Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: May 2, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with KBS Electrical Distributors, Inc., for the purchase
of Electric Utility Substation Switches for Denton Municipal Electric; providing for the expenditure of
funds therefor; and providing an effective date (IFB 8178 – awarded to KBS Electrical Distributors, 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 $2,693,820.00). The Public Utilities Board recommends approval (7 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) has planned substation projects in its approved five-year Capital
Improvement Plan (CIP) that require the purchase of substation switches and accessories including
interrupters, motor operators, and auxiliary switches. Projects include the new Underwood Substation to
accommodate the planned Hunter Ranch and Cole Ranch developments. Other projects include upgrades
to the existing Bonnie Brae and RD Wells substations to increase capacity and reliability and a new
proposed substation in the southwestern service area. DME solicited an Invitation for Bid (IFB) to provide
25kV, 138kV, and 345kV switches and associated operators and accessories.
Substation switches are installed to allow for the isolation of transmission lines, substation buses, and
equipment for repairs and maintenance. Switches under this solicitation are air-insulated, three-phase, and
gang operated. Sulfur Hexafluoride (SF6) switch interrupters extinguish arcs when opening energized
switches that cannot be de-energized before operation. Motor operators for controlling switches remotely
will be provided for operating switches with interrupters. Auxiliary switches are also included in this
solicitation which serves to indicate the switch’s position for the Supervisory Control and Data Acquisition
(SCADA) system.
The technical specifications indicated that only Southern States Switches and accessories will be accepted.
DME’s system includes 400+ switches with 99% manufactured by Southern States. Maintaining the same
manufacturer allows DME to make additions and/or replace existing switches without altering or replacing
steel structures and operating hardware. In addition, planned substation designs are based on the installation
requirements of Southern States.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Invitation for Bids was sent to 318 prospective suppliers of this item, including ten (10) Denton firms. In
addition, specifications were placed on the Procurement website for prospective suppliers to download, and
advertised in the local newspaper. Five (5) bids were received, with four (4) meeting specifications. The
lowest bid was received by KBS Electrical Distributors, Inc.
NIGP Code Used for Solicitation: 285 - Electrical Equipment and
Supplies (Except Cable and Wire)
Notifications sent for Solicitation sent in IonWave: 318
Number of Suppliers that viewed Solicitation in IonWave: 12
HUB-Historically Underutilized Business Invitations sent out: 32
SBE-Small Business Enterprise Invitations sent out: 134
Responses from Solicitation: 5
Responses Meeting Specifications: 4
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 24, 2023, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with KBS Electrical Distributors, Inc., for the purchase of Electric Utility Substation
Switches for Denton Municipal Electric, in a three (3) year, with the option for two (2) additional one (1)
year extensions, in the total five year not-to-exceed amount of $2,693,820.
PRINCIPAL PLACE OF BUSINESS
KBS Electrical Distributors, Inc.
Bryan, TX
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. Orders will be placed as project schedules
require and will be delivered within 28-30 weeks.
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).
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Bid Tabulation
Exhibit 3: 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.