Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: November 18, 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 Wärtsilä North America Inc., for cylinder gas
admission valves for the Denton Energy Center, which is the sole provider of this software, in accordance
with Texas Local Government Code 252.022, which provides that procurement of commodities and services
that are available from one source are exempt from competitive bidding, and if over $50,000, shall be
awarded by the governing body; providing for the expenditure of funds therefor; and providing an effective
date (File 8825 – awarded to Wärtsilä North America Inc., 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 $1,415,582.00). The
Public Utilities Board will consider this item on Monday, November 17, 2025.
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
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
Denton Energy Center (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, we have been performing routine preventative, predictive, and corrective maintenance using on-
hand inventory of gas admission valves, but are now in need of replenishment based on the failure of the
component.
In efforts to minimize equipment downtime, we reached out to the gas valve manufacturer (Woodward) and
were informed that the materials needed can only be purchased by Wärtsilä North America Inc., and is the
only authorized supplier for the gas admission valves.
Section 252.022 of the Local Government Code provides that procurement of sole source commodities and
services are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 17, 2025, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award with a contract to Wärtsila North America, Inc., as a sole source supplier, for gas admission valve
replacement for the Denton Energy Center, in a 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 $1,415,582.
PRINCIPAL PLACE OF BUSINESS
Wärtsilä North America, Inc.
Houston, 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 items will be funded from DEC Engine Gas Valve Replacement project account 605621500.
Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $1,415,582.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: 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.