RESOLUITON
Motion/Request:
title
MOTION to approve a proposed “Resolution Authorizing A Lease Agreement Between the Town of Ledyard And Lease Servicing Center for a Pelican Three Wheel Mechanical Sweeper” as presented in the draft dated March 9, 2025.
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Background:
Town Council Meeting 8/14/2024:
The Town Council approved to purchase a new Elgin Pelican Sweeper through the Sourcewell Lease/Purchase provider over a term of five (5) years at $66,467.49 per year; using the revenues received from the Beverage (“Nip”) Container Surcharges revenue.
To move forward with the Lease/Purchase Agreement for the Pelican Street Sweeper the Town Council needs to adopt the proposed “Resolution Authorizing A Lease Agreement Between the Town of Ledyard And Lease Servicing Center for a Pelican Three Wheel Mechanical Sweeper”(see attached).
Additional Background Information:
The Town of Ledyard sold its 22-year-old Street Sweeper in 2022 with the thought that the Department could better and more economically cover the Town’s annual sweeping needs through a rental. The Town rented a Street Sweeper in 2023 and 2024, using the Beverage (“Nip”) Container Surcharges Revenue, which by Legislation was an explicit use of the funding. However, the results failed to meet the town’s expectations for a number of reasons. Also, during that time the Public Works Department learned that the availability of rental units to sweep roads has declined significantly, with no prospects of increasing.
In-light of this predicament, Public Works Director/Town Engineer Steve Masallin felt that owning a Street Sweeper would be the best, and most economical way to meet the town’s needs.
Coincidently the Town of Preston was in need of replacing their Street Sweeper, which had reached the end of its service life. The Town of Ledyard has an opportunity to purchase a shared unit, with Preston, that would cover the annual scope of work for each town, and that the Street Sweeper would also be available for spot needs throughout the year. The cost share would be allocated proportionally based on paved road mileage which would result in 2/3 for Ledyard and 1/3 for Preston.
Preston First Selectwoman Sandra Allyn-Gothier is on-board with the shared arrangement.
The Five-Year Lease/Purchase Annual Payment would be 66,414.63 which included about a 4.7% annual interest rate.
The Town of Preston would pay approximately $22,000 toward the annual lease payment; and Ledyard would pay about $44,000.
The Beverage (“Nip”) Container Surcharge Account had a current balance of about $44,000 and by the time the first payment is due, which would be when the Street Sweeper is delivered (sometime in April 2025) that the Beverage (“Nip”) Container Surcharges Account would have an approximate balance of $75,000; which would most likely cover their payment for the first two years. In addition to using the Beverage (“Nip”) Container Surcharges Revenue that some funds could be drawn from Account 21040101-57311 (Public Works Heavy Equipment Capital Reserve), which has been funded at $85,000 annually.
In parallel with the purchase of the Street Sweeper Public Works Director/Town Engineer Steve Masalin has worked with the Town of Preston to secure a Memorandum of Agreement (MOA) outlining the details of the shared arrangement (attached).
The Street Sweeper would last about fifteen years; noting that would provide about ten years during which time the town could accumulate funding from the Beverage (“Nip”) Container Surcharge Revenues in anticipation of having to replace the piece of equipment.
Department Comment/Recommendation:
This is simply an additional administrative step required by the Lease Company.
Mayor Comment/Recommendation:
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