Village enters five-year lease for heavy equipment with $1 option to buy
Lindenhurst Village Hall seen on July 11, 2016. Credit: Newsday/Steve Pfost
Lindenhurst is leasing heavy equipment in an effort to save money and keep more services in-house rather than contracting with outside companies.
Over the past two weeks, the village has entered into agreements to lease seven pieces of equipment, including trucks, material spreaders and a street sweeper.
The lease-purchase agreement is with Government Capital Corp., a Southlake, Texas-based public financing firm. The five-year lease will cost the village $108,770 per year, with the option to buy the equipment at the end of the term for $1 each.
The village announced the new leasing policy earlier this year after signing lease agreements with the same firm for five pieces of equipment for about $149,000 a year.
Village officials said leasing will save the village money in costly repairs of older equipment, as those pieces can be swapped out for newer leased equipment that often come with extensive "bumper to bumper" warranties.
By leasing equipment to do more services in-house, the village can save additional money, officials said. In particular, Mayor Mike Lavorata pointed to the purchase of a sweeper. Costs for sweeping from outside contractors has been steadily rising, Lavorata said, most recently increasing from $45,702 for the 2017 to 2018 fiscal year, to $51,999 for the current fiscal year. And, he said, the village received many complaints about the work done. With the purchase of a sweeper, all work will now be done in-house, he said.
“We can do it faster, right after an event like Oktoberfest,” he said. “This gives us flexibility and with the leasing it winds up being cheaper.”
The leased equipment are: two 2019 Chevrolet 2500HD Silverado trucks from Chevrolet of Smithtown in St. James; two 2019 Ford F-550 4x4 dual rear-wheel XL trucks from Gabrielli Truck Sales Ltd. in Hicksville; two highway Super P V-Box high-capacity material spreaders from Trius Inc. in Bohemia; and a 2018 Elgin Broom Badger street sweeper from Long Island Sanitation Equipment Co. in Farmingdale.
Denise Bonilla has worked at Newsday since 2003 and covers the Town of Babylon, including the villages of Lindenhurst and Amityville.
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