K-5 - Public Works Equipment Replacement - FY 2023-2024

AGENDA ITEM # K-5 AGENDA INFORMATION TIFFIN CITY COUNCIL COMMUNICATION DATE: May 12, 2023 AGENDA ITEM: Discussion and Consideration of FY 2023-2024 Public Works Equipment Replacement and Council Action as Needed ACTION: Motion SYNOPSIS: In November of last year Brian Detert shared with the council the public works equipment replacement schedule along with five items that would be included in next year’s budget. Those five items were the Kubota, mini-excavator, skid steer, Ford F-250 and a skyjack lift. The total amount of the replacement of those items (with trade) was estimated at $238,000. The Kubota has arrived, the truck has been ordered and Brian found another way to reach the ceiling in the new public works building (safely) so the lift was replaced with a floor scrubber. With those adjustments, we budgeted $223,518 in next year’s budget. The two remaining pieces of equipment (mini-excavator and skid steer) unfortunately, have seen a price increase from the above budgeted amount and we are now going to be $19,297 short in next year’s budget. Actually, that number was much higher than that but Brian has worked very hard to lower that amount by working with a number of new and different vendors to get the City the best option(s) possible. Moving forward, we would like to continue to close the gap of the shortfall and continue with the replacement of these two items. One of the vendors Brian has been working with offers a lease option. Leasing equipment or vehicles is something the City used to do years ago but has not done lately. It has been brought up recently when discussing other equipment (with the market vehicle shortage that was experienced last year) but again, this is something the City hasn’t done or needed to do for several years. However, in this situation, it would close the gap for these two items. We have further looked into the leasing option to find there are a handful of cities that are also starting to do this again simply because of the state of the equipment and vehicle market we continue to be in. Brian will be at the meeting on Tuesday night to further discuss this and will have additional numbers to share but with council approval, we’d like to further pursue this option. BUDGET ITEM: MAYOR/COUNCIL ACTION: Motion ATTACHMENTS: PREPARED BY: Doug Boldt DATE PREPARED: May 12, 2023