On Jan. 27, 2025, the Denton City Public Utility Board recommended that the City Council authorize two cooperative-purchasing contracts to buy and service refuse trucks and heavy equipment: a not-to-exceed (NTE) $18,690,000 contract with Bond Equipment Company, Inc., and an NTE $19,477,500 contract with Industrial Power LLC. Both contracts are one-year agreements with four one-year extension options (five years total).

The contracts would give Fleet Services the capacity to purchase vehicles that are available on dealers' lots or have shorter lead times, a change board members were told is intended to reduce acquisition delays and improve operational availability. Tom Graham, director of facilities and fleet services, said the purchases and repair services will support several city departments and be processed through the city’s operating and capital budget process.

Board members pressed staff on funding and usage. Graham said departments that request vehicles will fund those purchases from their own operating or bond budgets; Fleet Services manages acquisitions and repairs. He told the board that roughly 70% of the Bond Equipment contract is expected to be used by utilities, while refuse or solid-waste equipment represents about 30% of Fleet Services' total portfolio. "For this contract as a whole, 70% of this contract will be utilized by the utilities," Graham said. He also said refuse trucks purchased for solid waste are dedicated to that service.

The board discussed procurement method and vendor overlap. Graham said using multiple cooperative contracts creates purchase capacity and reduces lead times compared with single-manufacturer contracts, which previously could produce 18- to 24-month waits. "What we've experienced utilizing this method is that we are not turning refuse trucks over for purchases within the quarter of when they're asked for," he said, arguing the approach improves operational efficiency. Board members asked whether both contracts are expected to reach their NTE amounts; Graham said there is no expectation both NTE limits will be met because the contracts provide overlapping options for similar vehicles.

Members also asked about repair services. Graham confirmed the contracts cover field servicing, shop repairs, transportation and body work, and that once the new solid-waste fleet shop is finished the city will have a dedicated bay for contractors to support on-site repairs.

The board made two motions recommending council approval. For the Bond Equipment Company contract (PUB25-010) Mr. Ryback moved to recommend adoption of the ordinance authorizing the city manager to execute the contract; Ms. Taylor seconded. For the Industrial Power LLC contract (PUB25-011) Mr. Taylor moved to recommend adoption; Mr. Nukas seconded. Both motions passed unanimously.

In management reports the board received a follow-up memo related to FM 1515 sewer easements and asked staff to circulate dates tied to the budget calendar. A board member also raised a separate concern about whether tariffs on foreign-made equipment might affect prior and future purchases; staff said they will work with procurement and finance to provide a memo on price-escalation clauses and potential impacts before the next meeting.

Both contracts now move to City Council for consideration.