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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: April 2, 2024 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 Xylem Water Solutions U.S.A., Inc., to purchase Flygt pumps, equipment, parts, supplies, and services to operate and maintain the City of Denton sewage pumping stations and treatment plants for the Water Utilities Department, which is the sole provider of this service, in accordance with Texas Local Government Code 252.022, which provides that procurement of commodities and services that are available from one source are exempt from competitive bidding, and if over $50,000, shall be awarded by the governing body; providing for the expenditure of funds therefor; and providing an effective date (File 8476 – awarded to Xylem Water Solutions U.S.A., Inc., 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 $1,875,000.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Promote Sustainability and the Environment. INFORMATION/BACKGROUND The Water Reclamation Department is currently under contract with Xylem Water Solutions USA, Inc., for the procurement of Flygt pump equipment, parts, and essential services. These services play a vital role in maintaining, repairing, and improving the infrastructure of the City of Denton's treatment plants and lift stations. The initial contract, approved by the City Council on February 18, 2020, was valued at $1,000,000, spanning a five-year term. Currently, the expenditure stands at 93 percent, prompting the need for a new contract to continue supporting the wastewater infrastructure of the City of Denton. Xylem Water Solutions is the exclusive source for Flygt pump equipment and replacement parts. While competitive bidding is involved in acquiring new project equipment, the installations for Plant and Lift Station pumps adhere to precisely engineered design and operating conditions. In cases where replacement becomes necessary, maintaining the use of the same designed operating conditions as the original equipment is crucial. Decisions regarding repair or replacement depend on factors such as the overall condition, age of the pump, and the cost of new equipment. Repairs may sometimes involve significant lead times. According to the Texas Commission on Environmental Quality (TCEQ) Rule 317.3, it is mandated that "the firm pumping capacity of all lift stations shall be such that the expected peak flow can be pumped to its desired destination." Firm pumping capacity refers to the total maximum pumping capacity of the station, even with the largest pumping unit out of City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com service. Lack of redundancy when a pump is out of service can pose a challenge in meeting this rule. To uphold health and human safety standards, the City is obligated to ensure that repairs are promptly executed Project Description Estimated 5-Year Expenditure Xylem pumps and services year 1 $300,000 Xylem pumps and services year 2 300,000 Xylem pumps and services year 3 300,000 Xylem pumps and services year 4 300,000 Xylem pumps and services year 5 300,000 Contingency 375,000 Total $1,875,000 Section 252.022 of the Local Government Code stipulates that procurement of sole source commodities and services, exceeding $50,000, is exempt from competitive bidding and must be awarded by the governing body. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 25, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award with a contract to Xylem Water Solutions USA, Inc., to purchase Flygt pumps, equipment, parts, supplies, and services to operate and maintain the City of Denton sewage pumping stations and treatment plants for the Water Utilities Department, 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 $1,875,000. SUSTAINABILITY MEASURES The repair and replacement of existing wastewater pumps ensures the reliable and safe operation of pumps, particularly in critical applications like water supply, wastewater management, and flood control. PRINCIPAL PLACE OF BUSINESS Xylem Water Solutions U.S.A., Inc. Carrollton, TX ESTIMATED SCHEDULE OF PROJECT This is an initial three (3) year, with the option to extend the contract for (2) additional one (1) year extensions, with all terms and conditions remaining the same. FISCAL INFORMATION These items and services will be funded from Water Reclamation account 640100.6525. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $1,875,000. The City will only pay for parts or services rendered 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: Chris Carroll, 940-349-7190. Legal point of contact: Marcella Lunn at 940-349-8333.