Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
DCM: David Gaines
DATE: July 19, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a contract between the City of Denton and JRD, LLC dba
Maslonka Powerline Services, LLC, amending the contract approved by the City Council on February 23,
2021, in the not-to-exceed amount of $15,880,000.00; said first amendment to provide transmission line
emergency services and a cost adjustment due to rising fuel, material, and labor costs for Denton Municipal
Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 7483 –
providing for an additional first amendment expenditure amount not-to-exceed $3,776,000.00, with the total
contract amount not-to-exceed $19,656,000.00). The Public Utilities Board recommends approval (6 - 0).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) utilizes the services of Maslonka Powerline Services, LLC (MPS) to
construct transmission line projects in its approved Capital Improvement Plan. The existing agreement with
MPS does not include the cost associated with immediate response to emergency services related to
transmission line failure. In addition, the unforeseen rise in materials, labor, and fuel charges have increased
the cost to construct the planned CIP projects.
Transmission lines are vulnerable to damage from unpredictable natural storm events, such as tornados,
electrical storms, and icy winter weather. DME does not have the manpower, or equipment, to handle
catastrophic events that may occur to the transmission system. DME is proposing an amendment to the
existing MPS contract for emergency services to repair transmission line failures that pose an imminent
threat to DME’s transmission system.
MPS requires a retainer of $150,000 for each of the remaining four years of the contract to have material
and equipment readily available 24 hours a day to respond within 8 hours of an emergency event. Labor
and material for such events will be billed hourly per the contract.
In addition, DME has recognized an increase in material, fuel, and labor costs worldwide. Project
construction costs are 10 – 20% higher than originally estimated. DME’s current contract with MPS is not
sufficiently funded for all the approved CIP projects with the rise in construction costs. DME is proposing
to increase the contract by 20% due to the rise in construction-related costs.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
A summary of the proposed amendment is shown in the following table:
Summary
Original Approved Contract Amount $15,880,000
Proposed Amendment: $3,776,000
Retainer for Emergency Services (4 years) $600,000
20% Contract Increase $3,176,000
Proposed Revised Contract Total: $19,656,000
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 23, 2021, City Council approved the contract with JRD, LLC dba Maslonka Powerline
Services, LLC, in the not-to-exceed amount of $15,880,000 (Ordinance 21-204).
On July 11, 2022, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award Amendment No. 1 with JRD, LLC dba Maslonka Powerline Services, LLC, to provide transmission
line emergency services and cost adjustment due to rising fuel, material, and labor costs for Denton
Municipal Electric, in a not-to-exceed amount of $3,776,000, for a total amended contract amount of
$19,656,000.
PRINCIPAL PLACE OF BUSINESS
JRD, LLC dba Maslonka Powerline Services, LLC
Stephenville, TX
ESTIMATED SCHEDULE OF PROJECT
This contract expires on February 23, 2025.
FISCAL INFORMATION
The costs for services provided under the proposed agreement will be funded out of amounts budgeted for
specific CIP projects. The majority of work proposed will be in the transmission category. These costs for
transmission projects will ultimately be recovered through the Public Utility Commission Transmission
Cost of Service Program (TCOS).
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: LLC Members
Exhibit 4: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169.
Legal point of contact: Marcella Lunn at 940-349-8333.