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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: April 7, 2020 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 Resolved Energy Consulting, LLC, for the supply of Energy Management Office (EMO) Regulatory Advisement Services for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7238 – awarded to Resolved Energy Consulting, LLC, in the three (3) year not-to-exceed amount of $415,680). INFORMATION /BACKGROUND Denton Municipal Electric, the City of Denton’s wholly owned electric utility is operationally subject to regulations administered by several regulatory and bodies and governments. These include but are not limited to the State of Texas, the Public Utility Commission of Texas (PUCT), the Electric Reliability Council of Texas (ERCOT), the Texas Department of Environmental Quality (TDEQ), the North American Reliability Corporation (NERC) and its regional entity, the Texas Reliability Entity (TRE). In particular, the PUCT and ERCOT have a direct hand in the Texas Electric market and how it operates. The market regulations, rules, and the interpretation of them by these organizations has potential financial impacts in the hundreds of millions of dollars. ERCOT as an organization is stakeholder based. DME is one of hundreds of stakeholders. ERCOT has several Boards, Committees, Sub-Committees, Working Groups, and Task Forces that all require the participation of market participants like DME. Some of the important meeting groups are the Wholesale Market Sub-committee (“WMS”), Technical Advisory Committee (“TAC”), Protocol Revisions Sub- committee (“PRS”), and ERCOT Board. These groups and other meet, discuss, deliberate and vote on market rules and operational procedures that can have a direct financial impact on DME and its ratepayers. Some of DME’s Municipal Utility peers have several persons on their government affairs and regulatory staff. DME has a comparatively small staff that cannot cover all of the meetings in order to provide stakeholder representation. To augment its staff, DME has utilized Austin based consulting groups that attend most of the key ERCOT group meetings that DME cannot attend. This service provides valuable analysis and feedback regarding important regulations that are being developed in the lower working groups so that DME representatives can engaged in informed participation when considering these new rule changes at the sub-committee and committee levels where DME has elected representation. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Similarly, the PUCT has several rulemaking and transmission cost dockets filed throughout the year. Monitoring and communicating how these regulatory filings might impact DME is an important function that DME could not handle with its smaller staff. These dockets have strict response time windows that cannot be ignored, and it is important to be aware of them as soon as possible should a response be needed. Without the utilization of outside regulatory consultants, DME will be less able to engage in the ERCOT and PUCT regulatory activities that have enormous potential financial impact to DME and its ratepayers. Request for Qualifications (RFQ) for EMO Regulatory Advisement Services was sent to 668 prospective firms for these services. In addition, the RFQ was placed on the Materials Management website for prospective respondents to download, and advertised in the local newspaper. Three (3) statement of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including identification and understanding of the City’s requirements, past performance and experience, qualifications of key personnel, and schedule to complete tasks. Based upon this evaluation, the recommended award is to Resolved Energy Consulting, LLC, and is determined to be the most qualified firm for the City. NIGP Code Used for Solicitation: 918, 924, 961 Notifications sent for Solicitation sent in IonWave: 668 Number of Suppliers that viewed Solicitation in IonWave: 19 HUB-Historically Underutilized Business Invitations sent out: 44 SBE-Small Business Enterprise Invitations sent out: 245 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) This item will go to the Public Utilities Board (PUB) retroactively once the PUB meetings resume. RECOMMENDATION Award a contract to Resolved Energy Consulting, LLC, for the supply of EMO Regulatory Advisement Services for Denton Municipal Electric, in a three (3) year not-to-exceed amount of $415,680. PRINCIPAL PLACE OF BUSINESS Resolved Energy Consulting, LLC Austin, TX ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract. FISCAL INFORMATION These services will be funded from DME project account 600003.7854.5750. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $415,680. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Sheet Exhibit 3: LLC Members Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Smith Day, 940-349-7561. Legal point of contact: Mack Reinwand at 940-349-8333.