GREENWOOD TWP- It appears that Greenwood Township will soon have a new fire engine, with a total price tag of $809,649. The town board signaled their willingness to move forward with the purchase during their regular meeting on Tuesday.
Town residents levied an extra $200,000 this year and next, to help pay for the new engine. It will replace the department’s current main engine, purchased in 2002.
The board set a special meeting for Monday, Sept. 21 at 6:30 p.m. to approve the purchase, as well as the financing, for the truck.
“The engine has over 24 years of service,” said chairman Paul Thompson. “It is well past its replacement date. Replacing the pump would cost more than the truck is worth.”
Fire Chief Brian Trancheff has been working with the MacQueen group of St. Paul to design a truck to meet the department’s needs. The truck will serve as both a pumper and a tactical tender, replacing another of the department’s aging vehicles.
“It’s the best of both worlds,” said Trancheff, “like a Swiss army knife.”
The truck would be less than a foot longer than the current engine, with more storage and a second pumping system. It will include updated camera and pump technology, as well as the ability to “pump and roll,” a firefighting technique where the vehicle can pump water while being driven slowly around the edge of a fire. This is extremely useful when combatting brush fires or house fires that are spreading towards woods or other exposures, Trancheff said. The pump and roll system also can act as a backup pump on a fire scene. The truck will have storage for extrication equipment, replacing the need to get a second rescue truck on scene. It will have similar water tank capacity as the current engine.
The original estimate for the new truck was $1.2 million, but going with a prebuilt International chassis and limiting custom add-ons brought the price down. Delivery time was also reduced, now expected to take 14 to 17 months.
Thompson said while the township has been working with a single vendor, this is allowed under state law, since they are following state purchasing guidelines through the Sourcewell program.
Trancheff said MacQueen has local service technicians on the Range, and they also offer service on-site. The truck would be manufactured by Pierce.
The second major issue facing the board was how to finance the purchase. The current quote is good for only 30 days and MacQueen indicated the price would be increasing by two percent in November.
Board members Thompson and Steve Bradach said the township has two financing options, a lease-purchase over a ten-year span or a certificate of indebtedness, basically bonding. Both options are allowed under state law.
The lease-purchase would be at a 5.47-percent interest rate. It would also allow the township to qualify for an almost $25,000 discount off the truck’s $835,006 cost, bringing it down to $809,649.
“Basically, we would be renting the truck over a ten-year period, with no pre-payment penalty,” said Bradach.
The certificate of indebtedness would require financing, possibly through a local bank, and would probably have a similar interest rate. But this option can be more complicated and would take at least 60 days to set up, Bradach said. It also has the possibility of having residents petition to oppose the bond.
“The lease-purchase allows us to lock in the truck price, and preserve the $25,000 discount,” Bradach said.
“We don’t know what will happen to interest rates after November,” he noted.
Thompson said the lease-purchase allows the township to manage its levy.
“We can lock it in and pay it off early,” he said.
“The public has told us we need to buy a new truck,” Bradach reminded the board. “We don’t want to fumble this thing around and have it take forever.”
Township residents approved increasing the levy by $200,000 the last two annual meetings, to set aside money for a new engine.
Trancheff said the department would then sell the old engine and rescue truck, which he estimated would be worth $25,000.
In other fire department news, Trancheff reported the department had 12 fire calls and seven EMS calls in August, along with three fire department and one EMS training.
The township spent $3,300 to replace the electronics panel on the town hall/fire hall’s fire alarm system. The repair technician thought the panel had possibly been damaged by a nearby lightning strike.
The board approved the resignation of fire department member Mike Weske, who is also a member of the Cook Fire Department. Trancheff said he has taken on more responsibility with the Cook department.