purchase of a Cat 966M loader this year using the State of Alaska Procurement Contract with NC Machinery which was extended for 2019.
Once the new refuse truck is delivered it will replace the 2011 Mack/Heil as the frontline rear-load truck and the 2004 CCC/Heil back-up truck will be sold as surplus. This new truck will be assigned a 10 year life expectancy.