Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: October 17, 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 Texas Electric Cooperatives, Inc., for the purchase
of overhead distribution conductors for Denton Municipal Electric; providing for the expenditure of funds
therefor; and providing an effective date (RFP 8283 – awarded to Texas Electric Cooperatives, Inc., for one
(1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-
exceed amount of $5,000,000.00). The Public Utilities Board recommends approval (5 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
The proposed contract is to supply overhead distribution conductors for Denton Municipal Electric (DME).
The conductor is used to replace existing overhead conductors to extend service to new residential and
commercial customers and replacement for conductors that may fail. The items are stored at DME facilities
and used as needed. This contract will replace the current contract for Overhead Conductor (6563) which
expires in December 2023.
Volatility in copper and aluminum prices has made it mandatory and prudent that a procurement method be
crafted to recognize the reality of conditions in the marketplace and minimize cost exposure by locking in
projected quantities. The unit prices recommended for the award are based on published third-party indices
for raw materials provided in the specifications. Throughout the contract, the prices will adjust (increase or
decrease) based on the previous month’s basis for raw materials.
DME estimated spend based on several large upcoming overhead projects, price increases of 70 percent,
and past years' usage. The NTE was $4,000,000.00 on the current overhead conductor contracts.
Project Description Estimated 5-Year Expenditure
Year 1 Estimated Spend $ 900,000
Year 2 Estimated Spend $ 900,000
Year 3 Estimated Spend $ 900,000
Year 4 Estimated Spend $ 900,000
Year 5 Estimated Spend $ 900,000
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Contingency $ 500,000
Total $5,000,000
Request for Proposals was sent to 250 prospective suppliers, including seven (7) Denton firms. In addition,
specifications were placed on the Procurement website for prospective suppliers to download and advertised
in the local newspaper. Three (3) proposals were received, references were checked, and proposals were
evaluated based on published criteria including project schedule, compliance with specifications, probable
performance, and price. Best and Final Offers (BAFO) were requested from the top firm. Based upon this
evaluation, Texas Electric Cooperatives, Inc. was ranked the highest and determined to be the best value
for the City.
NIGP Code Used for Solicitation: 280 - Electrical Cables and Wires
(Not Electronic)
Notifications sent for Solicitation sent in IonWave: 250
Number of Suppliers that viewed Solicitation in IonWave: 23
HUB-Historically Underutilized Business Invitations sent out: 28
SBE-Small Business Enterprise Invitations sent out: 104
Responses from Solicitation: 3
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 9, 2023, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Texas Electric Cooperatives, Inc., for the purchase of overhead distribution
conductors for Denton Municipal Electric, one (1) year, with the option for four (4) additional one (1) year
extensions, for a total of five (5) year not-to-exceed amount of $5,000,000.
PRINCIPAL PLACE OF BUSINESS
Texas Electric Cooperatives, Inc.
Georgetown, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year
periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
These products and services will be funded by the Warehouse Capital account 800100 and charged back to
the user department. Requisitions will be entered on an as-needed basis. 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: Pricing Evaluation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Randy Key, 940-349-7665.
Legal point of contact: Marcella Lunn at 940-349-8333.