Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: January 12, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or his designee, to execute a contract with Caterpillar, Inc. dba Holt CAT,
through the Sourcewell Purchasing Network Contract Number 032119, for the purchase of one (1)
Caterpillar model D9 Dozer for the Solid Waste Department; providing for the expenditure of funds
therefor; and providing an effective date (File 7585 – awarded to Caterpillar, Inc. dba Holt CAT, in the not-
to-exceed amount of $1,285,661.68).
INFORMATION/BACKGROUND
This request is for the purchase of one (1) D9 Caterpillar Dozer with a waste handling arrangement for the
Solid Waste/Landfill Department. Dozers are used on the working face of the landfill cell to position refuse
for proper compaction and to keep the tipping area clean and level for safe dumping by refuse trucks. This
new D9 CAT Dozer will serve as an early replacement for a 2017 model Komatsu machine.
Since 2017, waste taken in by the landfill has increased by more than 31%, amounting to an additional
120,000 tons daily. The dozer being replaced is a 2017 Komatsu, which is now undersized and has incurred
increased maintenance costs and extensive reliability issues. Standard fleet replacement criteria are anything
greater than 15 total points and 5 maintenance points as calculated by the Fleet Maintenance software
program, with the most critical factor being 5 or more maintenance points. Dozers in the City fleet are
expected to have an 8 year/10,000-hour lifecycle before reaching the replacement point values. The current
Komatsu dozer is 4 years old and has already accumulated 11.4 total points and 6.8 maintenance points,
totaling more than $383,000 lifetime-to-date maintenance costs, with the bulk of the costs occurring over
the past two years. The dozer has accumulated 4,222 hours of downtime, 25% of which was longer than 2
days, compared to 4,682 hours of total runtime. These are the key factors influencing the early replacement
decision along with an expected higher return at auction in its current condition. For comparison, the
Landfill purchased their first D9 and placed it in front line service in January 2020. The maintenance on
this dozer totals $17,400 for the first year of operation. Reliability is a key factor in meeting the stringent
TCEQ regulations regarding Landfill operations.
Additionally, this purchase will standardize the Landfill heavy dozers to the highest capacity machines
available, offering the necessary landfill package for undercarriage protection.
Cooperative contract and non-contract pricing were obtained. The Sourcewell Contract #032119-CAT from
Caterpillar, Inc. dba Holt CAT, was the lowest priced quote and best value for the City. The quote includes
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
a Premier 5 year/10,000-hour total machine warranty. Caterpillar, Inc. dba Holt CAT is the only
manufacturer of a dozer in this weight category available with the required waste handling package.
Pricing obtained through Sourcewell 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 January 28, 2020, Council approved the interlocal agreement with Sourcewell (Ordinance 20-197).
On January 11, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Caterpillar, Inc. dba Holt CAT, for the purchase of one (1) Caterpillar model D9
Dozer for the Solid Waste Department, in the not-to-exceed amount of $1,285,661.68.
PRINCIPAL PLACE OF BUSINESS
Caterpillar, Inc. dba Holt CAT
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
Delivery of the items will occur within 180 days after receipt of order.
FISCAL INFORMATION
This purchase will be funded from Solid Waste Project Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Price Comparison
Exhibit 3: Quotes
Exhibit 4: Ordinance
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.