Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: May 4, 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 Professional Services Agreement with
NewGen Strategies and Solutions, LLC, for the Electric Utility Cost of Service and Rate Design Study for
Denton Municipal Electric, as set forth in the contract; providing for the expenditure of funds therefor; and
providing an effective date (RFQ 7628 – Professional Services Agreement for cost services awarded to
NewGen Strategies and Solutions, LLC, in the five (5) year not-to-exceed amount of $169,500.00). The
Public Utilities Board recommends approval (6 - 0).
INFORMATION/BACKGROUND
The Electric Utility contracts to perform a cost of service and rate design analyses approximately every five
years. During interim years, in-house financial and electric staff members update models. These consulting
services provide expertise in reviewing all departmental costs (both direct and indirect) and allocation
processes, which helps to ensure rates are equitably designed among all rate classes. The budget for this
project was included in the FY 2020-2021 operating budget.
The current study was updated in 2018 utilizing FY 2017 financial information. It is important to note that
the City usually updates COS studies every five years, however, based on recent organizational changes
(i.e. DEC, TMPA, TCOS revenue) staff is recommending that we proceed with updating the study early.
Phase and Task Cost Estimate
Phase 1: Project Management, Data Request, Kick-Off Meeting $26,000
Phase 2: Financial Forecast and Revenue Requirement $22,000
Phase 3: Cost of Service Study $32,000
Phase 4: Rate Design Study
Rate Design Model $38,000
Impact Fee Development $15,000
AMI Rate Design Model Update $15,000
Phase 5: Reports and Presentations $17,000
Subtotal $165,000
Optional
Per trip for two NewGen team members (not included above) $4,500
Total $169,500
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
NewGen Strategies and Solutions project team will consist of Jill Schuepbach, as project manager. Mr.
Scott Burnham will serve as the Technical Advisor, and Mr. Grant Rabon will serve as Regulatory Lead.
Additional analytical support will be provided by supporting staff. NewGen Strategies & Solutions have
been involved in numerous utility cost of service analyses across the United States and in Texas.
Request for Qualifications (RFQ) for professional surveying services was sent to 644 prospective firms,
including 25 Denton 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. Four
(4) 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 schedule to complete tasks. 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.
NIGP Code Used for Solicitation: 918 - (Service Only) - Consulting
Services
Notifications sent for Solicitation sent in IonWave: 644
Number of Suppliers that viewed Solicitation in IonWave: 45
HUB-Historically Underutilized Business Invitations sent out: 64
SBE-Small Business Enterprise Invitations sent out: 305
Responses from Solicitation: 4
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 26, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with NewGen Strategies and Solutions, LLC, for the Electric Utility Cost of Service and
Rate Design Study for Denton Municipal Electric, in a five (5) year not-to-exceed amount of $169,500.
PRINCIPAL PLACE OF BUSINESS
NewGen Strategies and Solutions, LLC
Richardson, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from 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: Nick Vincent, 940-349-8063 or Bill Shepherd, 940-
349-7493.
Legal point of contact: Marcella Lunn at 940-349-8333.