Exhibit 1 - Agenda Information Sheet - Amendment 3City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: October 6, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a third amendment to a Professional Services Agreement between the City of
Denton and Black & Veatch Corporation, amending the contract approved by City Council on November
6, 2012, in the not-to-exceed amount of $564,000, amended by Amendments 1-2 approved by City Council,
said third amendment to continue to provide electrical substation design and other engineering-related
consulting services for Capital Improvement Projects and other technical support for Denton Municipal
Electric; providing for the expenditure of funds therefor; and providing an effective date (File 5089 –
providing for an additional third amendment expenditure amount not-to-exceed $2,990,900 with the total
contract amount not-to-exceed $6,556,300). The Public Utilities Board recommends approval (6 - 0).
INFORMATION /BACKGROUND
Denton Municipal Electric (DME) requires the services of consultants for professional engineering services
to aid in development and design for approved CIP projects, provide technical support, to prepare
documentation to satisfy NERC/TRE/ERCOT requirements related to system protection, and to provide
general technical consulting for other operations and system protection needs.
DME has a Professional Service Agreement (PSA) in place with Black & Veatch Corporation for these
services under contract # 5089 but the funds approved for the contract will not be sufficient to complete
immediate and future needs. This contract was approved on November 6, 2012 for a not-to-exceed amount
of $564,000. This contract was amended on December 17, 2013 to increase the amount by $781,400 and
again on April 5, 2016 to increase the amount by $2,220,000 bringing the total not-to-exceed amount to
$3,565,400. This proposed third amendment will add $2,990,900, of which, $900,900 is allocated for
serving as DME’s Owners Engineer for the Hickory Geographical Information System (GIS) CIP project
and $2,090,000 is allocated for future project design, for support with NERC/TRE/ERCOT requirements
related to system protection and for general technical support. This amendment is expected to meet DME’s
needs for these services for the next three years.
The amount proposed for the increase in this contract was arrived at by estimating the man-hours required
for completion of the tasks mentioned above. Below are summaries of the estimated cost breakdown of the
proposed amendment. More details are included in the proposal.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Hickory Gas Insulated Substation Funding Requirement Breakdown:
The Hickory GIS Substation CIP project will be procured and constructed utilizing the design/build method with one contractor
to design, procure, and construct the entire substation. This involves preparing a technical specification that completely describes
the substation general function, equipment specifications, construction methods, and protection schemes. This will require the
expertice of engineers in design of GIS substations and DME does not have engineers experienced with GIS design to create the
technical specification. Also, Texas State law requires that the City of Denton have an Owners Engineer to oversee a design/build
project and serve as oversight of the winning contractor throughout the project timeline to ensure quality is met and technical
standards are followed. These services for the Hickory GIS Substation will require significant man-hours to complete and is
summarized in the table above.
Black and Veatch has experience with GIS substations and has already started work on the Hickory GIS Substation design by
supporting the development of the site plan concept, assisting with determining the unique requirements for a GIS project, and
preparing a technical specification for the GIS equipment.
Engineering Services Breakdown:
The following is a brief summary of the engineering services that Black & Veatch has provided under this contract and will
continue to provide if the proposed amendment is approved:
• Concept development and refinement for Underwood Substation to serve Cole and Hunter Ranch.
• Design for a future capacity upgrade project at Denton West Substation.
• Complete relay coordination study and propose recommended adjustments. The relay coordination
information is generally updated annually or sooner if new stations or equipment is added or if there
is a change to the transmission system.
• Complete the relay loadability analysis and documentation for ERCOT/TRE/NERC compliance
(needed annually).
• Complete other reports and analysis on technical and operational issues.
• Perform relay design and setting consultation.
• NERC/ERCOT/TRE compliance support and interpretation of new standards
• Consult on technical issues or designs.
Changes in schedules, changes in priorities, unforeseen requirements, or the addition of new projects could
alter which projects are undertaken within a given time. The contract is structured to be billed on an hourly
basis for work performed so that, should needs arise that are not related to the specific projects that were
used to construct the estimate for this amendment, Black & Veatch can be used as a resource for DME to
obtain necessary professional engineering services to meet the requirements. It should also be noted that
the contract does not obligate DME to provide work up to the contract amount or to make any minimum
expenditure.
DME has chosen to recommend an amendment to the existing contract rather than a new contract since
Black and Veatch has already spent a large amount of time on the Hickory Gas Insulated Substation project
and has performed the engineer services mentioned above since 2012. Both entities are satisfied with the
terms and conditions in the existing contract.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On November 6, 2012, City Council approved a contract with Black & Veatch Corporation, in the not-to-
exceed amount of $564,000 (Ordinance 2012-303).
On December 17, 2013, City Council approved Amendment 1 with Black & Veatch Corporation, in the
not-to-exceed amount of $781,400 (Ordinance 2013-340).
On April 5, 2016, City Council approved Amendment 2 with Black & Veatch Corporation, in the not-to-
exceed amount of $2,220,000 (Ordinance 2016-099).
On September 28, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a third amendment to the Professional Services Agreement between the City of Denton and Black
& Veatch Corporation, to continue to provide electrical substation design and other engineering-related
consulting services for Capital Improvement Projects and other technical support for Denton Municipal
Electric in the not-to-exceed amount of $2,990,900.
PRINCIPAL PLACE OF BUSINESS
Black & Veatch Corporation
Overland Park, KS
ESTIMATED SCHEDULE OF PROJECT
Project designs will begin (or continue) immediately upon approval by the City Council and will proceed
in accordance with project needs.
FISCAL INFORMATION
These services will be funded from PSA-Black & Veatch Corp-FY 13 account 603187491.1360.3560.
Purchase Order #160700 has been increased in the Purchasing software system in the amount of $2,990,900.
The budgeted amount for this item is $6,556,300.
The majority of the costs attributable to the transmission category will ultimately be recovered through the
Public Utility Commission transmission cost of service program (TCOS). The proposed amendment will
not increase CIP cost. Amounts for all projects were included in the CIP or annual budgets.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Contract and Ordinance
Exhibit 3: Ordinance and Amendment 1
Exhibit 4: Ordinance and Amendment 2
Exhibit 5: Ordinance and Amendment 3
Exhibit 6: Presentation
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169.
Legal point of contact: Mack Reinwand at 940-349-8333.