The City Council approved financing terms for a new quint fire truck over 10 years and a knuckle boom truck over three years, at a cost in excess of $800,000 for the capital expenses.
Both were included as part of the city of Clinton’s Capital Improvement Plan (CIP), and bids for each truck were previously awarded by Council. Financing terms were approved earlier this month.
The city solicited bids for the financing of a 2012 Sutphen Aerial Platform Fire Apparatus, the purchase of which was included in the city’s CIP. BB&T was the low bidder with 2.27 percent and no origination fee, which would come to a cost of $71,695 per year for 10 years.
“As anticipated, the cost for the truck is significant enough to consider debt financing as an option for payment,” stated assistant city manager Shawn Purvis.
The cost of the apparatus is $675,000, and the city’s 2012-13 budget includes $40,000 for a down payment, leaving $635,000 to be financed. A request for proposals was issued Aug. 1 to four banking institutions, and three submitted proposals. Purvis called BB&T’s proposal “the most economical option.”
A quint, or quintuple combination pumper, is a fire service apparatus that serves the dual purpose of a pumper and a ladder truck. It will be delivered by early 2013 and fill a key need within the Clinton Fire Department by replacing an aging 1996 model pumper, officials said. The purchase of a single truck will assist with the city’s ISO (Insurance Service Office) rating and require less manpower than a pumper and traditional ladder truck.
Likewise, the new knuckle boom truck would also have benefits and help replace an aging machine.
The knuckle boom truck would be used for residential green waste and debris collection. The existing knuckle boom is a 2005 model with nearly 12,000 hours as of the beginning of this year, and operating four to five days a week, has accrued many more since then.
City officials have touted the benefits of buying a new knuckle boom truck for routine use and keeping the existing truck for backup. In the event of a major weather event, both trucks could be used to clean up.
The city solicited bids for the financing of the knuckle boom truck, also included in the CIP. BB&T was again the low bidder with 1.71 percent and no origination fee. The 2012 Freightliner Knuckle Boom Truck chassis with mounted Ramer Model 3500 trash loader will be fully financed at $38,617 per year for three years, an overall $112,000 cost.
A request for proposals for financing services was issued to four banking and lending institutions, with the city again hearing back from three of them and BB&T’s labeled the most economical and representing the lowest annual payment with no origination fees.
Chris Berendt can be reached at 910-592-8137 ext. 121 or via email at email@example.com.