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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Materials Management CM: Todd Hileman DATE: December 11, 2018 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract for the Supply of Underground Distribution Cables and Substation Control Cables for the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 6842-awarded to the lowest responsive bidder for each line item, Techline, Inc., for a five (5) year not-to-exceed amount of $18,000,000 and Stuart C. Irby, for a five (5) year not-to-exceed amount of $1,400,000, in a total not-to-exceed amount of $19,400,000 for all years). RFP INFORMATION This Request for Proposals (RFP) is to supply primary 15kV, secondary 600V insulated service cable, and multi-conductor substation control cable. The service cable is a key component in Denton Municipal Electric’s (DME) installation of distribution level underground electrical service to its customers. The service cable will be used to replace existing underground cable that has failed and to extend service to new residential, commercial, and industrial customers. Multi-conductor substation control cable is utilized solely within substations between equipment for AC and DC equipment power, and system monitoring, metering, and control. The control cable will be used to interconnect devices (i.e. relays, circuit breakers, transformers, switches, etc.) for interaction and retrieval of information. These items will be carried in the Distribution Center Working Capital inventory. The items are stocked by the Distribution Center and used as needed. Volatility in copper and aluminum prices have made it mandatory and prudent that a procurement method be crafted that recognizes the reality of conditions in the marketplace and also minimizes cost exposure by locking in projected quantities. The unit prices recommended for award are based upon published third- party indices for raw materials provided in the specifications. Throughout the contract, the prices will adjust (increase or decrease) based upon the previous month’s basis for raw materials. Line Items 1-22 of the pricing evaluation will adjust based upon the current raw material price at the time the order is placed and accepted. Request for proposals was sent to 143 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Five (5) proposals were received and evaluated based upon published criteria including performance, lead time, compliance with specifications, and price. Based upon this evaluation, multiple vendors were ranked the highest and determined to be the best value for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com RECOMMENDATION Award a contract with Techline, Inc. for supply of electric utility underground cable (Exhibit 2, Sections A & C) in a five (5) year not-to-exceed amount of $18,000,000. Award a contract with Stuart C. Irby Company for supply of substation cable (Exhibit 2, Section B) in a five (5) year not-to-exceed amount of $1,400,000. PRINCIPAL PLACE OF BUSINESS Techline, Inc. Fort Worth, TX Stuart C. Irby Company Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract with the sole option of the City of Denton to extend as needed, not to exceed a total of six (6) months, with all terms and conditions remaining the same. FISCAL INFORMATION These items will be funded out of the Distribution Center Working Capital account and charged back to the using department. STRATEGIC PLAN RELATIONSHIP The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 2.3 Promote superior utility services and City facilities EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Staff Presentation Exhibit 4: Ordinance and Contracts Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Laura Hermosillo at 349-8438 Legal point of contact: Mack Reinwand at 940-349-8333.