Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: May 7, 2024
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 Vermeer Equipment of Texas, LLC dba Vermeer
Texas-Louisiana, Inc., through the Buy Board Cooperative Purchasing Network Contract Nos. 646-21, 684-
22, 685-22, & 687-22, for the purchase, repair, and rental of construction equipment for the Fleet Services
Department; providing for the expenditure of funds therefor; and providing an effective date (File 8540 –
awarded to Vermeer Equipment of Texas, LLC dba Vermeer Texas-Louisiana, Inc., for one (1) year, with
the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of
$4,500,000.00).
STRATEGIC ALIGNMENT
This action supports the Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
The proposed contract will be utilized by the Fleet Services Department to procure equipment for various
city departments engaged in underground utility construction, landscaping, and tree care. Examples of the
equipment to be acquired or rented encompass grinders, vacuum trailers, and trenchers. Furthermore, the
contract encompasses in-the-field service repairs for assets necessitating specialized diagnostic equipment.
The Fleet Services Department strategizes asset management, including planning for new acquisitions and
asset replacements, integrated within the city's annual budget process. Funding for all new acquisitions and
replacements is allocated within the Capital Improvement Budget. The contract value is based on historical
spending levels and includes estimates for future assets and services.
Estimated Expenses
Category Year 1 Year 2 Year 3 Year 4 Year 5
Total All
Years
Acquisitions $400,000 $412,000 $424,360 $437,090 $450,204 $2,123,654
Replacement 275,000 283,250 291,748 300,500 309,514 1,460,012
Rentals 50,000 50,000 50,000 50,000 50,000 250,000
Services 100,000 103,000 106,090 109,273 115,000 533,363
Sub Total $825,000 $848,250 $872,198 $896,863 $924,718 $4,367,029
Contingency 2% 24,750 25,448 26,166 26,906 29,701 132,971
Total $849,750 $873,698 $898,364 $923,769 $954,419 $4,500,000
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
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, the City Council approved the interlocal agreement with the Buy Board Cooperative
Purchasing Network (Ordinance 2005-034).
RECOMMENDATION
Award a contract with Vermeer Equipment of Texas, LLC dba Vermeer Texas-Louisiana, Inc., for the
purchase, repair, and rental of construction equipment for the Fleet Services Department, in a one (1) year,
with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount
of $4,500,000.
PRINCIPAL PLACE OF BUSINESS
Vermeer Equipment of Texas, LLC dba Vermeer Texas-Louisiana, Inc.
Valley View, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year
periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
The proposed contract will be funded through the City’s Capital Budget for the acquisition of assets and
the Fleet Services Operating Budget for repair services. Requisitions will be entered on an as-needed basis.
The City will only pay for services rendered and is not obligated to pay the total contract amount unless
needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Cooperative Pricing
Exhibit 3: 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.