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Council approves ordering new fire truck and launching financing to lock discount
Summary
Council unanimously authorized staff to order a replacement fire truck (quoted at $1,902,956) and to start leasing now under a 10‑year term to secure a manufacturer prepayment discount; council limited approval to a maximum 1% cost variation from the quote.
Council authorized staff to order a replacement fire apparatus after Deputy Chief Nick Jarvis and Finance Director Corey Christiansen explained the department’s aging vehicle and financing options. Jarvis said the current truck is near the end of its useful life and noted operational strains; staff recommended ordering early because delivery lead times run 3–4 years.
Corey Christiansen presented the price and financing math: the manufacturer quote was $1,902,956; holding current prepayment and lease parameters would produce an estimated discount of approximately $174,313. Christiansen explained lease‑term options (10, 8 or 5 years) and the tradeoff between payment size and interest rate exposure. He noted a 3% prepayment penalty would apply if the city refinances the lease early.
Council Member Adam Larson moved to authorize the purchase, start financing now on a 10‑year lease, and limit final cost exposure to no more than a 1% increase over the current quote; Spencer Arvey seconded and the motion passed unanimously on roll call. Staff will now obtain formal lease documents and finalize terms within the council’s parameters.
