Staff recommends the City Council approves the purchase of a 2023 Broombear sweeper from Joe Johnson Equipment in accordance with Sourcewell in the amount of $313,088 less $25,000 trade for a net amount of $288,088.

The purchase of a Broombear Sweeper is included in the approved FY23 Equipment Replacement Plan (ERP) and FY23 Street and Traffic budget.  Street Sweepers are a vital part of operations as they not only keep the streets clean, but are also necessary for stormwater permit compliance.  Staff is recommending we procure the equipment using the cooperative purchasing agreement (Sourcewell), as the pricing is similar to competitive bid pricing.  By using Sourcewell, we can keep fewer parts on the shelf, as the normal wear items are interchangeable between 6 sweepers, saving thousands of dollars in stocked parts.  The pricing is higher than the budgeted amount due to inflationary cost increases that we are seeing for all equipment.

Sourcewell is a new tool to the city for use in procurement.  Historically, the city has been allowed to use state contracts to procure items if it was beneficial to the city.  The purchasing policy has been updated to allow cooperative agreements beyond just the state contracts.  Staff will continue to evaluate the procurement options to determine which option is the most beneficial for the city.

City Council may:

• Approve purchasing the 2023 Broombear sweeper through Sourcewell; or,
• Not approve the purchase.  If not approved the sweeper will likely see extensive repair costs, and downtime as the sweeper has reached its useful life.  Extended downtime will result in diminished customer service levels citizens have come to expect.

The Broombear sweeper was budgeted in FY23 using Street Maintenance District funds.  The amount budgeted was $271,176.  The price is higher than budgeted due to inflation and the shortfall will be funded either by deferring other equipment purchases or by savings realized on other equipment purchased in FY23.