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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: July 22, 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 Genuine Parts Company dba NAPA Integrated Business Solutions through the Sourcewell Cooperative Purchasing Network Contract No. 090624-GPC, for the purchase of products and services for the on-site parts facility for the Fleet Services Department; authorizing the expenditure of funds therefor; and providing an effective date (File 8806 – awarded to Genuine Parts Company dba NAPA Integrated Business Solutions, 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 $35,112,000.00). 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 to secure the products and services provided by the on-site parts provider located within the Fleet Services facility. This contract will ensure the availability of high-quality parts necessary for the maintenance and repair of over 1,600 vehicles and pieces of equipment used by various City departments. The on-site parts supply model is essential to the efficiency of Fleet Services, eliminating delays associated with ordering and receiving critical components. Maintaining an inventory of commonly used parts within the facility allows technicians to access necessary components immediately, reducing vehicle downtime and ensuring that City operations, including public safety, utilities, and transportation services, continue without disruption. Additionally, this contract will help streamline parts procurement and inventory management, allowing Fleet Services to maintain optimal stock levels without unnecessary expenditures. Utilizing an on-site parts provider offers several advantages, including cost savings, improved service efficiency, and reduced administrative burdens. By maintaining a just-in-time inventory, the City can minimize the financial impact of carrying a large parts stock while ensuring that essential components remain readily available. The on-site provider also manages parts warranties and returns, providing immediate credit for defective or unused parts and eliminating the need for Fleet Services to coordinate returns with multiple vendors. Furthermore, the provider facilitates the proper disposal of used fluids, tires, and other waste materials, ensuring compliance with environmental regulations and reducing the City's liability. Certified parts professionals are also available on-site to assist technicians in selecting the correct parts for each repair, reducing errors, and improving overall operational efficiency. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com The contract value is determined based on historical spending levels for fleet maintenance, repair, and replacement parts while incorporating estimates for future expenditures to accommodate fleet growth and service demand. By securing this contract, the City of Denton ensures long-term cost stability and reliable parts availability, ultimately enhancing the efficiency of Fleet Services operations. This agreement represents a strategic investment in the City’s ability to maintain a well-functioning vehicle and equipment fleet, supporting essential public services and ensuring critical operations remain uninterrupted. The partnership with an on-site parts provider reinforces the City’s commitment to operational excellence, fiscal responsibility, and continuous improvement in fleet management. Estimated Contract Expenses Category FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 Total Parts $5,240,000 $5,400,000 $5,560,000 $5,720,000 $5,900,000 $27,820,000 Operating Cost 1,060,000 1,090,000 1,120,000 1,160,000 1,190,000 5,620,000 Sub Total $6,300,000 $6,490,000 $6,680,000 $6,880,000 $7,090,000 $33,440,000 Contingency 5% 315,000 324,500 334,000 344,000 354,500 1,672,000 Total $6,615,000 $6,814,500 $7,014,000 $7,224,000 $7,444,500 $35,112,000 Pricing obtained through the Sourcewell 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 January 28, 2020, City Council approved the interlocal agreement with Sourcewell (Ordinance 20-197). RECOMMENDATION Award a contract with Genuine Parts Company, dba NAPA Integrated Business Solutions for the purchase of products and services for the on-site parts facility 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 $35,112,000. PRINCIPAL PLACE OF BUSINESS Genuine Parts Company, dba NAPA Integrated Business Solutions Coppell, 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 Sourcewell contract expires on December 3, 2028. FISCAL INFORMATION These products and services will be funded through Capital Fund accounts. 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.