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RESOLUTION AUTHORIZING THE PURCHASE OF A NEW 2016 ELGIN PELICAN STREET SWEEPER FROM MACQUEEN EQUIPMENT IN THE AMOUNT OF $193,459
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to purchase one (1) 2016 Elgin Pelican NP Three-Wheel Street Sweeper from MacQueen Equipment in the amount of One Hundred Ninety-Three Thousand, Four Hundred Fifty-Nine and 00/100th dollars ($193,459.00), payable from Capital Equipment Fund 250; Department of Public Administration 015; Fiscal Year 2016; 2016-Capital Equipment 5580; Street Maintenance Vehicles -Project CE250-V1604.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase of one (1) 2016 Elgin Pelican NP Three-Wheel Street Sweeper in the amount of $193,459.
The purchase price includes a $20,000 trade-in credit for Unit 3267, an Elgin Pelican Street Sweeper that the City purchased in 2006. A 2014-2015 Fleet study found that City vehicle maintenance costs are reduced when street maintenance vehicles of this type are traded in, repurposed, or auctioned upon reaching eight (8) years of age. Unit 3267, purchased for $138,555, has exceeded this recommended replacement age by two years and has incurred $102,298.34 in maintenance costs to date. Although not the oldest street sweeper in the fleet, Unit 3267 is in need of major repairs estimated to cost in excess of $25,000, making it the more financially sound selection for trade-in at this time. Additional information is attached as Exhibit A.
This purchase is against Minnesota State Contract Release S-843(5), contract number 103153.