To ratify an expenditure in the amount of $136,662 for the repair of a Komatsu Loader from Kirby Smith Machinery, Inc. for the Compost Marketing and Operations Division of Public Works; and authorizing the City Manager to execute all necessary documents. Approved

Fleet Services requests the ratification of the repair to unit 23507, a Komatsu Loader assigned to Compost Marketing and Operations, through Kirby Smith Machinery, Inc. for $136,662.

On March 13, 2024 the loader was damaged by a log buried in a pile of yard debris, which knocked a hole in the unit’s transfer case and rendered it inoperable.  The unit entered service in April of 2023 with an acquisition cost of $514,651.88 and a life expectancy of five (5) years.  The unit had a book value of $403,148.17 with a life expectancy of four (4) years at the time of the accident, therefore repairing the unit was the most cost-effective option.  The immediate repair of the unit was necessary because it was essential to the department’s daily operations and was required to maintain current service levels.

Fleet Services requests ratification of the expenditure of $136,661.61 which was necessary to maintain Compost Marketing and Operations’ operations.

The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)(3). (City of Plano Internal Contract No. 2024-0485-O)

This item approves an unbudgeted, unexpected repair to a Komatsu Loader unit assigned to Compost Marketing & Operations, through Kirby Smith Machinery, Inc. for $136,662.  This repair will be paid by the Sustainability & Environmental Waste Fund balance. 

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