[00:00:02]
AND, UH, AARON JUST SAID, JUST SO EVERYBODY KNOW THAT, UH, COMMISSIONER BARBER GOT HOME LAST NIGHT.WE'VE BEEN AT SOME MEETINGS IN BEAUMONT AND WHEN HE GOT HOME HE GOT SICK PASSED OUT.
AND SO HE'S UP SOMEWHAT, HE FUNCTIONALLY NOT ENOUGH.
SO HE, HE HAD A PRETTY, PRETTY, PRETTY BAD FALL I THINK.
BUT ANYWAYS, COMMISSIONER, I APPRECIATE YOU MAKING BE OVER HERE.
DISAPPOINTED ON, SO
ALRIGHT, WE BOTH ALONG HERE, WE'LL GET IN TROUBLE.
I MEAN, F CAN WE DELAY THE MEETING? AND THE START TIME IS EIGHT, UH, ABOUT 14, LOOKS LIKE EIGHT 13, I'M SORRY, NINE 13.
AND, UH, WE DO HAVE A QUORUM PRESENT AND THIS IS A SPECIAL MEETING OF THE COMMISSIONER'S COURT.
WE WILL DISPENSE WITH THE OPENING CEREMONIES AND THE FIRST ITEM ON THE AGENDA IS TO DISCUSS AND CONSIDER APPROVING A FINAL PLAT FOR THE EDGEWATER PHASE ONE SUBDIVISION AND ANY NECESSARY AGREEMENT BETWEEN KAUFMAN COUNTY AND THE DEVELOPER TO RESOLVE ANY, UH, OUTSTANDING, UH, ISSUES.
AND SO WE DID RECEIVE, UH, I, WHETHER YOU'VE GOT A COPY OF THAT OR NOT, WE DID RECEIVE FROM THE ENGINEERING FIRM, UH, THAT, UH, AS FAR AS THEY'RE CONCERNED, IT'S, IT'S GOOD TO GO.
SO COMMISSIONER OR WHOEVER'S TALKING, WELL, THE MONEY HAS BEEN TRANSFERRED.
WE HAD THE AGREEMENT AND AGREEMENTS ENFORCE.
SO REBECCA, DO YOU NEED TO ADD ANYTHING? UM, NO, I DON'T.
YOU GUYS APPROVED THE, UM, SUBDIVISION IMPROVEMENT AGREEMENT LAST WEEK DURING THE REGULAR MEETING AND THAT THE MONEY ALREADY BEEN TRANSFERRED SO THAT, THAT THE COMMISSIONER IS CORRECT.
THAT IS ENFORCED FOR RIGHT NOW AND IT WILL BE MOVING FORWARD.
SO TODAY IT'S JUST KIND OF A MINISTERIAL DUTY.
YOU GUYS SHOULD REVIEW THE FINAL AND ONCE IT'S APPROVED, UM, THEN EMPLOYEE THE AGREEMENT YOU'LL APPROVE LAST WEEK.
UH, THEY, THEY WILL BE ABLE TO FILE A RECORD PLAT AND GO AHEAD AND DO THAT PROBABLY TODAY, I WOULD THINK.
AND THEN PROCEED WITH SELLING LOTS AND THEN ALSO, UM, PREPARING AND COMPLETING THE ROADS.
MR. KING, DO YOU HAVE ANYTHING YOU'D LIKE TO SAY? NO, SIR.
JUST, WE'D LIKE TO, FIRST OF ALL, WE JUST WANT TO THANK YOU GUYS, UH, FOR, FOR WORKING WITH US.
UH, THIS HAS BEEN ONE OF THOSE PROJECTS THAT'S BEEN INTERESTING AND, AND FUN TO WORK ON.
WE REALLY APPRECIATE YOU GUYS, YOU KNOW, HELPING US GET THROUGH THE PROCESS.
REBECCA AND KAREN HAS BEEN FANTASTIC TO WORK WITH.
UH, UH, WE APPRECIATE THE APPROVAL OF THE DEAL AND WE'RE REAL EXCITED.
I SPOKE TO RICH, UH, THIS MORNING, COURSE, THE OWNER, DEVELOPER, AND, UH, WE'VE GOT LOT SALES PLANNED FOR TOMORROW THAT YOU, YOU MAY HAVE HEARD THE ADVERTISEMENTS ON THE RADIO.
UH, I THINK YOU MENTIONED THAT THE AVERAGE PRICE OF THE LOTS FOR ALL THE LOTS IS ABOUT 2.5 AND, UH, THEY'RE EXPECTING THEY MAY SELL ALL OUT TOMORROW BECAUSE THEY'VE HAD 500, 500 APPOINTMENTS MADE TO COME LOOK AT THIS TOMORROW.
SO, SO YOU GUYS COULD HAVE TAX REP TAX TAXABLE.
BUT ANYWAYS, AGAIN, WE THANK YOU'ALL AND UH, WE HAVE ANY QUESTIONS WE'D BE HAPPY TO ASK.
BUT, UH, I THINK WE'VE ADDRESSED EVERYTHING THAT, THAT TODD BENLEY HAD AND WE'RE READY TO GO.
IT'S GONNA BE A BUSY, VERY EASY TO WORK WITH.
UH, THEY'VE DONE WHAT THEY, SO I MOTION A MOTION FROM COMMISSIONER.
