Exhibit 1 - Agenda Information SheetCity of Denton
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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
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Denton, Texas
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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.