Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: June 22, 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 Texas Electric Cooperatives,
Inc. for the supply of Electric Utility Station Service Voltage Transformers for Denton Municipal Electric
to be stocked in the City of Denton Warehouse; providing for the expenditure of funds therefor; and
providing an effective date (IFB 7695 – awarded to Texas Electric Cooperatives, Inc., 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 $750,000.00).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) uses station service voltage transformers (SSVT) to transform the
transmission voltage from 138kV down to 120/240 volts, which will be used to provide power for site
electrical needs. Substation sites require 120/240-volt power to operate building lights, exterior lights,
receptacles, battery charges, and other electrical hardware and equipment.
The Warehouse orders goods in coordination with DME for specific projects under construction. The items
are temporarily stored in the Warehouse until they are needed on the job site and then transferred to DME
through an inventory management system. The items are ordered as needed, taking into account the
contracted lead time and the need-by-date by the using department. The need-by-date is established by
ensuring that citizen, customer, and developer timelines all form the basis of when the construction work
must be complete by with an operational City of Denton service; furthermore, it factors in City of Denton
construction crew schedules and construction sequencing with job site contractors. The contracted amount
of $750,000 is based on a five (5) year historical spend, which is about $90,000 per year. The additional
amount is to allow for future projections.
Invitation for Bids was sent to 275 prospective suppliers 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) bids meeting specifications were received. The lowest bid was received by Texas
Electric Cooperatives, Inc.
NIGP Code Used for Solicitation: 285 - Electrical Equipment and
Supplies (Except Cable and Wire)
Notifications sent for Solicitation sent in IonWave: 275
Number of Suppliers that viewed Solicitation in IonWave: 25
HUB-Historically Underutilized Business Invitations sent out: 28
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
SBE-Small Business Enterprise Invitations sent out: 115
Responses from Solicitation: 3
RECOMMENDATION
Award a contract with Texas Electric Cooperatives, Inc. for the supply of Electric Utility Station Service
Voltage Transformers for Denton Municipal Electric to be stocked in the City of Denton Warehouse, 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 $750,000.
PRINCIPAL PLACE OF BUSINESS
Texas Electric Cooperatives, Inc.
Georgetown, 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 items will be funded out of the Warehouse working capital account and charged back to the using
department. 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: Bid Tabulation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Dustin Rolfe, 940-349-8000.
Legal point of contact: Marcella Lunn at 940-349-8333.