Commission sleeps on decision of new graders
Marion County Commission wanted time to ponder a proposition made by Foley Equipment Company regarding three new motor graders.
Salesman Garrett Clay presented the proposal Monday to the commission that would allow the purchase of three motor graders. Current lease agreements would allow Foley to purchase three 2002 graders for $110,000 to $120,000 each.
The buy-back agreement for the leases required Foley to pay the county a minimum of $88,000 for each grader, should the county choose to sell the equipment and purchase new.
For a limited time, the county has an opportunity to purchase three graders through a government lease for a total of $166,645, after the buy-back amounts are deducted. The three graders retail for $547,045. The county currently owes $69,736 for the remainder of the original leases that end July 24. When the leases end, free maintenance and warranties also end.
Currently the county pays $1,600 per month per machine. The new lease would be $1,501 per month per machine.
Commissioner Randy Dallke said the previous commission had made the decision on the lease-purchase of the equipment instead of leasing and returning to the company, to be able to own the equipment outright and not have monthly payments.
Road and bridge superintendent Jim Herzet likes trading the equipment before any major repairs are required.
"We've gone through transmissions on the graders before the warranty has ended," said Herzet. A major maintenance also will be due shortly after the maintenance contract ends, also adding to county expenses. The commission tabled any decision until the next meeting.
In other department business:
— Cardie Oil Company of Tampa had the low transport fuel bid of $19,624 for 6,000 gallons of diesel at an average of $2.393 per gallon and 2,000 gallons of unleaded at $2.508 per gallon.
Cooperative Grain and Supply of Hillsboro also submitted a bid of $19,850 for an average of $2.428 per gallon for diesel and $2.512 for unleaded.
— A payment of $694,004 to Schilling Construction was approved for the county's overlay project.
— A new desk and storage cabinets for Herzet's office were approved. Navrat's Office Products of Emporia had the low bid of $2,400. Sunflower Business Solutions of Newton submitted a bid of $2,737.
— Two bridges will be replaced by Kansas Department of Transportation — one east of Peabody on 60th Road and one west of Ramona.
The commission instructed Herzet to obtain bids for an engineer for the bridge projects.
