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Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: July 15, 2025 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 DKJ Concrete Construction, Inc., amending the contract approved by City Council on September 20, 2022, in the not-to- exceed amount of $5,250,000.00; said first amendment to continue to provide utility cut restoration services for the Water Utilities Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8046 – providing for an additional first amendment expenditure amount not-to-exceed $1,312,500.00, with the total contract amount not-to-exceed $6,562,500.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND This proposed amendment increases funding for an existing contract for utility cut restoration services. The contract supports the timely restoration of utility cuts, helping utility departments avoid late permit fees and improving service to the community through quicker roadway repairs. Since the contract’s start, the City has experienced unexpected increases in restoration costs and a higher volume of utility cuts than anticipated. The Procurement Department approved the first price increase on September 27, 2022. More recently, on March 3, 2025, Procurement approved an increase to the pricing sheet to reflect updated market rates for labor and materials. Despite these adjustments, the increased demand has caused available funds to be expended faster than projected. In April 2022, the Internal Audit Department completed a review identifying delays in closing work orders due to outstanding utility cut restorations. Over 30% of work orders remained open for 100 days or more, far exceeding the City's 30-day target. Timely restorations are essential to closing work orders, maintaining permit compliance, and reducing roadway disruptions for the community. Increasing the contract funding will ensure the vendor can continue supporting efficient service delivery and meet the City’s restoration timelines. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On September 20, 2022, City Council approved a contract with DJK Concrete Construction, Inc., in the not-to-exceed amount of $5,250,000 (Ordinance 22-1809). City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com On June 23, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award Amendment No. 1 with DJK Concrete Construction, Inc., to continue to provide utility cut restoration services for the Water Utilities Department, in a not-to-exceed amount of $1,312,500, for a total amended contract amount of $6,562,500. PRINCIPAL PLACE OF BUSINESS DKJ Concrete Construction, Inc. Pilot Point, TX ESTIMATED SCHEDULE OF PROJECT This contract expires on September 19, 2027. A future solicitation for a new contract for the utility cut restoration for the Water Utilities Department will be in place before the end of fiscal year 2025/2026. FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. The budgeted amount for this item is $6,562,500. 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: 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: Casey Bowles, 940-349-8489. Legal point of contact: Marcella Lunn at 940-349-8333.