Title
Adopt a Resolution to Approve and Authorize the City Manager to execute all documents to purchase One (1) Schwarze Model A7 Twin Engine Tornado Sweeper mounted on a new 2025 Freightliner M2 106 plus truck chassis from Municipal Management Equipment for $421,811; which will be purchased through Sourcewell, a cooperative contract purchasing agency; and authorize an increase in contract price of up to $50,000 to account for any change in purchase price due to market volatility
Staffreport
COUNCIL PRIORITY
* Infrastructure
SUMMARY
Staff recommends that the City Council approve and authorize the City Manager or her designee to execute all documents to purchase One (1) Schwarze Model A7 Twin Engine Tornado Sweeper mounted on a new 2025 Freightliner M2 106 Plus truck chassis for the Public Works Department and authorize the City Manager to pay up to an additional $50,000 in case of changes in vehicle price.
BACKGROUND
The City maintains a fleet of equipment to provide City services for various department functions. Equipment is periodically replaced to ensure reliability and minimize costs of operation.
Public Works Street Sweeper #841, used by the Street Services Division, is a 2015 Freightliner M2. It has reached the end of its useful life and the cost to maintain this unit is rising. Therefore, the street sweeper is recommended for replacement.
Analysis
The City may typically lease or purchase vehicles. This street sweeper is proposed for direct purchase at a total cost of $421,810.18 because it is more cost-effective than leasing as it eliminates financing costs as well as the additional ongoing administrative burden of contract management by Public Works and Finance Department staff. The leasing plan for this machine has three options available. All options share the same 5.86% interest rate and $421,810.18 financed amount but vary in length. Option 1 has a 4-year term with a total cost of $476,530.64. Option 2 has a 5-year term with a total cost o...
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