Exhibit 1 - Agenda Information Sheet - PUB - LucidoCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: August 26, 2024
SUBJECT
Consider recommending 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 Lucido Group
LLC, for Energy Trading and Risk Management (ETRM) Support Services for Options, Derivatives, Credit,
and Market Connect for Denton Municipal Electric as set forth in the contract; providing for the expenditure
of funds therefor; and providing an effective date (RFP 8496 – awarded to Lucido Group LLC, in the five
(5) year not-to-exceed amount of $365,000.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
Denton Municipal Electric manages a wholesale energy portfolio valued in the hundreds of millions of
dollars. The market risk of this portfolio is assessed daily by DME staff per normal industry practice.
Computer-based applications are the preferred industry standard for this function as recommended by an
outside consultant (Deloitte).
DME acted on this recommendation and purchased an ETRM system from Allegro Development Corp. on
June 23, 2020, and planned and budgeted for this additional consultation assistance to create unique tools
and reports tailored to its operation.
On March 2, 2021, City Council approved a contract with MRE Consulting, Ltd., in a three (3) year not-to-
exceed amount of $350,000 (Ordinance 21-324) and MRE Consulting, Ltd. was contracted to ensure DME
had consulting expertise available for this role.
On December 12, 2024, City Council approved an additional First Amendment expenditure amount of not
to exceed $87,500 with the total amount not to exceed $437,500, and extending the contract to September
4, 2024.
Working with MRE Consulting, Ltd. has shown that their expertise is limited to four modules/licenses (e.g.,
Power, Gas, Risk Analytics, and Environmental Products). Lucido Group LLC has been determined to be
the most qualified firm for the City with regards to the Options, Derivatives, Credit, and Market Connect
licenses/modules because of their extensive business knowledge, technical expertise, and experience
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
demonstrated through submitted proposals, assigned staff profiles, and references, including interview
questions responses provided to the RFP Evaluation Team during an interview conducted with Lucido’s
designated staff. Furthermore, the RFP Evaluation Team confirmed through the interview that the submitted
written information is accurate. It concurred that Lucido’s support approach, pricing, issue management
process, resolution times, tools, and emphasis on knowledge transfer made Lucido the best fit for DME’s
remaining ETRM needs and staff.
Based on this, Lucido Group LLC is the recommended awardee for the Options, Derivatives, Credit, and
Market Connect licenses/modules.
The five (5) year not-to-exceed amount of $365,000 will be awarded to Lucido Group LLC for the support
services offered towards the Options, Derivatives, Credit, and Market Connect licenses/modules.
Request for Proposals was sent to 1,494 prospective suppliers of this item. including 79 Denton firms. In
addition, specifications were placed on the Procurement website for prospective suppliers to download and
advertised in the local newspaper. Six (6) proposals were received, references were checked, and proposals
were evaluated based upon published criteria including delivery, summary of qualifications, probable
performance, and price. Based upon this evaluation, Lucido Group LLC was ranked the highest and
determined to be the best value for the City.
NIGP Code Used for Solicitation: 290, 918, 961
Notifications sent for Solicitation sent in IonWave: 1,494
Number of Suppliers that viewed Solicitation in IonWave: 36
HUB-Historically Underutilized Business Invitations sent out: 179
SBE-Small Business Enterprise Invitations sent out: 597
Responses from Solicitation: 6
RECOMMENDATION
Award a contract to Lucido Group LLC, for Energy Trading and Risk Management (ETRM) Support
Services for Options, Derivatives, Credit, and Market Connect for Denton Municipal Electric, in a five (5)
year not-to-exceed amount of $365,000.
PRINCIPAL PLACE OF BUSINESS
Lucido Group LLC
Lewisville, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from Electric Operation Funds. These products and services will be funded
through the using department’s budget 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: Evaluation Sheet
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Chris Lutrick, 940-349-7152.
Legal point of contact: Marcella Lunn at 940-349-8333.