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Consideration of request by the Fleet Superintendent for approval to order 2027 Fleet purchases in advance of approval of the 2027 Operating and Capital Budgets
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Submitted by:
Michael Hahn- Fleet Superintendent
Department
Public Works
A. Issue
In order to avoid long delivery delays and/or cancellations and additional price increases due to ongoing supply chain issues, I am recommending pre-approval of the 2027 Fleet vehicle and equipment budget in order to begin ordering State bid contract, Sourcewell, and Sole source purchase 2027 vehicles and equipment now due to vehicle manufacturer and vendor delays.
B. Background/Options
Each year the Fleet Maintenance Division of the Department of Public Works purchases various vehicles and equipment for all DPW, Police, and City Hall departments to replace aging city vehicles and equipment utilizing fleet equipment reserve funds. In an average year Fleet purchases seven Police vehicles and numerous light and heavy duty vehicles for other City departments. Taking into account the limited State bid contract order windows for 2027 vehicles and additional unknown 2027 emission change cost projections I am recommending placing orders as soon as possible to avoid cost increases.
We will purchase all vehicles using the State bids, Sourcewell contracts, and Sole source local General Fire Police up-fit equipment.
The 2027 Fleet vehicle and equipment budget includes replacement of Six Police Interceptor Explorers and all related Police up fit vehicle equipment for the Police Department. For our Street Department, Two Peterbilt 520 with Labrie (Refuse Truck) 31-yard refuse body. For our Water Department one John Deere 85P Track Excavator or equivalent Kubota pending availability and One Felling FT-25-2T 25k Excavator trailer required to haul Excavator.
The total budgeted expense for replacement of these vehicles and equipment in 2027 is $1,770,000.
In addition to the purchases made from the fleet reserve, two additional vehicles are proposed to be funded from the 2027 Capital Budget. The first is a Battle Motors/Leach rear loader refuse truck identical to our 2026 budget purchase. The second is a Freightliner SD114 Tri Axle Dump truck with a 16’ dump body and front mounted Husting style plow hitch and hydraulics.
The Total Capitol purchase request for both is $710,000.
C. Strategic Plan (Area of Focus)
Priority Area Three: Infrastructure
D. Fiscal Impact
All but two of the proposed vehicle/equipment purchases are proposed to be funded from the fleet equipment reserve fund so funds have already been set aside and will be reflected in the 2027 budget. The total cost for fleet reserve replacement purchases in 2027 are budgeted at $1,770,000 and payment will not be due until vehicles are received in 2027. Two additional vehicles are proposed to be funded through the Capital Budget for a total of $710,000 and payment will not be due until the vehicles are received in 2027.
E. Recommendation
Authorization to order Fleet Division procured vehicles and equipment that are planned to be replaced in 2027 within the Fleet Division’s equipment replacement budget and the 2027 capital budget not to exceed $2,480,000.