Title
Fleet Acquisitions - Tandem Truck
Proposed Motion
That Council approve the use of the Lifecycle Restricted Surplus in the amount of $430,000 to purchase the replacement for a Tandem Truck as presented.
Body
Administration Recommendation
Administration supports the proposed motion.
Purpose
Fleet Services has identified potential cost savings of approximately $25,000, contingent upon Council approval to advance the procurement of Tandem Truck 03-032 to 2026, preceding its scheduled replacement in 2027.
Summary
The upcoming EPA 2027 regulations are expected to result in substantial price increases for Class 7 and Class 8 trucks due to the introduction of advanced emissions-control technologies and extended warranty requirements. Securing procurement in advance of these regulatory changes will enable Fleet Services to mitigate associated cost impacts by purchasing impacted units before the price escalation takes effect.
Advancing the purchase of the 2027 replacement unit at this time will help mitigate the following risks:
· Significant price escalation: An estimated increase of approximately $20,000-$25,000 between the 2026 and 2027 model years.
· First-year technology reliability issues: New technology platforms typically experience initial-year performance challenges, which can result in increased downtime, impacts on lifecycle performance, and higher repair and maintenance costs.
· Potential operational and financial impacts: Reduced productivity, increased repairs, and higher lifecycle costs associated with early adoption of unproven technologies.
Historical Information:
N/A
Strategic Plan/Policy/Legal/Staff Implications:
Effective fleet lifecycle management, including timely acquisition, replacement and disposal of vehicles and equipment is essential to sustaining municipal service levels and aligns with Strategic Plan goal A1 to ensure County infrastructure meets the needs of residents, businesses, and industry.
Financial Impact:
Cost: $430,000 ...
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