Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: June 18, 2024
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a contract between the City of Denton and Wärtsilä North
America, Inc., amending the contract approved by City Council on April 20, 2021, in the not to exceed
amount of $3,448,184.00; said first amendment to continue to supply routine maintenance supplies for the
Denton Energy Center; providing for the expenditure of funds therefor; and providing an effective date
(IFB 7544 – providing for an additional first amendment expenditure amount not-to-exceed $862,046.00,
with the total contract amount not-to-exceed $4,310,230.00). The Public Utilities Board recommends
approval (6-0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility
INFORMATION/BACKGROUND
The Denton Energy Center (DEC) was an approved CIP project for DME that reached commercial operation
in June 2018. The DEC provides power when renewable energy sources are not readily available. The DEC
is a critical component of the City of Denton’s future commitment to providing the citizens of Denton with
100% electricity from renewable sources of energy.
The DEC’s electric generating equipment (12 Gensets and Auxiliary) requires maintenance as the units
operate. The maintenance activities are performed as preventative, predictive, and corrective maintenance
activities. These are performed as scheduled maintenance based on hours of operation and corrective
maintenance are unplanned component failures that most often cause unit outages.
As equipment operating hours increase the maintenance activities also increase. During these maintenance
activities, critical components require inspection or replacement for premature wear/failure. In order for the
DEC team to manage and maintain high unit availability and reliability for our customers, performing these
routine maintenance activities is critical to ensure reliability and this contract is necessary to purchase the
materials necessary to perform the hour-based, calendar-based, and corrective maintenance activities
efficiently.
Thus far, routine preventative, predictive, and corrective maintenance requiring parts have been procured
through contract, however, unpredictable component failures, increased material cost, and market operating
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
hour increases have consumed the initial contract not to exceed amount requiring an amendment to the
contract expenditure approval amount.
Project Description Estimated Expenditure
Original Contract $3,448,184.00
Amendment 1 - Maintenance Parts 862,046.00
Total: $4,310,230.00
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 20, 2021, City Council approved a contract with Wärtsilä North America, Inc., in the not-to-
exceed amount of $3,448,184 (Ordinance 21-414).
On June 10, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award Amendment No. 1 with Wärtsilä North America, Inc., to continue to supply routine maintenance
supplies for the Denton Energy Center, in a not-to-exceed amount of $862,046, for a total amended contract
amount of $4,310,230.
PRINCIPAL PLACE OF BUSINESS
Wärtsilä North America, Inc.
Houston, TX
ESTIMATED SCHEDULE OF PROJECT
This contract expires on April 20, 2026.
FISCAL INFORMATION
These services will be funded from DEC operating budget account 600105.6525.5500. Requisitions will be
entered on an as-needed basis. The total amended amount of this contract is $4,310,230.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Cody Tenorio, 940-349-7532.
Legal point of contact: Marcella Lunn at 940-349-8333.