Exhibit 1 - Agenda Information SheetCity of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: July 15, 2025
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
ratifying the expenditure of funds by the City Manager for the repair and replacement of cylinder heads for
the Denton Energy Center; and providing an effective date (File 8860 – awarded to Wartsila North America,
Inc., in the not-to-exceed amount of $188,483.04). The Public Utilities Board recommends approval (5 -
0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
The Denton Energy Center (DEC) provides power at times when renewable energy sources are not readily
available. The DEC is a component of the City of Denton’s future commitment to providing the citizens of
Denton with 100% of electricity from renewable sources of energy. Recently, we declared an emergency
purchase for repair services and replacement of cylinder heads from failure caused by premature valve
recession on the exhaust valves of heads, causing forced outages on May 4, 2025.
During the forced outage, a complete inspection and valve recession check was performed, determining the
cause of failure. The inspection determined that the engine has multiple cylinder heads that failed or are
failing due to excessive valve recession. The recession resulted in the failed operation of the exhaust valves
on E6 cylinder B1, not allowing the engine to operate.
Purchase order 211156 was issued to Wartsila on May 19, 2025, to release heads to be shipped. Repair of
E6 cylinder B1 was started and completed on May 22, 2025. All onsite inventory has been exhausted; the
unit has additional heads needing repair. Six (6) cylinder heads have been removed and are waiting to be
picked up and sent to the manufacturer for inspection and repairs.
In order to promptly return the unit to service for the City of Denton energy demands and to fulfill our
ERCOT obligations, the purchase of cylinder heads and the prompt repair of the cylinder heads are
necessary to reduce the outage time, to replenish onsite spares. Additionally, Denton Municipal Electric is
currently in the procurement process of repairing all DEC cylinder heads due to valve recession.
Wartsila North America, Inc. is the Original Equipment Manufacturer for the engines, as well as the only
authorized sales and service representative of cylinder heads with upgraded 20-degree valves for valve
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
recession. Wartsila North America Inc. was able to provide the needed service and delivery for the DEC.
The cylinder head spare purchase cost is $74,414.
Wartsila North America, Inc. will also repair and return the failed cylinder heads to the DEC. The total
repair cost was quoted at $114,069.04 to have six (6) cylinder heads repaired to ensure spares are onsite to
reduce unit downtime, ensuring availability for dispatch. Repair/delivery time is 7-30 days from the fully
accepted order.
In efforts to outsource the components, it's been found that only Wartsila North America can provide the
newly designed valve angles to install in cylinder heads. These components are manufactured by Wartsila
and are not authorized for sale by other suppliers.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 23, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Approve the emergency repairs and replacement of cylinder heads for the Denton Energy Center in the
estimated expenditure amount of $188,483.04.
PRINCIPAL PLACE OF BUSINESS
Wartsila North America, Inc.
Houston, TX
ESTIMATED SCHEDULE OF PROJECT
Purchase Order #211156 was issued on May 19, 2025, for this single purchase processed as an Emergency
Declaration to return the units from a forced outage once all on-hand parts were exhausted. The service
took place immediately to repair the unit, and the parts requiring rebuilding were sent to the manufacturer.
Delivery of the items will occur within 30 days after receipt of the order.
FISCAL INFORMATION
These items will be funded from Denton Energy Center account 600105.6525.5500. Purchase Order
#211156 has been entered into the system. The budgeted amount for this item is $188,483.04.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Quote
Exhibit 3: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Arthur Pando, 940-349-8653.
Legal point of contact: Marcella Lunn at 940-349-8333.