Memorandum 14-164 Purchase of Street Sweeper for Public Works

Memorandum ID: 
14-164
Memorandum Status: 
Backup

Details

Memorandum 14-164

TO:                       Walt Wrede – City Manager

FROM:                Carey Meyer – Public Works Director

DATE:                  October 21, 2014

SUBJECT:         Authorization to Purchase Street Sweeper

                              Approval to Secure Financing

 

 

In preparation of the 2015 City operations budget, Public Works and the City Manager have made a priority of replacing an aged and unsafe street sweeper (see proposed 2015 City capital expenditures).  The removal of sand, debris and dust from the City’s streets at the end of each winter is a critical service provided by the City.

 

The City’s vacuum sweeper is not capable of mechanically loosening and removing curb line sand and debris. Without a mechanical sweeper, spring time sweeping of streets in the CBD would require significantly more time and cost to clean up winter sand accumulations. We could rent this equipment (or look to the private sector to complete this work), but it would not allow for a prompt early spring response, since available equipment and contractors are busy elsewhere at this critical time period.

 

Sweeper replacement justification:  Due to an unrepairable deficiency in the main frame of our existing mechanical sweeper (possibly a bent frame), the main broom and side skirts cannot be adjusted so that the sweeper will pick up dirt cleanly.  Most of the controls are electric over hydraulic. Several functions no longer work due to faulty switches and wiring, some only work because they have been hard wired. After nearly 30 years in the dirt and heat, the wiring harness has degraded to the point of failure.  The drive train is operated by chain and sprockets. One side has been partially replaced enough to keep it running, but indications are that the entire chain and sprocket drive system needs replacement to maintain dependability. The belt that moves debris from the brooms into the hopper is torn and will fail soon.

 

The bearings for the belt, both top and bottom, also need replacement. There is no way to control the water nozzles. They are either on or off. This results in high water consumption with less time sweeping, and more time filling.  Due to the age of the machine and technology this sweeper is very dusty to operate. The cab air heating/cooling and filtration system is not functional. This unit also does not meet clean air standards for operator safety. The heat stays in the on position and must be run to pressurize the cab to keep dust out. The cab seals have failed and the air filtering system does not remove dust efficiently from the breathable cab air. The result places an operator in an extremely hot and dusty environment. The city does not have a respirator program, as it is extremely complex to meet standards and keep our liability down. Having the new equipment that will keep the cab air clean is more effective. This is an extremely important health/safety issue for our employees.

 

Timing of ordering replacement: Council approval of this expenditure, as part of the 2015 budget approval, will come too late to have this equipment on site before it is needed in the spring.  This new sweeper must be formally ordered before the end of the year to assure that this important equipment is here in Homer in time for spring sweeping.  Council action is required during this budget year to allow for timely ordering and equipment manufacturing/delivery.

 

Financing recommendations:

 

Public Works has proposed to purchase a new sweeper utilizing a low interest loan to protect the balance in the vehicle depreciation fund. Staff needs Council approval to formalize this purchase prior to the implementation of the City’s 2015 operating budget.

 

Loan Details: Lessor -  Key Government Finance, Inc.

                              Equipment to be Purchased - Elgin Pelican Three Wheel Mechanical Sweeper

                              Loan Terms –  Principle amount = $189,342; 36 months; 2.70% interest

                              Payments – Three equal $64,805.16 payments (2015, 2016, 2017)

                              First Payment Due –  Upon delivery (anticipated April 2015)

 

Budget:             Sweeper Purchase  (FOB Homer) = $189,961.40

Accessories (radio, antenna, replacement brooms, fire extinguisher, licensing, addition lighting, incidentals, changes in shipping charges, etc.) = $10,000

                             

                                        Total Budget = $200,000

 

Recommendations:  The Homer City Council hereby amends the FY 2014 Operating Budget by appropriating $200,000 from the Public Works Vehicle Depreciation Fund for the purchase of a new Pelican sweep sweeper.

 

Account                                           Description                                                   Amount

                                     

152-0383-5902               Pelican Street Sweeper Purchase                    $200,000

 

The Homer City Council authorize the City Manager to apply for and secure a 2.70% loan (through Key Government Finance, Inc.) in the amount of $189,342 for the sweeper purchase for the term of 36 months (three payments of $64,805.16; 2015, 2016, and 2017).