The Coeur d’Alene City Council approved a transfer of more than $200,000 from the city’s general fund to cover the cost of a new armored rescue vehicle for the police department. The Tuesday vote resolved a budget shortfall that emerged after insurance proceeds from a 2024 fire were exhausted by other recovery expenses.
The purchase involves a BearCat armored vehicle built by Lemco Armored Vehicles, designed for SWAT teams in high-intensity situations. The total cost for the BearCat, along with a utility task vehicle (UTV) and public protective equipment, came to $382,482. With only $178,643 remaining from the insurance settlement, the city is dipping into its general reserves by $204,432 to finalize the transaction.
Fire Insurance Proceeds Depleted
The need for additional funding stems from a June 9, 2024, fire that destroyed the Coeur d’Alene Police Department’s support services building. A lithium-ion battery pack left charging on an electric bicycle caused the blaze, which consumed the department’s previous armored vehicle, three motorcycles, and other materials.
The city received approximately $2.24 million in insurance proceeds following the incident. However, police officials spent those funds on various fire-related items, leaving insufficient money for the replacement armored vehicle. Police Chief Greg Yeager noted that the initial purchase agreement with Lemco was not properly communicated to the finance department and was excluded from insurance settlement tracking or budget development.
Bidding Process Exemptions
City officials raised concerns during the meeting because the $334,932 cost of the BearCat exceeds the $250,000 threshold that typically requires an open competitive bidding process under city law. However, a state of emergency declared immediately after the fire exempted the city from standard procurement policies.
By July 2024, the police department had established a purchase agreement with Lemco using the available insurance funds. Former Coeur d’Alene Police Chief Lee White defended the process, stating that the city administrator and finance teams were looped in and approved the move. “This wasn’t just a willy-nilly decision,” White said.
Budget Oversight and Future Purchases
Councilmember Christie Wood expressed concern over the financial gap that required general fund intervention. “It’s very concerning to have that big of a shortfall and think that it’s going to be paid for, and here we are,” Wood said.
In response to the miscommunication regarding insurance funds, Finance Director Katie Ebner stated the city is implementing a new purchase order policy to prevent similar issues in the future. Mayor Dan Gookin noted that the council had previously authorized emergency expenditures due to the unprecedented nature of the building loss and the complexity of the insurance payout.
During the Tuesday meeting, Wood moved to approve the final tally for the armored vehicle and related equipment but declined a request to purchase two new motorcycles to replace those lost in the fire. The council instead asked Chief Yeager to present on a possible future motorcycle purchase at a later date.