Article 2 Replacement Truck Choices. VDOE Vehicles VehicleYearMiles Condition2014 Repairs Grader...
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Transcript of Article 2 Replacement Truck Choices. VDOE Vehicles VehicleYearMiles Condition2014 Repairs Grader...
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Article 2
Replacement Truck Choices
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VDOE Vehicles
Vehicle Year Miles Condition 2014
RepairsGrader 2014 <1000 New $0
Backhoe 2014 <1000 New $0
International
Workstar Truck2010 12,000 Good $1,766
Top Kick
Truck2005 30,000 Poor $12,343
F550 Truck 2012 21,000 Good $509
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Replacement Plan
• Top Kick is Best Truck During Winter Storms• Need a New Medium Duty 4x4 Truck with
capability of the Top Kick (Sander, Front and Wing Plows)
• Ford vs International – Trucks researched to determine the design, durability, performance, and capabilities that best meets our needs
• Plan - Recommend the most reliable and cost effective truck that will do plowing and sanding with confidence & dependability
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F550 Terrastar
Engine Diesel V8 300hp Same
Frame 36,000psi 80,000psi
Transmission Good Better
Severe xfer case No Yes
Durability Good Better
Components Pickup Truck Commercial
Expected Life 5 Years 7 Years+
Trade-in value Poor Excellent
Compare Trucks
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Cost Comparison (equally outfitted)
Ford F550 International
Terrastar
Base Truck $50,000 $59,610
Winter PackageAir-flo Sander,Plow, Wing,
$58,785 $56,885
Total Cost(not incl. Extended Warrantee)
$108,785 $116,495
“Cost of Ownership”
F550 - 5 Year life
Terrastar – 7 Year Life
$22,000
Per year *
$17,000
Per year *
* Loan interest cost not included
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Why Terrastar• Research, Evaluation, Test Drive = Best Choice • More Rugged & Durable “Commercial class build”• Recommended by DPW Drivers and Plow Equipment
outfitter, Mechanics• Safer vehicle for our drivers• Air-Flo Bed provides more versatility / longer life• Roads get plowed and sanded sooner• Road projects can be done more effectively• Should last 2 or more additional years• Best Future “Trade-in” value
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Financing
• Truck is to be paid for using a 5 year loan
• Annual payment of $25,362
• Future years payment impact is reduced by 2015 final payment for the Oak Ridge Road bond which was $0.12
• Future years tax impact of $0.13
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Tax Impact
• The Commissioners understand that the purchase of a truck in addition to the already approved projects will impact the 2015 tax rate – that would increase the estimated tax rate 16.1% from last year to $4.71
• The Commissioners intend to offset some of the tax rate increase when preparing the required Department of Revenue Administration forms in August, 2015.
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F550 to Terrastar Tax Difference
• Alternate F550 truck proposed at meeting for $80k – (not equally equipped)
• Cost difference between two discussed trucks is stated as $36,000.
• Over a 5 year loan, the annual difference is $7,200. ($36,000 / 5)
• Tax impact difference is less than $0.08
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Terrastar Outfitted
The truck best suited to replace the Top Kick for the needs of Eidelwiess