Commissioners weigh leasing vs. purchasing road graders as five leases near expiration
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Summary
County staff reported that leases on most grader fleet units will expire this year; commissioners and the road superintendent discussed buying some machines, renewing leases for others, and the safety/service tradeoffs of each option.
Colfax County’s road department told commissioners that five of six leased graders are approaching the end of their leases, prompting a decision about whether to renew leases at higher rates or to purchase equipment.
Justin Reed summarized the equipment situation: the graders are roughly five years old and ‘‘have an expected life of around 10 to 12 years.’’ He said two large lease contracts expire soon, one in July and another in September, and renewing all of the machines would raise annual lease payments substantially compared with the current budget.
Glenn, identified in the meeting as the road department head, described operational realities and risks. He said the machines are all ‘‘pretty close to 3,000 hours’’ on the odometer and that much of the maintenance for the newer, highly computerized equipment requires manufacturer‑authorized service. He noted that longer-term ownership can expose the county to significant one‑time refurbishing costs and ongoing maintenance expenses for computer-controlled systems.
Staff presented three scenarios: renew all leases at new higher rates, buy all machines using the vendors’ purchase options, or a hybrid approach — buy three machines and renew leases on the remaining two. Commissioners and the road leader favored a middle path to spread one‑time refurbishment costs and preserve immediate winter and emergency response capacity; one commissioner specifically recommended freezing an open operator position to offset part of the increased lease cost.
Why it matters: Road graders are central to snow removal and maintaining county haul routes. Commissioners emphasized the county’s long, rural road network and the potential public‑safety impacts of reduced grader availability during heavy snow or other emergencies.
Next steps: County staff will finalize cost comparisons (renewal vs. buy vs. hybrid), show the impact on the FY‑26 operating budget, and return with a recommendation for formal action. The commission directed staff to preserve funds in one‑time capital lines (culverts/bridges) if possible and to consider a mix of lease renewals and one‑time purchases that limit recurring budget pressure.
