Loading...
HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: September 15, 2026 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 Airgas USA, LLC, for the purchase of various chemicals for the Water Production, Fire, Denton Municipal Electric, Solid Waste and Recycling, and Municipal Lab Departments, providing for the expenditure of funds therefor; and providing an effective date (RFP 9049 – awarded to Airgas USA, LLC, for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $1,875,500.00). The Public Utilities Board recommends approval (6 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Support Healthy and Safe Communities. INFORMATION/BACKGROUND This solicitation is for the purchase of water treatment chemicals essential to the Water Production Department’s processes, ensuring the continued delivery of safe, potable water and effective treatment for the City of Denton and surrounding communities. These chemicals each serve a specific operational purpose critical to regulatory compliance and service reliability, including liquid oxygen, which supports ozone generation as a key disinfectant in the water treatment process and ensures uninterrupted operations at both water production facilities. The agreement will support uninterrupted operations at both Ray Roberts Water Treatment Plant and Lake Lewisville Water Treatment Plant. The Municipal Lab will use argon because it is essential for ICP-MS analysis, forming the plasma that ionizes elements and serving as the nebulizer and auxiliary gas to maintain stable operating conditions. A consistent supply of high-purity argon is critical for achieving accurate and precise trace-metal measurements. The Fire Department also relies on oxygen in various forms to meet medical treatment needs within the community. The additional gases purchased for the Fire Department are used at the training facility to support firefighter training activities. They are also carried on certain Fire Department vehicles, where they support rescue operations and the use of specialized equipment. In addition, Denton Municipal Electric uses nitrogen in all power transformers at its substations to maintain a dry, stable internal environment, prevent moisture intrusion, protect insulating components, and improve long-term equipment reliability. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com The Solid Waste & Recycling Department relies on acetylene, argon, and oxygen to safely and effectively repair and refurbish compactor containers used by City of Denton commercial customers. These gases are essential for welding, cutting, and metal fabrication tasks that allow staff to fix structural damage, reinforce weakened areas, and extend the service life of heavy-duty containers. In addition to compactors, the department also uses these supplies to repair and restore front-load containers that would otherwise need to be replaced. By having the proper welding gases and repair materials available in-house, the department can perform timely maintenance and restore containers to full functionality without outsourcing the work or purchasing new units. Without these supplies, the City would incur significant replacement costs— estimated at more than $500,000—due to the need to purchase new compactor and front-load containers. Maintaining access to acetylene, argon, and oxygen directly supports cost-effective operations, reduces downtime for commercial customers, and helps the City of Denton protect valuable assets while avoiding unnecessary expenses. Department Five (5) Year Spend Water Production $760,000.00 Fire Department 600,000.00 Municipal Lab 65,000.00 Solid Waste 30,000.00 Denton Municipal Electric 250,000.00 Contingency - 10% 170,500.00 Total $1,875,500.00 Request for Proposals was sent to 270 prospective suppliers, including five (5) 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, compliance with specifications, probable performance, and price. Best and Final Offer (BAFO) was requested from the firm. The department is awarding the contract to Airgas USA, LLC. NIGP Code Used for Solicitation: 430 - Gases, Containers, Equipment: Laboratory, Medical, and Welding & 885 – Water and Wastewater Treating Chemicals Notifications sent for Solicitation sent in IonWave: 270 Number of Suppliers that viewed Solicitation in IonWave: 14 HUB-Historically Underutilized Business Invitations sent out: 23 SBE-Small Business Enterprise Invitations sent out: 100 Responses from Solicitation: 1 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 24, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Airgas USA, LLC, for the purchase of various chemicals for the Water Production, Fire, Denton Municipal Electric, Solid Waste and Recycling, and Municipal Lab Departments, in a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to- exceed amount of $1,875,500. PRINCIPAL PLACE OF BUSINESS Airgas USA, LLC Denton, TX ESTIMATED SCHEDULE OF PROJECT This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These items/services will be funded from the following accounts. Department Account Number Current Year Budget Water Production 630100.6334.06399901 and 630100.6344.06399902 $152,000 DME 600400.6528.5880 $50,000 Fire Department 320100.6336.392753 $120,000 Municipal Lab 890200.6364 and 890200.7802 $14,756 Solid Waste 660200.6510 $5,200 Requisitions will be entered on an as-needed basis. The remaining amounts will be budgeted in future fiscal years to align with the contract terms and expenditures. These products and services will be utilized on an as-needed basis. The City will only pay for items purchased and is not obligated to pay the full contract amount unless needed. 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: Trever Heskett, 940-349-7627. Legal point of contact: Leah Bush at 940-349-8333.