Article 2 Replacement Truck Choices

VDOE Vehicles VehicleYearMiles Condition2014 Repairs Grader 2014<1000New$0 Backhoe 2014<1000New$0 International Workstar Truck ,000Good$1,766 Top Kick Truck ,000Poor$12,343 F550 Truck ,000Good$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

F550Terrastar EngineDiesel V8 300hpSame Frame36,000psi80,000psi TransmissionGoodBetter Severe xfer caseNoYes DurabilityGoodBetter ComponentsPickup TruckCommercial Expected Life5 Years7 Years+ Trade-in valuePoorExcellent Compare Trucks

Cost Comparison (equally outfitted) Ford F550International Terrastar Base Truck$50,000$59,610 Winter Package Air-flo Sander,Plow, Wing, $58,785$56,885 Total Cost (not incl. Extended Warrantee) $108,785$116,495 “Cost of Ownership” F 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