A MOTION FROM COMMISSIONER COMMOTION FROM COMMISSIONER PHILLIPS.
SO WE'RE READY TO SIGN THE, WE'VE GOT ONE OTHER ITEM ON THE AGENDA.
DO YOU MIND IF LET US GO AHEAD AND SIGN THESE DOCUMENTS SO THEY CAN, I WOULD ASSUME THEY'D LIKE TO, THEY'D LIKE TO START YES.
[00:05:58]
AND THEN, UH, YOU CAN ALSO IS GONNA SIGN AS WELL IDENTIFICATION.BUT I'M GONNA RECORD IT SO I'M NOT GONNA NOTARIZE IT.
WE'LL, UH, CALL MEETING BACK TO ORDER NOW AND ITEM STICK AROUND WHILE YOU'RE HERE.
SMART, UH, I GUESS MHCI DUNNO WHAT THAT STANDS FOR, BUT, UH, TO DISCUSS AND INFORMATION ON
[00:10:01]
KENWORTH PRODUCT APPROVED BY BOARD.AND I BELIEVE, UH, COMMISSIONER ALLEN, YOU, UH, ASKED CHAIR I ASKING HIM TO SHOW.
AND ALONG WITH COMMISSIONER BARBER AS WELL.
SO, UH, THANK YOU FOR BEING HERE.
AND, UH, YEAH, WE'RE ALL EARS IF YOU WANT TO STAND UP AND COME FORWARD.
UH, KIND OF TELL US, UH, WE'RE NOT GONNA TAKE ANY ACTION, IT'S NOT AN ACTION OUT.
I'M READY TOMORROW I'M GONNA, UH, WITH KENWOOD IN DALLAS, TEXAS FOR PROBABLY 16, WELL, 16 YEARS.
UH, I WITH BRAND X FOR 10 YEARS AND CUMMINS FOR 20.
SO, AND I'VE BEEN AFFILIATED WITH, UH, MUNICIPALITIES FOR PRETTY MUCH 25, 30 YEARS.
COUNTY STATES, ANYBODY BUY WITH, UH, TAX MONEY.
SO, SO I UNDERSTAND THAT WHEN, UH, I WAS CONTACTED TO COME OUT AND, UH, GIVE YOU GUYS SOME QUOTES.
I'M A, I'M A MEMBER OF THE BY BOARD STATE OF TEXAS.
UH, SO WE CAN, WE, WE NORMALLY, OR I NORMALLY USE THAT CONTRACT TO, TO SELL OFF OF, UH, BUYBOARD DRIVES US PRETTY HARD.
I DRIVE OUR PRICES DOWN PRETTY HARD, UH, CAN WORK BACKS US UP ON IT.
SO WE GET, NORMALLY WE STRUCTURE IT FOR A YEAR TIME ON THE BUYBOARD TO WHERE WE KEEP OUR PRICES DOWN FOR THE FULL YEAR, EVEN THOUGH THERE'S GONNA BE A COUPLE OF PRICE INCREASES IN THERE, CALL THE TRUCK MODELS AND THINGS LIKE THAT.
SO OUR, SO OUR PRICES DRIVEN DOWN PRETTY HEAVY.
SO, AND WE STAY IN STRICT, UH, COMPLIANCE WITH THEIR NEEDS.
UM, SO THAT'S, THAT'S KIND OF IN A NUTSHELL ON WHAT THE PRICING IS ABOUT.
BUT, UM, AND THEN WHEN WE CAME OUT HERE AND, OR I CAME OUT AND LOOKED AT THE EQUIPMENT AND, UH, WAS ASKED TO GIVE A QUOTE.
SO WE WERE, WHAT WE'RE DOING IS MORE OR LESS MATCHING WHAT THE EQUIPMENT IS, UH, COMPARABLE TO WHAT YOU HAVE NOW AS FAR AS CARRYING CAPACITY, UH, THE PERFORMANCE OF THE TRUCK, INCLUDING HORSEPOWER, TRANSMISSION, UH, AND THE SPECIFICATIONS ON THAT.
UH, WE'VE GOT A, UM, NEW TRUCK MODEL CAME OUT A COUPLE OF YEARS AGO.
IT'S BEEN VERY POPULAR WITH, UH, MUNICIPALITY, CITIES AND COUNTIES.
IT'S A, IT'S A LITTLE BIT BIGGER CAB TRUCK, IT'S WIDER.
YOU'VE GOT MORE ROOM INSIDE THE CAB FOR NOT ONLY DRIVERS THAT ARE SHORT LIKE MYSELF THAT CAN REACH THE PEDALS, BUT ALSO BIGGER GUYS THAT CAN, YOU KNOW, NEED A LITTLE MORE ROOM.
UH, THE ENVIRONMENT'S A LOT BETTER.
OUR AIR CONDITIONING AND NOISE LIKE THAT AMBIENT DECIMAL OUTSIDE THE CABINET, NOT THAT MUCH OF AN INTERFERENCE.
AND THAT WAY THE GUYS CAN OPERATE DAILY THROUGHOUT THEIR JOBS AND STILL BE ABLE TO COMMUNICATE WITH THE OFFICERS.
BUT, UH, MANEUVERABILITY A LITTLE BETTER.
