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Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement CFO: Cassey Ogden DATE: November 15, 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 Wesco Distribution, Inc., amending the contract approved by the City Council on December 1, 2020, in the not-to- exceed amount of $600,000.00; said first amendment to provide for additional concrete streetlight poles for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (File 7488 – providing for an additional first amendment expenditure amount not-to-exceed $150,000.00, with the total contract amount not-to-exceed $750,000.00). INFORMATION/BACKGROUND Extended lead times due to supply chain issues have necessitated DME to begin to order equipment significantly in advance of when the equipment is needed to ensure that sufficient materials are in inventory to meet an emergency, routine maintenance, and development needs. With earlier order dates, additional spending authority is needed to enable the required orders. The lead times for concrete streetlight poles are now approaching 52 weeks. DME is ordering more poles ahead of time causing faster spending than normal and the need to increase the contract spend amount by 25% to the amount of $150,000. The concrete poles are 20ft and 35ft streetlight poles that are used in new developments. The number of new developments coming into Denton is also increasing the number of poles being used. The streetlights are critical in getting the new street released by City inspection and the proposed addition of funds will help ensure the supply will meet the demand under the current conditions. Project Description Estimated 3-Year Expenditure Year 1 Spend $ 250,000 Year 2 Spend $250,000 Projected Year 3 Spend $250,000 Total $750,000 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 1, 2020, City Council approved a contract with Wesco Distribution, Inc., in the not-to-exceed amount of $600,000 (Ordinance 20-2378). On November 14, 2022, this item will be presented to the Public Utilities Board (PUB) for consideration. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com RECOMMENDATION Award Amendment No. 1 with Wesco Distribution, Inc. to provide for concrete streetlight poles for the Denton Municipal Electric, in a not-to-exceed amount of $150,000, for a total amended contract amount of $750,000. PRINCIPAL PLACE OF BUSINESS Wesco Distribution, Inc. Tulsa, OK SUSTAINABILITY MEASURES These concrete poles are environmentally friendly because they take the place of wood streetlight poles. They also have a longer life than a wood pole or fiberglass pole, so they do not have to be replaced as often. These poles are also more astatically pleasing for Denton Municipal Electrics customers. ESTIMATED SCHEDULE OF PROJECT This contract will expire on December 1, 2025. FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. The City will only pay for services rendered and is not obligated to pay the full contract amount unless needed. The total amount of this contract is $750,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Randy Key, 940-349-7665. Legal point of contact: Marcella Lunn at 940-349-8333.