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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, ratifying the expenditure of funds by the City Manager for the emergency purchase of engine spare parts for the Denton Energy Center; and providing an effective date (File 9123 – awarded to Wartsila North America, Inc., in the not-to-exceed amount of $211,306.23). The Public Utilities Board recommends approval (6 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful Leadership. INFORMATION/BACKGROUND The Denton Energy Center’s (DEC) electric generating equipment (12 Gensets) requires maintenance as the units operate. The maintenance activities are performed as preventative, predictive, and corrective maintenance activities. Preventive and predictive activities are performed as scheduled maintenance based on hours of operation, and corrective maintenance is unplanned component failures that most often cause unit outages. For the DEC team to manage and maintain high unit availability and reliability for our customers, performing these routine maintenance activities is critical to ensure reliability. This Declaration of Emergency (DOE) is to purchase the materials necessary to perform the hour-based maintenance activities efficiently. Thus far, we have been performing routine preventive, predictive, and corrective maintenance using on- hand inventory but are now in need of replenishment of these critical items and to also purchase the needed materials for services on an as-needed basis, based on our unit operating hours. The engine's Original Equipment Manufacturer (OEM) has been notified and is awaiting issuance of a Purchase Order before sending parts. Wartsila North America, Inc. is the OEM for the engines as well as the only supplier able to provide the requested parts; three (3) other vendors were contacted to provide estimates and availability in this process. Wartsila North America, Inc. will provide the needed parts and delivery with a total spare parts cost of $211,306.23 and a delivery time of 7-30 days from the fully accepted order. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com The DEC is currently in the process of a contract in an effort to minimize maintenance costs for the coming intervals and future unplanned maintenance repairs falling in the next five (5) years. The bid information was sent to 316 potential suppliers, and two (2) suppliers were selected to be qualified to provide parts and materials for the DEC. 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 Approve the emergency order for the emergency purchase of engine spare parts for the Denton Energy Center, in the not-to-exceed amount of $211,306.23. PRINCIPAL PLACE OF BUSINESS Wartsila North America, Inc. Houston, TX ESTIMATED SCHEDULE OF PROJECT This is a single one-time purchase as a Declaration of Emergency. Estimated delivery is 30 days from the Purchase Order being issued. FISCAL INFORMATION These services will be funded from the DEC Maintenance Parts account 605809497. Purchase Order #215624 was issued to the vendor in the amount of $211,306.23 on July 31, 2026. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Quote Exhibit 3: 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.