Agenda - Council Work Session - 05/13/2025

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2. 2. CC Work Session Meeting Date: Primary Strategic Plan Initiative: 05/13/2025 Identify and implement operational efficiencies, cost savings and additional funding sources. Information Title: Consider Request to Advance Replacement of 2009 Jetter-Vacuum Truck Purpose/Background: The adopted 2024 - 2033 Capital Improvement Program includes a request to replace the 2009 jetter-vacuum combination truck, PW Unit #673, in year 2026. PW Unit #673 is used to clean various components of the city's sanitary sewer and storm sewer systems, including sewer pipes, sanitary sewer and stormwater lift stations, and stormwater hydrodynamic separator structures. It is also used to hydro -excavate utilities. PW Unit #673 is generally used daily and is an emergency response vehicle. In the event of a sewer back-up, this is the first unit to be dispatched. PW Unit #673 is 16 years old. To date, the city has spent $47,212.84 on repairs to this truck. Of this amount, $32,945.01 has been spent over the past 3 years. This unit is becoming less and less reliable and on multiple occasions in recent months, staff have had to drive the truck straight to the mechanic's area for repairs immediately after starting it. Last year, the replacement of PW Unit #673 was moved up in the CIP from 2029 to 2026. At the time, staff anticipated a replacement cost of $850,000. However, staff since requested replacement quotes from 3 vendors and the lowest quote was $647,324 based on purchasing the truck in 2025. However, this vendor recently contacted staff and stated if the city waits to purchase a replacement jetter-vacuum combination truck until 2026, the purchase price will increase by $72,417. According to the vendor, the additional costs are two -fold including $36,917 in increased tariff costs, as well as a $35,500 chassis cost increase. Therefore, if the city waits until 2026 to purchase a replacement truck, the cost would increase to $719,741. Staff is requesting City Council authorization tonight to advance the purchase of a replacement jetter-vacuum combination truck from 2026 to 2025 to save a total of $72,417. Notification: N/A Time Frame/Observations/Alternatives: Staff estimate up to 15 minutes will be required to present and discuss this case. Funding Source: Per the attached pages from the adopted 2025 - 2034 CIP, the estimated cost to replace PW Unit #673 was $850,000 and of this amount $200,000 was proposed to be funded through stormwater funds and $650,000 was proposed to be funded through sanitary sewer funds. These funding sources receive revenue through user fees and not general property tax levy. Staff propose using a similar funding split recentrage for the replacement of PW Unit #673, no matter if the purchase is made in 2025 at a cost of $647,324, or in 2026 at a cost of $719,741.