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Consent

Brentwood City Commission Agenda

Meeting Date:	04/25/2022
Approval to Purchase a Mack/Petersen TL3 Grapple Truck from CMI Equipment Sales, Inc.
Submitted by:	Todd Hoppenstedt, Public Works
Department:	Public Works

Information

Subject

City Commission Approval to Purchase a stock Mack/Petersen TL3 Grapple Truck from CMI Equipment Sales, Inc.

Background

The Public Works Department has a fifth Grapple Truck programmed into the FY23 Equipment Replacement Fund. Given the volatility of the vehicle and equipment markets, it has been difficult to obtain reliable pricing for these types of purchases. When we are able to get a reliable glimpse at pricing, the vendors are unable to hold that price for any period of time. Manufacturers are implementing materials surcharges, sometimes several times throughout a model year. Pricing fluctuations combined with anticipated lead times forces us to look further ahead than we once did.

Staff initially budgeted $210,000 for this purchase, which is a 22% increase over the most recent grapple truck purchases just over a year ago. We recently obtained pricing for the Kenworth chassis grapples, which are similar to the two we most recently purchased. That cost was $221,045.59, which is a 26% increase over the past year. The current Kenworth pricing, combined with the anticipated build and delivery date, have pushed us to evaluate other options.

Through the help of CMI Equipment Sales of Nashville, we have learned of a stock built Petersen TL3 on a 2022 Mack MD742 chassis. This truck is currently one of seven available at the Petersen Factory in Florida. It is currently offered at $188,299.19 or more than $32,000 less than the comparable Kenworth chassis. On April 12, staff provided CMI Equipment with a non-binding letter of intent to purchase with the hopes of claiming one of the seven trucks available on that date. If approved, this purchase will be made pursuant to through the Sourcewell purchasing cooperative (Contract #040621). Given the status of this stock build, there is the possibility that if ordered immediately after Commission approval, the City may take delivery in the current fiscal year. If that materializes, the purchase will be included in the 2022 FYE budget amendment in June.

Staff Recommendation

Staff is recommending approval to purchase this stock built Petersen on a Mack chassis from CMI Equipment through the Sourcewell purchasing cooperative.

Staff is requesting approval of a 5% contingency to help buffer any potential last minute material surcharges or price increases. While we remain hopeful to take delivery at the price quoted, we are aware of the market volatility and the potential for some minor changes between the order and delivery dates.

Please direct any questions to the Public Works Director.

Fiscal Impact

Amount :	$197,714.15
Source of Funds:	Equipment Replacement Fund
Account Number:	310-43120-89520

Fiscal Impact:

The cost of the grapple truck is $188,299.19, which is less than the $210,000 being proposed in the FY 2023 draft annual budget. Given the status of this stock build, there is the possibility that if ordered, the City could receive delivery in the current fiscal year. If that materializes, the purchase will be included in the 2022 FYE budget amendment in June.

Staff is requesting approval of a 5% contingency (increasing the amount authorized to $197,714.15) to help buffer any potential last minute material surcharges or price increases. While we remain hopeful to take delivery at the price quoted, we are aware of the market volatility and the potential for some minor changes between the order and delivery dates.

Attachments
Mack Grapple Quote 4.12.22