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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: December 17, 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 Burns & McDonnell Engineering Company, Inc., for distribution engineering services for Denton Municipal Electric as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 8031-007 – professional services agreement for distribution engineering services awarded to Burns & McDonnell Engineering Company, Inc., in the three (3) year not-to-exceed amount of $1,900,000.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND There are numerous technical requirements for the electric distribution system which are managed by Denton Municipal Electric’s Engineering Department. Short and long-term studies of the electric distribution system allow Denton Municipal Electric (DME) to proactively identify and correct system deficiencies before they affect the quality of electric service provided to customers. Denton’s current customer growth is positive and significant. DME’s Engineers and Techs work diligently to design, estimate, and manage multiple projects within the DME service territory; but there are times when outside assistance is beneficial for a timely response. DME has recently released a collection of distribution Construction Standards that have been reviewed and approved by multiple departments and sealed by a Professional Engineer in the State of Texas. As new distribution construction methods and materials are identified that are beneficial to DME’s customers, the distribution Construction Standards will require updates from time to time. It is advantageous for a third party to perform audits of projects. An audit provides a greater understanding of design and construction compliance with Construction Standards and allows for improvements to be made in criteria, practices, or processes. As technology continues to evolve in the electric utility industry, DME will assess opportunities to utilize new distribution technology to improve service, reliability, and the cost-effectiveness of operating the electric utility. Often consultants are utilized to incorporate a broad pool of experience in how these distribution technologies are used in the industry. These practices and construction requirements help DME to be fiscally responsible and responsive to its customers. DME Engineering has utilized a professional services contract to provide engineering services from 2017 to the present. The DME has greatly benefited from the expertise in system design, system planning, and City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com the creation of new standards. The previous contract is not renewable and expires in 2024, and the contract has been almost fully spent. DME recommends having a similar contractor in place for three more years and has selected Burns & McDonnell Engineering Company, Inc. through a Request for Qualifications (RFQ 8031) to provide engineering services described in more detail in the Scope of Work in the agreement. There are six (6) specific services Burns & McDonnell Engineering Company, Inc. will provide related to Distribution Design. These services are: Engineering Service 1: Electric Distribution System Short and Long-Term Planning DME's distribution system has been hardened during the past five (5) years through Capital Improvements Plans (CIP) and increased the system’s power quality and reliability. The completion of this work has played a critical role in DME's recent promotion from Gold to Platinum level within the American Public Power Association’s Reliable Public Power Program (APPA's RP3) and its receipt of the Excellence in Reliability Award for the third year straight. DME's electric service territory is experiencing additional growth and there is a need to study and validate CIP plan requirements on a short- and long-term basis to proactively identify system operational issues and address them before they become an issue for the customer. Burns & McDonnell Engineering has engineers on its staff who specialize in these studies. Engineering Service 2: Electric Distribution Design The electrical distribution system design solves challenges related to design and development to ensure that they are economical, safe, and reliable. This also includes electrical layouts, grounding, voltage drop, etc. As population and system growth occurs in Denton, the need to design/evaluate projects to serve new revenue-generating customers and make the necessary distribution system improvements to meet this growth has been consistent. Transportation and infrastructure projects also require relocation of DME facilities (e.g. TXDOT I-35 projects). These projects often require major design and coordination efforts with multiple customers and outside utilities. Therefore, as required, DME will utilize Burns & McDonnell Engineering to supplement the capacity of DME staff to provide electric system design services. Engineering Service 3: Electric Distribution Construction and Materials Standards Distribution Engineering, Distribution Construction, Distribution Operations & Maintenance, and Meter divisions utilize standards daily to meet or exceed current regulatory statutes and codes related to electric distribution. Every electric utility is different in the materials and methods used to build its electric distribution system; therefore, an "off-the-shelf" set of standards does not exist. The addition of 24kV distribution to the DME system increased the number of required construction standards significantly. Burns & McDonnell Engineering will be used to review DME's distribution system standards and update them to current practices and processes. Engineering Service 4: Post-Construction Audits Distribution Engineering is often the focal point for the DME's interactions with the public and internally with other city and intra-utility departments. Compliance with construction and service standards and quality communications are keys to the successful delivery of service. As requested, Burns & McDonnell Engineering will perform audits and quality control reviews of selected projects to verify compliance, accounting, design, etc. In addition, this service will assist engineering management in identifying and improving staff skills to meet service-level expectations. Engineering Service 5: Distribution Operational Technology Operational Technology is typically associated with field-based devices connected to the distribution system and the infrastructure for monitoring and controlling those devices. It includes control center-based systems such as Supervisory Control and Data Acquisition (SCADA) and Advanced Distribution Management System (ADMS). DME has been deploying OT intelligence-enabled devices for a few years. At present, most load tap changers, capacitor banks, gang-operated air break switches, reclosers, sectionalizers, and other load-break switches are OT-ready. DME is currently developing the business and deployment plans for an ADMS system and will use Burns & McDonnell Engineering's experience in planning, design, and deployment. Engineering Service 6: Additional Services When a request is submitted to interconnect a 500 kW AC distributed generation resource, such as solar panels or batteries, the Public Utility Commission of Texas (PUCT) in §25.211 (g) (1) requires periodic studies of the electric distribution systems for interference, voltage, flicker, frequency, harmonics, and fault and line clearing. Each of these items can create power quality issues for connected customers. DME utilizes third parties to perform these studies. DME will utilize Burns & McDonnell Engineering to conduct these studies when needed. The generation interconnection requestor reimburses costs related to this service. DME Engineering also relies on engineering consultants for support when staff workloads are high or specialized skills are required. The estimated expenditures associated with this contract are shown below: Project Description Estimated 3-Year Expenditure Premiere Support Year 1 $700,000 Premiere Support Year 2 600,000 Premiere Support Year 3 600,000 Total $1,900,000 Request for Qualifications state certified engineers for substation and transmission line engineering for various projects for Denton Municipal Electric was solicited using the City’s formal solicitation process. City Council approved a pre-qualified list of professional service firms on December 13, 2022 (Ordinance 22-2483). PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 13, 2022, Council approved RFQ 8031-1 for a prequalified list of state certified engineers for substation and transmission line engineering for various projects for Denton Municipal Electric (Ordinance 22-2483). On December 9, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Burns & McDonnell Engineering Company, Inc., for distribution engineering services for Denton Municipal Electric, in a not-to-exceed amount of $1,900,000. PRINCIPAL PLACE OF BUSINESS Burns & McDonnell Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract. FISCAL INFORMATION These products and services will be funded from Denton Municipal Electric’s budget account 600500.7854 Requisitions will be entered on an as-needed basis. The budgeted amount for this item is 1,900,000. 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: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Aaron Bennion, 940-349-7117. Legal point of contact: Marcella Lunn at 940-349-8333.