To approve the purchase of two (2) John Deere Model 5100M Utility Tractors for Fleet Services to be used by Grounds Maintenance and Natural Resources in the amount of $143,014 from United Ag and Turf through an existing contract; and authorizing the City Manager to execute all necessary documents. (Sourcewell Contract No. 110719-JDC) Approved

It is the recommendation of Fleet Services to purchase two (2) John Deere 5100M Utility Tractors in the amount of $143,014 from United Ag and Turf through Sourcewell Contract No. 110719-JDC.  Fleet Services and Purchasing have reviewed multiple Cooperative Contract quotes and found this to be the best value for the City.

These units are scheduled replacements from Capital Outlay FY20-21 for unit 05134 Tractor in Cost Center 648 Grounds Maintenance Services District 2 and unit 08180 Tractor in Cost Center 649 Natural Resources.  Due to operational demands, it is necessary to purchase at this time.

The purchase of these units is necessary for the following reasons:

1. These units are essential to these departments’ daily operations and are required to maintain current service levels.

2. The old units are in need of replacement.  The determination for the need of replacement is based on age, usage, maintenance cost, and re-sale value.  Based on these criteria, Fleet Services recommends the replacement of the above units.

3. If these units are not replaced, we will incur additional maintenance costs and the salvage values will be greatly depreciated.  In addition, the older, aging units will limit the users’ ability to perform their duties because of increased breakdowns and additional downtime for repairs.

The City is authorized to purchase from a cooperative purchasing program with another local government or a local cooperative organization pursuant to Chapter 271 Subchapter F of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (Sourcewell Contract No. 110719-JDC / City of Plano Internal Contract No. 2021-0395-O)

Funds are available in the 2020-21 Adopted Budget to purchase two (2) John Deere 5100M Utility Tractors in the amount of $143,014. These units are scheduled replacements for unit 05134 Tractor in Cost Center 648 Grounds Maintenance Services District 2 and unit 08180 Tractor in Cost Center 649 Natural Resources. Cost Center 649 Natural Resources will contribute $11,376 to the purchase and the remaining cost of $131,638 will be funded from the Equipment Replacement Fund. The total budgeted amount for these items was $137,000 in the Equipment Replacement Fund and $15,000 in Cost Center 649 Natural Resources in the General Fund. The remaining balance of $5,362 in the Equipment Replacement Fund will be used for future Fleet and Equipment Services purchases and the remaining balance of $3,624 in Cost Center 649 Natural Resources will be used for future departmental needs.

Approval of this purchase will support the City's Strategic Plan Critical Success Factors of being an Excellent, Innovative, and Accountable City Government.