MEMORANDUM 09-48

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: April 20, 2009

SUBJECT: Economic Stimulus – Street Sweeper Purchase

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Early this year, Public Works made application for American Recovery and Reinvestment Act (ARRA) funding to help purchase a street sweeper. Public Works was informed last week that our request for the funding of a street sweeper scored very well and that the City should move forward immediately to utilize the money requested. The City had requested $100,000 to help purchase a vacuum type sweeper. This funding will come from the State of Alaska’s revolving loan fund. This fund is also known as the Alaska Clean Water Fund (ACWF). The application scored well enough place this purchase in Category 1; giving the purchase first priority funding.

The purchase is eligible to be financed by a $100,000 “loan”. Upon a successful purchase, 100% of the loan principle would be “forgiven”. The City has budgeted $50,000 in the current budget for the purchase of a used mechanical sweeper (similar to the one we own now). By combining the two funding sources, a new vacuum-type sweeper can be obtained to extend and improve the street sweeping activities carried out by Public Works. The purchase must be formalized before June 17, 2009.

Public Works is looking at several sweepers and expects to need up to between $140,000 - $165,000 to purchase and transport the sweeper to Homer. The sweeper will either be a new moderately-sized vacuum sweeper ($140,000), or a late model used more powerful vacuum sweeper ($165,000).

A large capacity vacuum sweeper would make sweeping more effective, workers more efficient, and provide additional capacity to increase sweeping frequency. Removing dust, sand and grit from City streets during breakup is important to the health of the people who live in the community, but it is also important to remove street debris from the roads and parking lots before it is washed into the storm drains leading to Kachemak Bay and environmentally sensitive drainage ways within our community.

Recommendation:

1) The City Council authorize the City Manager to apply for, accept and execute an ACWF loan agreement for the purchase of a street sweeper containing the loan conditions described above.

2) Authorize the use of an additional $15,000 from the Public Works Equipment Replacement Fund, to supplement the existing budgeted amount of $50,000; to provide $165,000 in total funding for the sweeper purchase.

3) Authorize the City Manager to execute a Purchase Order that would contract for the purchase of a street sweeper.