LIVERMORE — The Board of Selectpersons voted unanimously Monday night to enter into a lease agreement for a new plow truck and gear.
At its July 9 meeting, the board heard a presentation by Lena Hann of Androscoggin Savings Bank on using a general obligation bond versus the lease agreement.
Hann said borrowing more than $100,000 through a general obligation bond requires a legal opinion, whereas leasing does not, saving about $1,000 in lawyer’s fees. The interest rates on the two options would be comparable.
At that meeting, Hann was asked if it would be possible to split the purchase into two transactions to get below the $100,000 level, since the truck and plow gear were being purchased from different vendors. She did not have an answer, so a decision was tabled until one was available.
This week, Administrative Assistant Amy Byron said the town cannot split the transaction to keep it less than $100,000, but can use money committed to the purchase up front to reduce the amount of the lease.
“The lease amount would still be over $100,000,” Byron said.
At the June town meeting, voters approved using a $40,050 insurance payout, $10,550.50 from the sale of the damaged truck and spending up to $127,399.50 to purchase a plow truck and equipment to replace the truck damaged last winter.
Byron said Hann indicated insurance rates are starting to rise, but the offered rate of 3.96 percent would be honored through the end of July.
“There would be four annual payments of $35,782.69, and a $1 buyout at the end of the lease,” Byron said.
Selectperson Tom Gould said there would be $13,130 interest with four payments.
Highway Foreman Roger Ferland confirmed delivery of the truck is not expected until September. He ordered it right after the town meeting.
Byron said she was told the town could close on the lease now and put the money into an escrow account to earn interest.
Byron signed the lease agreement after the vote.
In other matters, the board was given an update on the town’s beaches.
“It seems like a lot of townspeople are making sure things are picked up,” Ferland said.
Byron said that is what she has seen, too.
“Tom brought in a camera and I have a steel box on order,” Byron said. “As soon as the box comes in, they’ll be going up.”