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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: April 2, 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 PowerWorld Corporation, for the annual licensing, maintenance, and support of PowerWorld Simulator software, currently used by Denton Municipal Electric, which is the sole provider of this software, in accordance with Texas Local Government Code 252.022, which provides that procurement of commodities and services that are available from one source are exempt from competitive bidding, and if over $50,000, shall be awarded by the governing body; providing for the expenditure of funds therefor; and providing an effective date (File 8404 – awarded to PowerWorld Corporation, in the not-to-exceed amount of $63,112.50, with a contract term expiring February 21, 2027). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND PowerWorld Simulator is a specialized software tool designed for engineers and energy market analysts to comprehensively model and analyze complex high-voltage power systems, making it an indispensable tool in the planning and operation of modern electrical grids. This powerful software enables analysts to model, simulate, and optimize complex electrical power systems with a high degree of precision. With PowerWorld Simulator, analysts can assess the stability and reliability of the grid, evaluate the impact of various contingencies, and plan for future system expansions or upgrades. Its real-time simulation capabilities allow for dynamic analysis of market operations, helping analysts make informed decisions on energy dispatch, pricing, and resource allocation. Additionally, the software provides insights into transmission congestion and voltage stability issues, assisting analysts in mitigating potential grid disruptions. Since 2020, PowerWorld has successfully provided Denton Municipal Electric (DME) with software that is cost-effective and meets all functional requirements. Additionally, PowerWorld holds all legal, patent, and brand rights for PowerWorld Simulator, thus it qualifies as the sole source vendor of its software suite. PowerWorld has consistently demonstrated exceptional technical expertise in the energy market, and their support and partnership with DME since 2020 have proven to be invaluable. Their deep understanding of power system modeling and simulation has significantly contributed to DME’s ability to navigate the ever- evolving energy landscape. PowerWorld's commitment to staying at the forefront of industry advancements has ensured that DME remains well-equipped to address emerging challenges and City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com opportunities. Their proactive support and tailored solutions have been instrumental in optimizing grid operations, enhancing reliability, and optimizing resource allocation. This ongoing partnership has not only strengthened DME’s technical capabilities but has also fostered a collaborative environment where innovative solutions are continuously explored, solidifying PowerWorld's reputation as a trusted ally in DME’s pursuit of excellence in the energy market. Section 252.022 of the Local Government Code provides that procurement of sole source commodities and services is exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 25, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award with a contract to PowerWorld Corporation, for the annual licensing, maintenance, and support of PowerWorld Simulator software, currently used by Denton Municipal Electric, in a three (3) year not-to- exceed amount of $63,112.50. PRINCIPAL PLACE OF BUSINESS PowerWorld Corporation Champaign, IL ESTIMATED SCHEDULE OF PROJECT This contract will expire on February 21, 2027. FISCAL INFORMATION The services will be funded from DME’s account 600750.7899.5880. Requisition #163320 has been entered into the Purchasing software system in the amount of $63,112.50. The budgeted amount for this item is $63,112.50. 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: Jerry Looper, 940-349-7676. Legal point of contact: Marcella Lunn at 940-349-8333.