2023-057 Fleet Purchase Under Delegation of Authority August 25,2023 Report No. 2023-057
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Fleet Purchase Under Delegation of Authority
EXECUTIVE SUMMARY:
The purchase of a Komatsu HM300-5 with a 6000-gallon water tank under the Delegation of
Authority approved by ordinance 22-1269. This truck was budgeted in FY22/23. This water
truck is a replacement for the current water truck used by Beneficial Reuse. The current water
truck is beyond repair and replacement of this truck contributes healthier fleet to ensure we are
meeting the needs of the City of Denton citizens.
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
August 25,2023 Report No. 2023-057
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:
The replacement of this water truck was approved by budget in FY 22/23. Currently, the lead
time for a water truck is approximately 10 months. Beneficial Reuse and Fleet has made the
decision to purchase this unit that is available in the Dallas metroplex.
This water truck was recently located at Kirby-Smith Machinery, Inc. in Fort Worth, Texas.
Kirby-Smith is on Cooperative contract with BuyBoard #685-22. Chapter 791 of the Texas
Government Code authorizes respective participating governments to enter into agreements for
the purchase of goods and services. The Agreement allows both entities to utilize contracts for
goods and services competitively solicited by the other party to the contract. The solicitation
process followed by both entities meets all statutory procurement requirements per Local
Government Code 271.102.
EXHIBITS
Exhibit 1 Sales Quote
STAFF CONTACT:
Dustin Rolfe
Fleet Superintendent
Dustin.Rolfe@cityofdenton.com
(940) 349-8438
IRBY MITH
MACHINERY, INC.`u'
6/30/2023
Quote#:jmcdonnell-1737
Mark Bartek
CITY OF DENTON
901 B Texas Street
Denton, TX 76209
Dear Mark Bartek
We are pleased to quote the following for your consideration:
KOMATSU HM300-5 2021 model w/2887 hours, Unit#K21131, S/N 11237.
The following Factory and Dealer Options are included in the package:
• KOMATSU HM300-5 2021, 30T,with NEW Premier Tank installed
• 23.5R25 XADN PLUS E3 MICHELIN TIRES
• 6000 Gallon Premier Tank(Remote Cannon, Front&rear spray, 50' hose)
• HM300-5 Factory Premier Warranty until 3-24-26 or 9000 hours
• Premier Tank Extended Warranty for 3 years
Total Price: $423,823.00
To be purchased through BuyBoard. Contract#685-22
Contract price is$470,915.00; less contract discount of 10% (-$47,092.00);
New net selling price is$423,823.00
We believe the equipment as quoted will exceed your expectations. On behalf of Kirby-Smith Machinery, Inc.,thank you for the
opportunity to quote you this package.
Sincerely,
JAMES MCDONNELL
Governmental Sales Rep
Kirby-Smith Machinery, Inc.
Phone: ! NON POTABLE WATER
Cell: 214-986-5857
Email:jmcdonnell@krby-smith.com
www.kirbV-smith.com 888-861-0219
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