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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: March 5, 2024 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 DMI, Corp., for the replacement of the heat exchanger at the Pecan Creek Water Reclamation Plant for the Water Utilities Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8311 – awarded to DMI, Corp., in the not-to-exceed amount of $602,000.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The Pecan Creek Water Reclamation Plant (PCWRP) is the only wastewater treatment facility in the City of Denton and is over 60 years old. A recent evaluation has recommended the repair or replacement of several major components. One key piece of equipment is the tubed heat exchanger, which is utilized to maintain the optimum temperature required in sludge processing. Sludge is pumped from the gravity thickeners through heated tubes and delivered to the digester for processing. Processing the sludge helps to reduce waste and prepares bi-products to be used within the City’s Beneficial Reuse Program. Sludge Handling reduces solids within the effluent and is a priority required in meeting regulations. This contract is for the replacement of the existing heat exchanger at the plant. The replacement provides continued support in maintaining safe effluent released to the sensitive receiving stream. The replacement of the heat exchanger at the Pecan Creek Water Reclamation Plant has a total estimated cost of $602,000. This estimate includes a $546,996 total base bid amount and a contingency of $55,004. A contingency allowance, if any, is for the sole use of the City and will be subject to written authorization by the City’s Project Manager and Program Manager. Price $ 546,996.00 Contingency 55,004.00 Total $ 602,000.00 Request for Proposals was sent to 931 prospective suppliers, including 60 Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. One (1) proposal was received, and references were checked to ensure the vendor can provide the services requested in the Scope of Work. The proposal was evaluated based upon published City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com criteria including probable performance, personnel, project approach, and price. Best and Final Offer (BAFO) was requested from the firm. The department is awarding the contract to DMI, Corp. NIGP Code Used for Solicitation: 890, 910, and 913 Notifications sent for Solicitation sent in IonWave: 931 Number of Suppliers that viewed Solicitation in IonWave: 18 HUB-Historically Underutilized Business Invitations sent out: 88 SBE-Small Business Enterprise Invitations sent out: 327 Responses from Solicitation: 1 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On February 26, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with DMI, Corp., for the replacement of the heat exchanger at the Pecan Creek Water Reclamation Plant for the Water Utilities Department, in a not-to-exceed amount of $ 602,000. PRINCIPAL PLACE OF BUSINESS DMI, Corp. Cedar Hill, TX SUSTAINABILITY MEASURES Repair of the Heat Exchanger at PCWRP is needed to maintain the level of sludge processing required by relations. The repair or determined replacement of the Heat Exchanger unit provides reliability in the sludge treatment process. Efficient sludge treatment is critical to producing effluent that meets regulatory standards. These regulations are required to ensure public health and safety as well as protect the sensitive receiving stream. ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion within 51 weeks. FISCAL INFORMATION This service will be funded from the Water Utilities account 640497545.1360.40100. Requisition #163774 has been entered into the Purchasing software system in the amount of $546,996. The budgeted amount for this item is $602,000. 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: David Brown, 940-349-8480. Legal point of contact: Marcella Lunn at 940-349-8333.