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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: April 4, 2023 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 McCourt Equipment, Inc, for screener maintenance and repairs for the Beneficial Reuse Department, which is the sole provider of this service, in accordance with Texas Local Government Code 252.022, which provides that procurement of commodities and services that are available from one source are exempt from competitive bidding, and if over $50,000, shall be awarded by the governing body; providing for the expenditure of funds therefor; and providing an effective date (File 8116 – awarded to McCourt Equipment, 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 $300,000.00). The Public Utilities Board recommends approval (5 - 0). INFORMATION/BACKGROUND The main function of the Beneficial Reuse Department is to divert all brush from the landfill as well as biosolids from the Water Reclamation Plant. These waste products are combined to produce the compost product known as Dyno Dirt. Dyno Dirt can be used by the City of Denton’s citizens to enhance their yards, flower gardens, and amend soils while also diverting waste products that would take up much-needed landfill space. There is also an established customer base that relies on this product to support their businesses. The proposed contract with McCourt Equipment, Inc. will be for the maintenance and repair of the screeners electronics due to the proprietary equipment needed. Fleet will continue to do basic maintenance and repairs on these units. The equipment removes larger material from the compost to produce a uniform Dyno Dirt product and is the only mechanism available to screen the compost and prepare it for sale. When equipment repairs are delayed, it has an adverse effect on the ability to supply products to the customer. This could lead to unwanted problems such as compost fires, customer complaints, and a backlog of production that leaves the department short on inventory. Section 252.022 of the Local Government Code provides that procurement of sole source commodities and services are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. Project Description Estimated 5-Year Expenditure Estimated Repairs & Parts Year 1 $ 40,000 Estimated Repairs & Parts Year 2 $ 50,000 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Estimated Repairs & Parts Year 3 $ 50,000 Estimated Repairs & Parts Year 4 $ 60,000 Estimated Repairs & Parts Year 5 $ 70,000 Contingency for additional costs $ 30,000 Total $300,000 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 27, 2023, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award with a contract to McCourt Equipment, Inc, for screener maintenance and repairs for the Beneficial Reuse 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 $300,000. PRINCIPAL PLACE OF BUSINESS McCourt Equipment, Inc Lagrange, 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 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: 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.