To: Board of Supervisors
From: Public Works
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
title
Lease/Purchase Agreement for One (1) 2026 Caterpillar Excavator Model: 330-07 (4/5 Vote Required)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors
1. Authorize the purchasing agent to execute the lease/purchase agreement for One (1) 2026 Caterpillar Excavator Model: 330-07. (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’ Heavy Equipment Division is requesting authorization to enter into a lease agreement for One (1) 2026 Caterpillar Excavator Model: 330-07
Heavy Equipment received one (1) quote from Peterson Cat Co., a member of Sourcewell. Heavy equipment intends to lease the piece of equipment under the Caterpillar Inc. cooperative lease agreement.
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 Heavy Equipment (3540330)
FINANCIAL IMPACT:
|
Expenditures (3540330) |
FY 25-26 |
FY 26-27 |
FY 27-28 |
|
Budgeted Expenses |
$13,749.74 |
82,498.44 |
82,498.44 |
|
Total Expenditures |
$13,749.74 |
82,498.44 |
82,498.44 |
*Projected amounts are estimates and are subject to change.
|
Funding Sources (3540330) |
FY25-26 |
FY 26-27 |
FY 27-28 |
|
Fees |
$13,749.74 |
82,498.44 |
82,498.44 |
|
Total Funding Sources |
$13,749.74 |
82,498.44 |
82,498.44 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
Public Works Heavy Equipment received one (1) quote for a 2026 330-07 Excavator from Peterson Cat Co, a member of Sourcewell. Heavy equipment intends to lease and purchase this piece of equipment under the Caterpillar Financial Services Corporation lease agreement for a total amount of $364,471.52.
The projected monthly payment for the equipment is $6,874.87. The maximum cost for the remainder of fiscal year (FY) 2025-26 is $13,749.74. Annual payments of $82,498.44 for the remainder of the 5 year lease/purchase term and a final balloon payment of $101 to be made at the end of the lease term is expected.
There are sufficient funds in Heavy Equipment’s budget to cover the remainder of this current fiscal year (FY). This lease/purchase is included in the proposed FY 2026-27 budget for Public Works Heavy Equipment (3540330).
STAFFING IMPACT:
N/A
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to approve the lease/purchase agreement. However, this is not recommended as it would result in an increase in downtime to Road’s maintenance projects, an increase in Heavy Equipment repairs and may require the departments to contract out equipment, leading to higher operational costs.
ATTACHMENTS:
1. 5036935 - COUNTY OF HUMBOLDT - 330 - 500HPY - 60M $101 GOV LEASE AM Schedule
2. 5036935 - COUNTY OF HUMBOLDT - 330 - 500HPY - 60M $101 GOV LEASE
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A
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