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Item 3.8 Purchase of a Fleet Vehicle Single Axle Plow Truck Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Public Works Street Operations Manager Lamson May 27, 2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.8 – Fleet Vehicle STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending the City Council approve a fleet vehicle purchase. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The 2026 Fleet Capital Improvement Plan (CIP) includes the replacement of the 2008 Sterling L8500 dump truck. That truck is equipped with dump body, pre-wetting tanks, reversible plow and wing. The truck has approximately 41,470 miles on it as of May 12, 2025. During staff research for budgeting purposes, an opportunity to buy a new 2023 vehicle from Transwest (Boyer Trucks) was identified. The vehicle is a Western Star chassis and is equipped with Towmaster plow equipment and was outfitted nearly identical to how the City would specify a truck. The truck was built for MnDOT, who has cancelled the order making it available for purchase. The truck is equipped with a stainless-steel dump body, pre-wetting equipment, reversible plow, rotating underbody plow, rear wind and dual sander spreaders. The truck is available for $289,000 compared to buying a 2026 chassis and equipment for approximately $330,000. City staff reviewed these trucks, driven them and felt that they are a great value. The City would also be able to take immediate delivery of the truck and pay for it in 2026 versus a new build time commitment to well over a year. Staff obtained the quote from Transwest for the 2023 Western Star in the amount of $289,000. The vendor has provided a trade-in quote for the current equipment in the amount of $15,000, which staff recommend accepting. The total purchase price for the truck reflecting trade and applicable taxes and fees would be $308,179.50. This amount would be under the amount of $330,000 that we were tentatively budgeting for in the 2026 Fleet CIP and gets us the plow truck prior to this winter’s snow removal season. The Public Works Subcommittee was presented with this information at their May meeting and recommended consideration of approval by the City Council. SUPPORTING DOCUMENTS ATTACHED: • Quote: Transwest POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to accept the quote from Transwest and to authorize procurement of a 2023 Western Star in the amount of $289,000; and to authorize trade-in of the 2008 Sterling L8500 in the amount of $15,000; final purchase price for the vehicle would be $308,179.50 after applicable taxes and fees. BUDGET INFORMATION FUNDING: BUDGETED: Fund 206 – Capital Equipment Revolving Yes (2026)