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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: September 28, 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 Primoris T&D Services, LLC., to perform normal and emergency operating, maintenance, and construction work on the overhead electric distribution system for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 7725 – awarded to Primoris T&D Services, LLC., in the five (5) year not-to-exceed amount of $15,000,000.00). The Public Utilities Board recommends approval (6 - 0). INFORMATION/BACKGROUND Denton Municipal Electric (DME) operates an electric distribution system in the greater Denton area. The system voltage is 13,200 volts. The City has a complement of electric system operating personnel to perform normal operating, maintenance, and construction work on the system. However, DME has a need of outside contractor services to supplement that workforce, with qualified personnel, on a project need basis for performing overhead construction projects and maintenance jobs orders, and emergency system restoration. One of the projects is a pole inspections project under Contract 6993 which was Council approved in 2019. This project is 75% complete and has inspected over 9,000 poles of the over 12,000 existing poles. Pole inspections have identified 1,150 poles needing to be replaced throughout DME’s infrastructure. To date, DME maintenance crews and contractors have changed out 173 of the poles needing replacing. The pole replacement project has depleted the current contract (RFP 6582 Overhead Construction), which will expire on September 11, 2021. The average cost to replace a pole has many variables that can drive the price. This price can range from $5,000 to possibly $10,000 per pole. The price can vary for the following reasons: •Pole size •Line Configuration and wire size •Location (road, backyard) •Equipment attached to the pole •Changed out energized or de-energized •Safety •Traffic Control Plans and permits The average life expectancy of a wood utility pole is 30 to 40 years with many variables listed below. •Treatment •Soil type •Moisture City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com •Pole class (circumference) •Weather (lightning, ice, wind other forces) •Strain and weight Our goal is to replace all the identified poles so far from the results of our Pole Inspection Project. The pole inspection project is 75% completed. Contract Term Estimated 5-Year Expenditure Year 1 $ 3,000,000 Year 2 $ 3,000,000 Year 3 $ 3,000,000 Year 4 $ 3,000,000 Year 5 $ 3,000,000 Total $15,000,000 Request for Proposals was sent to 480 prospective suppliers, including 36 Denton firms. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. One (1) proposal was received, and references were checked to ensure the vendor can provide the services requested in the Scope of Work. The proposal was evaluated based upon published criteria including compliance with specifications, safety, probable performance, and price. Best and Final Offer (BAFO) was requested from the firm. The department is awarding the contract to Primoris T&D Services, LLC. NIGP Code Used for Solicitation: 913 - (Service Only) - Construction Services, Heavy (Incl. Maintenance and Repair Services) Notifications sent for Solicitation sent in IonWave: 480 Number of Suppliers that viewed Solicitation in IonWave: 16 HUB-Historically Underutilized Business Invitations sent out: 36 SBE-Small Business Enterprise Invitations sent out: 168 Responses from Solicitation: 1 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 Primoris T&D Services, LLC. to perform normal and emergency operating, maintenance, and construction work on the overhead system for the City of Denton, in a five (5) year not- to-exceed amount of $15,000,000. SUSTAINABILITY MEASURES Strengthening DME’s Overhead pole line infrastructure, maintaining an accurate record of DME assets and when they were installed. Maintain adequate and accurate GIS mapping. Relationship to Sustainability Framework Wooden poles that have been inspected and recorded as poles will need to be changed out on a planned and scheduled order. Scheduling will be based on the pole inspection report given to DME by OSMOSE (Osmose is the qualified and council approved contractor that is working under contract 6993). The reports provide the age, condition of the existing pole, equipment that is on the pole. Replacement of these poles will help maintain system reliability by strengthening DME’s overhead pole infrastructure What are some of the goals the department will be setting up to ensure that the sustainability measures are met? Goal 1: Replace poles with up to date DME construction standards Goal 2: Maintain accurate records of the poles changed out for GIS mapping and asset management Goal 3. Perform quality asset management by inspecting all work performed by the contractor and making sure all jobs are completed and up to DME construction standards. PRINCIPAL PLACE OF BUSINESS Primoris T&D Services, LLC Valley View, TX ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract. FISCAL INFORMATION These services will be funded from Capital Improvement Funds. 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: LLC Members Exhibit 3: Presentation Exhibit 4: 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.