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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ 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.