Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: June 4, 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 SewerAI Corporation, for sewer pipe and manhole
rating services for the Drainage and Wastewater Departments; providing for the expenditure of funds
therefor; and providing an effective date (RFP 8488 – awarded to SewerAI Corporation, 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 $875,000.00). The Public Utilities Board recommends approval (4 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Promote Sustainability and the Environment.
INFORMATION/BACKGROUND
The City of Denton issued a Request for Proposal (RFP) for contracting services for the rating of lateral
lines, main lines, and manholes of the City of Denton’s stormwater and wastewater systems. The contractor
will complete the ratings by the National Association of Sewer Service Companies (NASSCO) standards
submitted by the City of Denton. The contractor will use a web-based asset program that will be accessible
by the City of Denton and will follow the current City of Denton Standard Construction Specification and
Details. This contract will be utilized by the Drainage and Wastewater Departments.
SewerAI will use artificial intelligence (AI) technology to evaluate pipe asset conditions and defects that
are not easily identified by the human eye. Proactive identification of pipe defects allows staff to initiate
preventative maintenance or to effectively plan for asset replacement as part of the capital improvement
plan. In addition to improved defect detection, the use of AI technology will reduce staff and vendor efforts
to manually identify and categorize asset defects. This will improve the staff’s ability to perform inspections
and obtain asset condition information more quickly.
Project Description Estimated 5-Year Expenditure
Year 1 Maintenance $175,000
Year 2 Maintenance 175,000
Year 3 Maintenance 175,000
Year 4 Maintenance 175,000
Year 5 Maintenance 175,000
Total: $875,000
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Request for Proposals was sent to 234 prospective suppliers of this item, including two (2) Denton firms.
In addition, specifications were placed on the Procurement website for prospective suppliers to download
and advertised in the local newspaper. Two (2) proposals were received, references were checked, and
proposals were evaluated based upon published criteria including delivery, compliance with specifications,
probable performance, and price. Based upon this evaluation, SewerAI Corporation was ranked the highest
and determined to be the best value for the City.
NIGP Code Used for Solicitation:
890 - Water Supply, Groundwater, Sewage
Treatment, & Related Equipment (Not for
Air Conditioning, Steam Boiler, or
Laboratory Reagent Water)
Notifications sent for Solicitation sent in IonWave: 234
Number of Suppliers that viewed Solicitation in IonWave: 16
HUB-Historically Underutilized Business Invitations sent out: 13
SBE-Small Business Enterprise Invitations sent out: 76
Responses from Solicitation: 2
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 20, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with SewerAI Corporation, for sewer pipe and manhole rating services for the Drainage
and Wastewater Departments, in a 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 $875,000.
PRINCIPAL PLACE OF BUSINESS
SewerAI Corporation
Walnut Creek, CA
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 services will be funded from a combination of Wastewater-Drainage account 655051561.1360.40100
and Wastewater account 640200.6545. 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: Stephen Bonner, 940-349-7179.
Legal point of contact: Marcella Lunn at 940-349-8333.