From: Heather Penni
Sent: Fri May 04 10:42:47 2018
To: Gerald Fisher
Subject: FW: Vactor Lease for PW - Pursuant to I&I Repair to Sanitary Sewer Collection System -
Importance: Normal
Attachments: 20130609122454977.pdf; Microsoft Exchange Server;converted from html; From: City Manager [mailto:citymanager@cityofmolalla.com] Sent: Sunday, June 09, 2013 1:10 PM To: Jimmy Thompson ; Stephen Clark ; Debbie Rogge ; Dennis Wise ; Dennis Wolfe ; Jason Griswold ; George Pottle Cc: Sadie Cramer ; Peggy Johnson ; Heather Penni Subject: Vactor Lease for PW - Pursuant to I&I Repair to Sanitary Sewer Collection System - Councilors, Attached here is the Vactor Equipment that we are looking at in the PW Department. The representative from Owen Equipment send it in a few days ago, however it was lost in the shuffle of pdf's and e-mails as city hall endured the MCC IT transition recently , in which all e-mail addresses are actually different than before the change. This , I'm sure most of us found it was relatively disruptive. Retrieving some of the e-mails assigned to our old e-mail addresses was painful and delayed, at least from what I have seen here in the building. At any rate , I got this one up ( I found it today finally) and wanted to send to the council prior to the meeting on Wed/ June 12, 2013. It's intention right now is for review, and approving the proposed budget on Wed night, will commit us for entering into a 5 year lease agreement with Owen for this equipment. We have the first year of this lease dollar allocations currently built into this next fiscal years' proposed budget. It is a capital expenditure, under a lease premise. The goal of course, is to meet the lease agreement, in which at the end of the lease the city will own this equipment-outright. This is procured under state contract, so between the states of Kansas and Texas who handle equipment for us at this magnitude, we get the best possible price, sometimes up 15% lower than what a private company or corporation would pay for this type of apparatus. Our rep from Owen lists $380,000.00 financed over 5 years. We may however have a very good chance at not paying that amount. We could get this equipment at a cost of approximately $365,000.00. And I am working on the salesman on including all maintenance costs for the first 5 years, be incurred by them , not us. Maintenance costs for these can run up to 8 to 10 K per year. ($8,0000.00 to $10,000.00) per annual. I wasn't interested in paying that year to year, and I told the rep this as well. So he is sending me paperwork reflecting that their company will cover these costs, and the city would only be on the hook for general wear items, such as tires, wipers, etc. - Small ticket items . They want the sale, and we need the equipment , so through this negotiation of the apparatus, we'll save about 40K over the next 5 years in maintaining this vehicle. I'll have hard copies of this pdf at the next council meeting. As always, please call or e-mail me with questions about this, happy to answer any inquiries out there. Marc Howatt Director of PW/Interim CM City of Molalla 503-829-6855 >