Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: April 20, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or their designee, to execute a contract with Zeit Energy, LLC, for the CNG
Fuel Station Maintenance & Repairs for the Solid Waste & Recycling Department; providing for the
expenditure of funds therefor; and providing an effective date (RFP 7604 – awarded to Zeit Energy, LLC,
for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year
not-to-exceed amount of $150,000). The Public Utilities Board recommends approval (6 - 0).
INFORMATION/BACKGROUND
On July 5, 2018, the construction of the Solid Waste Compressed Natural Gas (CNG) Fueling Station was
completed. Currently, the department has a fleet of 24 vehicles utilizing the CNG fuel station.
This contract will ensure the specialized maintenance and repairs required to keep the CNG station
operational and the CNG fleet in service. Maintenance will be performed on a weekly, monthly, and annual
basis, and repairs as needed. Maintenance activities include:
• CNG Compressor Maintenance
• CNG Dryer
• Priority Panel and Gas Storage Inspection
• Dispenser Inspection
• Site Inspection
• And Manufacturers specified weekly, monthly preventive maintenance
Based on a historical spend and future projections the recommended not to exceed (NTE) for this contract
is $150,000 for a total potential five (5) year contract.
Requests for Proposals was sent to 585 prospective suppliers, including 67 Denton firms, of this item. In
addition, specifications were placed on the Materials Management website for prospective suppliers to
download and advertised in the local newspaper. Three (3) proposals were received, references were
checked, and proposals evaluated based upon published criteria including delivery, compliance with
specifications, probable performance, and price. Based upon this evaluation, Zeit Energy, LLC was ranked
the highest and determined to be the best value for the City.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
NIGP Code Used for Solicitation: 910-(Service Only)-Building
Maintenance, Installation & Repair
Services & 961-(Service Only)-
Miscellaneous Services, No. 1 (Not
Otherwise Classified)
Notifications sent for Solicitation sent in IonWave: 585
Number of Suppliers that viewed Solicitation in IonWave: 16
HUB-Historically Underutilized Business Invitations sent out: 54
SBE-Small Business Enterprise Invitations sent out: 271
Responses from Solicitation: 3
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 13, 2016, City Council approved a contract with Zeit Energy LLC, in the not-to-exceed
amount of $2,682,445 (Ordinance 2016-253).
On April 12, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Zeit Energy, LLC, for the CNG Fuel Station Maintenance & Repairs for the Solid
Waste & Recycling Department, in a three (3) year, with the option for two (2) additional one (1) year
extensions, in the total five (5) year not-to-exceed amount of $150,000.
SUSTAINABILITY MEASURES
CNG, also known as compressed natural gas, is an eco-friendly alternative to gasoline. Made by
compressing natural gas (methane) down to less than 1% of its volume, CNG fuel is safer than gasoline
and diesel because it is non-toxic and does not contaminate groundwater.
Goal 1: Maintaining and increasing the use of CNG will reduce carbon monoxide emissions.
Goal 2: Through our Fleet Department, usage reports and cost-effectiveness will be generated.
Goal 3: For every 1% increase in natural gas production, roughly 35,000 jobs can be created.
Goal 4: Implementing the service contract will allow for the extended life of the CNG station.
PRINCIPAL PLACE OF BUSINESS
Zeit Energy, LLC
Irving, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1)
year periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
These services will be funded from Solid Waste Operating Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: LLC Members
Exhibit 4: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Arturo Garcia, 940-349-8021.
Legal point of contact: Marcella Lunn at 940-349-8333.