Item 4D - MemoCITY OF
SOUTH LAKE
MEMORANDUM
April 1, 2025
To: Alison Ortowski, City Manager
From: Lauren LaNeave, Interim Director of Public Works
Item 4D
Subject: Ratify expenditures with Texas Air Systems LLC in excess of
$50,000 and authorize expenditures with Texas Air Systems
LLC for HVAC parts and repairs in an amount not to exceed
$95,000.
Action
Requested: Ratify expenditures with Texas Air Systems LLC in excess of
$50,000 and authorize expenditures with Texas Air Systems LLC for
HVAC parts and repairs in an amount not to exceed $95,000.
Background
Information: The purpose of this item is to ratify expenditures with Texas Air
Systems LLC for FY 2025 in excess of $50,000 and authorize
expenditures with Texas Air Systems LLC for HVAC parts and
repairs in an amount not to exceed $95,000.
Reliable HVAC systems are essential for maintaining safe and
comfortable city facilities. Texas Air Systems provides the City with
HVAC repairs such as major part replacement, circuit board
upgrades, and associated programming of equipment.
In FY 2022 and FY 2023, the City saw an increase in HVAC
equipment failures and associated repair costs. Many of these
failures had been labor-intensive, leading to additional time required
per service call. This, along with an annual average of 10% increase
in labor rates and materials, led to higher -than -expected costs for
these fiscal years. FY 2024 saw a reduction in HVAC repair requests
that was expected to continue through the next fiscal year.
However, recent critical equipment failures such as DPS North's
RTU compressor failures have caused the expenditures with Texas
Air Systems to exceed the $50,000 threshold before City Council
could authorize the requested not -to -exceed amount.
Public Works anticipates a continued trend of repairs as the City
heads into the summer months ahead, in alignment with historical
trends. The requested not -to -exceed amount of $95,000 has been
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Item 4D
made to cover the progressive rate of repairs through the remainder
of FY 2025.
A summary of the historical spend with Texas Air Systems is below:
Financial
Considerations: Funding for this item is available in the FY 2025 Facility Services
Operating Budget. State of Texas and City of Southlake bidding
requirements have been met by utilizing the TIP's cooperative
purchasing contract.
Strategic Link: This request links to the City's Strategy Map strategic focus areas of
Infrastructure and Development. It specifically relates to the City's
Corporate Objectives of, B2: Collaborate with Select Partners to
Implement Service Solutions and F2: Investing to Provide & Maintain
High Quality Public Assets.
Citizen Input/
Board Review: None.
Legal
Review: Legal review is satisfied due to the vendor being a cooperative
purchasing contract.
Alternatives: The City Council may approve or deny the proposal.
Supporting
Documents: Attachment A: Texas Air Systems TIPS Contract 23010401
Staff
Recommendation: Ratify expenditures with Texas Air Systems LLC in excess of
$50,000 and authorize expenditures with Texas Air Systems LLC for
HVAC parts and repairs in an amount not to exceed $95,000.
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Item 4D
Staff
Contact: Lauren LaNeave, Interim Director of Public Works
Kurt Ackermann, Facilities Manager
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