To: Aaron Rector, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider a resolution approving the FY 2025-26 purchase of a replacement backhoe from Associated Supply Company, Inc., of Euless, Texas, through the Buyboard Purchasing Cooperative and authorizing the City Manager to execute all related purchase documents on behalf of the City of Keller, Texas.
Action Requested:
Approve the purchase of a replacement backhoe from Associated Supply Company, Inc. of Euless, Texas, through the Buyboard Purchasing Cooperative, in the amount of $127,200.00, in advance of the formal Fiscal Year 2025-26 budget adoption.
Background:
The requested backhoe replaces an existing piece of equipment meeting replacement criteria, including age, mileage, hours, and general cost of maintenance. It is being requested ahead of Fiscal Year 2025-26 budget adoption as long lead times are estimated to delay final delivery of the equipment by 8-12 months. The extended price for this backhoe is $172,810.50, with discounts and trade-in value bringing the total estimated purchase price to $127,200.00.
The City established a Fleet Management Plan in Fiscal Year 2011-2012 to standardize and enhance the efficiency of managing and procuring all on-road vehicles and heavy equipment over 2,500 pounds. Initially, only small-vehicle fleet costs were budgeted through transfers from operating funds, while heavy equipment such as dump trucks and specialized machinery were excluded due to their high costs. The current purchase this equipment continues the effort to incorporate heavy equipment acquisitions into the Fleet Replacement Fund, a practice that will extend to future purchases. These large pieces of equipment, including the backhoe proposed in the Fiscal Year 2025-26 budget, are reviewed by the City Manager and are not covered under the City’s fleet agreement with Enterprise Fleet Management, which applies only to the small-vehicle fleet.
BuyBoard is a purchasing program that allows state and local governments to benefit from the shared purchasing power of numerous state entities. A detailed bid sheet for the requested backhoe is included with this memo as an exhibit.
Financial Impact:
The extended cost for this backhoe is $172,810.50, with discounts and trade-in value bringing the total estimated purchase price to $127,200.00, to be funded through the Vehicle and Equipment Replacement Fund, with funding provided by the Water & Wastewater Utility Fund.
Council Action:
Consider approval of the resolution as presented.