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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: July 23, 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 Reliance Environmental Truck Sales LLC dba Reliance Truck & Equipment, through the Buy Board Cooperative Purchasing Network Contract # 686-22, for the purchase and repair of heavy-duty vehicles and equipment for various departments for the Fleet Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 8591 – awarded to Reliance Environmental Truck Sales LLC dba Reliance Truck & Equipment, 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 $4,013,706.00). STRATEGIC ALIGNMENT This action supports the Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The proposed contract will be utilized by Fleet Services to procure and repair equipment for various city departments engaged in sewer line maintenance, street maintenance, and refuse disposal. Examples of the equipment to be acquired include Labrie loaders, Serco brush trucks, and similar equipment for departments including Solid Waste, Streets, and Drainage. Fleet Services 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. Repair cost estimates are based on historical spending and funded by the operating budget. The contract value is based on historical spending levels and includes estimates for future assets and services. Estimated Contract Expenses Category Year 1 Year 2 Year 3 Year 4 Year 5 Total Asset Additions $420,000 $432,600 $445,578 $458,945 $472,714 $2,229,837 Asset Replacements 220,000 226,600 233,398 240,400 247,612 1,168,010 Asset Repairs 80,000 82,400 84,872 87,418 90,041 424,731 Sub Total $720,000 $741,600 $763,848 $786,763 $810,367 $3,822,578 Contingency 5% 36,000 37,080 38,192 39,338 40,518 191,128 Total $756,000 $778,680 $802,040 $826,101 $850,885 $4,013,706 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, the City Council approved the interlocal agreement with the Buy Board Cooperative Purchasing Network (Ordinance 2005-034). RECOMMENDATION Award a contract with Reliance Environmental Truck Sales LLC dba Reliance Truck & Equipment, for the purchase and repair of heavy-duty vehicles and equipment for various departments for the Fleet Services Department, in a one (1) year, with the option for four (4) additional one (1) year extensions, in a total five (5) year not-to-exceed amount of $4,013,706. PRINCIPAL PLACE OF BUSINESS Reliance Environmental Truck Sales LLC dba Reliance Truck & Equipment Converse, 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. This Buy Board contract expires on November 30, 2025. FISCAL INFORMATION The proposed contract will be funded through the City’s Capital Budget. 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: Tom Gramer, 940-349-7467. Legal point of contact: Marcella Lunn at 940-349-8333.