L. Towamensing votes to buy equipment
Looks like a Cat is in the future for the Lower Towamensing Township supervisors.
On Tuesday night, the supervisors voted to purchase a new Caterpillar 926 Wheel Loader, as long as the final financed cost is low enough.Over the past week, members of the road crew and supervisors gave the demo model a test drive and learned a few things about how to operate the equipment."It performs wonderfully," said Supervisors' Chairman Ronald Walbert. "I'm definitely interested."The new wheel loader would come complete with a boom for mowing that can reach out 20 feet, a scoop, and replacement hammers and knives, said Steven Heckman, the territory sales manager from Cleveland Brothers in Wilkes-Barre, a Caterpillar dealer. The township is replacing its current mower because it is not able to cut overgrown vegetation on its 29.25 miles of roads.The deal written up for the township included an asking price of $204,000. If the township was willing to purchase the 2015 demo model they were using, then there would be a $2,225 discount subtracted from the price. The replacement hammers and knives at a cost of $441 would be included whether the township purchased a new model or the demo model.Walbert said that means the discount is actually about $1,800."I would be interested in getting a new one for the difference of $2,000," he said, but he still wants to see the numbers before making a final decision.The provided deal also includes the trade-in of the township's current Komatsu front-end loader and a $30,000 state grant the township will receive through the Monroe County Local Share Account to reduce the amount the township would need to finance.Heckman said the manufacturer's price for the loader is $212,000. Subtract out the trade-in and finance the rest at around 3.62 percent and the annual payment would be about $27,000. He didn't factor the grant in the financing because his understanding of the grant is that "you have to spend it to get it."Supervisor Brent Green suggested they put the Komatsu on Municibids to see if they could sell it for more than the trade-in. Walbert asked Heckman how that would affect the trade-in offer.Heckman said their offer would stand for 45 days. If they chose to purchase the new model, delivery would be in 30 days. If they sell the Komatsu on Municibids before then, it's fine with them. If they don't get an offer they want to accept, then they will take the Komatsu when the new loader is delivered.Walbert asked the other supervisors if they would want to consider selling the tractor to have more funds to put toward the purchase of the Caterpillar."If we are going to purchase this, do we need the tractor if we have a piece of equipment that does it all," he said.Green thought maybe they should keep the tractor for work in other parts of the township."If we can bring it down another $20,000, you're at the sweet spot," Walbert said.No decision was made to sell the tractor or to definitely keep it.After more discussion about the price and the pros and cons of purchasing new or demo, Green made a motion that the township purchase the new wheel loader as long as the payment does not exceed $30,000 a year. Guy said he would get financing terms and information to the supervisors for them to review.