MINUTES
Special Meeting for General
Business
Members Present: Chairman Don Butler opened the meeting at
Service Department Request for New 4-Ton Truck -
Chairman Butler stated that the purpose of this meeting was to discuss the options for a new 4-ton truck for the Service Department. To bid it out is going to take about a month. If we lease the vehicle we don’t have to go through the State bid process. A 3-year lease would cost us about $9,000 in finance charges.
Dave Figgers indicated that the problem we are now dealing with is the 2010 emissions. If we get to where we have to put the new emissions on this truck it’s going to be $7,500 to $10,000 more. In talking with Newell Equipment (the snowplow outfitter) this past Monday it was indicated they are now in the STS program (state purchasing). When we outfit the truck with the snowplow package, the lights and whatever else we need, after it’s done Newell sends us a bill and we send him a check. That reduces the price of the cab, chassis and the dump body down to $101,250 although we will still have whatever Newell charges us for outfitting it. The guy from Peterbuilt stated that the cost of the cab, chassis and dump body would allow us to do a one-year lease. It would be $33,750 up front, same amount of money after six months and the same amount of money at the end of the one-year period and at the end of the period we would own the truck. The finance charge would come into play but it would only be about $3,700. It would cost us more due to emissions if we don’t make the cut-off date - Peterbuilt can’t guarantee anything as the cut-off date is close now. It’s more of a risk if we bid the truck out at this point of time than if we lease.
Trustee Kehoe questioned whether the Peterbuilt figure still holds since it goes back to February and it says the price is good through March 15th. Figgers responded that the price was still good as of this morning when he talked with them.
Trustee Kehoe questioned whether it included a trade-in of the 1995 truck. Figgers responded, no. Peterbuilt brought their estimator out one time and looked at our Ford and that’s the price they quoted us. Roy and I feel that the Ford is worth a few thousand dollars more. We know of a couple of local contractors who are interested in that truck when you put it out to bid or auction. So if we got a few thousand dollars more than what they quoted us it would almost cover the finance charge.
Trustee Kehoe questioned where the finance charge would come in because if you are looking at three payments of $37,500 that would add up to the $101,250. Figgers responded that the finance charge would need to be added in.
Dave Figgers indicated that when the 2006 Peterbuilt was outfitted by Newell Equipment some of the equipment that Newell put on the truck came from Glenhill – the plow, the salt spreader and various other things and Glenhill (down the street from Newell) is in the STS program – a check was just sent to Newell after the truck was outfitted. This morning when I talked with the Peterbuilt salesman it was indicated that it would be about $5,325 to finance about $150,000. After getting some other information together, the cab, chassis and dump body by themselves would come in at the $101,250 figure and the salesman indicated the cost to finance that amount for the one-year lease would be approximately $3,700. We would still have the trade-in (or auction) money we get off the Ford.
Figgers further indicated that for comparable vehicles, Freightliner came in at $124,553; International came in at $87,227 except you would need to add another $18,000 for a dump box so you would be looking at approximately $105,000.
Roy Delaney stated it was interesting to note that the price we paid for the 2006 truck was $102,665. Four years down the road it’s still in the same monetary range except the new truck would be a little smaller. Figgers indicated it would be a tandem axle with a shorter wheelbase and the box would be shorter in height and shorter in length.
Trustee Kehoe indicated that about $50,000 was spent outfitting the other truck for plowing and questioned the price for outfitting this new truck. Figgers responded by saying it would probably be in about the same price range. There is some different technology out (the snowplow controls are more user friendly) and the price has actually come down for some of the same setups. We will not have sonar backup on the new truck and there will not be as many lights. An exact figure can’t be given until we actually lock in which truck model, which manufacturer, but it won’t take too long to get a price for the outfitting.
Trustee Kehoe stated that we would be looking at a truck cost of $101,250 plus $3,700 finance charge for a one-year lease. Figgers confirmed that those figures were correct but it has to be agreed that we would need to be able to outfit the truck also even though an exact figure isn’t available at this time. Trustee Kehoe acknowledged the same.
Delaney indicated that especially in these tough times he thought it was a good idea by splitting the costs up. We would get Newell done and paid for this year with only a deposit on the truck and then next year the truck would be paid off – so it was stretched out a bit to save some of the budget dollars. He also indicated that he has been reading about the 2010 emissions and the DEF (diesel exhaust fluid). There have been some nasty stories about some problems so we are trying to avoid it if we don’t have to do it. The 2009 is still a very clean emissions.
Trustee Butler indicated that he wanted it on record that when the one-ton truck that we have gets beyond low maintenance, we are going to get rid of it – we are not going to rebuild it – we are going to get rid of it and not replace it. This should be okay since this new truck is a smaller truck than the one we have now plus we have the pickup. Trustee Kehoe questioned whether this new truck would be able to handle the snow plowing and other towing needs of trailers, etc. Dave Figgers responded that it was fine to get rid of the one-ton truck as indicated by Trustee Butler and when the transmission goes or when we break a crank or something like that, it would not be worth putting that kind of money into it. Figgers further responded that the new truck could handle the current service department needs. However when the economy picks up to the point where these developments or subdivisions we’ve got start going crazy and once they fill up then we’re going to have to get another pickup or another part-time driver in the winter.
Trustee
Roll Call Vote: Trustee
Trustee
Kehoe - aye
Motion Carried.
Chairman Butler indicated this would be Resolution No. 24 and it will be typed up later.
Trustee Kehoe asked that Dave Figgers notify Peterbuilt right away and get the paperwork started for the lease and that Figgers should also talk to Newell Equipment to advise them what is needed so they can come up with the numbers that are necessary for the trustees to move forward on outfitting the new truck. Figgers acknowledged that he would be contacting the appropriate parties immediately and once Newell has the list of items needed for the truck and the cost, it will be brought back before the trustee board.
There was discussion about what would be needed to get rid
of the 1995 Ford that’s sitting in the back.
Trustee Kehoe stated he thought a county auction was coming up in August
or September and that might be a good way to get rid of that truck. If it goes to auction a reserve could be
placed on it – Dave and
Chairman Butler adjourned the meeting at
Approved: ___________ ________________________________
Donald Butler, Trustee
________________________________
Lee Kehoe, Trustee
________________________________
Lynda Bowers, Trustee
___________________________
Shirley Bailey, Fiscal Officer