UM, THE, UH, CAB STRUCTURE WAS IN ABOUT EIGHT YEARS DEVELOPMENT THROUGH KENMORE.
UH, SINCE WE'VE BEEN PUTTING THE PRODUCT OUT ON THE STREET, UH, WE'VE SOLD JUST SEVERAL OF THEM, RIGHT? UH, THE COUNTIES ARE, AND CITIES ARE JUST, THEY'RE ASKING FOR THAT SPECIFIC TRUCK MODEL NOW THAT THEY'VE OPERATED.
UM, BUT, UM, BUT THEN ALSO WE WERE ASKED DO, UM, TO STRUCTURE THIS THE BRI BOARD PRICING AND PUT IT UNDERNEATH A MUNICIPALITY TYPE LEASE.
WE'VE DONE IT WITH BENTON COUNTY AND SOME OTHER ONES, UH, DOWN COUNTY, UH, UH, THAT LIKE TO DO STRUCTURE THE PAYMENTS.
WE NORMALLY, WE HIT OUR PAYMENTS ON, UH, EVERY QUARTER.
OKAY? NOW I UNDERSTAND THAT, THAT THAT MAC HAS GOT THE BUSINESS RIGHT NOW AND THAT THEY'VE STRUCTURED ON A, ON A YEARLY BASIS.
SO THEY BRING IN THE EQUIPMENT AND THEN YOU GUYS, YOUR DEPARTMENT MAKES A YEARLY PAYMENT ON THAT EQUIPMENT IN, IN A TYPE OF A LEASE.
OKAY? SO THE LEASE IS STRUCTURED.
SO WHEN THEY BRING THE EQUIPMENT IN, WHAT THEIR PLANS ARE IS TO MOVE THE EQUIPMENT ONCE IT, ONCE IT LEAVES YOUR FACILITIES.
SO, UH, BUT WHAT WE'RE TRYING TO DO IS BRING IN THE EQUIPMENT WHERE YOU GUYS CAN KEEP IT FOR 36 MONTHS AT LEAST.
AND THEN AT THE END OF THAT PERIOD OF TIME, UH, THERE IS OPTION TO EITHER RETURN IT TO US BECAUSE IT'S A FAIR MARKET VALUE LEASE RETURN TO US, NO, NO COST YOU GUYS, AND THEN, OR YOU CAN PURCHASE PRICE ON THE BACKSIDE OF THE LEASE, WHAT THE RESIDUAL VALUE IS AND RESIDUAL VALUE NORMALLY SET UP FRONT AT CURRENT TRADE VALUES.
AND AS YOU WELL KNOW, THAT TRADE VALUES CHANGE.
[00:15:01]
OUR BEHALF.I MEAN, THE RISK, THE, THE TRADE MAY IMPROVE ITSELF IN THREE YEARS, OR IT MAY BE A DOWN MARKET, DEPENDS ON HOW MUCH POPULATION OUT THERE USE TRUCTURE ITSELF.
BUT THAT USUALLY WITH, UH, USE TRUCK VALUE IS KIND OF LIKE A STOCK, YOU KNOW, WE SEE IT MOVING A LOT, BUT WE SEE YOU USE TRUCK VALUE.
SO, SO WE'RE TAKING THAT PART OF THE RISK ON, SO YOU'VE GOT A FAIR MARKET RESIDUAL ON THE BACKSIDE AND OF COURSE YOUR STRUCTURE ON THE LEASE PAYMENTS UP FRONT.
SO, UM, UH, I MEAN, WE'RE WILLING TO SIT DOWN AND LISTEN TO ANYBODY'S INPUT AS FAR AS, YOU KNOW, WHAT WHAT WE'VE ALREADY QUOTED INITIALLY.
AND THEN THAT'S JUST BASED UPON THE INFORMATION THAT WE'VE BEEN GIVEN PROVIDED.
SO IF WE NEED TO KIND OF LOOK AT IT AND MAYBE TAILOR IT MORE TO YOUR NEEDS OR STRUCTURE IT MORE TOWARDS, UH, RELEASE PAYMENTS A LITTLE DIFFERENTLY, YOU KNOW, IN OTHER, IN OTHER WORDS, GET THE PRICE DOWN IF WE NEED TO.
SO, I MEAN, WE'RE WILLING TO TALK ABOUT THAT.
SO, AND, AND, AND, AND ME COMING HERE TODAY, I MEAN, IT'S BACK 90 MISSION I GUESS FOR ALL OF US, RIGHT? AND WE JUST KIND OF NEED TO SEE WHERE WE'RE GOING FROM THERE.
BUT FROM WHAT I UNDERSTAND WITH THE YEARLY LEASE, IT'S A LITTLE BIT, UH, CUMBERSOME BECAUSE SOME OF THE TRUCKS HAVE GOTTA BE, UH, UPFITTED THAT WILL BE MORE TAILORED TO YOUR ASPHALT MACHINES AND THE JOB THAT YOU'RE DOING ON A DAILY BASIS.
SO ONCE THE TRUCKS COME IN, YOUR DEPARTMENTS HAVE GOTTA UPSET 'EM TO A CERTAIN POINT AND THEN, YOU KNOW, 12 MONTHS LATER THE TRUCK GOES AWAY AND THAT PROCESS STARTS AGAIN.
