Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: October 15, 2024
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing
the City Manager to execute a contract with Texas Kenworth Company, LLC dba MHC Kenworth, through
the Buy Board Cooperative Purchasing Network Contract # 723-23, for the purchase, preventative
maintenance, and repairs of city-owned Kenworth medium-duty and heavy-duty trucks for the Fleet Services
Department; providing for the expenditure of funds therefor; and providing an effective date (File 8644 –
awarded to Texas Kenworth Company, LLC dba MHC Kenworth, for one (1) year, with the option for four
(4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $4,303,585.00).
STRATEGIC ALIGNMENT
This action supports the Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
The City of Denton Fleet Services Department is establishing a contract for Kenworth medium-duty and
heavy-duty trucks. The contract will be used for the purchase, preventative maintenance, and repairs of trucks,
including but not limited to water trucks, dump trucks, and refuse trucks utilized by multiple departments to
maintain City infrastructure. The contract will cover service repairs for all city-owned Kenworth assets needing
specialized diagnostic equipment and for future Kenworth assets. Fleet Services strategizes asset management,
including planning for new acquisitions and asset replacement, integrated within the City’s annual budget
process. The contract value is based on historical spending levels and includes future asset and service
estimates.
Estimated Contract Expenses
Category Year 1 Year 2 Year 3 Year 4 Year 5 Total
Asset Additions $325,000 $334,750 $344,793 $355,136 $365,790 $1,725,469
Asset Replacements 325,000 334,750 344,793 355,136 365,790 1,725,469
Repair Services 122,000 125,660 129,429 133,313 137,312 647,714
Sub Total $772,000 $795,160 $819,015 $843,585 $868,892 $4,098,652
Contingency 38,600 39,758 40,951 42,179 43,445 204,933
Total $810,600 $834,918 $859,966 $885,764 $912,337 $4,303,585
Pricing obtained through the Buy Board Cooperative Purchasing Network has been competitively bid and
meets the statutory requirements of Texas Local Government Code 271.102.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 1, 2005, City Council approved the interlocal agreement with the Buy Board Cooperative
Purchasing Network (Ordinance 2005-034).
RECOMMENDATION
Award a contract with Texas Kenworth Company, LLC dba MHC Kenworth, for the purchase, preventative
maintenance, and repairs of city-owned Kenworth medium-duty and heavy-duty trucks for the Fleet Services
Department, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five
(5) year not-to-exceed amount of $4,303,585.
PRINCIPAL PLACE OF BUSINESS
Texas Kenworth Company, LLC dba MHC Kenworth
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year
periods, with all terms and conditions remaining the same. This Buy Board contract expires on November 30,
2026.
FISCAL INFORMATION
These products and services will be funded through Capital Fund accounts. Requisitions will be entered on an
as-needed basis. The budgeted amount for this item is $4,303,585. The City will only pay for services rendered
and is not obligated to pay the total contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Cooperative Pricing
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Tom Gramer, 940-349-7467.
Legal point of contact: Marcella Lunn at 940-349-8333.