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Meeting Date:	08/12/2019
GCC Finance Agreement for Heavy Equipment
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 Government Capital Corporation and Webb County for the purpose of financing heavy equipment with a proposed financing term of Five (5) annual payments of $156,577.17 at an interest rate of 3.19%, 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. [Debt Service Account & Road & Bridge Account]

Heavy Equipment Description	Qty.	Unit Cost	Ext. Cost
2019 John Deere Motor-grader 622G	2	280,449.03	560,898.06
2019 John Deere Backhoe 310L	2	76,152.90	152,305.80
Total Purchase Price			713,203.86

Issue:Currently two (2) motor-graders and one (1) backhoe will expire in mid-September of 2019. The Road and Bridge Director requires the continued use of this equipment for his operation.

Solution: Approve the recommended financing option being provided by Government Capital Corporation for heavy equipment for Road and Bridge Department.

Result: Authorized the Purchasing Agent to proceed with the purchase of heavy equipment after proceeds are wired to Webb County and allocated to correct accounts by the Budget Officer and the County Auditor. Purchase will be made under Buy-Board Contract No. 515-16.

Background:

None

Previous Court Action:

None

Fiscal Impact

Budget Account Number:	Debt Service
Funding Source:	Debt Service
Balance:	TBD
Financial Impact:
Equipment Cost: $713,203.86 Term: 5 annual payments (1st payment due 12 months after signing). Interest Rate: 3.19% Annual Payment Amt. $156,577.17 Debt Service Account: TBD