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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: June 3, 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 Entech Sales and Service, LLC, through the Buy Board Cooperative Purchasing Network Contract No. 733-24, for the maintenance, repair, inspection, and replacement of AAON, Seresco, LG, and Johnson Controls, heating, ventilation, and air conditioning (HVAC) units for various City buildings for the Facilities Management Department; providing for the expenditure of funds therefor; and providing an effective date (File 8835 – awarded to Entech Sales and Service, 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 $2,486,268.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The proposed contract encompasses comprehensive maintenance, repair, inspection, and replacement services specifically for AAON, Seresco, LG, and Johnson Controls HVAC systems. These HVAC systems are specialized and mandate proprietary training, exclusive software access, and specialized tools to ensure proper handling and functionality. These units are utilized at the various City locations, including the Police Substation and Natatorium. On October 16, 2023, City Council approved a contract with Texas Air Systems for these services (Ordinance 23-1935). Unfortunately, Texas Air Systems has been unable to meet the service expectations or demand. Non-proprietary HVAC units at other City facilities are serviced by either licensed staff within the department or through an existing supplemental contract (Ordinance 23-1931). This approach ensures that all maintenance, repair, inspection, and replacement tasks are executed by appropriately trained and equipped personnel, maintaining the highest standards of service quality, system functionality, and best value for the City. This arrangement ensures that all HVAC systems, regardless of their location, receive appropriate and timely service. Based on historical spending and future projections, the recommended not-to-exceed amount of this contract is $2,486,268. This budget allocation is designed to cover the entire duration of the proposed three- City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com year contract period, providing a financial framework for the required services to be executed efficiently and effectively. Estimated Contract Expenses Category Year 1 Year 2 Year 3 Year 4 Year 5 Total Replacement $336,000 $346,080 $356,462 $367,156 $378,171 $1,783,869 Repairs & Inspections 110,000 113,300 116,699 120,200 123,806 584,005 Sub Total $446,000 $459,380 $473,161 $487,356 $501,977 $2,367,874 Contingency 23,678.8 23,678.8 23,678.8 23,678.8 23,678.8 118,394 Total $469,679 $483,059 $496,840 $511,035 $525,656 $2,486,268 Pricing obtained through the Buy Board 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 February 1, 2005, City Council approved the interlocal agreement with the Buy Board Cooperative Purchasing Network (Ordinance 2005-034). RECOMMENDATION Award a contract with Entech Sales and Service, LLC, for the maintenance, repair, inspection, and replacement of AAON, Seresco, LG, and Johnson Controls heating, ventilation, and air conditioning units, for various City buildings for the Facilities Management Department, 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 $2,486,268. PRINCIPAL PLACE OF BUSINESS Entech Sales & Service, LLC Dallas, 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 Buy Board contract expires on March 31, 2027. FISCAL INFORMATION These services will be funded from Facilities Maintenance Outside Contract Services account 880200.6545. Requisitions will be entered into the Purchasing software system on an as-needed basis. HVAC replacements will be funded from the capital budget. The budgeted amount for this item is $2,486,268. 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: Tom Gramer, 940-349-7467. Legal point of contact: Marcella Lunn at 940-349-8333.