The City of Lloydminster will be replacing three street sweepers.
The sweepers have run between 4,000 to 4,200 hours and will have another 500 hours before the new units arrive. The industry standard for these street sweepers to retain their trade-in value is 5,000 hours.
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Each unit is priced at $351,883 totalling $1,055,649. The funding source of $1,725,000 comes from the equipment fleet reserve.
Overall, the items came in with a remaining budget of $669,351.
Coun. Jim Taylor asked for details regarding how they came in under budget.
“When I was originally doing the budget, I got an average amount from suppliers and the average was, I believe $535,000. So, I just added a bit of extra in there, just the way inflation was going last year. I was just trying to get it as close as possible,” said fleet manager Kelly Lavoie.
“It’s nice to see something come in under budget, looks like we’re not saving the money, we’re just not spending it,” said Taylor.
Don Stang, executive manager of operations, gave some clarity as to how the funding is broken down.
“When we put the budget together for $575,000, that didn’t include the trade-in value, and when you look at the purchase, it has the trade-in value calculated in there,” he said.
Coun. Justin Vance asked how much the units depreciate if they run over their hours.
“In the past, we did have some units where it did go over 5,000 hours and we lost roughly $75,000 off the trade-in value of those units,” said Lavoie.
“In the spring when they’re running, they’re running 24 hours a day, lots of wear and tear on them.”
If the machines were to be out of service, the impact would be noticeable.
“At this time of year, you see lots of sand on our roads. These sweepers go around in the spring and collect all that and get it off the road to make it more useable,” said Stang.
He says if the sweepers don’t remove the leaves, the drains begin to get blocked off in the winter.
Mayor Gerald Aalbers asked if the tariffs would affect the prices of the units and Lavoie confirmed the prices would stay as they are.
Council awarded the contract for the purchase of the three street sweepers to Joe Johnson Equipment in the amount of $1,055,649 plus GST. This is inclusive of the trade-in value of $117,000 for each of the existing three units.
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