Commissioners Court Meeting

Issue viewing agenda items? Click here to switch to the old format.

Return to the Search Page Return to the Agenda

Meeting Date:	02/13/2023
John Deere Motor Graders
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action to authorize the purchase of two (2) new 2022 John Deere 622G Motor Graders from John Deere Shared Services LLC, (Source-well Contract #032119-JDC) with a five (5) year/5000 hour extended warranty in an amount not to exceed $679,329.56 for the Webb County Road and Bridge Department and in accordance with the Texas Local Government Code, Sub-Chapter F. Cooperative Purchasing Program; Section 271.102 (Cooperative Purchasing Program Participation) or to approve an Order and Resolution for the purpose of authorizing a public property finance contract issued under Local Government Code Section 271.005 (Authority to Contract for Personal Property) between Government Capital Corporation (GCC) and Webb County for the purpose of financing the subject heavy Equipment under the proposed options listed below with first annual payment due 12 months after signing; and authorizing the Civil/Legal division to prepare and finalize all related documents with final authorization from the County Judge; and any other matters incident thereto. [Account #2007-7150-001-470000 (Road & Bridge Fund - Road Maintenance General - Administration-Capital Outlay)]

GCC Finance options with first payment due one (1) year after signing :

Equipment Cost:	$679,329.56
	Options No. 1	Options No. 2
Term: Interest Rate: Annual Payment Amount:	4 Annual Payments 5.54% $193,987.80	5 Annual Payments 5.57% $159,388.47
Total Annual Payments : Less Equipment Cost: Total Interest Paid:	$775.951.20 $679,329.56 $96,621.64	$796,942.35 $679,329.56 $117,612.79

Issue: The Webb County Road and Bridge Department is requesting two (2) additional Motor Graders for general road maintenance operations.

Solution: Consideration to authorize the purchase using a reputable vendor with a state cooperative contract for heavy equipment. Utilizing cooperative contracts will meet the competitive bidding requirements of the State. Purchase includes the standard one (1) year warranty plus an extended five (5) year/5000 hour warranty – John Deere Train & Hydraulics. Or consider authorizing one of the recommended financing options listed herein.

Result: The new equipment will help improve general road maintenance and improvements to County roads and provide a more efficient process by assigning the additional motor graders to multiple work sites, eliminating the need to transport heavy equipment while holding back progress on road maintenance projects due to unavailability of heavy equipment use.

Background:

N/A

Previous Court Action:

Fiscal Impact

Budget Account Number:	2007-7150-001-470000
Funding Source:	Capital Outlay
Balance:	$679,330.00
Financial Impact:
2007-7150-001-470000 (Capital Outlay) Balance: $679,330.00 Additional financial information is contingent upon purchase or finance options selected and approved by Commissioners Court.

Attachments
John Deere Gator for Life Downs
Price Schedule Sourcewell #031121
GCC for Webb County