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Exhibit 1 - Agenda Information Sheet - TransFluidCity of Denton _____________________________________________________________________________________ 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 TransFluid Services, Inc., to replace transformer bushing insulators, perform on-load tap changer (LTC) maintenance, transformer testing, and replacement of breakers or transformers when needed for the City of Denton, Proposal Pricing Lines 1-9 and 14-17; providing for the expenditure of funds therefor; and providing an effective date (RFP 7674 – awarded to TransFluid Services, 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). The Public Utilities Board recommends approval (6 - 0). INFORMATION/BACKGROUND Denton Municipal Electric (DME) is responsible for maintaining the infrastructure of the electric 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 is responsible for maintaining. Within these twenty (20) substations, there are various pieces of equipment that require repair services from time to time. A major source of repair needs is the power transformers. DME has a total of fifty-nine (59) of these units in the system, with a couple of additional units to be added with future projects. The transformers have an on-load tap changer (LTC), three (3) high voltage bushing insulators, and four (4) medium voltage bushing insulators. At times, DME will need bushing insulators or LTC repaired or replaced and tested. When this situation occurs, the repair must be completed as soon as possible. Another major piece of equipment that DME has is circuit breakers. DME has one hundred and thirty-two (132) of these devices on our system, with more to be added with future projects. The breakers have six (6) bushing insulators and twelve (12) current transformers (CT’s) each. Circuit breakers must be repaired or replaced and tested as soon as possible to maintain the system protection scheme. All equipment mentioned is vital to the reliability of DME’s power grid. Considering the cost of this equipment, pro-active maintenance, and quick repair provides better reliability of our electric grid and expeditious use of ratepayer funds. Project Description Estimated 5-Year Expenditure Trans and Breaker Maintenance and Testing Year 1 150,000 Trans and Breaker Maintenance and Testing Year 2 150,000 Trans and Breaker Maintenance and Testing Year 3 150,000 Trans and Breaker Maintenance and Testing Year 4 (Extended) 150,000 Trans and Breaker Maintenance and Testing Year 5 (Extended) 150,000 Total: $750,000 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 four (4) 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, TransFluid Services, Inc. was ranked the highest and determined to be the best value for the City on Lines 1-9 and 14-17. 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: 4 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 TransFluid Services, Inc., to replace transformer bushing insulators, perform on-load tap changer (LTC) maintenance, transformer testing, and replacement of breakers or transformers when needed for the City of Denton, Proposal Pricing Lines 1-9 and 14-17, 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. SUSTAINABILITY MEASURES 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 TransFluid Services, Inc. Houston, 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 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.