The Public Utility Board approved a proposed cooperative contract with Kirby Smith Machinery for purchase, repair and rental services for Komatsu-branded construction equipment.

Tom Grama, director of Facilities and Fleet, said the contract allows the city to acquire and maintain specialty construction equipment used across multiple departments. Staff presented a five-year arrangement (one-year base plus four one-year renewals) with a total not-to-exceed amount of $7,749,000. Grama said acquisitions procured under the agreement will be proposed through the city’s annual budget process and the city is not obligated to spend the full NTE.

Board members asked about unit costs and servicing options. Grama said the example of a 2025 Komatsu articulating dump truck shows that single-unit acquisitions can be over $1 million and that service and maintenance can occur at the expanded fleet shop at the landfill, in the field, or at a manufacturer facility depending on repair type. The board voted and approved the contract award.

Staff said replacement and service requests will be brought through the budget process and that the cooperative contract will allow streamlined purchases and specialty repairs over multiple fiscal years.