Agenda Packets - 2005/07/11 - Laserfiche WebLink

Home Browse Search

of the city. Keeping the current sweeper will not increase the efficiency or help in meeting of the ever-growing requirements that are to be accomplished at the end of each year by law. This sweeper was purchased in March of 1990 for a cost of $70,989.25 and has been retained beyond its optimum trade-in value time. Due to the overall condition the venders are willing to be generous with the trade-in offers. In the above findings the replacement of a street sweeper varies from 5 to 15 years, 15 years being the maximum time frame stated. These cities can justify (2) sweepers due to their size, to meet the demands that each city is to comply with. 4. Leasing / Purchasing Program for: 2005 Elgin Crosswind Street Sweeper $131,917.00 this includes taxes. Rate: 5.00% Terms: 5 years Payment: $30,468.00 (payments are annual, due at the end of each period) Trade in would be used as down payment Total after interest and terms: $152,340.00 Interest alone: $20,423.00 Note: Lease programs are available anywhere from 3 to 8 years. Rental: Quote from dealer: At the current time there is no rental unit available due to timing and cost issues. Rental – We have found that timing would be a problem because of the fact that our demo unit is scheduled for demos at the same time most cities are sweeping. Cost – Because of the limited demand for a Crosswind rental unit we would not be able to cover the cost of such a purchase. I.e.: the demand period for a sweeper runs from mid-March to the end of April. We would not be able to charge enough for rent in a six-week period to cover the cost of a $150,000.00 unit. Purchasing a used sweeper: At this time there are no used or demo Elgin Crosswind sweepers available that are new enough to meet the demands that the city is requiring. RECOMMENDATION: Consistent with the City of Mounds View’s Long Range Financial Plan approved by City Council on December 13, 2004, Resolution 6403, Staff recommends that the City Council approve the purchase of a 2005 Elgin Crosswind Street Sweeper under state contract and award a contract to McQueen Equipment, Inc. in the amount of $123,866.00 plus tax.