Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: March 2, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or her designee, to execute a Professional Services Agreement with MRE
Consulting, Ltd., for Energy Trading and Risk Management (ETRM) Consulting for the Denton Municipal
Electric Department as set forth in the contract; providing for the expenditure of funds therefor; and
providing an effective date (RFQ 7538 – Professional Services Agreement for consulting services awarded
to MRE Consulting, Ltd., in the three (3) year not-to-exceed amount of $350,000.00).
INFORMATION/BACKGROUND
Denton Municipal Electric manages a wholesale energy portfolio valued in the hundreds of millions of
dollars. The market risk of this portfolio is assessed daily by DME staff per normal industry practice. In
recent years the tools used to do these assessments were a mixture of applications many of which rely on
human input. Computer-based applications are the preferred industry standard for this function as
recommended by an outside consultant (Deloitte). DME acted on this recommendation and purchased an
ETRM system from Allegro Development Corp. on June 23, 2020.
Imbedded in the Allegro contract is a basic installation and setup of the system in a projected multi-week
timeframe that is currently slated for completion in February. DME understood that that the basic
manufacture’s configuration package was a solid starting point, but that certain customization would be
needed to match DME’s operation, which has some unique characteristics as a vertically integrated and not-
for-profit utility. DME planned and budgeted for this additional consultation assistance in order to create
unique tools and reports tailored to its operation. Prior to and during the implementation of the new Allegro
system, DME has been utilizing a consulting firm (Deloitte) to provide an ETRM system and advisory
recommendations connected with its utilization. The Deloitte engagement is ending in the first quarter of
2021. Engagement with this firm (MRE Consulting, Ltd.) will ensure that DME has consulting expertise
available for this role.
Request for Qualifications (RFQ) for professional consulting services was sent to 603 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) statements 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, and availability to complete
tasks. Based upon this evaluation, the recommended award is to MRE Consulting, Ltd. 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: 603
Number of Suppliers that viewed Solicitation in IonWave: 64
HUB-Historically Underutilized Business Invitations sent out: 52
SBE-Small Business Enterprise Invitations sent out: 182
Responses from Solicitation: 3
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 8, 2021, this item will go to the Public Utilities Board (PUB) for recommendation.
RECOMMENDATION
Award a contract with MRE Consulting, Ltd. for Energy Trading and Risk Management (ETRM)
Consulting for the Denton Municipal Electric Department, in a three (3) year not-to-exceed amount of
$350,000.
PRINCIPAL PLACE OF BUSINESS
MRE Consulting, Ltd.
Houston, TX
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
These services will be funded from Electric Operation Funds. Individual contracts will be negotiated with
the firm and purchase orders will be issued as needed. The City will only pay for services rendered and is
not obligated to pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Evaluation Sheet
Exhibit 3: Ordinance and Contract
Exhibit 4: Presentation
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Smith Day, 940-349-7561.
Legal point of contact: Marcella Lunn at 940-349-8333.