SO WHAT YOUR GUYS ARE TRYING TO DO IS GET A VEHICLE IN HERE THAT ARE, IS A LITTLE BIT MORE STRUCTURED ON A LONGER TERM WHERE THEY CAN GET IT IF THEY NEED TO UPFIT IT AND WITH, IF WE CAN'T ACCOMMODATE YOU AS FAR AS UPFIT IT BEFORE IT GETS HERE, YOU KNOW, UH, THROUGH STANDARD PRACTICES, RIGHT? AND, AND SOME OF THESE ARE A LITTLE BIT OUT OF THE BOX, OKAY? SO IT MAY HAVE TO BE UP TO THE VEHICLE SOMEWHAT, AND, BUT THEN YOU'VE GOT IT FOR THREE YEARS, RIGHT? AND THEN AT THE END OF THREE YEARS, YOU CAN LOOK AT THE CONDITION OF THE VEHICLE, SEE WHAT IT LOOKS LIKE, HOW MANY MILES ON IT, AND MAKE THE DECISION AT THAT TIME AND SAY, WELL, DO WE WANT TO RENEW THIS LEASE AND GET A NEW VEHICLE? WELL, NO, THESE ARE LOW MILEAGE, YOU KNOW, THEY'RE, THEY'RE IN GOOD SHAPE AND THIS IS SOMETHING WE'VE BEEN DOING EVERY YEAR.
LET'S JUST GET, LET'S JUST GO AHEAD AND PAY OFF THE LEASE AND THEN WE'RE GOOD FOR ANOTHER THREE MORE YEARS AND THEN OUR COST REALLY DROPS.
SO IT'S NOT INITIALLY THE LOOKING AT THE FIGURES, YOU KNOW, IN THE 36 MONTHS WE'RE GOING TO, IT NEEDS TO BE LOOKED AT OVER THE TERM OF, YOU KNOW, THE LIFE SPAN FIVE OR SIX YEARS, YOU KNOW.
SO I MEAN, EVERY YEAR YOU KNOW WHAT YOUR COSTS ARE, IT FIXED, YOU KNOW WHAT YOUR EQUIPMENT IS, YOU KNOW WHAT'S GONNA BE HERE, YOU KNOW WHAT YOU NEED TO DO TO IT.
OKAY? UM, BUT IF YOU TURN, IF YOU'RE LOOKING AT A THIRD, SIX MONTH LEASE AND THEN AT THE END OF THAT YOU WANT TO KEEP OWNING THE VEHICLE, YOU CAN AT LOCK AT THE FAIR MARKET VALUE SET UP FRONT.
YOU KNOW, ONCE, ONCE WE GET DOWN TO DOING THE ACTUAL PAPERWORK WITH PRICING AND EVERYTHING SUCH AS THAT, AND STRUCTURE THE DOCUMENT WITH ALL THE NUMBERS PLUGGED IN, THEN YOU CAN ACTUALLY SEE ALL THE COSTS.
THAT'S ONCE YOU GUYS MAKE A DECISION TO, TO START KIND OF MOVING IN THAT DIRECTION.
BUT IN TURN ON THAT 36 MONTH LEASE AND YOUR, THE WARRANTY OF THE TRUCK IS PRETTY MUCH THERE ALMOST A THREE YEARS.
SO YOU'VE PRETTY MUCH GOT A FIXED COST THERE.
IS IT BASED ON MILEAGE OR WARRANTY OR THE WARRANTY BASED ON MILEAGE AND TIME.
NORMALLY IT'S, UH, THE ENGINE WARRANTY'S TWO YEARS, 250,000 MILES.
YOU'RE, YOU'RE NOT GONNA MEET THE, THE MILEAGE THE MILEAGE, NO, BUT THE TIME YOU WILL, IT'S TWO YEARS ON THE ENGINE.
IT'S, AND IT'S THREE YEARS ON THE REST OF THE POWERTRAIN.
UH, I MEAN YOU CAN, UH, LOOK AT IT LIKE THAT.
AND WE'VE GOT, AS FAR AS REPAIR FOR FACILITIES WARRANTY FACILITY, WE HAVE TWO.
WE'VE GOT TWO UP IN DALLAS, SOUTH DALLAS, AND NORTH DALLAS, WHICH IS URBAN LITTLE GARDEN ONE, UH, OUT ON 20, WHICH IS NOT A BAD DRIVE FOR YOU GUYS.
WE'RE ONLY 24 HOURS A DAY, SEVEN DAYS A WEEK.
WE CLOSE ON CHRISTMAS DAY AND THANKSGIVING.
AND THAT'S ONE EIGHT HOUR SCHEDULE.
DO YOU, IS THE, UH, LEASE WITH KENWORTH OR IS IT WITH A THIRD PARTY VENDOR? IT'LL BE GOING THROUGH PAT CAR.
PAT CAR OWNS KENWORTH AND PETER.
OH, IT'S ON THE LEASE PAPERS ALSO.
AND, UH, BUT THE, UH, YOU KNOW, ONCE IT'S IN THE PACK CAR REALM, UH, THAT'S WHERE WE GET OUR, THEY THEY, THEY DO OUR FLOORING AND THEY DO OUR FINANCING.
NOW MHC CAN WORK, WE DO HAVE OUR OWN FINANCE COMPANY.
