Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: February 4, 2025
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 Industrial Power, LLC, through The Interlocal Purchasing System
(TIPS) Cooperative Program Contract Nos. 230405, 230802, and 230803 for the purchase and repairs of truck
and trailer parts for the Fleet Services Department; providing for the expenditure of funds therefor; and
providing an effective date (File 8722 – awarded to Industrial Power, LLC, 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
$19,477,500.00). The Public Utilities Board recommends approval (6 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
The proposed contract with Industrial Power, LLC, will be utilized by the Fleet Services Department to
maintain, repair, and acquire medium and heavy-duty assets. These assets will include Autocar refuse trucks
for Solid Waste, along with specialty vehicles such as Fire Department apparatuses and utility vacuum trucks.
Industrial Power, LLC, is a certified Allison repair facility, which will enable them to repair and maintain
heavy-duty Allison transmissions. Additionally, Industrial Power, LLC, provides pick-up and delivery
services, significantly reducing vehicle transportation time by City staff.
The existing contract approved by City Council in May 2024 addressed urgent needs such as major repairs and
the acquisition of two vehicles. This expanded agreement enables Fleet Services to procure future vehicles
approved through the Capital Improvement Budget. Furthermore, it maximizes access to The Interlocal
Purchasing System (TIPS) contract benefits, streamlining procurement and ensuring timely service delivery.
The contract value is calculated based on historical spending trends and accommodates anticipated growth in
service requirements and vehicle acquisitions. This forward-thinking strategy positions Fleet Services to
handle the increasing demands of a growing and complex fleet while maintaining high standards of reliability
and efficiency. Ultimately, the proposed contract with Industrial Power, LLC, will reduce vehicle downtime,
thus improving fleet readiness and ensuring the uninterrupted delivery of essential City services.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Estimated Contract Expenses
Category Year 1 Year 2 Year 3 Year 4 Year 5 Total
Asset Additions $610,000 $630,000 $650,000 $1,330,000 $1,370,000 $4,590,000
Asset Replacements 2,430,000 2,510,000 2,580,000 1,990,000 2,050,000 11,560,000
Repair Services 450,000 460,000 470,000 500,000 520,000 2,400,000
Sub Total $3,490,000 $3,600,000 $3,700,000 $3,820,000 $3,940,000 $18,550,000
Contingency 5% 174,500 180,000 185,000 191,000 197,000 927,500
Total $3,664,500 $3,780,000 $3,885,000 $4,011,000 $4,137,000 $19,477,500
Pricing obtained through The Interlocal Purchasing System has been competitively bid and meets the statutory
requirements of Texas Local Government Code 271.102.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 17, 2011, City Council approved the interlocal agreement with The Interlocal Purchasing System
(Ordinance 2011-082).
On January 27, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Industrial Power, LLC, for the purchase and repairs of truck and trailer parts 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 $19,477,500.
PRINCIPAL PLACE OF BUSINESS
Industrial Power, LLC
McKinney, 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. These TIPS contracts 230802 and 230803 expire
on October 31, 2026.
FISCAL INFORMATION
Repair services will be funded through Fleet Services operating budget 820100.7879. Equipment purchases
will be funded through the Capital Improvement Budget. Requisitions will be entered on an as-needed basis.
The budgeted amount for this item is $19,477,500. The City will only pay for services rendered and is not
obligated to pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Presentation
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.