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Meeting Date:	04/24/2018
CAT Financial Agreement for 2 Motor Graders
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action to approve a finance proposal agreement between Caterpillar Financial Services Corporation and Webb County in accordance with the Local Government Code, Section 271.005 (Authority to Contract for Personal Property) for two (2) 120M2 Motor Graders at a term of thirty-Six (36) monthly payments in the amount of $7,140.28 with a fixed interest rate of 4.55%. The Finance proposal includes a dealer buyback option with a balloon payment of $175,000.00 and authorizing the County Judge to sign all relevant documents and any other matters incident thereto. [Requested by Road and Bridge Department; Account #4100-9060-001-483003-220, 155 & 165 Capital Leases Principal (R&B), #4100-9070-001-483037-135, 220, & 145 Capital Leases Interest (R&B)]

Issue: The current lease for the two (2) motor graders has expired and the Road and Bridge Department is requesting that we continue to utilize motor graders for daily operations.

Solution: Approve the recommended finance leasing option as presented by the Purchasing Agent to secure a new 36 month lease term for the two (2) motor graders.

Result: Secure a new lease agreement with CAT Financial for two (2) motor graders for the Road and Bridge Department for the use of continued maintenance and upkeep of County roads.

Background:

None

Previous Court Action:

Approval of 2 leased motor graders for Road and Bridge, lease term has expired.

Fiscal Impact

Budget Account Number:	4100-9060-001-483003
Funding Source:	Debt Service
Balance:	$737,000.00
Financial Impact:
Debt Service Accounts Fund 4100-9060, 4100-9070 (principal and interest) Balloon payment for expired lease was budgeted but not used. Funding is available.

Attachments
Finance Proposal