[00:20:02]
WE'VE GOT A HUNDRED DEALERS AND WE'VE GOT ABOUT 40 LEASING OUTLET FOR THE LARGEST CHEMICAL IN THE UNITED STATES.SO WE DO HAVE CORPORATE, WE DO HAVE OUR OWN FINANCE COMPANY, BUT PAT CAR, THEY BACK US UP ON ALL OF OUR FINANCES.
SO TYPICALLY WHEN WE DO THESE LEASES TO CIRCUMVENT A MIDDLE GUY, GET THE PRICES DOWN A LITTLE BIT, WE GO DIRECTLY TO PAT CAR AND BASICALLY ALL WE WANT TO DO IS BASICALLY MOVE, MOVE THE TRUCK.
SO, YOU KNOW, THE 36 MONTHS WE DECIDED TO BUY IT.
SO YOU HAVE A DECENT RATE ON THE FINANCIAL OR WE HAVE TO GO GET OUR OWN AFTER THAT CAR? NO, WE CAN, WE CAN HANDLE, WE CAN HANDLE, WE'RE DEBT.
IF THE COUNTY WANTED TO USE ANOTHER LENDER FOR FINANCING, IS THAT ALLOWABLE OR? SURE, SURE.
AND I, I DON'T KNOW THAT WE WOULD, BUT I MEAN, JUST, YOU KNOW, INTEREST RATES VARY FROM PLACE TO PLACE.
UH, THE OTHER QUESTION I HAVE, AND I'M NOT IN THIS, I DON'T DEAL WITH TRUCKS, BUT, YOU KNOW, OTHER THAN TRY TO HELP THE COMMISSIONER MM-HMM
DEAL, THEY GET, IS THERE AN ADVANTAGE, I HAVE NO IDEA HOW MANY TRUCKS WE'RE TALKING ABOUT, BUT IS THERE AN ADVANTAGE IF WE BOUGHT MORE? IS THERE, IF WE BOUGHT, I BOUGHT AT LEAST MAYBE MORE OF THE HIGHER, THE NUMBER OF TRUCKS THERE.
IT, UM, THE FACTORIES, WE, WE GET OUR DIRECTLY FROM OUR FACTORY.
AND, AND THE MORE THAT WE PAINT THE STORY AND THE MORE EQUIPMENT WE TELL THEM THAT WE'RE TRYING TO SELL A SPECIFIC ENTITY, IT IT, IT IMPROVES OUR BOTTOM LINE A LITTLE BIT BETTER.
WE, WE, WE JUST, WE JUST WANT TO STAY WITH, WITH, WITH STAY COMPETITIVE ON THE, ON THE VEHICLE.
AND IF THEY PASS US ON A DISCOUNT, WE'RE GONNA PASS IT ON TOGETHER.
IT'S JUST LIKE THE BODY'S ON THE TRUCKS.
WE TAKE THE BODY AND WE GET A QUOTE FROM A VENDOR AND WE PASS THAT COST ON.
AND NOT ONLY DO WE DO THAT, BUT WE SEND YOU THE QUOTE ALONG WITH OUR QUOTE.
SO YOU'LL SEE THAT WE'RE NOT MARKING THAT.
YOU KNOW, WE, WE TRIED JUST TO SELL JUST THE, THE
HAVE Y'ALL BEEN BUYING FROM THE SAME VENDOR FOR THE DUMP BIDS? YES.
UH, WARREN, I'VE DONE BUSINESS WITH THEM PERSONALLY FOR SINCE 1995.
AND, UH, THERE'S OTHER VENDORS OUT THERE.
UH, THERE'S OX BODY, UH, THERE'S SOME OTHER ONES.
UH, I TRY TO STAY, WHAT, WHAT, WHAT I TRY TO STRUCTURE HERE, I'VE BEEN DOING THIS FOR LONG ENOUGH THAT I KNOW THAT WHAT YOU WANT TO DO IS YOU WANT TO KEEP THAT PHONE FROM RING, RIGHT? WHEN THE PHONE RINGS, EITHER HE GOING TO BUY IT, YOU BUY TRUCK OR YOU WANT TALK ABOUT A PROBLEM.
AND I WANT MORE OF THE POSITIVE THAN NEGATIVE AND I GRAVITATE TOWARDS THE BODY BUILDERS THAT STAND BEHIND THEIR EQUIPMENT THAT HAVE GOOD EQUIPMENT AND DECREASE THAT PHONE CALL FREQUENCY.
AND THAT WILL, AND THAT WILL HANDLE ISSUES ONCE THEY COME UP.
AND NOT ONLY HAVE WE STRUCTURED IT, WHERE IF THEY'VE GOTTA TRAVEL FROM THE, THEY, THEY DO THE INSTALLS IN TYCO, TEXAS.
IF THEY DO THE, IF THEY, IF THEY CAN'T MAKE IT, WE HANDLE IT AND WE'LL BUILD THEM.
WHAT'S TYPICAL TIME FROM THE DUMP BED? I'M SORRY? WHAT'S THE TYPICAL TIME FOR TO DO A DUMP BED WHEN YOU TURN THE TRUCK INTO, UH, RIGHT NOW? UH, THEY ARE PROBABLY ABOUT 30 DAYS OUT, MAYBE BEFORE.
UH, THE 13.6 YARD BODIES, THEY, IT'S KIND OF THEIR CUP OF TEA.
