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,
rejecting any and all competitive proposals under RFP 7214 for Utility Scale Solar Energy for Denton
Municipal Electric; and providing an effective date (RFP 7214). The Public Utilities Board recommends
approval (6 - 0).
INFORMATION/BACKGROUND
City Council directed Denton Municipal Electric (DME) to evaluate the potential for adding utility scale
solar energy in the renewable energy supply portfolio. RFP 7214 was proposed to acquire up to 100 MW
of solar energy and capacity for five to fifteen years.
DME received 107 different offers from 17 different respondents. These offers consisted of a purchase
agreement, where DME would receive solar energy, capacity, and environmental attributes from the facility.
After evaluation of the offers, DME staff presented the results to City Council. The results showed that
there were offers slightly “below market” contracts for power, meaning no extra expense to ratepayers
above what could be acquired in competitive bilateral markets. When we reached out to two of the
counterparties to move forward, they changed their offers significantly. It is for these reasons, staff
recommends rejecting all bids. At this time, the department does not plan on rebidding this item.
In accordance with the Local Government Code 252.043, the City Council may reject any and all bids.
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
Staff recommends rejection of all proposals under RFP 7214 for Utility Scale Solar Energy.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Terry Naulty, 940-349-7565.
Legal point of contact: Marcella Lunn at 940-349-8333.