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Exhibit 1- Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: October 17, 2023 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 Texas AirSystems, LLC, through The Interlocal Purchasing System (TIPS) Cooperative Program Contract # 2201061 for the maintenance, repair, inspection, and replacement of AAON, Seresco, Johnson Controls, & LG heating, ventilation, and air conditioning units for various City buildings for the Facilities Management Department; providing for the expenditure of funds therefor; and providing an effective date (File 8330 – awarded to Texas AirSystems, 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 $2,400,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The proposed contract is for the maintenance, repair, inspection, and replacement of AAON, Seresco, Johnson Controls & LG heating, ventilation, and air conditioning systems currently located at Police Sub Station, Public Safety Awareness Point (911 Dispatch), Lake Lewisville Water Treatment Plant Buildings (6), Linda McNatt Animal Shelter, and the Natatorium. Maintenance, repair, inspection, and replacement for heating, ventilation, and air conditioning systems at other locations are completed by licensed staff, or through a supplemental contract for HVAC Services with CMS Mechanical Services. Based on historical spending and future projections, the recommended NTE of this contract is $2,400,000 for the potential five (5) year contract. Maintenance & Repair for (18) existing units $ 600,0000 Planned Replacement Units $1,800,000 Total: $2,400,000 Pricing obtained through TIPS has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On May 17, 2011, City Council approved the interlocal agreement with TIPS (Ordinance 2011-082). RECOMMENDATION Award a contract with Texas AirSystems, LLC, for the maintenance, repair, inspection, and replacement of AAON, Seresco, Johnson Controls, & LG heating, ventilation, and air conditioning units for various City buildings for the Facilities Management Department, in a one (1) year, with the option for four (4) additional one (1) year extensions, in total five (5) year in the not-to-exceed amount of $2,400,000. PRINCIPAL PLACE OF BUSINESS Texas AirSystems, LLC Irving, 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. FISCAL INFORMATION These services will be funded from Outside Contracted Services account 880200.6545. Requisitions will be entered on an as-needed basis. HVAC replacements will be funded from capital budget accounts. The budgeted amount for this item is $2,400,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Thomas Gramer, 940-349-7467. Legal point of contact: Marcella Lunn at 940-349-8333.