Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: December 14, 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 Osmose Utilities Services, Inc., for pole inspection
services for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an
effective date (RFP 7796 - awarded to Osmose Utilities Services, Inc., in the two (2) year not-to-exceed
amount of $300,000.00).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) supplies electricity to around 59,000 utility customers in the greater
Denton area. There are approximately 18,000 poles, of varying composition, within DME’s 100 square mile
service territory. Inspection and treatment of DME Distribution and Transmission System power poles are
necessary to determine the remaining service life of these poles. Over time, poles can be subject to rot and
deterioration causing them to be a potential safety hazard to the public and to the linemen who must climb
and work on them.
The US Department of Agriculture’s Rural Utilities Service (USDA RUS) has defined five (5) Wood Pole
Decay Severity Zones in the United States based on summer humidity and temperature information. DME’s
service territory lies within the boundaries of Decay Severity Zone 3. For Zone 3, RUS Bulletin 1730B-
121, dated 8/13/13, recommends a wood pole inspection cycle every 10 years. Over 10,000 poles have been
inspected since October 2020 when the current inspection cycle started. The previous inspection contract
expired before the full inspection cycle could be completed. It is anticipated that the remaining 8,000 poles
can be inspected within 2 years.
The inspection process is designed to identify and treat wood poles that are in the early stages of decay to
extend their service life and ensure they are safe for linemen and the public to live and workaround. Wood
poles are partially excavated and checked for rotting below ground level. They are sounded and bored to
determine if the interior of the pole is structurally sound or has begun to fail due to rot or insect infestation.
Poles experiencing some of these symptoms may be treated with a fumigant to stop and prevent further rot
as well as pesticides to prevent further insect damage. (All of the substances used have been reviewed and
approved by the City of Denton for environmental and health considerations.) Poles that have moderate
decay or damage be reinforced to ensure that they remain safe and serviceable for years to come.
The inspection process also includes non-wood poles, checking for damage, corrosion, and other safety
issues. The inspections identify both wood and non-wood poles that are unsafe or beyond restoration
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
thresholds. These poles are flagged for priority pole replacement. The results of the inspections are reported
back to DME weekly so that these poles may be addressed and replaced in a timely manner.
The estimated expenditures associated with this contract are shown below:
Project Description Estimated 2-Year Expenditure
Pole Inspection Services Year 1 250,000
Pole Inspection Services Year 2 50,000
Total $300,000
Request for Proposals was sent to 477 prospective suppliers, including 14 Denton firms. In addition,
specifications were placed on the Materials Management website for prospective suppliers to download and
advertised in the local newspaper. Two (2) proposals were received, 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 firm. Based upon this
evaluation, Osmose Utilities Services, Inc. was ranked the highest and determined to be the best value for
the City.
NIGP Code Used for Solicitation: 690, 691, 725, 726, 730, 839, 840
Notifications sent for Solicitation sent in IonWave: 477
Number of Suppliers that viewed Solicitation in IonWave: 23
HUB-Historically Underutilized Business Invitations sent out: 32
SBE-Small Business Enterprise Invitations sent out: 191
Responses from Solicitation: 2
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 13, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract to Osmose Utility Services, Inc., for pole inspection services to Denton Municipal
Electric, in a two (2) year, not-to-exceed amount of $300,000.
PRINCIPAL PLACE OF BUSINESS
Osmose Utility Services, Inc.
Peachtree City, GA
SUSTAINABILITY AND ENVIRONMENTAL
The treatments used on wood poles were reviewed by the Environmental Services & Sustainability
Department in August of 2017 and determined to be within the City’s acceptable guidelines. The process
and treatments used have not changed since that time.
ESTIMATED SCHEDULE OF PROJECT
This is a two (2) year contract.
FISCAL INFORMATION
These services will be funded from Electric Operating Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
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.