To approve the purchase of six (6) Wheel Loaders for Fleet Services to be used by the Public Works Department in the amount of $2,092,614 from Kirby-Smith Machinery, Inc. through an existing contract; and authorizing the City Manager to execute all necessary documents. (Sourcewell Contract No. 032119-KOM) Approved

It is the recommendation of Fleet Services to purchase six (6) Wheel Loaders in the amount of $2,092,614 from Kirby-Smith Machinery, Inc. through Sourcewell Contract No. 032119-KOM.  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 FY2021-22.  Five (5) units are assigned to Compost Marketing and Operations and will be used to load grinders with raw materials, maintain compost windrows, mix materials, and load trucks for deliveries.  One (1) unit is assigned to Streets and will be used to load construction debris onto trucks for disposal.  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 Public Works 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. 032119-KOM / City of Plano Internal Contract No. 2022-0503-O)

Funds are available in the FY 2021-22 Adopted Equipment Replacement Fund budget to purchase six (6) Wheel Loaders for scheduled replacement of units 16501, 17504, 17505, 17506 and 17509 Loader, Rubber Tire, Articulating in Cost Center 714 Compost Marketing and Operations and unit 17507 Loader, Rubber Tire, Articulating in Cost Center 742 Streets. The purchase amount is $2,092,614 and the total budgeted amount for these items is $1,510,000. The additional funds needed for this purchase, in the amount of $582,614, are available from savings in previous Equipment Replacement Fund purchases.

Approval of this purchase relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.