Title
Consideration of and action to approve a pricing surcharge for trucks purchased in the FY21-22 Budget for the Sanitation Division.
Body
Summary:
At the December 7, 2021 City Council meeting, City Council authorized the purchase of three (3) trucks for the Sanitation Division through the Houston-Galveston Area Council (H-GAC) Cooperative Purchasing Program.
- 2023 108SD, Conventional Cab, SFFA, TRA (Flat Bed Truck)
- 2023 M-2 106, Conventional Cab, SBGA, SRA (Flat Bed Truck)
- 2023 114SD, Conventional Cab, SFFA, TRA (Tractor Truck)
Due to the ongoing economic challenges, these trucks are not expected to arrive until December 2022 or January 2023. With this delay in delivery, Houston Freightliner has implemented a pricing surcharge in the amount of $2,900 per truck (see attached). These trucks are currently budgeted in the Capital Equipment Replacement Fund and will need to be re-budgeted in FY22-23 since the trucks will not arrive during the current fiscal year.
Fiscal/Budgetary Impact:
A budgeted amount of $546,468 is included in the FY21-22 Capital Equipment Replacement Fund, Account No. 091-402-49060, Automobiles & Light Trucks. Even with the additional surcharge of $2,900 per truck (total $8,700), the amount budgeted is sufficient to cover the additional cost.
Recommended action:
Approve the pricing surcharge for trucks purchased in the FY21-22 Budget for the Sanitation Division.