Greenville council approves sewer truck purchase, authorizes up to $600,000 installment financing

Greenville — The Greenville City Council voted unanimously on Feb. 17 to award a contract to Jack Doheny Companies, Inc., for a Combination Sewer Truck with hydro-excavation capability and to authorize a financing plan to cover the purchase.

Councilperson Moss moved to award the bid in an amount not to exceed $565,000; Councilperson Johnson seconded and the motion passed unanimously. The purchase is intended for the Department of Public Services to support sewer and utility work across the city.

The council then adopted Resolution No. 26-03, authorizing the city to seek installment purchase financing under Michigan's Act 99 in an amount not to exceed $600,000. The resolution directs authorized city officers to select a lender and negotiate an installment purchase agreement with a final maturity not to exceed 15 years, and it determines the useful life of the equipment to be at least 15 years. The resolution also requires the city to include annual budget appropriations sufficient to pay principal and interest and pledges the levy of ad valorem taxes if necessary, subject to constitutional and statutory limits.

The measure includes standard tax‑exempt financing covenants: authority to designate obligations as "qualified tax exempt obligations," compliance with Internal Revenue Code requirements, and a commitment to take actions needed to preserve tax-exempt status if applicable. The resolution also states the city may advance funds from its public works department fund and be reimbursed from the financing proceeds.

The council employed Dickinson Wright PLLC as bond counsel to prepare financing documents and acknowledged that the firm may represent financial institutions that could purchase the installment agreement.

Next steps: city staff will select a lender, finalize the installment purchase agreement, and complete procurement paperwork for delivery of the vehicle.