THEY KEEP A LOT OF, KEEP A LOT OF 'EM, BUT WE'RE GETTING A LITTLE BIT BIGGER DUCK BY HERE.
AND, UH, THEY DON'T STOCK THOSE.
THEY BUILD, THEY BUILD THEM IN ALABAMA AND CHIP THEM THE INSTALL THEM.
AND AS FAR AS THE TRUCKS THAT WE TALKED THE OTHER DAY, YOU'RE WHAT, 90 DAYS? WE ARE IN PROBABLY AUGUST.
RIGHT? AT THE END OF JULY, FIRST WEEK AUGUST
I MEAN, IT'S GOOD, RIGHT? YEAH.
TYPICALLY ONCE AN ORDER'S PLACED, I'LL ISSUE A PO TO THE BODY COMPANY AND TELL THEN THE BILL DATES AND THE VIN NUMBERS AND WHEN WE EXPECT THE EQUIPMENT, AND TYPICALLY THEY'LL HAVE 'EM SITTING ON THE GROUND.
IT USUALLY TAKES THEM A WEEK AND A HALF TO FIVE DAYS WORK TODAY TO GET 'EM INSTALLED, GET 'EM TO US.
UM, YOU KNOW, AS TIME DOES PROGRESS, YOU KNOW, THE BILL RATES CHANGE SLIGHTLY DEPENDS ON THE, THE INTAKE, RIGHT? YEAH.
SO, OKAY, SO WHAT WE'RE TALKING, THIS, THIS ACTUALLY TURNED OUT TO BE A GOOD YEAR FOR ALL THE OES.
THEY WERE PREDICTING THAT IT WASN'T, BUT WE'VE SEEN THE STOCK MARKET, SO PEOPLE ARE SPENDING MONEY, SO THAT MEANS THAT GROCERY STORES ARE FILLING UP AND WAREHOUSES ARE FILLING UP AND TRUCKS ARE MOVING AND, AND ALL OF A SUDDEN PEOPLE
[00:25:01]
ARE BUYING MORE EQUIPMENT.AND THEN NOT ONLY IS THEY BUILDING THE EQUIPMENT, BUT THEY'RE TRYING, THE VENDORS ARE TRYING TO STAY UP TO THAT BECAUSE EVERYBODY DEALS JUST IN TIME.
YOU KNOW, THEY, THEY WANT THE TRUCK TO START GOING DOWN THE SINGLE LINE AND, AND THE ENGINE COMES IN THE BACK DOOR, RIGHT? AND THEN THE TRANSMISSION.
SO IT'S, IT'S, UH, IT'S A, IT'S A, IT'S, IT'S A BIG MONSTER, BUT THEY CONTROL IT VERY WELL.
BUT THE BUILD RATES ARE OUT RIGHT NOW.
YOU'RE GOING LOAN US FOR ONE, FOR EACH COMMISSION.
UH, WE HAD, WE DON'T HAVE, NOW EVERYBODY'S BEEN BUYING THE FIRST, SECOND QUARTER, YOU KNOW.
AND MY SECOND QUESTION IS, DO YOU HAVE AUTOMATIC TRANSMISSIONS AS A, AS AN OPTION? YES.
UH, THE, THE, UH, UH, YOU DON'T HAVE TO GO INTO A LOT OF DETAIL QUESTION.
I'M A BIG, UH, STANDARD AUTOMATIC.
AND, UH, SAFETY'S MY NUMBER ONE DEAL.
SO IF WE HAVE, WE GET THE VEHICLE AND, YOU KNOW, ANYTHING CAN HAPPEN.
HOW LONG ARE WE WITHOUT A, A TRUCK? UM, TYPICALLY, UH, WE'VE GOT, UH, 45 DAYS IN DALLAS.
WE'VE GOT ABOUT THAT SAME MEETING IN SOUTH DALLAS.
NOW I'M BEING HONEST WITH YOU, WE WORK ON FIRST COME, FIRST SERVE BASIS, IN OTHER WORDS.
SO YOU FLAG THOSE UP, YOU'VE GOT A PROBLEM, YOU NEED TO GO TO THE SHOP SO YOU CAN CONTACT EITHER SHOP AND SEE WHICH ONE CAN GET YOU IN THE QUICKEST.
OKAY? NOW, TYPICALLY ON FRIDAY AFTERNOONS, THROUGHOUT THE WEEKEND, MONDAYS THEY KNOW, BUT WE'RE 24 7.
SO A LOT OF THE TRANSIENT CUSTOMERS COME IN AND HAVE THEIR LITTLE, YOU KNOW, THE AIR CONDITIONER FIXED AND THE WATER PUMP, THINGS LIKE THAT DONE ON THE WEEKEND.
SO THE FRIDAYS AND THE MONDAYS ARE A LITTLE BIT BUSY, AND TUESDAY THROUGH THURSDAY ARE PRETTY SMOOTH.
SO TO ANSWER YOUR QUESTION, TYPICALLY THE TRUCK MAY SIT FOR 24 HOURS, 48 MAX.
AND THAT SITS WE'RE PRETTY FULL.
'CAUSE WE GOT THREE SHIFTS, YOU KNOW, WE GOT THE MAJORITY OF THE TECHNICIANS ON DAY SHIFT AND IT STARTS THINNING OUT AS YOU GO THROUGH THE SECOND AND THIRD.
