Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
CFO: Antonio Puente, Jr.
DATE: April 7, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or his designee, to utilize a contract through the City of Fort Worth, for repair
services of Komatsu heavy equipment for the City of Denton Fleet Services Department, as awarded by the
City of Fort Worth RFP #17-0362; providing the expenditure of funds therefor; and providing an effective
date (File 7298 – awarded to Kirby-Smith Machinery, Inc., in the not-to-exceed amount of $450,000).
INFORMATION /BACKGROUND
This item is for contracted repair work on Komatsu heavy construction equipment. The City of Denton
Water, Solid Waste, and Electric Departments have purchased Komatsu model construction equipment
since 2010. There are currently seventeen (17) pieces of Komatsu heavy equipment in the City of Denton
fleet. The Fleet Services Department has nineteen (19) technicians that work on smaller Komatsu
machinery, and one (1) full time heavy equipment technician for larger machines. Some maintenance and
repair work require specialized services that can only be performed by an authorized Komatsu repair
facility. These services include all warranty work in which travel time is not covered, internal engine repairs,
and repairs that are not suitable to be done in the field. Due to the steady growth of the City, Fleet Services
staff estimates that outside repairs will increase as more services are required and much of the equipment
is reaching the end of the warranty period. Therefore, staff is recommending approval of a contract
coinciding with the expiration date of August 29, 2020 with an expected two (2) year renewal for a total
amount not-to-exceed $450,000.
Fort Worth Contract 13P17-0362 provides for an hourly field service labor rate of $120/hour and a 3%
discount on parts provided through Komatsu. Estimated total is based on historical spend for the current
City fleet.
Pricing obtained through City of Fort Worth’s RFP 17-0362 has been competitively bid and meets the
statutory requirements of Texas Local Government Code 271.102.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 12, 2006, Council approved the interlocal agreement with the City of Fort Worth (Ordinance
2006-240).
This item will go to the Public Utilities Board (PUB) retroactively once the PUB meetings resume.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
RECOMMENDATION
Award a contract with Kirby Smith Machinery, Inc., for repair services of Komatsu heavy equipment for
the City of Denton Fleet Services Department, in a not-to-exceed amount of $450,000.
PRINCIPAL PLACE OF BUSINESS
Kirby Smith Machinery, Inc.
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
The City of Fort Worth Contract expires August 29, 2020 but has the option for a two-year renewal option.
FISCAL INFORMATION
These services will be funded from Fleet Services contract services account 820100.7879 and charged to
the using department’s budget on an as-needed basis. The City will only pay for services rendered and is
not obligated to pay full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Sheet
Exhibit 3: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Terry Kader, 940-349-8729.
Legal point of contact: Mack Reinwand at 940-349-8333.