AIS - Amendment 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: March 2, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or her designee, to execute a contract with Holt Texas, Ltd., through the Buy
Board Cooperative Purchasing Network Contract # 597-19, for Caterpillar heavy equipment repair and
maintenance services for various City Departments; providing for the expenditure of funds therefor; and
providing an effective date (File 7515 – awarded to Holt Texas, Ltd., in the five (5) year not-to-exceed
amount of $925,000.00).
INFORMATION/BACKGROUND
This request is to approve a contract for diagnostics, maintenance, and repair of the current and future fleet
of Caterpillar construction equipment. Currently, the City owns (31) thirty-one pieces of Caterpillar
construction equipment. This number could increase or decrease based on the fleet replacement schedule
and any approved additions. There are currently two new Caterpillar Dozers on order.
The Fleet Services department technicians are authorized to work on CAT equipment; however, some
repairs require specialized services that can only be performed by an authorized CAT repair center. These
services include all warranty work, internal engine repairs, and repairs that require proprietary software –
all of which will increase as more services are required.
Holt CAT of Texas is the authorized Caterpillar repair facility for the North Texas Region and provides
repair services through Buy Board Purchasing Network Contract # 597-19 specifying a not-to-exceed repair
rate of $176 per hour. Fleet Services has negotiated with the vendor an hourly labor rate of $155.80 per
hour for this contract.
The chart below demonstrates the history of the cost of Caterpillar equipment repairs. The estimated total
spend for maintenance and repairs during the (5) five-year contract term is $925,000 based on history,
current spending trends, planned replacements, and estimated fleet additions. This not-to-exceed amount is
not a guaranteed spend and will only be used for Caterpillar equipment repair as needed.
Caterpillar Spend History
2015 2016 2017 2018 2019 2020
$85,170.02 $203,423.48 $71,208.83 $97,703.57 $145,246.92 $206,472.07
Pricing obtained through the Buy Board Cooperative Purchasing Network has been competitively bid and
meets the statutory requirements of Texas Local Government Code 271.102.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 1, 2005, Council approved the interlocal agreement with the Buy Board Cooperative
Purchasing Network (Ordinance 2005-034).
On March 8, 2021, this item will go to the Public Utilities Board (PUB) for recommendation.
RECOMMENDATION
Award a contract with Holt Texas, Ltd., for Caterpillar heavy equipment repair and maintenance services
for various City Departments, in a five (5) year not-to-exceed amount of $925,000.
PRINCIPAL PLACE OF BUSINESS
Holt Texas, Ltd.
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These products and services will be funded through the using department’s maintenance budget on an as-
needed basis. The City will only pay for services rendered and is not obligated to pay the full contract
amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Terry Kader, 940-349-8729.
Legal point of contact: Marcella Lunn at 940-349-8333.