Galesburg could soon have a new street sweeper.
Aldermen tonight will be asked to approve lease agreement for a 2025 Elgin Pelican Street Sweeper. The city manager, director of Public Works, fleet superintendent and purchasing agent recommend that the City Council waive normal purchasing policies and approve the quote from Key Equipment & Supply Co. of Bridgeton, Missouri, for a four-year lease agreement. Total cost of the lease is estimated at $251,918.92, and not to exceed $374,918.92.
Tonight’s City Council will start at 6 p.m. at Galesburg City Hall.
The city currently owns a 2009 and a 2017 Elgin Pelican street sweeper. The newer model is utilized as part of the daily operations from March to November and the older model is used as the backup. However, during the fall season the older model also becomes part of the daily operations to aid in the collection of leaf debris. The intent is to sell the 2009 model and move the 2017 model to the backup street sweeper.
Eric Hanson, appearing Monday on Galesburg’s Morning News, said, “Wear and tear on this type of equipment is significant. And from a financial standpoint, instead of a $350,000 upfront expense, you can lease it out over a four-year payment. Leasing doesn’t always make sense, but on these bigger pieces that cost between $250,000 and $500,000, it’s a huge outlay.”
Aaron Gavin, director of Public Works, tells WGIL the sweepers are used on all streets that have curb and gutter.
“The main purpose is to keep the streets clear of trash, dirt/dust, leaves and other debris,” Gavin said. “This also prevents these items from clogging our storm sewer inlets or getting into the storm sewer lines which helps prevent flooding.”
Key Equipment & Supply Co provided a quote for the equipment using contract pricing from Sourcewell in the amount of $307,535. Rather than purchase the unit outright from Key Equipment & Supply Co, the City will enter into a four-year lease agreement with NCL at a rate of 7.1% with annual payments of $62,979.73 totaling $251,918.92.
If the city were to keep the street sweeper at the end of the lease period, an additional $123,000 would be due per the terms of the lease. However, due to the short lifespan of street sweepers, it is the city’s intent to return the street sweeper at the end of the lease period and enter into a new lease agreement.
While leasing the street sweeper, the city will also enter into a maintenance agreement with Key Equipment & Supply Co., which is factored into the cost of the street sweeper. The maintenance agreement covers routine maintenance and electronic updates
“As you can imagine, due to the job it is doing and the amount of time it is running, they require a lot of maintenance to keep them running,” Gavin said.