Article 2

Replacement Truck Choices

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

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

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

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

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

Air-Flo vs V-Box Spreader

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

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.

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

Terrastar Outfitted

The truck best suited to replace the Top Kick for the needs of Eidelwiess