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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ 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.