City to vote on equipment purchases for fire and street departments, and option to finance

[August 17, 2015]  LINCOLN - On Tuesday evening, Lincoln Fire Chief Mark Miller told the Lincoln City Council, the department had gone out for bids on a new pick-up truck. The department requested bids on a one ton 4-wheel drive pickup with a utility bed. It was also offering the department’s current pick-up as a trade-in.

Bids were received from Lincoln Chrysler Dodge Jeep Ram and from Graue Chevrolet in Lincoln.

Miller said the bids were very close, but in the end, Graue was the lower bid at $41,097. Miller said the difference between the two bids was only $1,500. Asked about the trade-in, he said both dealerships offered $8,500 for the pick-up.

Miller was also asked how the new vehicle compared to the old one. He said the old truck was only a half-ton where the new will be a full one-ton pick-up. He said the new truck would have a greater towing capacity. The utility bed will also provide secure storage of equipment with easier access from the side of the truck instead of inside the bed or cab.

City will consider purchasing new type of road patch equipment

Lincoln Street and Alley Superintendent Walt Landers presented a request to purchase a Total Patcher Vortex All-in-One Road Repair system at a cost of $64,485.66 and an Emulsion Tank for the system at a cost of $20,300.

Landers said that the new equipment would allow the city to do a better job of patching bad spots on the city streets. The equipment can do larger areas, not just pot holes. The new machine is equipped to clean the damaged area, spray with an undercoat, and then fill with an emulsion that includes rock, which will create a much stronger and longer lasting patch.

The council appeared to be supportive of the purchase, especially Marty Neitzel, who often has voiced concerns over the condition of city streets. She noted that if patchwork can be done better, and will last longer, it will benefit the constituents and improve the quality of life for those who live in Lincoln.

This item does appear on the Monday night voting agenda.

City Administrator discusses financing of equipment purchases

During the budget building process aldermen adopted a suggestion made by city administrator, Clay Johnson, that dollars be set aside annually by each department for equipment purchases, even if nothing is needed in a current year. He said that by putting money aside each year at budget time, when large purchases are necessary, the city would have funds accumulated to cover those purchases.

Last Tuesday Johnson offered another suggestion. He asked the council to consider financing the equipment purchases for this year. Specifically he noted patrol car purchases for the city police department, the utility pick-up for the fire department, and the new road patching equipment for the street department.

He said he had talked with a firm that would finance the total cost of these three purchases at a very competitive rate. Johnson said the payments to the loan would still come out of the equipment purchase fund. The advantage to borrowing he said was that the fund would not be depleted this year, and it would permit the dollars in the fund to accumulate over the next few years.

Johnson said the city would finance $250,000 to be paid over the next five years. The payments would be $27,000 twice a year.

Johnson was asked how many firms he had talked to about the financing, and he said only one. He told the council the firm he is talking with has a proven track record of offering the lowest interest rates.

Jeff Hoinacki said he supported the idea because it would allow the city to build a balance in the equipment fund, creating a “cushion” for when those extra-large purchases such as fire trucks, became necessary.

Michelle Bauer said she would like for Johnson to contact at least one other financing option. She noted that she wanted it for the sake of the constituents to show that the best option was the one chosen by the city. Johnson said he would certainly do so.

There will be no action on this suggestion this week. Johnson will do further research and report back to the council at a later date.

[Nila Smith]