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MAY 21984 BOOK 56 ; PACE 558 ` were completed and did not understand why this back hoe was needed at this stage. He found it interesting that the construction company is renting it. Mr. Silverman explained that it was the utility's prerogative to purchase this type of equipment and it is a permissible type of expenditure. He noted that they do keep a log of the daily use of this equipment and he would ascertain that $5,000 of rent was collected from the construction company. Attorney Eben Cockley was not aware of a back hoe being purchased for $118,000 and thought that the construction company should have purchased the equipment and rented it out to Hutchinson Utilities, Inc. Louis P. Aiello, President of Hutchinson Utilities, Inc. explained that the piece of equipment was purchased by Hutchinson Utilities, Inc., and it did not have anything to do with the construction company. The construction company has its own back hoes and does not need to buy another back hoe. The purchase was really based on the premise that construction was to begin last June and they planned to use it at the new plant and also in the relocation of the force mains. He felt that the Moorings people were not aware of the fact that there is going to be extensive work done in the existing mains, which, very probably are going to have to be re -excavated and laid out again. That is something they inherited. The only reason the utility company rents the back hoe is simply to keep it from just sitting there idle and to generate some income to Hutchinson Utilities which reduces the operating cost for the customer. Chairman Scurlock noted that basically the construction company paid $5,000 in rent and asked if Hutchinson Utilities uses this piece of equipment more or less than the construction company. Mr. Aiello had to say that the construction company probably used more of it during the 62