To: Board of Supervisors
From: Public Works
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
title
Lease/Purchase Agreement for Four (4) Felling Model: FT 12 Trailers, Five (5) Caterpillar Model: CB4.0-MB Paving and Compaction Rollers and Two (2) John Deere 310 P-Tier Backhoe Loaders and Appropriation Transfer in the Amount of $85,050 in Roads Measure O, 1200342(4/5 Vote Required)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors
1. Authorize the lease/purchase agreement of four (4) Felling Model: FT 12 Trailers and five (5) Caterpillar Model: CB4.0 Paving and Compaction Rollers and two (2) 310 P-Tier Backhoe Loaders; and
2. Authorize the Purchasing Agent to enter into a lease/purchase agreement with Peterson CAT (Attachment 1 and Attachment 2) and John Deere (Attachment 3); and
3. Declare two (2) 1994 Zeman 1150 Trailers equipment numbers 94148 and 94149, two (2) 1996 Zeman 1150 Trailers equipment number 94151 and 94153, two (2) 1995 Ingersol DD24 Rollers equipment number 46824 and 46825, two (2) 1996 Ingersol DD24 Rollers equipment number 46821 and 46823, one (1) 2001 Caterpillar CB-334D Roller equipment number 46829, and two (2) 2001 John Deere 310 SG Backhoe Loaders equipment number 43873 and 43874 as surplus; and
4. Approve the appropriation transfer (Attachment 4) for fiscal year (FY) 2025-26 in the amount of $85,050to establish the Services and Supplies Rents & Leases - Equipment LT line, 2120, and reduce the Fixed Assets Equipment line, 8986 in the Roads Measure O budget, 1200342. (4/5 Vote Required)
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Safe & Healthy Communities
Strategic Plan Category: 1009 - Expand county infrastructure resilience
DISCUSSION:
Public Works Roads Measure O Division is requesting to replace aged out equipment and is requesting authorization to enter into a lease agreement for four (4) Felling Model: FT 12 Trailers and five (5) Caterpillar Model: CB4.0 Paving and Compaction Rollers and two (2) John Deere 310 P-Tier Backhoe Loaders. The new rollers will replace the existing 1995, 1996 and 2001 models, which are difficult to maintain due to limited availability of parts and ongoing repair costs. The updated rollers are larger and more efficient, providing more reliability to road maintenance operations. New trailers are required to replace the existing 1994 and 1996 models to accommodate the size of the new rollers. The new backhoe loaders will be replacing the existing 2001 models due to both pieces of equipment no longer meeting California’s Emission Standards.
Should your Board choose to declare the existing two (2) 1994 Zeman 1150 Trailers equipment numbers 94148 and 94149, two (2) 1996 Zeman 1150 Trailers equipment number 94151 and 94153, two (2) 1995 Ingersol DD24 Rollers equipment number 46824 and 46825, two (2) 1996 Ingersol DD24 Rollers equipment number 46821 and 46823, one (1) 2001 Caterpillar CB-334D Roller equipment number 46829, and two (2) 2001 John Deere 310 SG Backhoe Loaders equipment number 43873 and 43874 as surplus, they will be sold at auction. .
Due to the number of pieces of equipment needing to be replaced and the department’s need for the updated equipment, leasing this equipment is a better option as the budget would not allow for purchasing all the equipment needed outright.
SOURCE OF FUNDING:
Public Works Roads Measure O (1200342)
FINANCIAL IMPACT:
|
Expenditures (1200342) |
FY 25-26 |
FY 26-27 Projected |
FY 27-28 Projected |
|
Budgeted Expenses |
$ 85,050 |
$ 170,093 |
$ 170,093 |
|
Total Expenditures |
$ 85,050 |
$ 170,093 |
$ 170,093 |
|
Funding Sources (1200342) |
FY 25-26 Adopted |
FY 26-27 Projected* |
FY 27-28 Projected* |
|
Fees/Other |
$ 85,050 |
$ 170,093 |
$ 170,093 |
|
Total Funding Sources |
$ 85,050 |
$ 170,093 |
$ 170,093 |
|
|
|
|
|
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
Public Works Roads Measure O received one (1) quote for the trailers and one (1) quote for the rollers from Peterson CAT and one (1) quote for the backhoes from John Deere, both are members of Sourcewell. Roads Measure O intends to lease and purchase these pieces of equipment under the Caterpillar Inc. and John Deere lease agreements.
The projected monthly payment for the equipment is $14,175. The maximum cost for the remainder of FY 2025-26 is $85,050 and $170,100 annually for the remainder of the five (5) year lease/purchase term, with a final balloon payment of $128,137 to be made at the end of the lease term. The leased equipment is expected to arrive within sixty (60) days after execution of the lease/purchase agreement.
There are sufficient appropriations in the FY 2025-26 Public Works Measure O budget, 1200342 for the monthly lease payments for the new equipment in the Fixed Assets Equipment line 8986 due to changes in the equipment needs originally budgeted for. Roads Measure O budgeted $200,000 for four (4) generators, changes in that project only required two (2) generators totaling $99,434. This leaves a savings of $100,536. A portion of the remaining funds will need to be transferred to the Services and Supplies Rents & Leases - Equipment LT line, 2120, for the lease payments. Future payments will be budgeted annually during the budget process in the Public Works Roads Measure O budget, 1200342.
STAFFING IMPACT:
There is no impact to current staffing levels.
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to approve the lease/purchase agreements. However, this is not recommended as it would result in retaining equipment that is outdated and that no longer meet California’s Emission and equipment that is difficult to maintain due to limited availability of parts.
ATTACHMENTS:
1. CAT lease agreement Trailers
2. CAT lease agreement Rollers
3. John Deere lease agreement Backhoes
4. Appropriation Transfer 1200342
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A