Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: April 15, 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 Kirby-Smith Machinery, Inc., through the Buy Board Cooperative Purchasing Network Contract Nos. 685-22, 687-22, and 740-24, for the purchase, repairs, and rental of construction equipment for the Fleet Services Department; providing for the
expenditure of funds therefor; and providing an effective date (File 8786 – awarded to Kirby-Smith
Machinery, Inc., 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 $7,749,000.00). The Public Utilities Board will consider this item on Monday, April 14, 2025.
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND
The City of Denton Fleet Services Department is establishing a contract for the purchase, repairs, and rental of equipment for various departments including, but not limited to, Solid Waste, Water Distribution, and Beneficial Reuse. Examples of equipment to be acquired encompass articulated trucks, loaders, excavators, compactors, graders, and spreaders to be used for the construction and movement of bulk materials such as
landfill waste, dirt, and other debris. The City has been utilizing Komatsu-branded construction equipment
since 2010. We currently have 13 pieces of Komatsu branded equipment in use, which are sold by Kirby-Smith. Additionally, the contract includes rental and repair of associated equipment. Repair services, including
warranty maintenance, help to minimize downtime for essential equipment and services while rental options
allow departments to respond to fluctuating demands and project-specific needs without incurring unnecessary long-term commitments. Some repairs, such as internal engine repairs, and warranty maintenance must be performed by authorized factory-trained technicians. Rental periods will vary depending on project needs. This contract ensures uninterrupted service delivery, critical for departments
with operational responsibilities that directly impact the City’s infrastructure and services.
The asset replacement projections are determined through a combination of asset lifecycle analysis, operational demands, and budget considerations. Fleet Services utilizes a 15-point maintenance system to track the age, usage, and maintenance history of assets to identify when replacements are necessary to a
maintain cost-efficient and safe fleet. Additions are based on projected department growth, service
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expansions, or new operational requirements that necessitate increased fleet capacity. The contract value is based on historical spending levels and includes estimates for future assets and services.
Estimated Contract Expenses Category FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Total
Asset Additions $0 $310,000 $320,000 $660,000 $680,000 $1,970,000
Asset Replacements 900,000 620,000 640,000 660,000 680,000 3,500,000
Repair Services 340,000 340,000 360,000 410,000 460,000 1,910,000
Sub Total $1,240,000 $1,270,000 $1,320,000 $1,730,000 $1,820,000 $7,380,000
Contingency 5% 62,000 63,500 66,000 86,500 91,000 369,000
Total $1,302,000 $1,333,500 $1,386,000 $1,816,500 $1,911,000 $7,749,000
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.
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).
On April 14, 2025, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION
Award a contract with Kirby-Smith Machinery, Inc., for the purchase, repairs, and rental of construction
equipment 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 $7,749,000. PRINCIPAL PLACE OF BUSINESS
Kirby-Smith Machinery, Inc. Tulsa, OK 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. Buy Board contract 685-22 expires on November 30, 2025, 687-22 expires on November 30, 2025, and 740-24 expires on June 30, 2027.
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 $7,749,000. 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.