After debating between leasing or purchasing, the City of Marion, Kan., is replacing its primary electric department bucket truck, a 2004 AT37-G bucket truck, with a leased 2014 model, according to the Marion Record.
The Marion City Council approved the lease-lease agreement with Altec Capital during a recent council meeting. The total cost for the new truck over the five-year lease is $86,157. At the end of five years, the City has the option to purchase the vehicle for its fair market value cost or enter a new lease for a brand new truck.
In 2013 alone, the City spent $7,800 in maintenance and repair costs for the current truck, which is used for a variety of purposes, from line repair to storm damage cleanup, reported the Marion Record. This was an encouraging factor for severa councilmembers to go with a lease over owning.
Despite concern regarding the high price tag for a vehicle that the City would not own after five years, another benefit of the lease, noted by the council, was that the City would be forced to do a thorough inspection of the vehicle’s condition before allowing it to remain in service past its expected lifespan.
Mayor Mary Olson also requested that Electric Supervisor Christian Pedersen provide the council with yearly vehicle condition reports to prevent high maintenance costs.