Supply chain issues going to cost City of Armstrong thousands of dollars

Supply chain price jump

Supply chain issues will cost the City of Armstrong thousands of dollars.

At their regular meeting Monday, staff will present a report to city council on the increased cost of purchasing a new city dump truck and fleet vehicles.

“The purchase of the dump truck was identified in the 2022 budget, however due to supply chain issues, delivery was extended to 2023 and the budget was adjusted. The total cost of the dump truck has come in at $310,907.52. Staff is requesting additional funds of $17,027.72 to be allocated from the Public Works Equipment Reserve, current balance $176,817,” the report states.

Armstrong is also going to have to pay more to replace its fleet vehicles.

“During the financial plan approval council approved two fleet truck vehicle purchases in the 2023 capital plan. Due to supply chain issues and restrictions, there is currently only one manufacturer for full Electric Vehicle (EV) pick-up trucks currently on the market,” the report states. “There is limited availability of Ford F-150 Lightning EV pickup trucks on dealer lots and custom-ordered trucks are estimated to take 12-18 months for delivery.

“Administration was fortunate to source out one full EV pickup truck and one Hybrid EV pickup truck in a short time frame that were competitively priced. The two fleet trucks have come in over budget at $22,406.67. Staff is requesting additional funds of $22,406.67 to be allocated from reserve (current balance $48,178).”

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