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Meeting Date:	05/10/2021
Government Capital Finance for Heavy Equipment from Santex
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 (GCC) and Webb County for the purpose of financing Heavy Equipment for the Webb County Road and Bridge Department with a proposed financing term of Five (5) annual payments of $88,388.45 at an interest rate of 2.534%, with first annual payment due twelve (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)]

Heavy Equipment	Qty.	Unit Cost	Extended Cost
2022 LT625 6x4 Intl. Trailer (includes wet kit) 2021 Brenner 6,500 tanker w/sprayer	1	$186,174.00	$186,714.00
2022 HV607 6x4 International w/Curry 4,000 gallon water tanker	2	$112,031.00	$224,062.00
Total cost for 3 tankers:			$410,236.00

Issue: The Road and Bridge Director is requesting three (3) water trucks be added to his fleet in order to improve the efficiency of transporting water to County road projects being repaired/maintained by his department. The current water trucks are older models and the department has experienced continuous mechanical issues that have caused delays in the completion of road projects due to water trucks being out of service.

Solution: Approve the recommended financing option being provided by Government Capital Corporation in order to secure the funding necessary to purchase the water trucks. Should the County opt to pay off the balance early there are no penalty fees for doing so. Early payoffs are permitted only during payment due date as per agreement. First payment is due twelve (12) months from signing.

Result: Proceed with the execution of the public property finance contract and authorize the Purchase Agent to order the water trucks, immediately after funding is transferred to Webb County by GCC.

Background:

N/A

Previous Court Action:

N/A

Fiscal Impact

Budget Account Number:	2007-7150-001-470000
Funding Source:	Capital Outlay
Balance:	$410,236.00
Financial Impact:
Budget Account No: 2007-7150-001-470000; Capital Outlay Available Balance: $410,236.00 Funding will be wired to Webb County by Government Capital Corporation upon execution of finance agreement, 2-3 business days. Purchase Order will be issued to Vendor after funding is allocated to account(s). *1st. annual payment due 12 months from signing.

Attachments
GCC Heavy Equipment Proposal