STAFF REPORT
City of Lancaster
CC 8
3/11/2025
TN
Date: March 11, 2025
To: Mayor Parris and City Council Members
From: Marissa Diaz, Director – Public Works
Michael Harne, Assistant Director – PW Maintenance Services Subject: Approval of Lease Agreement for (3) Tymco Model 600 Sweeper Units Recommendations:
1. Approve a four-year lease agreement with an optional residual buyout, for the lease of three (3) Tymco Model 600 Sweeper units, via Wells Fargo Equipment Finance, Inc., utilizing a Sourcewell contract awarded to Tymco Inc.
2. Find that this item is not a project under the California Environmental Quality Act.
3. Authorize the City Manager, or his designee, to negotiate, finalize and execute the lease agreement, as well as any ancillary agreements or approvals, all in a form approved by the City Attorney.
4. Authorize the City Manager, or his designee, to sign all documents.
G.C. Section 84308: No
Fiscal Impact:
$287,864.99 in fiscal year 2024-2025, and $286,964.99 each subsequent fiscal year until the four- year lease has been completed in fiscal year 2028-2029, for a total cost of $1,253,850.46. At the end of the lease term, the City will have the option to purchase the units or return them to Tymco’s authorized dealer at no cost, with any additional equity applied to the lease of new units. The first annual payment will be due upon lease signing: a residual payment of $250,590.09 will be due at the end of the four-year term if the City decides to keep the units. Funds are available in fiscal year 2024-2025 Maintenance Services Operating Budget, Rents and Leases 21444000.5330, and 42344000.5330. Each subsequent year funds will be programmed during the fiscal year budget process.
Background:
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Marco Equipment Sales is an authorized dealer of Tymco street sweepers, awarded Contract #111522 through Sourcewell Cooperative Purchasing (formerly the National Joint Powers Alliance). The bid documents associated with this contract meet all State and City requirements for competitive procurement.
As the City plans to discontinue contracted street sweeping services to reduce costs, leasing these street sweepers is essential to maintaining uninterrupted service. The lease will ensure that operations continue smoothly once the current street sweeping contract expires in November 2025.
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Attachments:
Tymco Model 600 Sweeper Units Specifications
Sourcewell Contract