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Consent Agenda Item 5. B.

Regular BOS Meeting

Meeting Date:	09/06/2022
Submitted For:	Steve Sanders	Submitted By:	Shannon Coons, Fiscal Services Manager
Department:	Public Works	Division:	Roads
Fiscal Year:	FY2023	Budgeted?:	Yes
Contract Dates Begin & End:	9/27/2022 to 9/28/2025	Grant?:	No
Matching Requirement?:	No	Fund?:	Renewal

Information

Request/Subject

Approval for the continued use of the Purchase Agreement Caterpillar Transaction No. 3558441 for one new 120M2 AWD Blade

Background Information

On September 25, 2018, the Board approved that Consolidated Roads could trade-in a 1986 CAT 120G Motor Grader (J-1) that Gila County bought used in 1993 for $54,942 for a new CAT 120M2 AWD Blade from Caterpillar. The Sourcewell Contract 032515-CAT was used for the discount on the machine. This purchase with Caterpillar is for seven (7) years with an option to keep it or exercise the Client Guaranteed Buy Back at $90,240 and used less than 7,000 hours. The first payment was made on September 25, 2018, in the amount of $31,851.38. A second payment was made on August 27, 2019, in the amount of $32,239.80.

On September 15, 2020, and again on September 21, 2021, the Board approved Caterpillar Transaction No. 3558441 under A.R.S. § 11-651 which states that purchase agreements longer than one year must be reviewed again for the continuation of the agreement. A fourth payment was made in the amount of $31,851.38 for the motor grader.

This will be another request to continue with the Caterpillar Transaction which will end after the final payment in September 2025.

Evaluation

The discount of 34% from Caterpillar under the Sourcewell Contract 032515-CAT when purchasing a new piece of equipment, combined with the discount from Empire Machinery is a good saving for the county.

Conclusion

According to A.R.S. § 11-651, the Board must reaffirm their position on Caterpillar Transaction No. 3558441 each fiscal year. Public Works is coming to the Board for approval to make the 5th budgeted payment for this machine in September 2022 from the Transportation Excise Tax fund.

Recommendation

The Public Works Department Director recommends the Board approve the continued payments of the Caterpillar 120M2 AWD Blade with financing through Caterpillar Financial Purchase Agreement Caterpillar Transaction No. 3558441 and approve payment of $31,552.58 due on September 28, 2022.

Suggested Motion

Approval for the continued use of the Caterpillar Financing under purchase Transaction No. 3588441 for a 2018 Model 120M2 AWD Caterpillar Motor Grader serial number M9H00559 using Caterpillar Financial Services Corporation for the annual payment of $31,552.58 on September 28, 2022.

Attachments
Caterpillar Purchase Transaction No. 3558441
Amortization Schedule of CAT Trans No. 3558441
A.R.S. 11-651 Lease-purchase agreements