Item 5 - Cooling Tower — original pdf

Backup

Posting Language ..Title Authorize a contract for service updates and repairs at District Cooling Plant #2 for Austin Energy with Texas Airsystems, LLC d/b/a Texas Airsystems, in an amount not to exceed $3,209,924. Funding: $3,209,924 is available in Austin Energy’s Operating Budget. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Purchasing Language: Sole Source. Fiscal Note Funding in the amount of $3,209,924 is available in the Fiscal Year 2024-2025 Operating Budget of Austin Energy. MBE/WBE: Sole source contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: March 10, 2025 – To be reviewed by the Electric Utility Commission. Additional Backup Information: The contract will provide service updates and repairs as part of Phase 2.2 of Austin Energy’s District Cooling Plant #2 (DCP2) upgrade project. The contract will allow for the replacement of the 14 fan motors with updated direct drive motors coupled with highly efficient variable-speed drives. DCP2 has the largest cooling capacity among Austin Energy’s four downtown district cooling plants. It has been underperforming over the past years, primarily due to aging cooling tower fill, degrading controls wiring, inefficient and failing fan motors and condenser water pumps. The upgrade project, once complete, will result in enhanced operational reliability and an increase in DCP2’s cooling capacity by 2,000 tons, which translates to an additional $2 million in annual revenue. The retrofit kit of replacing the existing fans, motors, motor supports, and associated components is only provided by Baltimore Aircoil Company, Inc., and no other companies provide products compatible with DCP2’s cooling towers. In addition, Baltimore Aircoil Company, Inc. allows only one company per geographical area for product representation. Texas AirSystems, LLC d/b/a Texas Airsystems is the sole- source representative for Baltimore Aircoil Company, Inc. in Central Texas for sales, service, and parts. Without this contract, DCP2’s operational reliability will be at risk, and Austin Energy will be unable to address the plant’s underperformance. Item 5