Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: June 27, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
rejecting any and all competitive proposals under RFP 7678 for the Landfill Gas to Energy (LFGE) Project;
and providing an effective date (RFP 7678).
INFORMATION/BACKGROUND
Up until 2020, the City was operating a Landfill Gas to Energy (LFGE) project that created electricity
through the combustion of landfill gas (LFG); however, Denton Municipal Electric bought out the contract
for this end-use and decommissioned the project, because it was not financially advantageous to DME and
the City. The City then commissioned SCS Engineers to conduct a study on possible LFGE projects at the
landfill, and the following conclusions were provided:
• Sufficient LFG exists to support beneficial reuse
• Flaring and High BTU uses are financially viable. The return on investment for High BTU is
driven by the sale of LFG at a discounted Natural Gas Price and the viability and continued
demand for Green Energy Renewable Identification Numbers (RINs) and Renewable Natural Gas
(RNGs)
Additional biogas for this project would be provided for the project from the Pecan Creek Wastewater
Treatment Plant (WWTP). This LFGE project is in conjunction with the Solid Waste and Water Utilities
departments. This would be a revenue-generating contract; the City shall receive an allocation of the Net
Sales Revenue from the sale of Gas to Third Party Purchasers subject to the contract terms and conditions.
On May 21, 2021, a Bid Invitation/Request for Proposal was opened, giving potential bidders one month
and thirty days to submit their proposal. At the conclusion of the invitation, three companies entered bids
(Renuity Renewable Solutions-Denton, LLC, Morrow Energy, and Waga Energy).
Due to ambiguity in the proposal received by the City, the evaluation scoring criteria and calculations need
to be revised to provide clarity to responders. With Council direction to reject all bids, the project will be
resolicited as soon as possible.
In accordance with the Local Government Code 252.043, the City Council may reject any and all bids.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 26, 2023, the Public Utilities Board recommended this item to the City Council for consideration.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
RECOMMENDATION
Staff recommends rejection of all proposals for the Landfill Gas to Energy project.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Eugene McKinnie, 940-349-8043
Legal point of contact: Marcella Lunn at 940-349-8333.