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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: September 30, 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 3C Industrial, LLC, for air compressor services for the Facilities Management Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8856 – awarded to 3C Industrial, 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 $2,007,289.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The City of Denton Facilities Management Department is establishing a new service contract dedicated to the maintenance and service of air compressors. Air compressors are indispensable to a wide range of city services and industrial operations, acting as the backbone for various mechanical systems, firewater systems, and tools that keep the city running smoothly. They are integral to the efficient functioning of numerous essential services that residents depend on daily. Within the City of Denton, there are 20 departmental air compressors distributed across various departments, each playing a critical role in the city's operations. Additionally, the Denton Energy Center houses four large air compressors, which are pivotal in the generation of electricity. These air compressors ensure the continuous and reliable supply of power to the community, and any failure in these systems could result in significant disruptions. Such failures could potentially cause the power plant to go offline, resulting in power outages that would affect homes, businesses, and essential services throughout the city. Given the crucial role that air compressors play, it is imperative to maintain them in optimal working condition. This contract encompasses the preventative maintenance of all air compressors owned by the City and the Denton Energy Center. The preventative maintenance program aims to address potential issues before they escalate into catastrophic failures. Regular maintenance will help identify and rectify minor problems early on, thereby extending the lifespan of the compressors, enhancing their efficiency, and reducing the likelihood of unexpected breakdowns. By investing in preventative maintenance, the City can ensure the reliability and resilience of its air compressor systems, safeguarding the continuous operation of critical services and minimizing the risk of City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com disruptions to city residents. This proactive approach not only helps in preventing early failures but also contributes to cost savings by avoiding expensive emergency repairs and downtime. In summary, the proposed contract for the preventative maintenance of air compressors is a vital measure to ensure the smooth and uninterrupted operation of the city's essential services and the Denton Energy Center, ultimately benefiting the residents of Denton by providing a stable and reliable power supply. Estimated Contract Expenses Category FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Total Replacements $250,000 $257,500 $265,225 $273,182 $281,377 $1,327,284 Service / PMs 110,000 113,300 116,699 120,200 123,806 84,005 Sub Total $360,000 $370,800 $381,924 $393,382 $405,183 $1,911,289 Contingency 5% 96,000 Total $2,007,289 Request for Proposals was sent to 153 prospective suppliers, including seven (7) Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. One (1) proposal was received, and references were checked to ensure the vendor can provide the services requested in the Scope of Work. The proposal was evaluated based upon published criteria, including compliance with specifications, probable performance, and price. Best and Final Offer (BAFO) was requested from the firm. The department is awarding the contract to 3C Industrial, LLC. NIGP Code Used for Solicitation: 936 - (Service Only) - Equipment Maintenance and Repair Services for General Equipment Notifications sent for Solicitation sent in IonWave: 153 Number of Suppliers that viewed Solicitation in IonWave: 24 HUB-Historically Underutilized Business Invitations sent out: 23 SBE-Small Business Enterprise Invitations sent out: 52 Responses from Solicitation: 1 RECOMMENDATION Award a contract with 3C Industrial, LLC, for air compressor services for the Facilities Management Department, in a 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 $2,007,289. PRINCIPAL PLACE OF BUSINESS 3C Industrial, LLC Fort Worth, 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 Operating account 880200.6545. Requisitions will be entered on an as- needed basis. The budgeted amount for this item is $2,007,289. 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: David Moore, 940-349-7247. Legal point of contact: Marcella Lunn at 940-349-8333.