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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 emergency purchase and installation of a replacement 2500kva transformer for the Lake Lewisville Water Treatment Plant; and providing an effective date (File 8861 – awarded to Shermco Industries, Inc., in the not-to-exceed amount of $147,500.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND One of two utility power transformers that supply power to the Lake Lewisville Water Treatment Plant has failed and cannot be repaired. The average life cycle for this type of transformer is 20 to 30 years. The transformer in question was installed in 1993 and is now beyond its expected service life. This transformer provides critical power to the high-service pumps that deliver treated drinking water to the City’s distribution system. During the failure, the redundant onsite utility transformer (manufactured in 2012) was utilized to power the entire high-service pump station. Operating the high-service pump station with only one transformer places unnecessary stress on the electrical system. If the remaining transformer were to fail, the plant would be unable to supply water to the city. The redundant utility transformer is designed to share and balance the electrical load under normal operating conditions, not to handle the full electrical load for extended periods. Under current market conditions, utility transformers of this type can have lead times of up to three years. Staff was able to source the correct replacement transformer locally. Installation, commissioning, and return to normal operations were completed on June 26, 2025. Project Description Estimated Expenditures Installation of 2500kva Transformer $147,500.00 1 Year Service Warranty Included Removal of old transformer and oil Included Installation of Infrared viewing windows Included Total $147,500.00 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 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 Staff recommends ratifying the emergency purchase and installation of a replacement 2500kva transformer for the Lake Lewisville Water Treatment Plant, in the estimated expenditure amount of $147,500. PRINCIPAL PLACE OF BUSINESS Shermco Industries, Inc. Irving, TX ESTIMATED SCHEDULE OF PROJECT Delivery and installation are estimated to occur on June 25, 2025. FISCAL INFORMATION These services will be funded from LLWTP DOE Transformers account 630559517.1360.40100. Purchase Order #211157 has been entered into the Purchasing software system in the amount of $147,500. The budgeted amount for this item is $147,500. 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: John Dillard, 940-349-7628. Legal point of contact: Marcella Lunn at 940-349-8333.