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Agenda Information SheetCity of Denton __________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: February 15, 2022 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 Techline, Inc., for galvanized steel transmission poles, anchor cages, and associated hardware for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 7873 – awarded to Techline, Inc., in the not-to- exceed amount of $4,738,873.00). INFORMATION/BACKGROUND Denton Municipal Electric (DME) has several planned transmission line projects in its approved five-year Capital Improvement Plan (CIP) that will require the purchase of galvanized steel transmission poles. This RFP provides steel transmission poles, galvanized steel hardware, and anchor bolt cages for five transmission line projects listed below. Please see Exhibit 3 for project locations. 138kV Hickory to Locust Transmission Line Reconstruction: This project will rebuild approximately 2.5 miles of the existing Hickory Substation to Locust Substation transmission line to replace aging facilities and provide the capacity needed to meet the requirements of the Electric Reliability Council of Texas contingency planning criteria. The existing poles are 50+ year old wood poles and not adequate to support the larger conductor required to meet the needed capacity. Twenty-two (22) poles are required for this project and are included in this RFP. 138kV Hickory to Bonnie Brae Transmission Line Relocation: This project will realign transmission poles with the widening of Bonnie Brae Street and the tie-in to the new Hickory GIS Substation. Five (5) poles are required for this project including a bypass switch pole for connection to the RD Wells transmission line and are included in this RFP. 138kV Hickory GIS Riser Poles: These poles will tie in the overhead transmission lines from Locust Substation, Bonnie Brae Substation, and RD Wells Substation to the underground transmission conductors to the new Hickory GIS Substation. Three (3) poles are required for this conversion and are included in this RFP. I35 – Masch Branch to Denton North 138kV Transmission Line Relocation: This project is to relocate the existing transmission line out of the new I35 interchange right of way. Ten (10) poles are required for this project and are included in this RFP. The Masch Branch to Denton North transmission line is owned by Texas Municipal Power Agency and as required in the “DME and TMPA Transmission Operator, Maintenance, and Construction Services Agreement”, DME shall perform the procurement and City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com construction for TMPA capital projects in the Denton area. DME will be reimbursed by TMPA for the cost of the poles and for the cost of the whole project. I35 – RD Wells to Hickory 138kV Transmission Line Relocation: This project is to relocate the existing transmission line out of the new I35 interchange right of way. Three (3) poles are required for this project and are included in this RFP. DME will be reimbursed by TXDOT for the cost of the poles and for the cost of the whole project. Project Description Estimated Expenditure 138kV Hickory to Locust TM Line Reconstruction $1,749,670.00 138kV Hickory to Bonnie Brae TM Line Relocation $309,044.00 Hickory GIS Transmission Riser Poles $340,997.00 I35 - Masch Branch to Denton North 138kV TM Line Relocation $1,614,235.00 I35 - RD Wells to Hickory 138kV TM Line Relocation $294,120.00 Contingency $430,807.00 Total: $4,738,873.00 The pricing from Techline is guaranteed until February 28, 2022. Delays in approval of the contract could result in an increase in pricing. The cost for purchase of the steel transmission poles, galvanized steel hardware, and anchor bolt cages for the I35-Masch Branch to Denton North and the I35-RD Wells to Hickory transmission lines will be initially funded by DME and ultimately reimbursed by TxDOT. The cost for purchase of the steel transmission poles, galvanized steel hardware, and anchor bolt cages for the Hickory to Locust transmission line, Hickory to Bonnie Brae transmission line, and the Hickory GIS riser poles will be funded as part of a Capital Improvement Project (CIP), and the cost will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). Request for Proposals was sent to 269 prospective suppliers, including thirteen (13) Denton firms. In addition, specifications were placed on the Procurement and Compliance 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 price, delivery, compliance with specifications, and probable performance. Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Techline, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 340, 540 & 839 Notifications sent for Solicitation sent in IonWave: 269 Number of Suppliers that viewed Solicitation in IonWave: 17 HUB-Historically Underutilized Business Invitations sent out: 27 SBE-Small Business Enterprise Invitations sent out: 115 Responses from Solicitation: 2 RECOMMENDATION Award a contract with Techline, Inc., for galvanized steel transmission poles, anchor cages, and associated hardware for Denton Municipal Electric, in a not-to-exceed amount of $4,738,873. Due to the rise in Covid19 cases, the Public Utilities Board (PUB) postponed the meeting in January 2022. Procurement Staff met with the Chair and determined which items could go to Council first due to timing. PRINCIPAL PLACE OF BUSINESS Techline, Inc. Fort Worth, Texas FISCAL INFORMATION These items will be funded from the Texas Department of Transportation, Capital Project, and TCOS funds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Summary Exhibit 3: Project Location Map Exhibit 4: Presentation Exhibit 5: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this contact Mark Zimmerer, 940-349-7169. Legal point of contact: Marcella Lunn at 940-349-8333.