Explanation
1. BACKGROUND
The purpose of this ordinance is to authorize the Director of Finance and Management to modify contracts with Ohio Machinery dba Ohio Peterbilt, in order to pay surcharges passed along from the suppliers, and with proper documentation.
The Department of Public Service, Division of Refuse Division, has placed orders with several vendors for different types of equipment over the past three years, however due to the long lead times for production and delivery in the post-pandemic market place, many surcharges are being assessed by the manufactures and their suppliers.
This ordinance authorizes the Director of Finance and Management to modify the existing contracts to add the surcharges of up to $257,000.00 for the trucks. The Department of Public Service feels these changes are acceptable considering the supply chain issues and increased material costs therein, during the COVID-19 pandemic, and the vehicles offered by the contracted vendor will meet the needs of the Department of Public Service, and maintain the replacement of aged vehicles in the Division of Refuse Collection’s fleet. The following vehicles we're assessed surcharges:
PO295247 - Two (2) Peterbilt/Heil 42-Yard Front Loading Trucks: Original Cost $355,220.00 + Surcharge $55,883.00 = $411,103.00: Subtotal = $111,766.00
Two (2) Peterbilt/Heil 32-Yard Rear Loading Trucks: Original Cost $306,137.00 + Surcharge $51,499.00 = $357,636.00: Subtotal = $102,998.00
PO395724 - Two (2) Peterbilt/Lightning Loader Knuckelboom Trucks: Original Cost $216,600.00 + Surcharge $21,118.00 = $237,718.00: Subtotal = $42,236.00
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