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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement CFO: Cassey Ogden DATE: December 13, 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 Professional Services Agreement with Black and Veatch Corporation, to provide detailed design, engineering, and project management for the Denton Energy Center (DEC) Winterization; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7804-007 – Professional Services Agreement for professional services awarded to Black and Veatch Corporation, in the not-to-exceed amount of $257,000.00). INFORMATION/BACKGROUND The interruption of natural gas supply to the Denton Energy Center (DEC) during winter storm Uri in February 2021 identified financial and operational risks that resulted in significant financial losses for DME and its customers/owners. In late 2021, DME initiated a comprehensive study of options that could be implemented to reduce or eliminate these risks. The Public Utility Commission of Texas (PUCT) also established new weatherization requirements for the DEC and all generating units and transmission equipment across Texas in response to winter storm Uri. The DEC made operational changes and installed additional temporary equipment to ensure compliance with these weatherization requirements during the winter of 2021/2022 and beyond. Based upon the results of the comprehensive analysis of options, DME selected specific cost-effective measures to permanently reduce the risk of freeze damage to DEC equipment and included $2.2 million in the FY 23 Capital Improvement Plan (CIP) to make the recommended changes. The proposed contract with Black and Veatch, one of DME’s prequalified engineering firms, will accomplish the following: 1) Perform detailed design engineering of the recommended systems to achieve reliable operations of the DEC down to -10 degrees Fahrenheit. 2) Develop equipment, process flow diagrams, and construction specification for the work to be completed by a constructor. 3) Develop a comprehensive Request for Proposal for the City of Denton Purchasing to solicit proposals to purchase the required equipment and construct the specified systems. 4) Assist DME Engineering in evaluating responsive offers to the RFQ, and 5) Review and approve as-built drawings of the completed systems at the DEC. The original system design provided freeze protection down to 19°F by using a 19% solution of monopropylene glycol and water as antifreeze. While freeze protection down to 19°F may be sufficient for City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com most historic winters at the DEC, winter storm Uri in 2021 demonstrated that this level of freeze protection is insufficient for extreme weather events outside of the normal. During winter storm Uri, the ambient air temperature dropped below freezing for almost 11 days straight and below 20°F for over 5 days. The minimum temperature reached during this event was -6°F. In the middle of this extremely cold weather period, the natural gas pressure at the site dropped too low to sustain generation. With the engines not running and maintaining adequate heat in the antifreeze, this event proved cold enough and long enough in duration to freeze the coolant in the radiators, which caused leaks in the radiators. The radiators had to thaw before engines could be operated again, and leaking radiators had to be isolated from service. Subsequent costly repairs were also required to return the damaged radiators to service. Denton Municipal Electric (DME) received recommendations from Black & Veatch to provide protection of the radiators down to a minimum ambient temperature of -10°F. After review of the report, DME chose to use different winter and summer glycol mixes to mitigate the issues caused by winter storm Uri in 2021. The services of Black & Veatch have been requested to proceed with detailed design through the Pre-qualified professional services ordinance approved by City Council on December 14, 2021 (Ordinance 21-2687). Request for Qualifications for professional engineering services for Denton Municipal Electric was solicited using the City’s formal solicitation process. City Council approved a pre-qualified list of engineering firms on December 14, 2021. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 14, 2021, Council approved RFQ 7804 for a prequalified list of professional engineering services for Denton Municipal Electric (Ordinance 21-2687). On December 12, 2022, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award a contract to Black & Veatch Corporation, to provide detailed design, engineering, and project management for the Denton Energy Center (DEC) Winterization, in a not-to-exceed amount of $257,000. PRINCIPAL PLACE OF BUSINESS Black & Veatch Corporation Overland Park, KS FISCAL INFORMATION These services will be funded from DME's pre-qualified engineering services account 605171500.1360.5520. Requisition #157874 has been entered into the Purchasing software system in the amount of $199,000. The budgeted amount for this item is $257,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Cody Tenorio, 940-349-7532. Legal point of contact: Marella Lunn at 940-349-8333.