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MINUTES <br />CITY COUNCIL <br />APRIL 27, 1994 <br />AUTHORIZE The City Administrator reported that the Fire Department <br />FIRE TRUCK would like the authority to bid a new fire truck. <br />BIDS Before the Department can make that purchase, they need <br />the approval of the City Council. At this point, plans <br />and specifications have been prepared. The next step <br />would be to take bids for the purchase. The <br />Administrator noted that with each step, the City's <br />commitment to the purchase of the new truck becomes more <br />solid. The purchase of an additional truck is a 1995 <br />budgeted item. <br />The Administrator reported that he was asked for a <br />financing plan given that the Fire Department still owes <br />$29,950 towards the purchase of the ladder truck. <br />Repayment of this balance has been discussed with the <br />Fire Department, who have indicated that the balance will <br />be repaid in 1994. <br />The Fire Chief reported that the Department's fund <br />raising efforts are resulting in approximately $5,000 per <br />month. <br />The Administrator reported that another obstacle is that <br />the estimated purchase price of the new fire truck has <br />increased from $250,000 to $290,000 due to some <br />additional features the Department would like on the <br />truck. The Fire Department has indicated that they would <br />pay between $25,000 and $40,000 toward these additional <br />costs. Another factor to be considered is that the <br />manufactures may offer cash discounts if the cost of the <br />truck is paid up-front. These options will be requested <br />as part of the bid package, and can be evaluated at the <br />time bids are received. It may be that the City could <br />earn more with its current investments than the discount <br />that might be offered for an up-front payment. <br />Morelan asked if the bid documents would request prices <br />based on different financing options. <br />The Fire Chief replied that the bid documents can request <br />those kinds of options. <br />Scalze asked where the City will come up with the money <br />for the truck purchase. <br />The City Administrator replied that the City has two <br />sources, one being the money plus interest the City has <br />23 <br />