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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: February 9, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute a Professional Services Agreement with NewGen Strategies and Solutions, LLC, a Colorado Limited Liability Company, for transmission rate case filing services related to actions before the Public Utility Commission of Texas as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7532 – Professional Services Agreement for case filing services awarded to NewGen Strategies and Solutions, LLC, in the not- to-exceed amount of $500,000.00). INFORMATION/BACKGROUND Transmission Cost of Service (TCOS) is an Electric Reliability Council of Texas (ERCOT) program created to promote transmission infrastructure construction that improves the overall grid. The TCOS program is a financial tool for Transmission Service Providers (TSP) to recover transmission project costs and earn a reasonable return on investment. Denton Municipal Electric(DME) has made significant investments in the transmission system infrastructure over the last 17 years. DME’s last full rate case filing in 2004 established DME’s TCOS rate at a percentage not to exceed 28.05%. In accordance with the Public Utility Commission of Texas (PUCT) requirements, TSPs file interim filings in lieu of full rate filings. DME has utilized interim filings for the last 17 years. Within that timeframe, the City has seen significant growth. The increased growth coupled with DME’s latest Earnings Report resulted in the PUCT ordering DME to file a full comprehensive rate filing package by November 2021. To assist with the PUCTs rate filings procedures, the City solicited for a consulting services specializing in rate filings. The selected firm will provide accounting calculations, document preparation, expert testimony, and other technical services as required. Request for Qualifications (RFQ) for professional surveying services was sent to 612 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. Two (2) statement of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including identification and understanding of the City’s requirements, probable and past performance and experience, and schedule. Based upon this evaluation, the recommended award is to NewGen Strategies and Solutions, LLC and is determined to be the most qualified firm for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 918 – (Service Only) – Consulting Services Notifications sent for Solicitation sent in IonWave: 612 Number of Suppliers that viewed Solicitation in IonWave: 18 HUB-Historically Underutilized Business Invitations sent out: 53 SBE-Small Business Enterprise Invitations sent out: 187 Responses from Solicitation: 2 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On February 8, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award a contract with NewGen Strategies and Solutions, LLC, for the services of a full rate case filing to the Public Utility Commission of Texas, in a not-to-exceed amount of $500,000. PRINCIPAL PLACE OF BUSINESS NewGen Strategies and Solutions, LLC Lakewood, CO ESTIMATED SCHEDULE OF PROJECT NewGen is available to begin work immediately after the contract is awarded and do the following: • Send a detailed data request to support the July of 2021 Interim-TCOS-RFP filing and host a Kick- Off/Planning Meeting. • Send a second data request to support the November of 2021 Full-TCOS-RFP filing. • Maintain ongoing communication with DME staff regarding any happenings at the PUCT and support any new Full-TCOS-RFPs, Interim-TCOS-RFPs, or Earnings Reports. FISCAL INFORMATION These services will be funded from Denton Municipal Electric Operating Funds. 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: Chris Lutrick, 940-349-7152. Legal point of contact: Marcella Lunn at 940-349-8333.