HomeMy WebLinkAboutC5. Sweeper Lease
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: John Van Delinder- Street Superintendent
Craig Woolard- Director of Public Works
Chris Kukulski- City Manager SUBJECT: Authorize City Manager to sign a Lease/Purchase Agreement with Titan
Machinery and Merchant Capital for the amount of $27,535.29 per year for 5 years for one
mechanical sweeper.
MEETING DATE: April 20, 2015
AGENDA ITEM TYPE: Consent
RECOMMENDATION: That the Commission Authorize City Manager to enter into a
Lease/Purchase Agreement with Titan Machinery and Merchant Capital for the amount of
$27,535.29 per year for a 5 year period for one mechanical sweeper, with a total of 6 payments
with the first payment being due upon delivery and the final payment occurring in 2020.
BACKGROUND: This sweeper will replace our 2009 three wheel sweeper which will be
traded in. It will be used in the residential areas to keep debris from entering our storm water
system and also be dispatched to construction areas to sweep dirt and mud tracked onto the
streets. The purchase of a street sweeper was discussed as part of the “silver” plan for stormwater system maintenance. With the approval of the “bronze” plan, flexibility was given to
the Public Works Director to make some limited modifications as our operations developed.
Leasing the sweeper, rather than purchasing, will help spread the equipment costs over 6 fiscal
years, and will ensure that this important part of the maintenance program can proceed.
UNRESOLVED ISSUES: None.
ALTERNATIVES: None.
FISCAL EFFECTS: This will be a 5 year full payout municipal lease funded out of the Storm Water budget. We will own this sweeper at the end of the lease and can trade or auction at the
end of the lease. The annual costs of the lease will be incorporated into the Stormwater budget.
Attachments: Lease/Purchase Agreement Bid Tab
Report compiled on: March 11, 2015
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