To approve the purchase of one (1) Horizontal Grinder for Fleet Services to be used by Compost Operations in the amount of $1,260,802 from Bane Machinery, Inc. through an existing contract; and authorizing the City Manager to execute all necessary documents. (BuyBoard Contract No. 597-19) Approved

It is the recommendation of Fleet Services to purchase one (1) Diamond Z Model DZH5500TKT Horizontal Grinder in the amount of $1,260,802 from Bane Machinery, Inc. through BuyBoard Contract No. 597-19.  Fleet Services and Purchasing have reviewed multiple Cooperative Contract quotes and found this to be the best value for the City.

This unit is a scheduled replacement from Capital Outlay FY22-23. The current estimated delivery is twelve months; therefore, it is necessary to order this unit as soon as possible.  This unit is assigned to Compost Marketing and Operations and is used to grind yard debris received at the Custer Transfer Station before being transported to the Compost Operations site in Melissa to further process the material into mulch, compost and soil blends that are sold as Texas Pure Products.

The purchase of this unit is necessary for the following reasons:

1. This equipment is essential to this department’s daily operations and is required to maintain current service levels.
2. The old unit is in need of replacement.  The determination for the need of replacement is based on age, usage, maintenance costs, and re-sale value.  Based on these criteria, Fleet Services recommends the replacement of this unit.
3. If this unit is not replaced, we will incur additional maintenance costs and the salvage value will diminish.  In addition, the older, aging unit 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. (BuyBoard Contract No. 597-19 / City of Plano Internal Contract No. 2022-0554-O)

Funds will be budgeted in the FY 2022-23 Proposed Equipment Replacement Fund budget for the purchase of one (1) Diamond Z Model DZH5500TKT Horizontal Grinder in the amount of $1,260,802 from Bane Machinery, Inc. This unit is a scheduled replacement for 16509 Grinder, Horizontal in Cost Center 714 Compost Marketing and Operations. The current estimated delivery is twelve months and therefore, it is necessary to order this unit as soon as possible to ensure timely delivery. 

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