Finance Committee — 01/19/2022 Page 8
Mayor Donchess
Anyone else?
Alderman Cathey
| have a financial technical question that maybe Alderman Klee could answer because | know she was on Finance before.
Is it better to trade in the vehicle than to keep the vehicle on the books and utilize the depreciation of the asset?
Alderman Klee
In the past, both have been done and each of the departments knows whether or not it’s better to reuse that equipment as
a backup. So sometimes Public Works they won't necessarily retire or do a trade in. Sometimes they'll use it either for
parts or sometimes they'll use it as the backup. So in other words if one breaks down, they have this one kind of sitting at
bay. An older one that they kind of lay to do that, they might get traded in or it could be scavenged for parts. Each
department does everything differently. So those are good questions to ask the department.
Mayor Donchess
Now my only refinement of that would be the words “depreciate the asset” implies some kind of tax implication. We don't
pay taxes. It’s just the practical decision. Is it better to get the money for the trade in or is it better to have a backup in
case this one fails.
Alderman Cathey
| appreciate that clarification. Thank you.
Alderman Jette
Could we get Mr. Smith’s answer?
Mayor Donchess
Mr. Smith on the issue of keeping the old one versus the trade in.
Shawn Smith, NSD Plant Operations Director
It’s definitely time to get rid of it. As I’ve said, I’ve spent considerable money keeping it running. We're looking at putting
a lot more money into replacing the hydraulic system if we keep it. | was very happy in the amount of money they were
giving us for the trade in. It was like a quick make a decision before they change their mind.
Mayor Donchess
Any other questions?
A viva voce roll call was taken which resulted as follows:
Yea: Alderman Klee, Alderman Cathey, Alderman Comeau, Alderman Gouveia,
Alderman Jette, Alderwoman Timmons, Mayor Donchess 7
Nay: 0
MOTION CARRIED
From: Kelly Parkinson, Purchasing Manager
Re: Sewer Line Replacement & Building Repairs in the amount not to exceed $98,366 funded from 81200 Buildings
& Improvements/FTA Grant Funds (Transit)
MOTION BY ALDERMAN JETTE TO ACCEPT, PLACE ON FILE AND APPROVE A GRANT FUNDED CONTRACT
WITH SCHROEDER CONSTRUCTION MANAGEMENT TO PERFORM THE REPLACEMENT OF THE WASTE LINE
AND BUILDING REPAIRS AT THE NASHUA TRANSIT ADMINISTRATION BUILDING LOCATED AT 11 RIVERSIDE
