Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: November 19, 2024
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
rejecting any and all competitive bids under IFB 8546 for Power Transformer Disposal (Scrap); and
providing an effective date (IFB 8546).
INFORMATION/BACKGROUND
The City of Denton issued an invitation for bid (IFB) for the removal and scraping or repurposing of power
transformers. The power transformers included five (5) used power transformers and two (2)
autotransformers located at six (6) substations in and around Denton, Texas. A detailed technical
specification and pricing sheet was provided for solicitation.
The IFB was issued on April 12, 2024 and six (6) bids were received. After evaluating the bids, it was
recommended to reject all bids due to an alternate proposal from Core Scientific, Inc. After evaluating Core
Scientific Inc’s proposal for five (5) of the seven (7) transformers, the economic benefit was determined to
be in the best public interest to the City. Core Scientific Inc’s proposal was $1.05 million compared to
$294,714 submitted in the IFB. As such, staff plans to bring the sale of these transformers to Core Scientific
Inc through a separate bill of sale agenda item in December 2024. DME plans to re-solicit the two (2)
remaining transformers at a later date.
This decision aligns with the Local Government Code 252.043, which permits the City Council to reject all
bids if necessary.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 18, 2024, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Staff recommends rejection of all bids under IFB 8546.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
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.