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Global supply chain issues boost price of Grosse Pointe City’s new sewer jet truck

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GROSSE POINTE CITY — Global supply chain issues are hitting Grosse Pointe City in the pocketbook.

A new sewer jet truck — whose purchase the Grosse Pointe City Council approved in August 2021 — is now going to cost the City almost $20,000 more than it was supposed to. These vehicles are used to clean and flush out sewer and storm pipes.

Public Service Director Pete Randazzo explained during a Jan. 24 City Council meeting that the City received notice from its primary vendor, MTech, that Kenworth — the manufacturer of the cab and chassis for the jet truck that the City ordered — had canceled all orders for cabs placed after July 1, 2021, with no new date for production. Randazzo said MTech was able to secure construction of a similar vehicle from Freightliner for a cab and chassis that would be built in June 2022, with an anticipated delivery date of September 2022, which takes into account the amount of time needed to install the jetter on the chassis. However, he said the vehicle purchase cost would rise by $19,918, to a new total price of $234,918.

Randazzo said the City has purchased Freightliner vehicles before.

“I’m pretty confident Freightliner will be a good substitute,” Randazzo said.

Because of the need to have this vehicle as soon as possible and the expectation that any future purchase would be substantially more costly, Randazzo recommended approval of the purchase. The council concurred, voting unanimously in favor of the price increase. Funds for the vehicle are slated to come from the Water and Sewer Utility Fund, and that’s also where the additional $19,918 will be coming, officials said.

An email from Justin Cira, the City’s MTech representative, to Randazzo outlined the supply chain problems facing manufacturers.

“Inflation has driven the price of everything through the roof,” Cira wrote. “Steel tariffs have contributed to an over 700% increase in the price of steel. Chip shortages have cut chassis manufacturers’ production capacity by roughly 50% for 2022, resulting in all of the chassis price increases and delays/cancellations. GapVax, who builds our large sewer combo trucks, is currently projecting summer 2023 delivery dates for all new truck orders because of the chassis situation; there simply aren’t any left.”

While the City could have tried to take its chances with an order for 2023, it’s already living on borrowed time with its existing sewer jet truck.

“How old is our existing jetter?” City Councilman John Stempfle asked.

Randazzo said it’s from 1988, but it “was refurbished in 2000.”

Even with refurbishment, it has still far exceeded it normal lifespan.

“If you get 20 years out of it, you’re doing pretty good,” Randazzo said of these types of vehicles.

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