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Exhibit 1 - Agenda Information Sheet.docxCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: October 17, 2023 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 repair of the Seresco HVAC unit at the Denton Natatorium due to a catastrophic failure for the Facilities Management Department; and providing an effective date (File 8262 – awarded to Texas AirSystems, LLC, in the not-to-exceed amount of $160,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The Seresco unit at the Natatorium extracts pool-related chemical fumes from the air in the building and is critical to air quality and the health of the patrons and staff. The unit experienced a catastrophic failure resulting in the closing of the Natatorium beginning on June 12, 2023, and reopening in a limited capacity on August 10, 2023. Repairs necessary include the replacement of coolant chemicals, coils, and fans which are specific to the type of system. As the designated service provider for Seresco units in Texas, Texas AirSystems, LLC was contacted for the emergency and ongoing repair of the failed parts. The unit is currently functioning at a reduced capacity due to pending repairs and parts delays. Costs associated with the repair of this system total $160,000 and include parts, labor, and chemicals. Facilities Management responded to the following incidents this year and called Texas AirSystems, LLC to repair: • 2/28/23 – Six (6) condenser fan motors failed. These fans were back ordered worldwide and weren’t replaced until 6/28/23. • 4/25/23 - 70 pounds of refrigerant was added to the system. Leaking parts were ordered. • 5/12/23 - Parts arrived and were installed; 50 pounds of refrigerant was added. • 5/15/23 - The unit was struggling again. The unit was found to be low on refrigerant, with 30 pounds added. Found leaking TXV and bad actuator. They were available and replaced. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com • 6/9/23 - The axial fan failed. It was readily available and was replaced. • 06/12/23 - Natatorium closed. • 6/23/23 - Unit leaking glycol. Found damaged motor had come apart and damaged coil. The coil was taken out of the circuit and a new coil was ordered. • 7/24/23 - Another fan went bad and came apart, causing leaking glycol. The coil was taken out of the circuit and a new coil was ordered. 75 pounds of glycol was put in the system. • 8/9/23 - Found 3 more bad fans. These are on backorder. • 8/10/23 - Natatorium opened for DISD only to coincide with the start of school. • 8/14/23 - Natatorium reopens to the public. Currently, we are waiting on three (3) motors and two (2) coils that are on backorder and will be installed upon delivery. RECOMMENDATION Award the emergency repairs with Texas AirSystems, LLC, for the emergency repair of the Seresco HVAC unit at the Denton Natatorium due to the catastrophic failure to the Facilities Management Department, in a not-to-exceed amount of $160,000. PRINCIPAL PLACE OF BUSINESS Texas AirSystems, LLC Ft. Worth, TX ESTIMATED SCHEDULE OF PROJECT Upon procurement, repairs will be made as soon as possible and completed within one (1) year. FISCAL INFORMATION These services will be funded from Outside Contracted Services account 880200.6545, as well as with capital funds identified for Capital Replacement items, account 100348409.1365.30100. Requisition #159846 has been entered into the Purchasing software system in the amount of $70,000. The budgeted amount for this item is $160,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Declaration of an Emergency Exhibit 3: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Thomas Gramer, 940-349-7467. Legal point of contact: Marcella Lunn at 940-349-8333.