Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
DCM: David Gaines
DATE: June 28, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute contracts for vehicle purchases for Fleet Services for a period of
three (3) years; providing for the expenditure of funds therefor; and providing an effective date.
INFORMATION/BACKGROUND
The acquisition of new vehicles and equipment is accomplished through the coordinated efforts of Fleet
Services Department, Procurement, operating department staff, and Original Equipment Manufacturer
(OEM) suppliers to ensure vehicles and equipment are acquired and placed into service in a timely manner.
Efficient replacement enhances the response capability of all public safety, emergency, and utility operating
departments.
Fleet Services currently has contracts in place with several OEMs for the supply of vehicles and equipment.
Beginning in late 2019, the supply chain became severely constrained, with many vendors experiencing
lengthy delays in the ability to manufacture and deliver products. These delays can affect departments in
their ability to respond effectively.
At times, vehicles and equipment become available through other avenues such as dealer inventory, lease-
to-own opportunities, and unclaimed allocations from non-contract OEMs. Current market conditions have
necessitated the ability for the City to move quickly when these opportunities present themselves to procure
vehicles or equipment outside of the organization’s normal acquisition process. The City of Denton is
competing with many other North Texas cities for these assets and time can be a critical success factor.
This ordinance recognizes specific delegations of authority that Fleet Services seeks from City Council as
set forth below:
1. City Manager, or their designee, will be allowed to sign contracts or other required documentation
with OEM suppliers to purchase a vehicle for a city utility or public safety department (which cost
that has been approved through the budget process) through the following means:
a. Fleet Services will review any available procured contracts (i.e. City of Denton contracts,
co-operative contracts, other City contracts with piggyback options). Fleet Services will
use such a contract if available. Once such contract is located, City Manager, or their
designee, will be able to execute the appropriate documentation to purchase under the
contract.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
b. In the event there is not a procured contract that can be used for the purchase, and the
purchase is required to protect the health and safety of City of Denton residents, Fleet
Services will work with the relevant utility or public safety department to prepare a
declaration of emergency that will detail why the purchase had to go outside of the normal
process and how health and safety are at issue to be reviewed and approved by Purchasing
and Legal.
c. This process deviates from our current process because these purchases would usually have
to come to City Council for spend approval if over $50,000. Under this delegated authority,
as long as the vehicle cost is part of a budgeted item, City Council would not approve of
these contracts.
d. Fleet Services will provide a report to City Council in the Friday Report, or other
appropriate method, regarding any vehicles purchased with this authority, the cost, any
markup or discounts received, and a running total of each departments vehicle budget as
the funds are used.
2. This delegation of authority is time limited to the earlier of three years or when market
conditions return to normal.
Upon approval of this delegated authority, Fleet Services, City Secretary, Purchasing, City Manager, and
the City Attorney’s Office will prepare a delegation letter that details the required process for any purchases
using this delegated authority.
Approval of the requested procurement authority will allow Fleet Services to obtain budgeted vehicles and
equipment, when available, from sources outside normal channels in a timely manner.
RECOMMENDATION
Staff recommends adoption of the ordinance affirming authorization of the City Manager, or designee, to
execute contracts for vehicle purchases for the Fleet Services for a period of three (3) years.
ESTIMATED SCHEDULE OF PROJECT
This delegation of authority is time limited to the earlier of three years or when market conditions return
to normal.
FISCAL INFORMATION
These products and services will be funded through the using department’s budget on an as-needed basis.
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
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Ethan Cox, 940-349-7421.
Legal point of contact: Marcella Lunn at 940-349-8333.