BACKGROUND/DISCUSSION:
The 2020-21 Public Services Department included budgeted funds in the amount of $29,000 for the purchase of a new service truck. The Water and Wastewater Department included budgeted funds in the amount of $37,000 for the purchase of a new service truck.
The recommended purchases are a 2020 Chevrolet 2500 pickup truck for Public Services and a 2021 Chevrolet 1500 pickup truck for Water & Wastewater.
The trucks were competitively bid. James Wood Motors, Inc. submitted the lowest bid for both vehicles.
The bid for the Public Services Department vehicle is $30,127, $1,127 over the budgeted amount of $29,000. Staff is recommending that we trade in Unit #403 that is scheduled for auction for a $3,000 allowance toward the purchase. The trade-in value is comparable to what we would receive at auction. The net purchase price would drop to $27,127 and $1,873 under the budgeted amount.
The bid for the Water and Wastewater Department vehicle is $37,846, $846 over the budgeted amount of $37,000. Staff is recommending that the overage come from the Fund Balance.
FINANCIAL IMPACT:
The total financial impact will be $64,973.
Funds in the amount of $29,000 are budgeted for replacement of the Public Services Department truck (Public Services Department, Account 01-7000-06-00, Capital Outlay/Special Request).
Funds in the amount of $37,000 are budgeted for the replacement of the Water and Wastewater Department truck (Water and Wastewater, Account 05-7000-50-00, Capital Outlay Special Request). Funds in the amount of $846 will come from the Fund Balance.
RECOMMENDATION:
Staff recommends approval of the purchase of a 2020 Chevrolet 2500 pickup truck for the Public Services Department in the amount of $27,127 plus a trade-in allowance of $3,000 for Unit #403 and a 2021 Chevrolet 1500 pickup truck for the Water & Wastewater Department in the amount of $37,846 from James Wood Motors, Inc.