Title
Consider and take action on a resolution authorizing an expenditure in an amount not to exceed $369,576.92 with Mustang CAT for the purchase of a 2026 Long-reach Excavator utilizing Texas Emissions Reduction Plan (TERP) Grant Funding Contract No. 582-25-71251-RG through the Texas Commission on Environmental Quality (TCEQ) (Director of Public Works)
Background:
Approval of this item will authorize an expenditure with Mustang CAT for the purchase of a 2026 Long -reach Excavator in an amount not to exceed $369,576.92 utilizing Texas Emissions Reduction Plan (TERP) Grant Funding Contract No. 582-25-71251-RG through the Texas Commission on Environmental Quality (TCEQ).
On May 7, 2026, the City issued Invitation to Bid (ITB) 26-038 Low Emissions Diesel Excavator for this item. One response was received on June 8, 2026 from Mustang CAT in the amount of $369,576,92. The proposed equipment meets all requirements of the TERP grant program, while providing the same functionality and capabilities as the City’s existing equipment.
The TERP grant, administered by the Texas Commission on Environmental Quality (TCEQ), provides funding to replace vehicles and equipment with older emission systems with equipment that meets current emission standards. The program supports ongoing efforts to improve federally mandated air quality standards. The grant provides funding for up to 80 percent of the replacement cost or the maximum amount identified in the TERP rebate schedule, whichever is less. For this purchase, the maximum eligible grant award is $99,538.
The City currently operates two long-reach excavators used to maintain more than 40 miles of major drainage outfalls throughout the community. The excavator eligible for replacement under this grant was purchased in 2011 and is scheduled for replacement in Fiscal Year 2027. Grant requirements mandate that the replacement excavator be purchased and delivered by April 30, 2027.
Due to manufacturer lead-time concerns, sta...
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