2023-004 Fleet Delegation January 6,2023 Report No. 2023-004
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Fleet Purchase Under Delegation of Authority
EXECUTIVE SUMMARY:
A trommel unit was purchased by Fleet Services for Beneficial Reuse under the delegation of
authority approved by Ordinance 22-1269. A trommel is the primary piece of equipment used in
the production of compost. The current 2012 model was scheduled and budgeted for replacement
in FY 22-23. The new equipment will allow Beneficial Reuse to ensure continued operations and
meet increased demand for composting services.
BACKGROUND:
In late 2019, the City began experiencing challenges in securing materials and supplies due to
supply chain issues. Conditions worsened and began to affect several operational areas including
Fleet Services. Vehicle lead times grew close to a year under the organization's normal
acquisition process. At times, vehicles and equipment become available through other avenues
such as dealer inventory, lease-to-own opportunities, and unclaimed allocations from non-
contract Original Equipment Manufacturer (OEM).
Staff requested a Delegation of Authority for Fleet Services allowing the City to move quickly
when opportunities present to procure vehicles or equipment outside the organization's normal
acquisition process. On June 28, 2022, City Council approved Ordinance 22-1269 providing for
the delegation under the following conditions:
1) City Manager, or their designee, will be allowed to sign contracts or other required
documentation with OEM suppliers to purchase a vehicle for a city utility or public safety
department (which cost that has been approved through the budget process) through the
following means:
a) Fleet Services will review any available procured contracts (i.e. City of Denton contracts,
co-operative contracts, and other City contracts with piggyback options). Fleet Services
will use such a contract if available. Once such contract is located, City Manager, or their
designee, will be able to execute the appropriate documentation to purchase under the
contract.
b) In the event there is not a procured contract that can be used for the purchase, and the
purchase is required to protect the health and safety of City of Denton residents, Fleet
Services will work with the relevant utility or public safety department to prepare a
declaration of emergency that will detail why the purchase had to go outside of the normal
process and how health and safety are at issue to be reviewed and approved by Purchasing
and Legal.
c) In the event there is not a procured contract that can be used for the purchase, and the
purchase is required to protect the health and safety of City of Denton residents, Fleet
January 6, 2023 Report No. 2023-004
Services will work with the relevant utility or public safety department to prepare a
declaration of emergency that will detail why the purchase had to go outside of the normal
process and how health and safety are at issue to be reviewed and approved by Purchasing
and Legal.
d) Fleet Services will provide a report to City Council in the Friday Report, or other appropriate
method, regarding any vehicles purchased with this authority, the cost, any markup or
discounts received, and a running total of each department's vehicle budget as the funds are
used.
2) This delegation of authority is time limited to the earlier of three years or when market conditions
return to normal.
DISCUSSION:
Beneficial Reuse uses a trommel unit to separate composting materials in preparing it for
grinding. There are currently two units, however, one unit is considerable smaller than the other
and cannot process the volume of material being handled on its own.
The larger trommel is a 2012 model and was scheduled for replacement in FY 22-23 with an
approved budget of$800,000. The 2012 trommel has 15 points on the 15-point replacement scale
and has had three engine replacements with other repairs totaling $263,912. The equipment is
functional but in need of further repair. Current lead time for a new trommel is 8 — 12 months.
A 2022 model trommel was being tested by Beneficial Reuse. The unit was available for
immediate purchase through Buy Board Cooperative Purchasing Network and priced at
$598,471. The purchase meets the conditions of the delegation. Additionally, Chapter 271.102 of
the Local Government Code authorizes local governments to participate in a cooperative
purchasing program with another local government or local cooperative organization in lieu of
competitive bidding as the agreements have already been bid by the sponsoring entity or agency.
Historically, February is a busy season for Beneficial Reuse. The Department and Fleet sought
immediate replacement of the unit to meet operational demands for composting services. The
new equipment was operational on 12/29/2022.
EXHIBITS
Exhibit 1 Sales Quote
STAFF CONTACT:
Dustin Rolfe
Fleet Superintendent
Dustin.Rolfe@cityofdenton.com
(940) 349-8438
4%ia&
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POWERSCREEN TEXAS, INC.
December 21, 2022
City of Denton
Attn: Mark A. Bartek, (Email: Mark.Bartek@cityofdenton.com), and
Rusty Willard, (Email: Rusty.Willard@cityofdenton.com)
On behalf of Powerscreen Texas, Inc., I would like to thank you for the opportunity to
quote the following trommel screener for your purchase consideration utilizing the
Buyboard Contract ID: 685-22. Pricing is as follows:
One New 2022 Phoenix 3300 Ecotec Trommel $461,140.00
(ID: 79083, CAT C4.4 Engine, 173 HP, 3/8" screens fitted)
Non-Published Option:
Engine: Extended Warranty offer by CAT,
5 years Duration, 5000 hours Usage, 0 ded
Aftertreatment DPF, SCR and Platinum ESC $ 8,216.00
Non-Published Option:
Service/Maintenance, 10 services, 2 maintenance checkups,
Based on 3000 hours, up to 3 years: $ 19,051.00
(Includes filters, fluids, travel & labor)
Transport: On site
One New 2022 MGL 836X Wheel Conveyor $ 95,000.00
ID: 836X252, Cummins 74 HP, 2 year-2000 hour
Non-Published Option:
Engine: Extended Warranty offer by CUMMINS,
5 years Duration, 5000 hours Usage, $100 ded,
TF3, (no after treatment needed) $ 714.00
Conveyor Features:
• Hydraulic Cooling pkg
• Extended feed boot
• Hydraulic lift and assist radial pkg
Non-Published Option:
Service/Maintenance, 10 services, 2 maintenance checkups,
Based on 3000 hours, up to 3 years $ 14,350.00
(Includes filters,fluids, travel & labor)
Transport: Delivered to Texas site with straight purchase
Total due as described above..................................................$598,471.00
RO BOX 658 - LA GRANGE, TEXAS 78945 - OFFICE 979-968-6428 - FAX 979-968-6693
NIL
Sale prices are subject to Texas/County Sales Tax(6.75%), and Texas Diesel Fuel Surcharge
(1.5%), unless Sales tax exempt and certification as such is provided for our file prior to
delivery and invoicing. If you are exempt from Sales Tax, you are automatically exempted
from the Diesel Surcharge.
Please review the information provided above and general spec included. Pricing is valid for
15 days; however equipment is subject to availability. Call me to discuss further.
Thank you for the opportunity as your business will be greatly appreciated.
Best regards,
Barry O'Reilly
Vice President of Sales & Marketing
Cell: (512) 677-2436
E: barryor@powerscreentx.com
POWERSCREEN, t ENGINEERING
A TEREX ,
COMPANY
RO BOX 658 - LA GRANGE, TEXAS 78945 - OFFICE 979-968-6428 - FAX 979-968-6693