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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: June 8, 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 TRC Engineers, Inc., for the administration of communication companies requests to attach wired and wireless joint use services to City of Denton infrastructure, as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7328 - Professional Services Agreement for administration services awarded to TRC Engineers, Inc., for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $50,000.00). The Public Utilities Board recommends approval (4 - 0). INFORMATION/BACKGROUND Denton Municipal Electric (DME) evaluates impacts to the electric distribution overhead infrastructure of pole attachments from communication companies that want to attach cables, antennas, and other equipment to DME-owned distribution poles. These attachments are called “joint use” and access to DME assets is required per the Telecommunications Act of 1996 (Effective August-2-1996), the Pole Attachment Act, 47 U.S.C, 224 (Effective January-3-2012) and Local Government Code: Chapter 283 (Effective September-1- 1999) for wired, and per SB1004 (Effective 9-1-2017) for wireless. All requests are reviewed and evaluated in accordance with the DME Pole Attachment Standards; DME Construction Standards; the National Electric Safety Code (NESC); and other applicable laws, regulations, or standards. There are two separate review processes that follow based on the type of request, wired or wireless. Currently, DME engineering staff perform all reviews of the attachment requests (submitted forms, plans, and loading calculations). Wired requests are submitted through NJUNS (National Joint Use Notification System), and billed before the application is reviewed. The attaching assets are then identified in DME’s GIS system, for any discrepancies, followed by a visual field inspection. Final comments are made in NJUNS. Wireless requests follow a different process since these require an electric service to power them. Wireless applications are sent via email to DME engineering staff, once received a design layout, for the service, is created. The submission must also go through the City of Denton’s Development Review Committee process for approval of the node structure and electrical service. Planning, design, and construction discussions with DME Engineering Supervision are done before a final design is accepted and the project is then billed and then released for construction. On average DME reviews 25 joint use-related projects per month which account for approximately 110 manhours of staff time per month. This translates to around $4,900, per month, ($59,000 per year) of DME engineering costs. Due to increased development around Denton and the deployment of 5G, the number of City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com joint use project reviews is expected to increase over the next several years. More service providers are expected to deploy wired and wireless attachments in the City; and, it is anticipated the number of joint use reviews will increase to 40 to 50 per month. Currently, DME has two employees who dedicate time to the administration and evaluations of joint use projects; one for wired attachments and one for wireless attachments. One 5G provider has already announced plans to install as many as 230 or more 5G wireless nodes. More providers are anticipated to be in line to deploy in Denton. As more 5G service providers begin deploying in the City of Denton, the “joint use” process will encompass more than half of the identified Engineering staff’s time and resources. Based on these values, the cost of DME staff providing this service to these for-profit entities will increase to over $118,000 annually. Under the proposed contract the engineering firm will take over all functions and processes associated with joint use for the DME. The contractor will receive and review all applications for wired and wireless joint use attachment requests and check for completeness and accuracy, as well as provide assistance throughout the application process. Pre- and post-construction inspections will be conducted to ensure all communication attachments are installed correctly and accurately and do not impose on existing DME, or communication, assets. Once all fieldwork is complete the contractor will provide the necessary as-built plans and documentation required so the attachment can be recorded into DME’s Geospatial Information System. The contractor will assist in the tracking and documentation, status reporting, billing and invoicing, and any make-ready engineering design of each joint use request. Under this contract, the engineering firm performing the evaluations will bill the requesting company directly for the joint use assessments. The contractor will manage all functions, with DME oversight. All fees proposed by the contractor have been found to be similar to the same levels this contractor charges other utilities such as CPS (San Antonio) and Oncor (Dallas). A contract for these services will be a near- zero cost to DME with administrative costs estimated at $13,000 annually. The only exception could be a possible, very infrequent, need to pay for additional services not covered under the contract. Since the contractor will bill the attachment requester directly, no financial transactions will occur with the City; however, the City of Denton will still receive the annual joint use attachment fees as per the Pole Attachment Agreement. It is anticipated to save approximately $105,000 annually of the cost normally expended by DME Engineering. DME recommends contracting the required services associated with joint use administration and evaluations. This will help develop a more uniform process for “joint use”, which will benefit utilities choosing to do business with the City of Denton. The contract would include the services required for attachment review and perform necessary post-installation inspections. Additionally, a contractor would eliminate the need for DME to potentially hire additional full-time employees as the number of requests grows, and free up time for staff to work on other assignments and projects Request for Qualifications (RFQ) for joint use professional services was sent to 356 prospective firms, including 15 Denton firms for these services. In addition, the RFQ was placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Three (3) statement of qualifications (SOQ) were received. The SOQ’s were evaluated based upon published criteria including past performance, experience and qualifications, and schedule. Based upon this evaluation, the recommended award is to TRC Engineers, Inc. and is determined to be the most qualified firm for the City. NIGP Code Used for Solicitation: 969-(Service Only)-Professional Services, Higher Education & 925-(Service Only)- Engineering Services, Professional Notifications sent for Solicitation sent in IonWave: 356 Number of Suppliers that viewed Solicitation in IonWave: 25 HUB-Historically Underutilized Business Invitations sent out: 31 SBE-Small Business Enterprise Invitations sent out: 88 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On May 24, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with TRC Engineers, Inc., for the administration of wired and wireless joint use services to the City of Denton, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $50,000. PRINCIPAL PLACE OF BUSINESS TRC Engineers, Inc. New York, NY ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. 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 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Jerry Fielder, 940 349-7173. Legal point of contact: Marcella Lunn at 940-349-8333.