Exhibit 1 - Agenda Information Sheet - C & H SalesCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: September 21, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with C&H Sales and Services Company, Inc., to collect
oil and SF6 gas samples from transformers and breakers to be sent to a lab to be tested for Denton Municipal
Electric, Proposal Pricing Lines 10-13; providing for the expenditure of funds therefor; and providing an
effective date (RFP 7674 – awarded to C&H Sales and Services Company, 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
$483,000.00). The Public Utilities Board recommends approval (6 - 0).
INFORMATION/BACKGROUND
The City is responsible for maintaining the infrastructure of the Denton Municipal Electric (DME) grid that
serves the citizens of Denton. The electric grid has seventeen (17) DME owned substations and three (3)
Texas Municipal Power Agency (TMPA) owned interchanges that DME provides maintenance services.
One part of the maintenance DME performs every year is testing the oil (inside the transformers) and
greenhouse gas (SF6) (inside the breakers) to ensure the equipment is in operating condition. By pulling a
sample of oil and greenhouse gas (SF6), it is sent to a lab for various tests to be performed. These tests will
tell us if we have moisture, gases, or foreign material within the equipment that could be detrimental to the
operation of the equipment. This is similar to when a person goes to the doctor and gets his blood drawn so
the doctor can tell what is going on inside their body. DME has a total of fifty-nine (59) transformers that
need two oil tests each, one for the main tank and one for the Load Tap Changer compartment. DME has
one hundred and thirty-two (132) SF6 breakers (one test per breaker) on the system currently. These tests
will determine whether additional maintenance is required to maintain reliability. Considering the high cost
of this equipment, being proactive is better for the reliability of our electric grid and better for the citizens
of Denton.
Project Description Estimated 5-Year Expenditure
Oil and SF6 Testing Year 1 96,600
Oil and SF6 Testing Year 2 96,600
Oil and SF6 Testing Year 3 96,600
Oil and SF6 Testing Year 4 (If extended) 96,600
Oil and SF6 Testing Year 5 (If extended) 96,600
Total: $483,000
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Request for Proposals was sent to 90 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. Seven (7) proposals were received, with six (6) meeting specifications. References were
checked, and proposals were evaluated based upon published criteria including delivery, compliance with
specifications, probable performance, and price. Best and Final Offers (BAFO) were requested from the top
two firms. Based upon this evaluation, C&H Sales and Services Company, Inc. was ranked the highest and
determined to be the best value for the City on Lines 10-13.
NIGP Code Used for Solicitation: 936 - (Service Only) - Equipment
Maintenance and Repair Services for
General Equipment
Notifications sent for Solicitation sent in IonWave: 90
Number of Suppliers that viewed Solicitation in IonWave: 22
HUB-Historically Underutilized Business Invitations sent out: 14
SBE-Small Business Enterprise Invitations sent out: 27
Responses from Solicitation: 7
Responses Meeting Specifications: 6
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 13, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with C&H Sales and Services Company, Inc., to collect oil and SF6 gas samples from
transformers and breakers to be sent to a lab to be tested for Denton Municipal Electric, Lines 10-13, 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 $483,000.
SUSTAINABILITY MEASURES
Proper maintenance of the SF6 (greenhouse gas) ensures that the gas is not released into the atmosphere,
thus limiting any Air Quality impacts. Proper maintenance of transformers ensures that our transformer
impedances remain within specifications to limit energy losses in transformers. The main goal is to maintain
the current testing policy to ensure equipment operates within manufactures’ specifications.
PRINCIPAL PLACE OF BUSINESS
C&H Sales and Services, Inc.
Wagoner, OK
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 services will be funded from Electric Operating Funds. Requisitions will be entered on an as-needed
basis, and 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
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Sam Bridges, 940-349-7600.
Legal point of contact: Marcella Lunn at 940-349-8333.