In November 2023, the Village Board authorized Public Works to purchase four cabs and chassis' from Peterbilt of Wisconsin, Inc. of Wadsworth, Illinois, for $518,253.84. These cabs and chassis will be for single-axle standard dump trucks used by Public Works for winter maintenance operations. While these trucks are critical for snow and ice removal, they also play essential roles in other maintenance activities, such as roadway paving, public safety barricades during special events and leaf-hauling operations.

In March 2024, Peterbilt of Wisconsin, Inc. notified Public Works Staff of a recent price increase affecting the purchase. In the four months since receiving Board authorization for the initial purchase, pricing for each of the four trucks, including documentation and title fees and delivery, have increased by $12,151.47, bringing the total purchasing cost to $566,859.72. Unfortunately, these costs align with recent volatile trends in the automotive industry. Public Works Staff continues to observe limited order bank availability, vendors that will not commit to future vehicle or equipment orders, and lingering delays due to supply chain issues related to critical parts. Staff recommends approving the change order for $48,605.88 to finalize the purchase of the four trucks. If the change order is approved, the approval will also guarantee production for the last half of 2024, with an estimated delivery date for the first half of 2025. Staff does not expect or anticipate further change orders if these enter production.

Staff has discussed the impact on the budget, and contingency funds can cover the overages.

Funds for this Change Order are available in Account No. 401-9901-540960.

RECOMMENDATION

It is recommended that the Village Board approve the Dump Truck Vehicles Purchase - Change Order #1 in the amount of $48,605.88 to Peterbuilt of Wisconsin, Inc., of Wadsworth, Illinois and authorize Staff to execute the necessary documents.