The URL can be used to link to this page

Home My WebLink AboutPR 24413: PURCHASE OF EXTENDED WARRANTY FOR VACTOR TRUCK AND 5-YEAR FREIGHTLINER CHASIS WARRANTY City of rrrt rtlru — INTEROFFICE MEMORANDUM Date: June 24, 2025 To: The Honorable Mayor and City Council Through: Ronald Burton, City Manager From: Calvin Matthews, P.E.,Water Utilities Director RE: PR 24413 —Purchase of Extended Warranty for Vactor Truck and 5-Year Freightliner Chassis Warranty Introduction: The Resolution requests that the City Council authorize the City Manager to procure a five-year extended warranty for the Vactor Truck,acquired through Resolution No. 25-149. The warranty in question entails a not to exceed amount of$21,236.00. This extended warranty, provided by Kinloch Equipment& Supply Inc. of Pasadena,Texas, shall encompass coverage for the Vactor equipment as well as the extended Freightliner warranty for the chassis. Background: Per Resolution No. 25-149, the Water Utilities Department acquired a Vactor Truck from Kinloch Equipment&Supply Inc.of Pasadena,Texas. In addition to the purchase,to supplement the general warranty of the equipment, it was deemed in the City's best interest to additionally procure the Mile After Mile service, which offers maintenance, repairs, loaners, and a buyback guarantee. As mentioned,Resolution No. 25-149 included the purchase of the Vactor Truck and a cost of$12,000 for the supplemental MaM program for one year. This resolution authorizes the purchase of both the Vactor extended warranty and Freightliner extended warranty for a five-year period for a not to exceed amount of$21,236.00. Furthermore, Kinloch Equipment and Supply, Inc. guarantees a trade-in value of$259,656.50, 50%of the purchase price,at the end of five years of participating in the Mile After Mile Service program for the quoted truck. Budget Impact: Funding is available in the Capital Improvement Account No. 405-40-000-8516-00-00-000, contingent upon the approval of the budget amendment in Proposed Ordinance No. 7324. Recommendation: It is recommended that the City Council approve PR 24413, thereby authorizing the City Manager to acquire the extended warranty for the Vactor truck, as delineated above. "Remember,we are here to serve the Citizens of Port Arthur" PR No.24413 6/24/25 CM Page 1 of 4 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE A 5-YEAR EXTENDED WARRANTY FROM KINLOCH EQUIPMENT & SUPPLY, INC. OF PASADENA, TEXAS, FOR THE PREVIOUSLY PURCHASED VACTOR TRUCK IN THE NOT TO EXCEED AMOUNT OF $21,236.00. FUNDING IS AVAILABLE IN THE CAPITAL IMPROVEMENT ACCOUNT NO. 405-40-000-8516-00-00-000, CONTINGENT UPON THE APPROVAL OF THE BUDGET AMENDMENT IN PROPOSED ORDINANCE NO. 7345. WHEREAS, pursuant to Resolution No. 25-149, the City Council authorized the acquisition of a Vactor Truck for the Water Utilities Department from Kinloch Equipment & Supply, Inc. of Pasadena, Texas; and WHEREAS, to supplement the general warranty provided at the time of purchase, Resolution No. 25-149 included authorization for a one-year subscription to the Mile After Mile (MaM) service program at a cost of$12,000.00,which offered enhanced maintenance and support benefits but did not include the five-year extended warranty program; and WHEREAS, it is now in the best interest of the City to secure continued comprehensive coverage through the procurement of a five-year extended warranty program, which includes the extended Freightliner chassis warranty, to ensure the Vactor Truck remains in optimal operating condition; and WHEREAS,the proposed five-year program, as quoted by Kinloch Equipment& Supply, Inc. under BuyBoard Cooperative Purchasing Contract No. 676-22 (attached as Exhibit "A"), in the not to exceed amount of$21,236.00 includes routine maintenance,necessary repairs, access to a loaner Vactor truck during service downtime, and a guaranteed trade-in value; and WHEREAS, Kinloch Equipment & Supply, Inc. further guarantees a trade-in value of $259,656.50—representing 50%of the original purchase price—at the conclusion of the five-year extended warranty program service term, thereby promoting long-term fiscal stewardship; and WHEREAS, funding for this extended warranty program is available in Capital Improvement Account No. 405-40-000-8516-00-00-000, contingent upon the approval of the associated budget amendment contained in Proposed Ordinance No. 7324; and WHEREAS,it is recommended that the City Council approve the purchase of the extended warranty with Kinloch Equipment& Supply, Inc. for the Vactor Truck(Exhibit"A"). NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT, the facts and opinions of the preamble are true and correct; and, PR No.24413 6/24/25 CM Page 2 of 4 THAT, the City Manager is hereby authorized to purchase the extended warranty for the 2100i Vactor Truck through Buy Board Contract No.676-22 from Kinloch Equipment and Supply, Inc. of Pasadena,Texas, for the not to exceed amount of$21,236.00 for a five-year period; and, THAT, a copy of the caption of the Resolution is spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of , A.D. 2025 at a meeting of the City of Port Arthur, Texas by the following vote: AYES: Mayor: , Councilmembers: , , • NOES: Charlotte M. Moses Mayor ATTEST: Sherri Bellard City Secretary PR No.24413 6/24/25 CM Page 3 of 4 APPROVED AS TO FORM: Roxann Pais Cotroneo City Attorney APPROVED FOR ADMINISTRATION: "1r &AU, Ronald Bu on, ' ' Ca yin atthews, P.E. City Manage Director of Water Utilities APPROVED AS FOR AVAILABILITY OF FUNDS: Lynda(Lyn) oswell, MA, ICMA-CM Clifton E. Williams, Jr., CPPB Director of Finance Purchasing Manager PR No.24413 6/24/25 CM Page 4 of 4 EXHIBIT "A" Kinloch INVOICE •;.f'- Equipment & Supply, Inc. Remit as 3320 Pasadena Blvd. 3320 Pasadena Blvd. Pasadena,TX 77503 Pasadena,TX 77503 www.kinlochequip.com Voice: 713-473-6213 Fax: 713-473-7858 SOLD TO SHIP TO PORT00 CITY OF PORT ARTHUR CITY OF PORT ARTHUR ATTN: ACCT PAY P. 0. BOX 1089 GARAGE ATTN PORT ARTHUR, TX 77641-1089 103 H.O. MILLS BLVD, PORT ARTHUR, TX 77642 Tax D Qty Description * Price Amount MISC SALu SALE 1388 9. 00�, S YFARS' VAC'I'OR TnIARRANT'Y ,>. . ` E 5 YEARS FREIGHTLINER WARRANTY 7347 . 00 • ** TO AL':.SALP :1I 0' .. 21 3 6 00 • • Due to-the current cyber security issues we all'face,and to protect both m you,our .custoer:and o.urselvesx we accept only cheecks for equipment and checks or credit-cards for'rentals,parts'and service invoices. ' ** SUBTOTAL 21236 . 00 X Charge Sale PAY THIS • AM 0 N $21236 mr 0 AMOUNT ***DUE UPON RECEIPT***