BUT, UH, THE OTHER DEAL IS I COME WITH THE TRUCK.
SO A PHONE CALL COMES WITH ME.
IF YOU'RE IN A HURT, YOU NEED THE TRUCK, YOU CALL ME AND I WORK ON IT.
AND TYPICALLY I GET 'EM IN PRETTY QUICK.
AND THAT'S, I TAKE CARE OF ALL MY CUSTOMERS LIKE THAT.
SO IT, IT, IT, IT IS NOT PERFECT, BUT IT IS A LOT BETTER.
DOES THAT MAKE SENSE? ABSOLUTELY.
AS FAR AS THE LEASE GOES, LET'S SAY THAT THEY GO THE 36 MONTH LEASE MM-HMM
AND AT THE END WE HAD THE OPTION TO PURCHASE MM-HMM
IF WE DECIDE THAT WE DO WANT TO PURCHASE THESE TRUCKS, IT'D BE NO DIFFERENT THAN US GOING DOWN AND PURCHASING A USED TRUCK OR A LOW MILE USED TRUCK.
WILL THERE BE ANY KIND OF WARRANTY AFTER THE 36 MONTHS IS UP AND WE DECIDE THAT WE WANT TO PURCHASE THIS TRUCK? OR IS IT GOING TO BE 36 MONTHS? IT IS GOING TO BE WHAT IT'S GONNA BE AND WE'RE BUYING IT AS IS.
AND WHEN I SAY EITHER WAY, IN OTHER WORDS, YOU BUY THE TRUCK, YOU COME WITH MANUFACTURER'S WARRANTIES, THEY EXPIRE AFTER 36 MONTHS.
RIGHT? THEN IT'S AS IS AFTER THAT.
NOW THEN UP FRONT WHEN YOU BUY THE TRUCK, YOU CAN PUT EXTENDED WARRANTIES ON IT AT THAT TIME AND TAKE YOU OUT TO FIVE YEARS.
AND IF YOU NEED TO GO OUT TO SEVEN YEARS, I CAN TAKE YOU OUT TO THERE.
AND THAT'S ONE REASON I PULLED THE PACCAR ENGINE, THESE TAXES, BECAUSE WE REALLY CAN'T GET THAT WITH THE CU, WE CAN DO IT WITH A
NORTH TEXAS WATER MUNICIPAL DISTRICT IS BIG ON THAT.
THEY LIKE TO GO OUT TO SEVEN YEARS 'CAUSE THEIR MILEAGE IS LOW SO THEY CAN GO OUT TO SIX AND SEVEN YEARS OLD.
OKAY? SO THAT TRUCK OWNS THAT WARRANTY.
SO WHEN YOU, YOU KNOW, IT GETS STRUCTURED INTO THE DEAL UNLESS YOU WANNA WRITE A CHECK SEPARATELY FOR IT AND IT'S AFFORDABLE.
OKAY? SO IF YOU CAN PUT IT IN THE DEAL AND AT THE END OF 36 MONTHS YOU GO, YEAH, WE WANT THOSE TRUCKS.
WELL THE WARRANTY CONTINUES ON UNTIL THE, THEY EXPIRE WHATEVER LENGTH OF TIME THAT YOU HAD PUT ON UP FRONT OR THERE'S PLAN C TAKE THE TRUCKS WITH WARRANT.
IT'S ON FROM THE OE RUN WITH 36 MONTHS WHEN THEY EXPIRE AND YOU WANT THE TRUCKS WARRANTY AS IS NO WARRANTY ONLY EXPIRED.
BUT WE DO ARE AFFILIATED WITH A COMPANY THAT DOES SELL EXTENDED WARRANTIES SEPARATE.
BUT GENERALLY THEY'LL COVER ENGINE AND TRANSMISSION AND IT'S A LITTLE BIT SHORTER PERIOD OF TIME IF YOU LIKE TWO YEARS.
[00:30:01]
ENGINE TRANSMISSION WARRANTY RUNS OUT 36 MONTHS.THE POWERTRAINS THREE YEARS ENGINE, NO MEANT THE ENGINE JUST RUNS OUT 20,000 MILES.
ONE, THAT'D BE KIND OF A BUMMER.
THE WAY THE WARRANTY'S STRUCTURED ITS MATRIX, YOU KNOW IT'S MILES AND TIME.
THE LESS MILES YOU DO THE CHEAPER IT'S IN THE MATRIX.
RIGHT? SO IT'S THE GUYS THAT ARE RUNNING THOSE FIVE YEARS, 500,000 MILES THAT WHERE THE WARRANTY IS LITTLE HEAVY.
BUT THOSE LOW MILEAGE, YOU KNOW, LONG TERM IS A LOT MORE FOR IT.
TWO DIFFERE BETWEEN THE PAT CAR AND COMES MOTOR PAT CAR IS A 13 LITER ENGINE.
IT WAS, UH, PAT CAR OWNS KENWORTH FUEL BUILT AND D IN EUROPE.
THE PACCAR ENGINE WAS A DAF ENGINE.
EUROPE STRUGGLES ON MISSIONS BECAUSE THEIR STANDARDS ARE TIGHTER THAN OURS.
