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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ 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 Xylem Water Solutions U.S.A., Inc., for the Ray Roberts Water Treatment Plant – Ozone Generator Programmable Logic Controller Upgrades for Water Production, which is the sole provider of this equipment, 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 8841 – awarded to Xylem Water Solutions U.S.A., Inc., in the not-to-exceed amount of $900,000.00). 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 The Ray Roberts Water Treatment Plant (WTP) utilizes ozone gas as a primary disinfectant during the water treatment process. The ozone is produced by generators that are original to the facility, which was constructed 23 years ago. These generators are controlled by a Master Ozone Control Panel (MOCP), which functions as a Programmable Logic Controller (PLC) by communicating with the generators and regulating their operation based on setpoints provided by plant operators. The communication hardware and interface cards that support this system are now obsolete, and replacement parts are no longer available. In the event of a component or communication failure, the ozone generation process would fail, resulting in the plant's inability to treat water until repairs are completed. Given the critical role of ozone in the disinfection process, the aging PLC system represents a significant operational risk. This project will upgrade the obsolete PLC hardware and communication systems with modern components that are supported by current technology and for which replacement parts and technical support are readily available. This investment will ensure continued reliability and regulatory compliance until a future plant expansion is completed. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Due to the proprietary nature of the existing ozone system, Xylem Water Solutions U.S.A., Inc. is the sole provider capable of performing the necessary upgrades. The system’s hardware, software, and programming are specific to the Xylem platform, and no other vendor can support or integrate with the existing equipment. Project Description Estimated 1-Year Expenditure 30% upon receipt of the Purchase Order $243,260.10 60% from the shipment of the product 486,520.20 10% upon site work completion 81,086.20 Contingency for additional support hours 89,133.50 Total $900,000.00 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. 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 Xylem Water Solutions U.S.A., Inc. as a sole source supplier, for the Ray Roberts Water Treatment Plant – Ozone Generator Programmable Logic Controller Upgrades for Water Production, in an amount not-to-exceed $900,000. PRINCIPAL PLACE OF BUSINESS Xylem Water Solutions U.S.A., Inc. Charlotte, NC ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval, with an estimated completion date of March 2026. FISCAL INFORMATION These services will be funded from the 5-year Capital Improvement Program bond, account 630556523.1360.40100. Requisition # 171792 has been entered into the Purchasing software system in the amount of $459,000. The total amount of this contract is $900,000. 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: John Dillard, 940-349-7628. Legal point of contact: Marcella Lunn at 940-349-8333.