Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: February 21, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Holt Texas, Ltd., through the Buy Board
Cooperative Purchasing Network Contract # 685-22, 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 8128 – awarded to Holt Texas, Ltd., in the five (5) year not-to-exceed
amount of $2,300,000.00).
INFORMATION/BACKGROUND
This request is to approve a contract for diagnostics, maintenance, and repair of Caterpillar construction
equipment's current and future fleet. Currently, the City owns 26 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,
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 # 685-22 specifying a not-to-exceed repair
rate of $193 per hour.
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 $2,300,000 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. On average we
spend $400,000 a year on repairs. All apparatus replacements and additions will be approved by budget
year.
Caterpillar Spend Amount
Year 1 $400,000
Year 2 $400,000
Year 3 $400,000
Year 4 $400,000
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Year 5 $400,000
Contingency $300,000
Total NTE: $2,300,000
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.
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).
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 $2,300,000.
PRINCIPAL PLACE OF BUSINESS
Holt Texas, Ltd.
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract. This Buy Board contract expires on November 30, 2025.
FISCAL INFORMATION
These services will be funded from Fleet accounts and charged back to the using department. Requisitions
will be entered on an as-needed basis. The budgeted amount for this item is $2,300,000. 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: Dustin Rolfe, 940-349-8438.
Legal point of contact: Marcella Lunn at 940-349-8333.