HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton
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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.