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4/27/2007
FireTruck Fiasco
Word on the street is that Elite Fire Apparatus Co. near Shawano is in trouble. Rumor is that some of Elite’s work force has been laid off, with no specific call back date and with many looking for jobs in the area. That says to me folks in the know think it not likely Elite will reopen.
Ok, fine and good. Companies come and go everyday you say. Well, last summer, Appleton’s Common Council and fire department went through a controversial bid process for a new pumper. Lo and behold it was Elite just barely winning via a complex ranking formula over home town powerhouse, Pierce Manufacturing. Indeed, the primary argument by those favoring Pierce was not that it was more financially solid, but rather that it employed hometown workers.
So here’s the rub – mentioned to me by someone in the know.
- Appleton’s got this brand new Elite pumper now. About $315,000 worth. If Elite does indeed close its doors, who’s going to service the pumper - and with what parts?
- What will the pumper be worth (or who would want to buy it) in 10 or 20 years when Appleton wants to sell it?
- Word is the folks who produce chassis for Elite (Spartan Chassis Inc.) haven’t been paid by Elite. In Appleton’s case, they pre-paid for their pumper, (gaining a significant discount), yet Spartan still may not have been paid and may have a lien on the chassis in the Appleton pumper. What does that mean for Appleton? (5/4/07: The Post-Crescent reports Appleton city attorney says no lien exists on pumper or the second truck.)
- Appleton has ordered a second truck from Elite – not yet paid for (thank heavens), not yet delivered. Does Appleton have a legal obligation to follow through with the purchase if Elite lands on its feet?
- What’s with the management at Elite and just how do they intend to land on those feet?
Hindsight’s always 20/20 – I know. I followed the Elite vs. Pierce decision-making last summer; from what I knew, I would have gone with the lower priced (by $30,000) Elite, given the extensive specification comparisons and rankings done by the purchasing committee. I’m not sure I’d have had the wisdom, however, to ask for detailed financials from both companies. Looks like we may have bought a whole lot of trouble by trying to save a few thousand bucks for the taxpayer. Nuts.
COMMENTS
Out of curiosity, Jo, did you try to track down the source of this information or confirm it with Elite? Or are you just posting unsubstantiated, unsourced rumors and making assumptions based on them?
Matt, I have several credible sources that have made independent statements that all lead to the same conclusion. JE
Matt Neistein (Fri Apr 27 08:00:08 2007)
Interesting article. Seems that Montgomery COunty Maryland has ordered 37 Pumpers from Elite and then there was a rumor that Elite was having a problem getting a bond to cover the bid. I wonder where this is going to leave Montgomery County and their order?
Cosgrove
TCosgroveJones (Sun Apr 29 18:25:23 2007)
Rumors by unreliable sources regarding Elite Fire Apparatus. New article (5/4/07)in the Post Crescent puts Rumors to rest! Appleton dismisses rumor about fire truck maker Order at Elite in good standing, as is the company, officials say By Steve Wideman Post-Crescent staff writer APPLETON — Despite rumors to the contrary discussed in Wednesday's open session of the Common Council, city fire trucks delivered or ordered from a Shawano-area manufacturer have no liens on them. "There are no liens on the Elite truck or equipment Appleton has or the truck we have on order," City Atty. James Walsh said after talking to the owners of Elite Fire Apparatus regarding rumors of Elite's reported demise and liens on truck chassis owned by or under construction for Appleton. "The rumors are just that — rumors." Spartan Chassis of Michigan constructs the chassis and sells them to Elite. A lien allows a manufacturer to claim ownership of property if a debtor doesn't pay, and it could prevent clear title to a vehicle. City officials contacted Spartan and found no liens on the Appleton chassis. Despite the assurances, Ald. Jim Clemons said he wants to schedule a closed session of the council to discuss Elite. Ald. Walter Kalata broached the subject at Wednesday's council meeting, saying he doubts the authenticity of rumors about Elite. "I believe the items are in error," Kalata said. "The Internet comments give you the impression Elite is going under and the city's investment in its newest fire truck and one being built will be lost." Rumors of trouble at Elite began shortly after the Common Council last year chose to buy a pumper truck from Elite rather than Pierce Manufacturing, a subsidiary of Oshkosh Truck with facilities in the Fox Cities. Several aldermen recently received an anonymous e-mail suggesting Elite's possible closing and layoffs. Jessica Erickson, a spokesman for the state Department of Workforce Development, said Thursday that the state has not received notice from Elite, as required by law if a company is closing or laying off employees. Len Heling, Elite's vice president of sales, said Thursday the company, which employs 63 people, continues to build vehicles "and put our product out the door." "Appleton remains a focus of our company," he said. "We've received positive comments regarding the enhancements and design of the truck Appleton now has in service." Appleton Fire Chief Neil Cameron said the pumper truck the city bought from Elite for $313,569 needs minor adjustments, but nothing beyond what the department experiences with any new truck. Cameron said the truck under construction, a light commercial-type vehicle body on which Pierce did not enter a bid, is undergoing routine preparatory work at an Appleton chassis shop before it's shipped to Elite facilities in Tilleda, near Shawano. The city pre-paid the $162,572 cost of the truck and associated equipment to gain a discount, said Finance Director Lisa Maertz. Walsh said the pre-payment, as well as any possible problems with the Elite trucks, are covered by performance, payment and warranty bonds, meaning the city would not lose its investment even if something did go wrong.
(Fri May 04 07:42:11 2007)
You may wish to check out http://wcca.wicourts.gov/ and do a search on Elite Fire*. You will see a lien by the WI DWD for $1.6 million. I think it might be time people start asking questions if the city has no received the truck yet.
Appleton Resident (Fri Oct 26 15:01:33 2007)
The majority of the lien from WI DWD is for unpaid wages. We were asked NOT to take a lay-off even though there was no production work to be done, and that our pay checks would be good. This was at the end of August. Dave Moser did not ask this personally but had his sentiments relayed to the employees thru his CFO.
(Note: thru the whole tumultuous time you did not see the owner Dave Moser at the plant or dealing with his employees).
Payday came and went and no checks were handed out and Dave Moser was not available for answers. Those paychecks have never been received and the payroll from before that had several bounced checks. A few employees remained for the next two weeks with no pay and since then there has only been two people at the facility answering phones.
Upon further investigation it came out that our health insurance deductions were never applied to our insurance therefore it was canceled going back to August first. 401K deductions from several checks was not deposited, employee reimbursements not made,and tax withholdings not made.(this comes out to upwards of 8k for some employees)
If Dave can not keep his word to his own employees what does this mean for all that he said in last years council meetings?
Ex-Employee (Wed Oct 31 12:53:49 2007)
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