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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: March 4, 2025 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 ROMCO Equipment Co., LLC, through the Buy Board Cooperative Network Contract Nos. 685-22 and 740-24, for authorized repair services, purchases, and rentals of Volvo construction equipment for the Fleet Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 8727 – awarded to ROMCO Equipment Co., LLC, 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 $5,313,000.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The proposed contract will be utilized by the Fleet Services Department to repair, procure, and rent Volvo construction equipment for various departments including Beneficial Reuse, Wastewater, Drainage, and Solid Waste. The City’s current inventory includes seven pieces of Volvo equipment, which are actively utilized across these departments. This quantity may increase as departmental requirements evolve and new fleet additions are approved through the Capital Improvement Budget. Examples of the equipment to be acquired include wheel loaders and excavators that will be primarily utilized for the movement of fine bulk materials such as sand, dirt, or debris during construction. Furthermore, establishing this contract for rental and repair services for Volvo equipment acknowledges the importance of minimizing downtime for essential equipment and maintaining operational efficiency. The inclusion of rental options allows departments to respond to fluctuating demands and project-specific needs without incurring long-term commitments. This contract supports uninterrupted service delivery, critical for departments with operational responsibilities that directly impact the City’s infrastructure and services. The contract value has been determined through analysis of historical spending levels and future needs, ensuring that the agreement provides adequate funding to support anticipated fleet expansion and the associated maintenance services. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Estimated Contract Expenses Category FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Total Asset Additions $330,000 $340,000 $350,000 $720,000 $740,000 $2,480,000 Asset Replacements 330,000 340,000 700,000 360,000 370,000 2,100,000 Repair Services 70,000 80,000 90,000 110,000 130,000 480,000 Sub Total $730,000 $760,000 $1,140,000 $1,190,000 $1,240,000 $5,060,000 Contingency 5% 36,500 38,000 57,000 59,500 62,000 253,000 Total $766,500 $798,000 $1,197,000 $1,249,500 $1,302,000 $5,313,000 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, City Council approved the interlocal agreement with the Buy Board Cooperative Purchasing Network (Ordinance 2005-034). On February 24, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with ROMCO Equipment Co., LLC, for authorized repair services, purchases, and rentals of Volvo 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 $5,313,000. PRINCIPAL PLACE OF BUSINESS ROMCO Equipment Co., LLC Houston, 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. Buy Board contract 685-22 expires on November 30, 2025, and 740-24 expires on June 30, 2027. FISCAL INFORMATION Repair services will be funded through Fleet Services operating budget 820100.7879. Equipment purchases will be funded through the Capital Improvement Budget. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $5,313,000. 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: Presentation 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.