Cook County News Herald

Highway department finds savings on a rent-to-own plan for an excavator



With the Cat 330F Excavator’s rent going up every year, more than $10,000 above the annual $40,000 budget, Highway maintenance supervisor Josh Dix started looking into ways for the county to save some money and get the equipment the workers needed, and he succeeded.

Dix brought the information to the county board’s Zoom meeting on Tuesday, December 8.

The county is currently leasing a three-year-old Cat 330F Excavator for five to six months each year. The large machine is used for ditching projects and other large jobs, said Dix, adding the maintenance crew uses the machine a lot, and it would be nice if they had one to use throughout the year if needed.

After talking with Caterpillar, the rental company, about ways to save money on the grater’s use, the company suggested the county enter into a five-year lease to own contract.

A five-year lease to own plan will cost $245,019, while the total cost of the rental over five years at $55,500 annually (assuming no increase, which is unlikely) is $277,500, which means the county will save $32,481 over that time.

It was also noted that the county’s current equipment replacement plan replaces excavators at 15 years, which sets a tentative replacement for 2033. By entering into the five-year rent to own program, the county will see further savings in rental fees of a minimum of $444,000 over the eight years after the new excavator had been paid off. This will also allow the county to have use of an excavator for the whole year instead of just six months as it now has under the current rental agreement.

Commissioners voted unanimously in support of securing a rent to own contract with Caterpillar, but as commissioner Heidi Doo-Kirk said, the highway department needed to look into purchasing a warranty on the excavator to save on future parts and repairs. Dix said he was looking into warranties and would make sure to follow up on Doo-Kirk’s suggestion.

Next, Dix requested purchasing a Scale-Tec Calibration Scale for the highway department, which was approved. The scale will be used to help calibrate the slat/sander spreaders on plow trucks and bring them up to industry standards. The cost is $3,915 and will be taken from the shop budget. Commissioners agreed unanimously to approve the purchase.

County Highway Engineer Robert Hass asked for and received a resolution from the county to support the Gunflint Trail Scenic ByWay Committee’s GTSBWC) application for Transportation Alternatives (TA) funding for the Fiscal Year 2025 Gunflint Trail Scenic Byway Invasive Species Control Project.

The project aims to manage non-invasive terrestrial plant species and restore the native plant community while improving the roadway and reducing erosion. It was noted in the application that “the sheer size of the road corridor (57 miles) makes addressing the whole system at once not feasible due to the budget and time constraints.”

The total budget is $125,000, with the GTSBWC seeking $100,000 through the 2025 Transportation Alternative Program. Match funds will be secured through competitive grant programs such as the Board of Soil and Water Resources Cooperative Weed Management Area Grant Program and the Minnesota Department of Agriculture Noxious Weed & Invasive Plant Grant Program, or through programs offered by the Lloyd K. Johnson Foundation or the Nature Conservancy.

Other action taken by the county board includes:

Commissioners approved a resolution enabling the county to act as the legal sponsor for an application for the Minnesota Department of Natural Resources (DNR) for the Minnesota DNR Off Highway Trails Assistance Program. Funds from that program will be used to pay for maintenance of the Hovland Woods Trails, Timber Fear Loop, Rice Lake Pancore Loop, and Old Greenwood Loop.

The 2019 Stonegarden Grant for the Sheriff ’s Office was approved. The annual grant pays for specialized equipment and provides wages for the Sheriff ’s Office personnel so they can assist the US Department of Homeland Security in patrolling the northern border.

A motion to extend the 2018-2019 Septic Treatment System Upgrade Grants to 12-31-21 was approved. The funds come from an amendment between the State of Minnesota, its Board of Water and Soil Resources (Board), and Cook County.

The reason cited to extend the grant period was due to the uncertainty that COVID-19 has caused over the last year. It was noted that “these funds will be needed more than ever before with the financial instability on the rise, while non-compliant septic systems will not go away or correct themselves.”

*Due to the ongoing COVID-19 pandemic, a request was made and granted to extend Jim Wiinanaen’s temporary employment until March 13, 2021, with the Cook County Emergency Operations Center. The proposal to extend Wiinanen’s contract came from Cook County Emergency Management Director Mike Keyport.

Commissioners approved a lease agreement with the Minnesota Department of Transportation, which will allow the county to place a 140-foot Bi-Directional Amplifier (BDA) Tower in a MNDOT owned gravel pit. The tower will help address dead spots encountered for ARMER radio users along the Highway 61 corridor on the county’s west end.

Rowan Watkins, who heads up the project, said there would be no cost to the county to lease the land and erect the tower, but it includes a 50/50 revenue sharing if other tenants are added to the tower. The county is also responsible for maintenance of the tower and keeping the premises in good condition.

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