To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
title
Lease/ Purchase of One (1) Caterpillar CB4.0 03A Utility Compactor Roller and One (1) New Felling Model: FT14 Trailer, Authorization to Enter into Lease/Purchase Agreement and Declare Equipment Surplus
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the lease/purchase of one (1) Caterpillar CB4.0 03A Utility Compactor Roller and one (1) New Felling Model: FT14 Trailer;
2. Authorize the Purchasing Agent to enter into a lease/purchase agreement with Umpqua Bank Equipment Leasing & Finance; and
3. Declare one (1) 1996 Ingersol Drum Roller DD24, equipment number 46822, and one (1) 1996 Zieman Trailer 1150, equipment number 94152 as surplus equipment.
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SOURCE OF FUNDING:
Heavy Equipment (3540)
DISCUSSION:
Humboldt County Public Works, Heavy Equipment Division is requesting authorization to enter into a lease/purchase agreement for one (1) Caterpillar CB4.0 03A Utility Compactor Roller and one (1) New Felling Model: FT14 Trailer. The compactor roller will replace one (1) existing 1996 Ingersol Drum Roller DD24 that is no longer in California Air Resources Board (CARB) compliance. The trailer will replace one (1) existing 1996 Zieman Trailer 1150 that is no longer functioning. Should the Board choose to declare the 1996 Ingersol Drum Roller DD24, equipment number 46822, and 1996 Zieman Trailer 1150, equipment number 94152, as surplus, they will be cannibalized and used as parts for the current fleet.
The Public Works Heavy Equipment Division received one (1) quote for the Caterpillar CB4.0 03A Utility Compactor Roller from Peterson CAT a member of Sourcewell, formally the National Joint Powers Alliance. Public Works intends to lease/purchase this piece of equipment under the Caterpillar Inc. cooperative purchase agreement.
The Public Works Heavy Equipment Division received one (1) quote for the New Felling Model: FT14 Trailer from Peterson CAT the authorized dealer for Felling Trailers Inc., a member of Sourcewell, formally the National Joint Powers Alliance. Public Works intends to lease/purchase this piece of equipment under the Felling Trailers Inc. cooperative purchase agreement.
Financial Pacific Leasing Inc., doing business as Umpqua Bank Equipment Leasing & Finance, a subsidiary of Umpqua Bank, has financed previous lease/purchases for the Humboldt County Department of Public Works, and is the most competitive financing option. The amount to be financed for the Caterpillar CB4.0 03A Utility Compactor Roller and New Felling Model: FT14 Trailer, including the sales tax, shipping and license fees, shall not exceed a total of $85,000. The financing term will be for sixty (60) months at 1.82% interest.
FINANCIAL IMPACT:
The projected monthly payment on the equipment is $1,547.11. The maximum cost for the remainder of fiscal year 2021-22 is $6,188 and $18,565 annually for the remainder of the five (5) year lease/purchase term. The leased equipment is expected to arrive within sixty (60) days after execution of the lease/purchase agreement.
There is sufficient appropriation in the fiscal year 2021-22 budget for the monthly lease payments of the new equipment. Future payments will be budgeted annually during the budget process from fund 3540, budget unit 330 - Heavy Equipment. There is no impact to the General Fund.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by managing our resources to ensure sustainability of services .
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could deny the purchase. This alternative is not recommended because it will cause a shortage of heavy equipment required for road maintenance.
ATTACHMENTS:
1. Peterson Quote QT191927R9999S1
2. Peterson Quote QT193691R1S1
3. Caterpillar Inc. Sourcewell Contract Acceptance and Award
4. Felling Trailer Inc. Sourcewell Contract Acceptance and Award
5. Umpqua Equipment Lease/Purchase Agreement Summary
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A
File No.: N/A