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Regular Agenda Item 2. C.

Regular BOS Meeting

Meeting Date:	09/01/2020
Submitted For:	Steve Sanders	Submitted By:	Betty Hurst, Contracts Administrator
Department:	Finance
Fiscal Year:	2021	Budgeted?:	Yes
Contract Dates Begin & End:	10-15-20 to 10-14-24	Grant?:	No
Matching Requirement?:	No	Fund?:	Renewal

Information

Request/Subject

Request to renew Caterpillar Purchase Agreement for a used 621G Auger Scraper s/n DBB00293 from Caterpillar Financial for 48 months $452,606.20 made through the Sourcewell 032515-CAT Heavy Equipment contract for the Recycling and Landfill Management Division of Public Works.

Background Information

The Buckhead Mesa Landfill was using a dump truck and loader to carry cover material from the material pit to the working face of the landfill. This was not efficient so the Board of Supervisors approved the Lease Purchase for an auger scraper on October 15, 2019. The first payment was made in October 2019.

Evaluation

The scraper is working very well and the Recycle Landfill staff have improved production and feel safer with the efficiency of this one machine. The payment will be due again in October 2020 for the second year so the Board of Supervisors needs to approve this payment per A.R.S. 11-651. This is the year Caterpillar's interest of 3.85% under the Sourcewell discount program will be paid.

Conclusion

With the increased productivity at the Landfill by this new machine, Public Works Management and staff would like to continue this Caterpillar contract.

The Caterpillar Financial proposal will charge a 3.85% interest over 48 months. This means that Government financing through this method is less expensive than the average bank of 5% interest charge because Caterpillar is taking the hit on the initial depreciation. The annual payment of $84,751.55 plus interest of $10,960.89 and 6.6% sales tax is due in October of each year. The amount due this October is $102,029.46.

A final balloon payment of $56,800 will be due in 2023.

Recommendation

It is the recommendation of the Public Works Director and the Recycling and Landfill Manager to renew the agreement for the used 621G Auger Scraper and payment to Caterpillar Financial in October 2020 in the amount of $102,029.46 through the Sourcewell 032515-CAT Heavy Equipment contract.

Suggested Motion

Information/Discussion/Action to renew the Caterpillar Financial contract for a used 621G Auger Scraper S/N DBB00293 and make a payment in October 2020 for $102,029.46. (Steve Sanders)

Attachments
Executed Purchase Agreement-Caterpillar Financial Services Corp.
Payment Schedule Caterpillar Financial Services Corp.
A.R.S. 11-651