Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: July 16, 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 Professional Services Agreement with ReSolved Energy
Consulting, LLC, for the supply of Energy Management Office Regulatory Advisement Services for Denton
Municipal Electric as set forth in the contract; providing for the expenditure of funds therefor; and providing
an effective date (RFQ 8392 – Professional Services Agreement for energy management office regulatory
advisement services awarded to ReSolved Energy Consulting, LLC, in the three (3) year not-to-exceed
amount of $715,000.00). The Public Utilities Board recommends approval (6 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Foster Economic Opportunity and Affordability.
INFORMATION/BACKGROUND
Denton Municipal Electric (DME), the City of Denton’s wholly owned electric utility, is operationally
subject to regulations administered by several regulatory bodies and governments. These include but are
not limited to the State of Texas, the Public Utility Commission of Texas (PUCT), the Electric Reliability
Council of Texas (ERCOT), the Texas Department of Environmental Quality (TDEQ), the North American
Reliability Corporation (NERC) and its regional entity, the Texas Reliability Entity (TRE).
In particular, the PUCT and the ERCOT have a direct hand in the Texas Electric market and how it
operates. The market regulations, rules, and the interpretation of them by these organizations have potential
financial impacts in the hundreds of millions of dollars.
ERCOT as an organization is stakeholder-based. DME is one of hundreds of stakeholders. ERCOT has
several Boards, Committees, sub-committees, Working Groups, and Task Forces that all require the
participation of market participants like DME. Some of the important meeting groups are the ERCOT
Board, Technical Advisory Committee (“TAC”), Wholesale Market Subcommittee (“WMS”), and
Protocol Revisions Subcommittee (“PRS”). These groups and others meet, discuss, deliberate, and vote on
market rules and operational procedures that can have a direct financial impact on DME and its ratepayers.
Some of DME’s Municipal Utility peers have several persons on their government affairs and regulatory
staffs. DME has a comparatively small staff that cannot cover all of the meetings to provide stakeholder
representation, nor does it have the capacity to participate in all market participant and stakeholder
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
discussions and considerations. To augment its staff, DME has utilized Austin-based consulting groups
that attend most of the key ERCOT group meetings that DME cannot. This service provides valuable
analysis and feedback on important regulations that are being developed in the lower working groups so
that DME representatives can be engaged in informed participation when considering these new rule
changes at the Subcommittee and Committee levels where DME has elected representation.
Similarly, the PUCT has several rulemaking, market design/operation, and transmission cost dockets filed
throughout the year. Monitoring and communicating how these regulatory filings might impact DME is an
important function that DME could not handle with its smaller staff. These dockets have strict response
time windows that cannot be ignored, and it is important to be aware of them as soon as possible should a
response be needed.
Without the utilization of outside regulatory consultants, DME will be less able to engage in the
ERCOT and PUCT regulatory activities that have enormous potential financial impact on DME and
its ratepayers.
Request for Qualifications (RFQ) for professional surveying services was sent to 1,651, prospective firms,
including 83 Denton firms, for these services. In addition, the RFQ was placed on the Procurement website
for prospective respondents to download, and advertised in the local newspaper. One (1) statement of
qualifications (SOQ) was received. The SOQ was evaluated based on published criteria including
identification and understanding of the City’s requirements, past performance and experience,
qualifications of key personnel, and schedule to complete tasks. Based upon this evaluation, the
recommended award is to Resolved Energy Consulting, LLC, and is determined to be the most qualified
firm for the City.
NIGP Code Used for Solicitation: 918, 925, 958, 961, 962, 963
Notifications sent for Solicitation sent in IonWave: 1,651
Number of Suppliers that viewed Solicitation in IonWave: 54
HUB-Historically Underutilized Business Invitations sent out: 199
SBE-Small Business Enterprise Invitations sent out: 651
Responses from Solicitation: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On July 8, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Resolved Energy Consulting, LLC, for the supply of Energy Management Office
Regulatory Advisement Services for Denton Municipal Electric, in a three (3) year not-to-exceed amount
of $715,000.
PRINCIPAL PLACE OF BUSINESS
Resolved Energy Consulting, LLC
Austin, TX
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
The services will be funded from the DME project account 60003.7854.5750A. Requisition #163873 has
been entered into the Purchasing software system in the amount of $250,000. The budgeted amount for this
item is $715,000.
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: Stephen Johnson, 940-349-7516.
Legal point of contact: Marcella Lunn at 940-349-8333.