ENGLEWOOD — Tuesday night Englewood City Council passed a resolution to approve the purchase of a new Komatsu Wheel Loader, model WA270-8 at a cost not to exceed $155,000.
The new wheel loader would replace a 12-year-old Komatsu currently in service.
The city received three proposals for a new wheel loader; one each from Caterpillar, CASE Equipment and Komatsu.
“The Komatsu is the staff’s choice and it is also the least expensive,” said City Manager Eric Smith. “They are all three within the same realm. In fact, between the CASE and the Komatsu there is only a few hundred dollars difference but we are recommending that we stay with Komatsu.”
Smith told council that when it comes to buying municipal equipment it is a win-win for the city. First, there is a municipal discount. Smith contacted local contractor Doug Balsbaugh, owner of Balsbaugh Excavating, and asked what he recommended because he buys massive amounts of equipment. Balsbaugh buys a lot of Komatsu equipment and highly recommended that brand.
“If he had to buy the same piece of equipment he said he would have to pay over $200,000,” Smith noted. He also said the trade-in value of the existing Komatsu would be substantial. Smith said he expects the city to sell its existing Komatsu on govdeals.com for anywhere between $40,000 to $50,000. Govdeals.com is the place to bid on government surplus and unclaimed property including heavy equipment, cars, trucks, buses, airplanes, and more.
The other factor that benefits the city is that it would not have to pay tax on the new purchase.
“As a public agency we don’t have to pay tax, so it really pays to replace the equipment on a regular basis,” Smith said. “The one we have is twelve years old. It still works fine and it still has life left in it and that is why it would have value for somebody else.”
The city was offered zero percent financing, but Smith said the city prefers to pay cash for purchases of this nature.
In other business, council passed a resolution approving the city’s five-year Capital Improvement Plan for the years 2020 through 2024 totaling $13,737,948. The Capital Improvement Plan serves as a long-range plan to aid in budgeting and setting aside adequate reserves to fund future projects. The availability of grant funding for projects slated in later years of the plan might expedite the actual completion of a project. Non-critical projects might be delayed pending the availability of support revenue.
During the City Manager’s Report, Smith informed council that land along Main Street has been sold to MetroNet, which will be installing a tower and box for its equipment. MetroNet is currently installing a fiber optic network in Clayton, Englewood, Union and Vandalia (as well as other jurisdictions in the Miami Valley) that will provide fiber optic telecommunication services, including high-speed Fiber Internet, full-featured Fiber Phone, Fiber IPTV with a wide variety of programming, and a home security product called MetroNet SmartHome. Smith said service should be available sometime after the first of the year.
New police body cameras have been installed and are operational. Smith said the new body cameras are a gigantic leap forward compared to the original body cameras being used.
The water softening equipment being installed at the city’s water treatment plant is well under way. Smith said he wasn’t sure when it would become operational, but said the city was hoping it would be up and running by the latter part of October.
Reach Ron Nunnari at 684-9124, via email Rnunnari@aimmediamidwest.com or on Twitter @Englewood_Ind