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Meeting Date:	11/13/2017
Finance agreement between Webb County and Welch State Bank
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action 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 Welch State Bank and Webb County for the purpose of financing a AZ 600-260B Reclaimer / Stabilizer (72-inch /1.8 m) with a proposed financing term of Five (5) annual payments of $41,216.68 at an interest rate of 3.53%, with first annual payment due 12 months after delivery; further to authorize the Purchasing Agent to purchase approved equipment from Asphalt Zipper; HGAC Contract No. SM10-16 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. [Requested by Commissioner John Galo; Debt Service Account]

Issue: Road and Bridge Department is in need of a reclaimer / stabilizer attachment to improve the efficiency of road maintenance repair work.

Solution: Authorize the lease/purchase of this equipment to better maintain county roads in a more effective and efficient manner.

Result: Hauling costs will be reduced by recycling the asphalt being repaired. County road improvements will be completed in a more timely manner / efficiently.

Background:

Road and highway maintenance projects requiring asphalt repair are easier and more cost-effective with Asphalt Zipper® machines. All the benefits of full-depth reclamation, stabilization, asphalt grinding and milling are in a very powerful, yet compact Asphalt Zipper grinding machine. Asphalt maintenance projects that would normally take up to one week can be done in less than one day. From small patches to up to a half a mile per day, owners report they are able to complete road repairs for less than half of what they were spending, and with better results by:

Solving base problems, rather than just covering them up
Turning existing asphalt into re-usable material
Reducing or eliminating new material, trucking and fuel costs
Better utilizing crews
Reducing the expense and reliance on outside contractors and equipment.

Previous Court Action:

None

Fiscal Impact

Budget Account Number:	Debt Service Acct
Funding Source:	Debt Service Acct.
Balance:	TBD
Financial Impact:
Equipment will be financed through a lease / purchase. 1st annual payment is due 12 months after delivery of equipment. Welch State Bank will pay the vendor directly after delivery of equipment to Webb County. Total Finance amount: $185,680.00 Interest rate: 3.53% 5 annual payments of $41,216.68

Attachments
Supporting Doc A
Supporting Doc B
Supporting Doc C