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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: August 4, 2026 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 of the turbo repair and overhaul for the Denton Energy Center; and providing an effective date (File 9094 – awarded to Accelleron US Inc., in the not-to-exceed amount of $354,615.84). The Public Utilities Board recommends approval (4 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful Leadership. INFORMATION/BACKGROUND In July of 2024, Denton Energy Center’s (DEC) Genset E4 experienced high crankcase pressure from the turbos derating the unit and preventing full megawatt output. In August 2024, a complete inspection was conducted on the engine by plant personnel and found that failure on the A-bank turbo on E4 was caused by foreign object debris (FOD) from cylinder head exhaust valve failures during operation and failure at the labyrinth seal on B-bank, causing high pressure on the engine. DEC maintenance staff began repairs in an attempt to restore the unit back to normal operation utilizing available on-hand turbo components but discovered the damage to be excessive and beyond onsite capabilities, resulting in immediate need for outside assistance and complete turbo replacement. At the time of failure, no turbos were in DEC possession, and two (2) turbos were out for inspections and estimates to be overhauled by an approved engine or turbo (OEM) Original Equipment Manufacturer, resulting in the immediate need for turbos belonging to the DEC to be overhauled and return the engine to normal operation as quickly as possible. Based on the damage found on one (1) of the two (2) turbos, only Accelleron was capable of overhauling both turbos and provided the lowest cost. Turbocharger repairs were completed by Accelleron and delivered to the DEC, where plant personnel completed the replacement of turbos, returning Genset E4 to full output. Wartsila, the OEM of the engine, was notified at the time of failure and informed us that although they were able to perform the services, the cost for repair would be higher than the purchase of a new unit and did not provide an estimate for repair. The new unit cost was priced at $261,411.27 without a guaranteed delivery time frame. Accelleron is the OEM for the turbocharger as well as the only authorized sales and service representative of DEC turbos. Accelleron was able to provide the needed services for turbocharger overhaul and delivery City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com to the DEC. The complete turbo overhaul cost for the B-bank turbo was $246,514.92, and the turbo for A- bank overhaul cost $108,100.92. Turbo charger overhaul service in total is $354,615.84. Wartsila and Accelleron were the only vendors contacted, as Wartsila is the OEM for the engine and Accelleron is the OEM of the turbocharger and the only authorized sales vendor available for these components. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On July 27, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Approve the emergency purchase of the turbo repair and overhaul for the Denton Energy Center, in the not- to-exceed amount of $354,615.84. PRINCIPAL PLACE OF BUSINESS Accelleron US Inc. Miramar, FL ESTIMATED SCHEDULE OF PROJECT This project was completed on October 30, 2024. FISCAL INFORMATION These services will be funded from the DEC Turbo Maintenance account 605811497. Requisition #176021 has been entered into the Purchasing software system in the amount of $354,615.84. 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: Leah Bush at 940-349-8333.