DATE: OCTOBER 13, 2026
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, PE, LS, PUBLIC WORKS DIRECTOR
BY: HEIDI NIGGEMEYER, NPDES PROGRAM MANAGER
TITLE: CITY STREET SWEEPING: SIGNIFICANT INVESTMENT IS NEEDED TO ACHIEVE CLEANER STREETS RECOMMENDED MOTION:
Review and consider recommending to the City Council to:
Delegate authority to the City Manager to purchase three (3) Schwarze M6 SE Avalanche Sweepers and one (1) Ravo R5 iSeries Container Dump Compact Sweeper for an estimated amount of $2,200,000 inclusive of a 10% contingency (approx. $200,000) to account for price fluctuations and interest rates; Authorize the use of the Infrastructure Reserve to purchase the four street sweepers; and Delegate authority to the City Manager to enter into a reimbursement resolution to purchase four (4) street sweepers in an amount not to exceed $2,200,000 million.
EXECUTIVE SUMMARY:
On April 21, 2026, the City Council approved Amendment 1 to the Collection Services Agreement with Republic Services to allow for the City to assume responsibility for performing street sweeping services. To take on the Street Sweeping Program, preliminary analysis indicate that the City would need to purchase at least three (3) full size sweepers and one small sweeper for bike lanes. Staff recommend using the Infrastructure Reserve to fund the purchase of street sweepers. Staff also recommend entering into a reimbursement resolution, which is required for the City to pay itself back for this purchase to replenish the maintenance reserve per our established policy. This would be accomplished by using proceeds of tax-exempt obligations to reimburse itself for costs paid upfront to purchase the vehicles. Additional details about the reimbursement resolution can be found in the background of this staff report.
BACKGROUND:
Effective October 1, 2021, the City and Republic Services entered into an Amended and Restated Collection Services Agreement for Residential and Commercial Solid Waste, Recyclable Materials and Organic Waste Collection, Transfer, Processing and Disposal Services (“Collection Services Agreement”). The Collection Services Agreement authorizes Republic Services to provide comprehensive solid waste management for the City, including the collection, transfer, processing, and disposal of residential and commercial garbage, recyclable materials, and organic waste. Under the Collection Services Agreement, street sweeping is to be performed by Republic Services. Republic Services contracts the street sweeping to an outside sweeping company.
Since Republic Services has taken over sweeping services, the City has received over 175 QAlerts regarding various issues with the sweepers, like creating dirt clouds as they go down the street or even emptying their sweeper water into a storm drain, which was broadcast on social media. When the City managed street sweeping services in-house, we did not have issues like these. Not to mention our maintenance staff are very cognizant of our NPDES requirements and work to ensure compliance. Now that the City is implementing “No Parking” street sweeping signage, the City’s sweepers will eventually be able to get to the curbs where pollutants lie.
On April 21, 2026, the City Council approved Amendment 1 to the Collection Services Agreement with Republic Services to allow for the City to assume responsibility for performing street sweeping services. To ensure better customer service and compliance with our NPDES permit, it is important that we take over sweeper responsibilities as soon as possible.
Resuming street sweeping responsibility will provide the community with better sweeping services, allow the City to respond in a timely manner to address resident concerns, as well as to help coordinate with other efforts like special events and meeting the sweeping windows of the “No Parking” street sweeping signage.
To adequately track costs for street sweeping and ensure proper cost allocations, expenditures will be tracked in a separate account/division. The total cost for street sweeping will be paid by monthly payments from Republic Services. Per the first Amendment to the City’s Collection Services Agreement, “Contractor (Republic Services) shall pay City a Street Sweeping Fee; the fee shall be based on the City’s costs for street sweeping service…”. The cost for the sweeping includes personnel, street sweepers, insurance, routing software and tablets, sweeper maintenance, and administrative overhead.
The City’s plan to purchase street sweeping vehicles will be necessary for it to efficiently deliver essential services to the community. To incur obligations that are tax-exempt, which provides the lowest cost of borrowing for Salinas, the City needs to comply with certain IRS requirements. The IRS allows an issuer to use the proceeds of its bond issuance to reimburse expenditures made prior to when the bonds are issued, but only so long as the City expresses an intent to do so prior to the actual issuance.
The attached reimbursement resolution is the required expression of intent and is needed for the City to use proceeds of tax-exempt obligations to reimburse itself for costs paid upfront to purchase the vehicles. If the City exercises this option, it can borrow through a tax-exempt financing at a later date and then can use the tax-exempt proceeds to reimburse itself for the prior costs to purchase the equipment. This option is subject to certain limitations, the main one being reimbursement (bond issuance) must occur not later than 18 months after the later of (i) the date on which the expenditure is paid, or (ii) the date on which the project is placed in service, but in no event more than 3 years after the expenditure was paid.
The attached resolution meets the IRS requirement, enabling the reimbursement of prior vehicle purchase costs. There is no consequence to the City if the contemplated tax-exempt obligations are ultimately not issued.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
This item supports the City Council 2025 Strategic Goals of City Services and Environmental Sustainability & Climate Resilience by ensuring fiscal responsibility and financial management, providing high-quality customer service, and improving local water quality by reducing stormwater pollution in creeks.
DEPARTMENTAL COORDINATION:
The Public Works department and the Finance department have put a cost estimate together for the City’s Street Sweeping Program.
FISCAL AND SUSTAINABILITY IMPACT:
It is anticipated that there will be no cost to the City to manage the Street Sweeping Program as it is intended to be fully funded through monthly payments from Republic Services.
ATTACHMENTS:
Reimbursement Resolution
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CITY OF SALINAS
FINANCE COMMITTEE STAFF REPORT