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 utilize a contract through the Lower Colorado River Authority Contract
Number 5539, for the purchase of 138kV and 345kV high voltage circuit breakers for Denton Municipal
Electric; providing the expenditure of funds therefor; and providing an effective date (File 7995 – awarded
to Siemens Energy, Inc., for three (3) years, with the option for two (2) additional one (1) year extensions,
in the total five (5) year not-to-exceed amount of $2,510,130.00).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) has substation projects in its approved five-year Capital Improvement
Plan that will require the installation of 138kV and 345kV circuit breakers. Circuit breakers are necessary
substation protective devices that have the capability to interrupt the flow of electrical current during faults
to prevent damage to equipment, structures, and personnel. Circuit breakers are controlled by
microprocessor-based devices, referred to as “relays.” Relays monitor various electrical conditions in
substations and on electrical circuits. If a relay detects a fault or other abnormal condition, it will
automatically activate controls to open the circuit breaker to interrupt the electrical flow.
DME currently has 123 high-voltage circuit breakers in service. Circuit breakers are rated by the electric
system supply voltage, the normal current they are expected to support, and the maximum short circuit
current they are designed to safely interrupt.
The utilization of the cooperative contract allows the City to accept previously negotiated terms and
conditions.
The proposed contract does not require the expenditure of any minimum amount. Purchase orders will be
issued based on need in project construction schedules. Orders will be placed as project schedules require
and will be delivered within 43-57 weeks.
Pricing obtained through the Lower Colorado River Authority has been competitively bid and meets the
statutory requirements of Texas Local Government Code 271.102.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 12, 2006, Council approved the interlocal agreement with the Lower Colorado River
Authority (Ordinance 2006-334).
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
On December 12, 2022, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Siemens Energy, Inc., for the purchase of 138kV and 345kV high voltage circuit
breakers for Denton Municipal Electric, in a three (3) year, with the option for two (2) additional one (1)
year extensions, in the total five (5) year not-to-exceed amount of $2,510,130.
PRINCIPAL PLACE OF BUSINESS
Siemens Energy, Inc.
Richland, MS
ESTIMATED SCHEDULE OF PROJECT
This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1)
year periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
The costs for material purchased under the proposed agreement will be funded out of amounts budgeted for
specific projects. The 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). The City will only pay for services rendered and is not obligated to pay the full contract
amount unless needed.
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: Mark Zimmerer, 940-349-7169.
Legal point of contact: Marcella Lunn at 940-349-8333.