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  • Nephi City chooses purchase option over leasing for new backhoes



By Myrna Trauntvein
Times-News Correspondent

Nephi wants to own and not lease backhoes used by city departments.

“Our leasing contract has expired,” said Seth Atkinson, city administrator.

“As the need has arisen to purchase additional street equipment, the funding option of an interfund loan was discussed at our last work session.”

“We will have a public hearing at 7:15 on December19,” he said.

At the work session, the staff briefed the council about reasons for purchasing backhoes and discontinuing the current leasing program, he said.

“The staff financing proposal is scheduled to be presented to the city council at the next meeting.”

Meantime the council approved the new contracts so that the city could continue with use of the backhoes through the lease with Century Equipment Company.

The annual costs will be lower and the staff proposed a financing option at the work session.

The current contract for the backhoes expired on December 6 and the company needed to have new contracts in place by that date, regardless of whether or not the city purchases the backhoes or continues with the lease program.

“If the council has no objections to the financing option, staff would seek approval from the council to enter into new contracts with the company,” said Atkinson.

He said that city crews needed to have three backhoes, hydraulic excavating machines, for use by the parks and cemetery and the public works department.

The public works department needs two.

The number of backhoes was reduced by one and there would be that cost savings.

“In the past,” said Mark Jones, mayor, “it was a financial benefit to lease equipment but that has turned around and it is wiser now to purchase.”

Now it will cost less in the long run to own the equipment than it is to lease it, he said. It will be a wise move on the part of the city to purchase rather than to lease.

Atkinson said that it was the recommendation of the staff that the city council authorize Jones to sign new agreements with Century Equipment Company.

The cost will be in the neighborhood of $75,000 for three of the pieces of equipment.