Caterpillar Financial Services Corporation Lease Purchase final payout
Submitted for:
Joe Lopez
Submitted By:
Joe Lopez
Department:
Purchasing
Subject:
Discussion and possible action to authorize the final lease payout and purchase for two (2) Caterpillar Backhoe Loaders - Model 416F2ST - Serial No. HWB01022 and HWB01023 from Caterpillar Financial Services Corporation in an amount not to exceed $66,720.00 as per Government Equipment lease Purchase Agreement Transaction No. 2954725 for operational use for the Road and Bridge Department and any other matters incident thereto. [Account #4100-9060-001-483003-220 Capital Lease Road and Bridge]
Issue: One of the leased backhoes requires a new engine. Webb County is responsible for the repairs of non-working lease equipment. It is recommended to purchase the unit so the investment to repair engine is not returned to LESSOR. Payout option is available under Capital lease purchase agreement No. 2954725. The Road and Bridge Department is also recommending the purchase of the second unit under this agreement for operational use.
Solution: Approve final lease payout to purchase two (2) backhoe loaders from Caterpillar Financial Services Corporation. Funding is available under the Capital Lease account under Road and Bridge.
Result: Investment to repair engine will remain with Webb County. Both Units will be utilized by Road and Bridge for county road improvements and maintenance.
Background:
None
Previous Court Action:
Approval of Governmental Equipment Lease Purchase Agreement No. 2954725
Fiscal Impact
Budget Account Number:
4100-9060-001-483003
Funding Source:
Capital Leases
Balance:
$182,012.00
Financial Impact:
4100-9060-001-483003-220 Debt Service Fund - Capital Leases R&B - 2 Backhoes Caterpillar
Balance: $182,012.15