Exhibit 1 - Agenda Information Sheet Amendment 2City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: November 14, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a second amendment to a professional services agreement between the City of
Denton and NewGen Strategies and Solutions, LLC, amending the contract approved by City Council on
May 4, 2021, in the not-to-exceed amount of $169,500.00; amended by Amendment 1 approved by
Purchasing; said second amendment to continue to use services to refresh the Electric Cost of Service study
and expand the study to include the value of solar for Denton Municipal Electric; providing for the
expenditure of funds therefor; and providing an effective date (RFQ 7628 – providing for an additional
second amendment expenditure amount not-to-exceed $150,000.00, with the total contract amount not-to-
exceed $326,000.00).
INFORMATION/BACKGROUND
Normally, Denton Municipal Electric (DME) evaluates its Cost of Service (COS) about once every five (5)
years. However, since DME was able to forego rate increases the last two (2) years, the COS work that
NewGen performed needs to be brought current in anticipation of pending rate increases this Fiscal Year.
NewGen’s consulting services provide expertise in reviewing all departmental costs (both direct and
indirect) and allocation processes, which helps ensure rates are equitably designed among all rate classes.
The budget dollars for this project are available in the FY 2023-2024 operating budget.
On April 17, 2023, additional work needed to be performed, and Purchasing executed an amendment in the
amount of $6,500 to pay for these services.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 4, 2021, City Council approved a contract with NewGen Strategies & Solutions, LLC, in the not-
to-exceed amount of $169,500 (Ordinance 21-806).
On November 13, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award Amendment No. 2 with NewGen Strategies & Solutions, LLC, to continue to use services to refresh
the Electric Cost of Service study and expand the study to include the value of solar, in a not-to-exceed
amount of $150,000, for a total amended contract amount of $326,000.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRINCIPAL PLACE OF BUSINESS
NewGen Strategies and Solutions, LLC
Richardson, TX
ESTIMATED SCHEDULE OF PROJECT
The contract will expire on May 4, 2026.
FISCAL INFORMATION
These services will be funded from Denton Municipal Electric account 604857497. Purchase order
196818 will be amended to add the additional $150,000. The total amended amount of this contract
is $326,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance, Contract, and Amendment 1
Exhibit 3: Ordinance and Amendment 2
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Bill Shepherd, (940) 349-7493.
Legal point of contact: Marcella Lunn at 940-349-8333.