SO WHEN OUR STANDARDS CHANGE, INSTEAD OF BUILDING A NEW ENGINE PLATFORM, THEY TOOK THE D ENGINE AND BROUGHT IT AND BUILT A PLANT IN MISSISSIPPI AND BUILT THEM FOR BOTH COUNTRIES.
IT'S GOT A COMPOSITE GRAPHITE BLOCK ON IT, LIKE A NAR.
WHEN CUMMINS, CUMMINS CAST THE BLOCKS, THEY GOTTA BE BURIED IN SAND AND CURED BEFORE THEY CAN START INSURED THE COMPACT GRAPHITE BLOCK.
THE ONE, LIKE, LIKE ON THE NASCAR GUYS, WHEN THEY BUILD WITH CONNECTOR ROD OVER CRANK SHAFT, THEY DON'T SLICE IT, THEY CRACK IT.
SO WHEN IT GOES BACK TOGETHER, IT'S PERFECT CIRCLE.
SO WHAT ALL THESE EQUATES TO IS LONG DUTY.
AND THEN AS FAR AS SERVICEABILITY GOES, THE WATER PUMP, IT TAKES MORE TIME TO DRAIN, INCREASE THAN PULL WATER, PUMP, PUMP.
YOU DON'T HAVE TO PULL VALVE CURVE OFF ROCK, ARMS, ALL THAT.
SO IT'S THE ENGINES DEVELOPED TO MEET EMISSIONS, THE ACID TREATMENT SYSTEM, A LITTLE, A LITTLE BIT MORE EFFICIENT, LESS ISSUES.
IN OTHER WORDS, THAT'S WHERE WE GET 80% OF OUR COMPLAINTS IS IN THE EMISSIONS.
UH, THE CUMMINS ON THE OTHER HAND, IT'S A 15 LITER ENGINE.
IT IS BIGGER, IT'S HEAVIER, UH, BECAUSE IT'S BIGGER ENDING.
UM, WARRANTIES EQUAL, UH, EXTENDED COVERAGES COST LESS ON THE CAR THAN THE CUMMINS.
I WORKED AT CUMMINS FOR 20 YEARS.
I CAR AND THE REASON BEING ONE, THE MAIN REASON I'M SEEING LESS ISSUES IN FUEL ECONOMY CAR THAN I'M THE CUMMINS PACKAGE.
BUT THE BEST PART IS WHEN C*M GOES INTO THE SHOP FOR WARRANTY DEALER GO INTO OUR SHOP OR WHEREVER WE HAVE TO CONTACT GRAPHIC CIRCLE AT CUMMINS, THEY'VE GOTTA LAY OUT A FAULT TREE FOR US TO FOLLOW.
WE HAVE TO FOLLOW THE FAULT TREE AND DO ALL THESE DIAGNOSTICS BEFORE THEY APPROVE US TO DO THE REPAIR.
IF WE DON'T DO THAT, WE DON'T GET PAID IN ONE.
THE TRUCK'S BEEN IN SHOT PACK, CAR ENGINE, OUR ENGINE, WE GO BACK TO IT, WE DO IT, WE TAKE CARE OF IT RIGHT THERE.
WE'VE GOT OUR OWN SERVICE GUY LIVES IN DALLAS THAT WORKS FOR KEN, THAT WORKS FOR US.
I MEAN, UH, THAT WORKS WITH US.
SO, UH, METAL, METAL, LESS COST, BETTER WARRANTY, BETTER FUEL MILEAGE, MORE DEPENDENT
WE NEED, WE DON'T NEED THAT MUCH.
WE'LL RACE GET OUT AND START RUNNING
Y'ALL NEED TO REALIZE IF YOU GO THIS ROUTE THAT YOU'RE GONNA HAVE TO BUDGET.
YEAH, WE GOT SEVEN AND A HALF TIMES MORE.
I I DON'T KNOW THAT WE SINCE THE BUY, PURCHASE, WHATEVER IT IS THAT WE'RE DOING, SINCE THAT'S NOT AROUND ANYMORE,
[00:35:04]
THAT'S, I'M WANT THEM TO BE AWARE THAT ONCE WE GET THE AMORTIZATION SCHEDULE ON HOW MANY YOU BUY, FOR INSTANCE, YOU KNOW, QUARTERLY, LIKE ALMOST 8,000.SO ANNUAL PAYMENT WILL BE 31 5.
IF YOU BUY FOUR, IT'S GONNA BE 126,000 JUST FOR THAT.
NO, BECAUSE YOU'VE BEEN GETTING BEFORE, NOT YOU, BUT NO, THESE TWO DO PRECINCTS 'CAUSE THEY'RE BIGGER.
USUALLY GET FOUR, FOUR MAX OR WHATEVER THEY WERE, BUT WOULD COME OUT OF THEIR INDIVIDUAL PRECINCTS BUDGET.
ALRIGHT, ANY OTHER QUESTIONS, UH, FROM ANYBODY, UH, THAT'D INTERESTED IN THIS? THANK YOU FOR YOUR PRESENTATION.
IF YOU DON'T MIND, I'LL JUST, OKAY.
AND THERE'LL BE SOME TIME TO VISIT, SO YES.
DO I HAVE A MOTION TO ADJOURN? SO MAY WE HAVE A NEXT MOTION, MR. PHILLIP SECOND MOTION? ALL IN FAVOR SAY AYE.