Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
CFO: Antonio Puente, Jr.
DATE: March 31, 2020
SUBJECT
Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the approval of a first amendment to a contract between the City of Denton and
SAE Towers, LTD, amending the contract approved by City Council on December 17, 2019, in the not-to-
exceed amount of $1,718,905; said first amendment for the cost of additional anchor bolt cage lengths for
Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date
(File 7152 – providing for an additional first amendment expenditure amount not-to-exceed $340,150, with
the total contract amount not-to-exceed $2,059,055).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) was authorized to purchase 26 galvanized steel transmission poles and
anchor bolt cages under RFP #7152. This RFP was advertised to obtain poles and anchor bolt cages for two
138kV transmission line segments: 1) Cooper Creek Substation to Arco Substation and 2) Pockrus
Substation to Brinker Substation Phase 2.
As part of the RFP, pole, and anchor bolt cage design and conductor loading requirements were provided
to prospective proposers. The specifications allowed manufacturers to have variations in pole designs for
weight, diameter, steel thickness, etc. With responses to the RFP, prospective vendors were required to
submit structural calculations for their proposed designs so that evaluators could verify that the pole design
would meet or exceed parameters and loading requirements stated in the specification. SAE Towers, LTD,
(SAE) provided the lowest cost proposal that met the requirements of the specifications and was awarded
the contract after City Council approval on December 17, 2019.
As a normal course of design after award of a pole contract, the manufacturer is required to provide certain
structural information to DME for approval and that will allow foundation designs to be completed by
DME’s structural engineers. This information must include items such as final diameters of pole bases,
anchor bolt sizes, number of anchor bolts, and foundations reactions (the forces that the foundation must be
designed to accommodate). Foundation reactions provided by SAE for the foundation design of the Cooper
Creek to Arco transmission line poles revealed that the anchor bolt cage lengths estimated in the RFP were
inadequate and must be lengthened. The RFP and contract contained provisions for adjusting anchor bolt
lengths and anchor bolt cage template weights. Anchor bolt cage templates are what holds the anchor bolt
cage assemblies in place to give the cage its circular shape. A typical drawing showing an anchor bolt cage
for a pole foundation is included as Exhibit 2. Exhibit 3 is a summary of changes by structure.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
While the contract included a unit price increase per foot for additional anchor bolt lengths and a per pound
unit price increase for additional anchor bolt cage templates or template weights, no contingency amount
was included for these increases in the contract. This amendment is proposed to add amounts to the contract
to cover these costs. The lines cannot be constructed without the changes in anchor bolt lengths and template
weights.
The practice of providing a mechanism in contracts for steel transmission poles to facilitate cost adjustments
in anchor bolt cage lengths and template weights is customary. Exhibit 3 is a copy of the original proposal
price sheet which includes line items for these increases. The amount in this instance is larger than expected
because the estimated lengths included in the RFP were only about half what the design ultimately required.
The original price in the proposal would have been a similar amount higher had the original anchor bolt
cage estimates been closer to the actual requirement. Because of the magnitude of the size and weight
change, SAE is requesting that the City approve an additional amount for freight. No mechanism for
increasing freight was included in the contract, but the request is appropriate and reasonable and should be
considered.
Pole and anchor bolt cage designs have only been completed for the Cooper Creek to Arco Transmission
Line reconstruction project. It has been determined that an additional 4,802.67 feet of anchor bolt length
and 10,209.42 pounds of additional template weight is required for this line segment. The cost breakdown
is as follows:
Cooper Creek to Arco Transmission Line Rebuild
Additional anchor bolt length (feet) 4,802.67 $22.86 $109,789
Additional templates (weight, pounds) 10,209.42 $1.64 $16,743
Additional freight $13,618
Total $140,150
The designs have not been completed for the Pockrus Substation to Brinker Substation Transmission Line
Phase 2 project which this RFP covered. A $200,000 contingency is proposed in this amendment to cover
the expected increases required for the anchor bolt cage adders for this project and is estimated as shown
below:
Pockrus to Brinker Transmission Line Phase 2 Estimate
Estimated additional anchor bolt length (feet) 5,900.00 $22.86 $134,874
Estimated additional templates (weight, pounds) 12,700.00 $1.64 $20,828
Estimated additional freight $16,000
15% contingency $25,755
Total $197,457
A description of the two projects is included in the two following paragraphs.
138kV Cooper Creek Substation to Arco Substation Transmission Line Reconstruction: This project
will rebuild 1.5 miles of the existing Cooper Creek to Arco transmission line to provide the capacity needed
to meet the requirements of NERC and the Electric Reliability Council of Texas contingency planning
criteria. This project has been identified by ERCOT as a critical reliability need with reconstruction
requested to complete before the summer of 2020. Fifteen (15) poles are required for this project. The
Cooper Creek to Arco transmission line is owned by Texas Municipal Power Agency (TMPA) and as
required in the “DME and TMPA Transmission Operator, Maintenance, and Construction Services
Agreement”, DME will perform the procurement and construction for TMPA capital projects in the Denton
area. DME will be reimbursed for the cost of the project.
138kV Pockrus Substation to Brinker Substation Transmission Line Phase 2: Phase 2 of the Pockrus
to Brinker transmission line project includes installation of 0.6 miles of new transmission line from the
existing Pockrus Substation to the south end of the completed first phase of the Pockrus Substation to the
Brinker Substation transmission line. Eleven (11) poles are required for this phase of the project.
RECOMMENDATION
Award Amendment No. 1 with SAE Towers, LTD, for the additional cost of anchor bolt cage lengths and
additional templates for the supply of galvanized steel transmission poles, anchor bolt assemblies, and
galvanized steel hardware in an amount not-to-exceed $340,150, for a total amended contract amount of
$2,059,055.
PRIOR ACTION/REVIEW
On December 17, 2019, City Council approved a contract with SAE Towers, LTD, in the not-to-exceed
amount of $1,718,905 (Ordinance 19-2964).
PRINCIPAL PLACE OF BUSINESS
SAE Towers, LTD
Houston, TX
ESTIMATED SCHEDULE OF PROJECT
Delivery of the items will occur within 10 weeks after receipt of order.
FISCAL INFORMATION
Purchase Order #192016 has been created in the amount of $1,718,905. The items were funded from Denton
Municipal Electric account 600755500.1350.3550 (Pockrus to Brinker Transmission Line Phase 2,
requiring 11 poles at a cost of $890,917) and account 6035110500. 1350.3550 (Cooper Creek to Arco
Transmission Line Rebuild, requiring 15 poles at a cost of $827,988). This amendment will be funded from
the same accounts in the amounts of $200,000 and $140,150, respectively.
The $1,090,917 amount for the Pockrus to Brinker project will ultimately be recovered through the Public
Utility Commission Transmission Cost of Service (TCOS) program. The $968,138 amount for the Cooper
Creek to Arco Rebuild project will be reimbursed by the Texas Municipal Power Agency pursuant to terms
in the “DME and TMPA Transmission Operator, Maintenance, and Construction Services Agreement.”
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Typical Anchor Bolt Cage Drawing
Exhibit 3: Summary of Anchor Bolt Cage Changes by Structure
Exhibit 4: Original Ordinance and Contract
Exhibit 5: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Chuck Sears, 940-349-7111.
Legal point of contact: Mack Reinwand at 940-349-8333.