RANGELEY — Selectmen voted Monday for the city manager to sign a lease-to-own agreement for a 2022 pumper fire truck and continue funding it.
Residents voted 205-132 on June 14 to approve a citizen petition for the lease-purchase for a total of $750,000 over seven years, subject to no interest or legal fees being added. It was up to the breeders to negotiate the purchase.
City Manager Joe Roach and Fire Chief Michael Bacon worked together to find a truck that met most of the department’s needs and didn’t exceed $750,000, including interest and legal fees.
This is a pump truck designed in 2019 and expected to be completed this year. It comes from Pierce Manufacturing in Appleton, Wisconsin, which has an office in Massachusetts closest to Maine. The municipality will take possession of it in five to six months.
The stock truck has a 1,000 gallon tank, rollover protection, airbags and an updated computer. It lacks some of the items the department wanted, like an electroplated coating for the frame, but it does have enough electrocoating for Rangeley’s time, Roach said.
The truck cost $642,000, but trading in the 27-year-old 3 engine drops it to $638,137. Engine 3 does not meet National Fire Protection Association standards.
The city received three funding proposals that met its requirements. The board chose Republic First National of Rochester, Indiana, which offered the lowest interest rate of 3.774%. There is a lump sum payment at the end of the lease.
Selectmen asked Roach to try to get seven equal payments and eliminate a lump sum payment, but if that’s not possible, the city can save money each year to lower the final payment.
With the lump sum payment, the truck would cost $744,997.06. Roach said that could go down if it was agreed to make seven equal payments.
The board also asked Roach if there was a prepayment penalty.