Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute All Documents to Purchase One (1) 2025 Ford Model F550/LT40 from Custom Truck One Source for $199,898.86 and Authorize an Increase in Contract Price of Up to $50,000 to Account For Any Change in Purchase Price Due to Market Volatility
Staffreport
COUNCIL PRIORITY
* Infrastructure
SUMMARY
Staff recommends that the City Council approve and authorize the City Manager or her designee to execute all documents to purchase One (1) 2025 Ford Model F550/LT40 for the Public Works Department and authorize the City Manager to pay up to an additional $50,000 in case of changes in vehicle price.
BACKGROUND
The City maintains a fleet of equipment to provide City services for various department functions. Equipment is periodically replaced to ensure reliability and minimize costs of operation.
Tree trimming truck #764, used by the Urban Forestry Division, is a 2015 Ford F750. It has reached the end of its useful life and the cost to maintain this unit is rising. Therefore, the truck is recommended for replacement.
Analysis
The City may lease or purchase vehicles. This 2025 Ford Model F550/LT40 is proposed for direct purchase at a total cost of $199,898.86 because it is more cost-effective than leasing as it eliminates financing costs as well as the additional ongoing administrative burden of contract management by Public Works and Finance Department staff. The leasing plan available for this truck is $4,029 per month for 60 months for a total of $241,740. Purchasing outright will save the City $41,841.14 in leasing fees along with annual administrative costs to manage the lease plan.
The existing tree trimming truck is a 2015 Ford F750 that has an estimated useful life of six to seven years before maintenance costs begin to rise significantly. This unit has reached the end of its expected useful life and will soon need extensive repairs to continue operating. The proposed purchase is for a ...
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