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Clay County approves $10.52 township maintenance rate and buys three motor graders
Summary
The Clay County Board approved a $10.52 per-mile township maintenance rate for 2025–26 and authorized purchase of three John Deere motor graders, offset in part by internal service fund transfers and planned equipment sales.
The Clay County Board of Commissioners on March 11 approved the annual township maintenance contract rate of $10.52 per mile for the July 1, 2025–June 30, 2026 contract year and authorized the purchase of three John Deere motor graders from RDO Equipment of Moorhead.
County highway staff told the board the $10.52 rate was calculated from 2024 actual costs using a five‑year rolling average and represents an increase of $0.12 per mile (about 1.1%) from the prior year. Justin, a highway department staff member, told the board that the department used 2024 actuals and noted the county recorded about 2,000 fewer hours of snow removal in 2024, which reduced some costs but did not offset other increases.
The board also approved purchasing three motor graders after hearing a year‑and‑a‑half procurement process that included pricing, trades and the county’s internal service fund (ISF) balances. Highway staff recommended buying the graders from RDO because the machines match the county’s existing fleet and operator preference for a steering wheel configuration. The dealer warranty is seven years or 8,000 hours. Staff said two of the three replacement machines were slightly higher in price than competing bids but that the overall package and compatibility favored John Deere through RDO.
To cover a shortfall in the ISF, staff recommended transferring existing ISF balances from several underused pieces of equipment (a small motor grader, a small tractor and a roller) to help offset the purchase cost. The board approved an ISF transfer of $318,844.50 to offset the purchases; staff said they intend to bring a later agenda item to sell two of the older units and apply any proceeds toward future equipment replacements.
Why it matters: the approved rate sets the per‑mile payment townships will receive for road maintenance next year; replacing aging graders is intended to limit repairs, keep plowing capacity intact and maintain the county’s winter response capability.
Key details cited at the meeting: - Approved township maintenance contract rate: $10.52 per mile for full‑time maintenance (effective 07/01/2025–06/30/2026), up $0.12 (≈1.1%) from the prior year. - Purchase approved: three John Deere motor graders from RDO Equipment (Moorhead). Vendor and financing approved; board authorized ISF transfers to offset a $304,000–plus funding gap; ISF transfer recorded as $318,844.50. - Warranty: seven‑year/8,000‑hour warranty on the new graders.
Discussion and context: Highway staff said motor grader operating costs increased in 2024 because of higher parts and repair bills (including a transmission failure) and higher per‑hour motor grader costs. Commissioners asked whether depreciation is included in equipment hourly cost calculations; staff said depreciation is included and the county has used a multi‑year depreciation schedule in internal service calculations.
The motion to set the rate and the motion to purchase the grinders each passed by voice vote with no roll call count recorded in the transcript.
Ending: Highway staff will send the township contracts for township approval at their annual meetings and return to the board later with details of any equipment sales and future replacement planning.
