TITLE
Consider a memorandum/resolution approving procurement of one Caterpillar motor grader through the TASB Buy Board State Cooperative for the Streets Division.
SUMMARY
AGENDA ITEM
Authorize Procurement of One (1) Caterpillar Motor Grader through TASB Buy Board
ORIGINATING DEPARTMENT
Public Works / Streets Division
BACKGROUND INFORMATION
Since 2002, the City of Killeen has procured a motor grader and subsequent replacements with a buyback option and guaranteed repurchase price. Most recently, in October 2008 and again in May 2012 (CCM/R 11-189R), City Council approved the motor grader purchase under the same repurchase program through Holt Cat of Waco. The guaranteed repurchase price has been applied as a trade-in allowance where Holt Cat purchases the motor grader back from the City of Killeen, thereby reducing the cost of the replacement motor grader.
This heavy equipment is used by the Street Services Division for many street utility and maintenance programs.
DISCUSSION/CONCLUSION
The City of Killeen is a member of six (6) purchasing cooperatives that are in compliance with Texas Local Government Code Section 271.102. The "Guaranteed Repurchase Program" with Holt Cat is available through the TASB Buy-Board Purchasing Cooperative.
BID Holt Cat
Purchase Price (includes extended warranty) $266,057.00
Trade-In Allowance ($220,000.00)
Net Purchase Price $46,057.00
Guaranteed Repurchase Price $250,000.00 - $225,000.00 depending on the mileage
This guaranteed repurchase will be evaluated in three (3) years and reconsidered for the buyback option.
FISCAL IMPACT
Funds for this purchase will be available in the FY14-15, Street Services Division expenditure account number 010-3445-434.61-35 Equipment, in the amount of $266,057.00 following a credit of $220,000.00 to the Sale of Property account number 010-0000-363-99-30, which results in a net fiscal impact of $46...
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