
An image of a comparable Bobcat skid-steer loader the city council is considering to purchase or lease. (Stock photo)
The Gillespie City Council on Monday deferred action on purchasing or leasing a new Bobcat skid-steer loader until after the company provides more information regarding the terms of its proposed lease. The machine would replace or augment the city’s current Bobcat loader which is 15 years old and has recently required extensive repairs.
Ald. Jerry Dolliger reported to the council that the city could lease a new Bobcat for three years at a cost of $953 per month. The city also could buy the unit outright for about $102,000, or about $67,000 with a $16,000 trade-in allowance for the machine the city currently owns. He recommended the lease, noting the dealer had agreed to give the city a forklift attachment and possibly a bucket at the end of the lease.
Mayor John Hicks, however, questioned what the city would be required to pay if it chose to buy the equipment at the end of the lease.
Dolliger said a lease for a similar machine made by John Deere would run $2,885 per month, more than double the lease offered by Bobcat.
Public Works employee Landon Petit said he would talk to the dealer and make arrangements for representatives from the company to attend a Public Works Committee meeting on Monday, Aug. 22 to provide more information and answer questions. He said the Bobcat currently offers the best value for the money, providing a more powerful machine for less money than its nearest competitors. Dolliger said a lease for a similar machine made by John Deere would run $2,885 per month, more than double the lease offered by Bobcat.
“That’s why most cities go with Bobcats,” Pettit said.
Hicks also questioned a lease provision limiting the machine to 500 hours of use per year and charging $2.15 for each hour in excess of the limit.
“We won’t go over those hours,” Pettit said, noting the 15-year old machine now owned by the city has about 2,100 hours on it–an average of about 140 hours per year.
City Treasurer Dan Fisher offered the possibility of buying, rather than leasing, the machine. If the city were to borrow $50,000 at 3.5 percent to subsidize the purchase, he said, the city’s monthly payment would be about $910 per month over a five-year–shaving $43 off what the city would pay for a three-year lease. Given that that city’s current Bobcat is valued at $16,000, Fisher said, “I would say, at the five-year point, it would be worth as much as we paid for it.”
Fisher added, however, that the city appropriated $111,000 for Public Works equipment purchases for the current fiscal year, and the purchase of a Bobcat would take roughly half of the appropriation.
“We have some dump trucks that need replacement,” Hicks reminded the council. “We don’t want to put all of our money in one thing.”
Dolliger and Pettit, however, reminded council members that the lease agreement includes maintenance and repairs with the exception of routine oil changes. Those repair costs, they said could easily eat up the savings.
“If you ask a mechanic, they would say it’s smarter to lease than to buy because if you have something catastrophic happen, the repairs are covered,” Pettit said.
“So the question is: is it more feasible to buy a new one or lease one,” Hicks said.
A motion by Ald. Colin Mussatto, seconded by Ald. Dave Tucker, to enter into a three-year lease was later rescinded after further discussion.
Hicks said he would like to have more information about the cost of a possible buy-out at the end of the lease.
Ald. Jan Weidner also questioned whether the city could buy the equipment outright without advertising for bids.
“If you’re leasing, no,” said City Attorney Kevin Polo. “If you’re buying it, then the answer is yes.”
Public Works Committee members are expected to make a recommendation to the full council at the council’s September meeting after securing additional information from the vendor.
SIREN UPDATE
On a motion by Ald. Steve Kluthe, the council approved the expenditure of $3,100 from the Communications line-item of the ESDA appropriation to update controls for the emergency siren located at the City Hall complex. Ald. Mussatto presented the proposal from Global Technical Systems, Jacksonville, to remove controls for the siren out of the current police station and install them on the pole on which the siren is mounted. The upgrade will enable the siren to be activated from the pole or remotely from the new police station when the Police Department moves into its new facilities on Pine Street.
Mussatto also reported that emergency sirens at the Water Treatment Plant and at Gillespie Lake are severely outdated and in need of replacement at a cost of about $25,600 each.
We have rotating sirens from World War II that are mounted on poles and rotating sirens are no longer recommended. We need to do something.
“We have rotating sirens from World War II that are mounted on poles and rotating sirens are no longer recommended,” Mussatto reported. “I know it’s a lot of money, but we need to do something.”
Ald. Kluthe, chair of the Public Safety Committee, said the committee is looking at a five-year plan to replace aging sirens to spread the cost out over several years.
In a related matter, Mayor Hicks accepted Kluthe’s recommendation to name Mussatto as the city’s ESDA chair, replacing Ald. Roger Dively.
PERSONNEL
Following a 20-minute executive session to discuss personnel, litigation and the possible acquisition of real estate, the council voted unanimously to hire Gary Thornhill as a part-time water meter reader.
Earlier in the meeting, Police Chief Jared DePoppe reported to the council that part-time police offer Matt Spaller had resigned to accept a position as Chief of Police in the Village of Worden. DePoppe said there are no plans to replace Spaller on the part-time police roster.
DePoppe also reported that Sgt. Kenny Rearden was a recent recipient of a Certificate of Appreciation from the Alliance Against Intoxicated Motorists in recognition of his enforcement of laws against driving under the influence of alcohol.
PROPERTY TAX BILL
The council referred to City Attorney Polo a property tax bill the city received from the county for the recently acquired building on Pine Street that is being renovated for use as a police station.
“We didn’t own it until October,” Mayor Hicks said.
Polo said he would have to review the purchase agreement to determine who is responsible for the bill.
“We are going to have to do what the agreement says,” Polo noted. “The tax bill we have is for a period when it wasn’t a publicly owned building. The question is who is responsible for the taxes.”
ANIMAL CONTROL
The council took no action on a request to revisit the city’s animal control ordinance after Polo pointed out that the city’s zoning ordinance has provisions addressing the presence of farm animals within the city limits.
Ald. Weidner said she had been approached about the possibility of amending the animal control ordinance by eliminating its reference to “dangerous” animals and making it applicable to all animals. The issue came up, she said, due to complaints about livestock running at large in the city.
“Under the zoning ordinance, livestock is not allowed,” Polo said.
Hicks said there have been two recent instances of goats interfering with youngsters playing ball at Welfare Park.
“The kids came up to the police station to report it and the goats followed them,” he said.
OTHER ACTION
In other action, the council:
- Heard a report from Mayor Hicks indicating the city is awaiting a final number for paying off a 2005 water bond issue. The council previously agreed to pay-off the bonds. The estimated pay-off will be about $377,000.
- Agreed to pay the $310 registration fee for Treasurer Fisher to attend an Illinois Municipal League conference in late September in Chicago.
- Authorized Ald. Kluthe to seek bids to upgrade the heating, air conditioning and ventilation system in the new Pine Street police station.
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