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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: November 10, 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 Schweitzer Engineering Laboratories, Inc., for the purchase of SEL protective relays, controls, monitoring, metering, software, integration, accessories, and devices for Denton Municipal Electric, which is the sole provider of these commodities and services, in accordance with Texas Local Government Code 252.022, which provides that procurement of commodities and services that are available from one source are exempt from competitive bidding, and if over $50,000 shall be awarded by the governing body; and providing an effective date (File 7429 – awarded to Schweitzer Engineering Laboratories, Inc., in the five (5) year not-to-exceed amount of $1,864,638). INFORMATION/BACKGROUND Denton Municipal Electric (DME) has substation projects approved in its five (5) year Capital Improvement Plan that will require the purchase of protective relay, control, monitoring, metering, and integration hardware and accessories. These types of devices are all necessary to make substations functional. The majority of these devices are microprocessor-based and highly technical in their design and application. They are used to operate and protect substation components, such as circuit breakers, busses, and transformers; to protect transmission lines in the event of faults, overloads, overvoltage, and other abnormal conditions; to provide metering; and to interconnect devices for communication, access, interaction and retrieval of information. Before designs can be prepared for substation relay and control systems, specific protective metering, control, monitoring, and integration equipment must be selected. DME has chosen Schweitzer Engineering Laboratories, Inc. (SEL) as its standard for these types of hardware. There are several reasons for this: SEL has a larger line of devices than any other manufacturer and they offer the greatest selection of features and the best capability for integration. Integration is the term used to refer to the ability for devices to communicate with each other and with other systems such as the Supervisory Control and Data Acquisition (SCADA) system. The warranty period for SEL devices is ten years, and their customer support is superior. No other manufacturer offers the on-call application assistance and technical support that SEL offers. DME currently has over 1,300 SEL devices in service in existing substations, which the majority are protective relays. SEL handles marketing directly on a nation-wide basis through manufacturer’s representatives. There is no network of dealers for this highly technical product. Each area of the country is handled by only one representative. Because of this, there is no mechanism for competitive bidding. Therefore, staff is recommending Schweitzer Engineering Laboratories, Inc. as the sole source provider of this product. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Section 252.022 of the Local Government Code provides that procurement of sole source commodities and services are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On November 9, 2020, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award with a contract to Schweitzer Engineering Laboratories, Inc. (SEL), as a sole source supplier, for the purchase of SEL protective relays, controls, monitoring, metering, software, integration, accessories, and devices for Denton Municipal Electric, in a five (5) year not-to-exceed amount of $1,864,638. PRINCIPAL PLACE OF BUSINESS Schweitzer Engineering Laboratories, Inc. Pullman, WA ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract. FISCAL INFORMATION The costs for material purchased under the proposed agreement will be funded out of amounts budgeted for specific projects. The work proposed will be in the transmission category. These costs for transmission projects will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Donna Anderson, 940-349-7129. Legal point of contact: Mack Reinwand at 940-349-8333.