Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: June 18, 2024
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a contract between the City of Denton and Freeport
Welding & Fabricating, Inc., amending the contract approved by the City Council on June 27, 2023, in the
not-to-exceed amount of $1,279,570.00; said first amendment to complete the purchase of three (3) 60,000
gallon tanks for the Denton Energy Center Winterization Project; providing for the expenditure of funds
therefor; and providing an effective date (RFP 8220 – providing for an additional first amendment
expenditure amount not-to-exceed $140,000.00, with the total contract amount not-to-exceed
$1,419,570.00). The Public Utilities Board recommends approval (6-0 ).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
In late 2021, Denton Municipal Electric (DME) initiated a comprehensive study of options that could be
implemented to reduce or eliminate risks associated with winter weather. The Public Utility Commission
of Texas (PUCT) also established new weatherization requirements for the Denton Energy Center (DEC)
and all generating units and transmission equipment across Texas in response to winter storm Uri. Based
upon the results of the comprehensive analysis of options provided by Black & Veatch (BV), DME selected
specific cost-effective measures to permanently reduce the risk of freeze damage to DEC equipment and
included $2.2 million in the FY23 Capital Improvement Plan (CIP) to make the recommended changes.
Due to supply chain issues and lead times, three (3) 60,000-gallon tanks will need to be fabricated and
purchased separately from the remainder of the procure and construct scope for the DEC winterization
project. Due to unpredictable costs and market increases, the transportation of the tanks increased by
$140,000 from the initial contract execution to the actual tank delivery date.
Project Description Estimated Expenditure
Original Contract $1,279,570.00
Transportation of three (3) – 60,000 Gallon Tanks (Amendment) 140,000.00
New Contract Total $1,419,570.00
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 27, 2023, City Council approved a contract with Freeport Welding & Fabricating, Inc., in the not-
to-exceed amount of $1,279,570 (Ordinance 23-1236).
On June 10, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award Amendment No. 1 with Freeport Welding & Fabricating, Inc., to complete the purchase of three
(3) 60,000 gallon tanks for the Denton Energy Center Winterization Project, in a not-to-exceed amount of
$140,000, for a total amended contract amount of $1,419,570.
PRINCIPAL PLACE OF BUSINESS
Freeport Welding & Fabricating, Inc.
Freeport, TX
ESTIMATED SCHEDULE OF PROJECT
This is a one-time expenditure for capital equipment. The anticipated delivery date of the tanks to the
Denton Energy Center is May 2024.
FISCAL INFORMATION
These items will be funded from DEC Winterization account 605091500.1350.5520. Purchase Order
#203830 will be revised to include the first amendment amount of $140,000. The total amended amount of
this contract is $1,419,570.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Cody Tenorio, 940-349-7532.
Legal point of contact: Marcella Lunn at 940-349-8333.