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Gladwin council approves $540,500 purchase and USDA financing for new sewer cleaner
Summary
The Gladwin City Council approved purchase of a 900‑ECO combination sewer cleaner (purchase price $540,500) and authorized USDA financing for the $540,000 balance with a capped interest rate of 4.125% and a repayment term not to exceed 10 years.
The Gladwin City Council on April 7 approved acquisition of a new 900‑ECO 12‑yard truck‑mounted combination sewer cleaner and authorized financing through the U.S. Department of Agriculture.
Treasurer Angela Bigham presented two related resolutions: a Purchase Contract with Fredrickson Supply LLC and a Note Agreement to assign financing to the U.S. government under Act 99 (P.A. 1933). The Purchase Price in the contract is $540,500; $500 is due at acceptance and the municipality will finance a Payment Amount of $540,000. The council authorized the purchase contract and the financing arrangements in separate motions; both passed by roll call with unanimous votes.
The adopted resolution sets limits on the financing: the principal of the note will not exceed $540,000, the repayment term will not exceed 10 years, and the interest rate will not exceed 4.125% per annum. The Note Agreement requires the city to include debt‑service funding in future budgets and pledges to levy ad valorem taxes if necessary within applicable limitations.
The meeting record includes the Purchase Contract, Assignment of Purchase Contract to the United States and a detailed Note Agreement describing payment schedules, events of default and other standard loan provisions. The contract identifies Fredrickson Supply LLC as the vendor and incorporates the vendor’s August 29, 2024 proposal for equipment and specified accessories.
Council members who voted aye on the motions included Caffrey, Crawford, Darlington, Esiline, Gutierrez, Platt, Sischo and Winarski. No members voted against or abstained.
The council also authorized city officials (mayor and city clerk) to execute final loan documents and related closing paperwork when terms are finalized.
