A demonstration model of the Sutphen aerial platform fire truck is parked in front of Ishpeming City Hall prior to a past Ishpeming City Council meeting. The commission unanimously approved a resolution Wednesday to authorize the sale of general obligation tax bonds for the purchase of a new fire truck. (Journal photo by Lisa Bowers)

ISHPEMING — The city of Ishpeming is one step closer to getting a new aerial ladder fire truck.

During its regular meeting Wednesday, the Ishpeming City Council unanimously approved a resolution to authorize the sale of general obligation tax bonds.

Ishpeming residents approved the purchase of the truck during the Aug. 8 election as a 12-year millage to pay for the truck, which could cost up to $850,000.

The millage, approved by a vote of 495-336, will levy .90 mill in 2017, with an estimated average annual rate of .85 mill to retire the bond, according to the bond proposal.

Councilman Stuart Skauge was concerned with how leftover money from the bond, if any existed, could be used by the city.

“What if all the costs come out to $830,000?” Skauge said. “Can we use the remaining money to pay down the bond?”

City Manager Mark Slown said: “If for some reason we did not spend all the money, the council could not use it for anything — it can only be used for this purpose. I have been working with the fire chief, and unfortunately it looks like we will just squeak by with the $850,000 from this millage. There won’t be any extra.”

Skauge replied: “What I don’t want … to find out is that we spent $830,000 on the truck and then we bought $20,000 worth of tools and equipment for another fire truck.”

Fire Chief Edward Anderson said any equipment that is purchased with the bond will be for the new fire truck.

“There are some pretty pricey things that we will need for the truck,” Anderson said, “But it will all be put on that new truck.”

In addition to the 75-foot aerial ladder, the new fire truck will include a water pump, a minimum 500-gallon water tank, the ability to carry a minimum of 1,000 feet of 4-inch diameter hose and 115 feet of ground ladders.

Slown said that the bond sale will begin Oct. 5 and conclude Oct. 26.

The bonds will be awarded to the bidder whose bid produces the lowest true interest cost, according to the official notice of bond sale.

The council expects to enter into a purchase agreement for the fire truck at its regular meeting on Oct. 4.

The council also approved a quit-claim agreement with Charter Communications for the donation of equipment with an estimated value of $65,000 for the city to use to broadcast its regular meetings.

The equipment, which is roughly three years old, includes sound and video production equipment to be used by Ishpeming High School for video production of sporting and special events as well as student newscasts and other educational programming on Charter Channel 189.

The city entered into negotiations with Charter after the company announced it would discontinue production of any municipal meetings effective July 1.

The negotiations for the broadcast equipment included an amendment to the 10-year uniform video franchise agreement that was approved by the council in May, reducing the Public Educational and Government, or PEG, fees to 20 cents per subscriber.

Slown said based on his estimates, the city would be giving up roughly $100,000 in PEG fees over the course of the 10-year contract.

“So, while the actual cash value of the equipment in the beginning isn’t that much, to get that equipment and be able to obtain it and use it would cost us probably more than we are giving up,” Slown said.

The franchise agreement approved in May increased the PEG fee from 10 cents per subscriber to 2 percent of gross revenue.

Don Gladwell, government affairs manager for Charter Communications, said the agreement was equitable for everyone involved.

“The point is to keep the costs for our customers as low as possible,” Gladwell said.

Lisa Bowers can be reached at 906-228-2500, ext. 242. Her email address is lbowers@miningjournal.net.