Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: September 9, 2025
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract and lease agreement with Mayhill Renewables, LLC, to
design, fabricate, construct, commission, and operate a Renewable Natural Gas (RNG) Facility to treat
landfill and digester gas at the City of Denton Landfill for the Solid Waste and Water Utilities Departments;
providing for the expenditure of funds therefor; and providing an effective date (RFP 8465 – awarded to
Mayhill Renewables, LLC, for a primary construction phase and twenty (20) year term). The Public Utilities
Board recommends approval (5 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Promote Sustainability and the Environment.
INFORMATION/BACKGROUND
In 2020, the City commissioned a study on possible Landfill Gas-to-Energy (LFGE) projects at the landfill,
with the refinement of the gas into high-Btu fuel for export into a nearby natural gas pipeline owned by
Atmos being the preferred option. The City, working with an outside consultant, developed a Request for
Proposals (RFP) to identify an experienced, qualified company to design and construct an LFGE plan to
clean the gathered landfill and treatment plant gas and sell it on the open market. The City will cost-share
with the successful operator.
Additional biogas for this project will be provided for the project from the Pecan Creek Wastewater
Treatment Plant (WWTP). This is a revenue-generating contract; the City shall receive an allocation of the
Net Sales Revenue from the sale of Gas to Third Party Purchasers, subject to the terms and conditions.
Mayhill Renewables offered the best proposal and the highest price for One Million British Thermal Units
(MMBtu) of Renewable Gas sold to a third party (Atmos Gas).
Project Facilities Construction Cost Recovery
Mayhill Renewables will assume wellfield operations about 6 months prior to the project coming online.
Once onsite, they will complete a detailed evaluation of the wellfield and develop plans to bring the
wellfield to their standards. Mayhill Renewables will complete a large wellfield construction effort that will
include about 70 new wells with the goal of exceeding 90% efficiency and a flow of at least 2,500 standard
cubic feet per minute (SCFM).
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
For the use of the approximately 1.7 acres of landfill, Mayhill Renewables will pay a monthly lease to the
City.
Request for Proposals was sent to 485 prospective suppliers of this item, including 22 Denton firms. In
addition, specifications were placed on the Procurement website for prospective suppliers to download and
advertised in the local newspaper. Nine (9) proposals were received, references were checked, and proposals
were evaluated based upon published criteria, including similar projects and references, project approach
and schedule, qualifications and financial resources, and price. Based upon this evaluation, Mayhill
Renewables, LLC was ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation:
906 - (Service Only) - Architectural
Services, Professional & 915 – (Service
Only) – Communications & Media
Related Services
Notifications sent for Solicitation sent in IonWave: 485
Number of Suppliers that viewed Solicitation in IonWave: 14
HUB-Historically Underutilized Business Invitations sent out: 67
SBE-Small Business Enterprise Invitations sent out: 160
Responses from Solicitation: 9
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 25, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Mayhill Renewables, LLC, to design, fabricate, construct, commission, and operate
a Renewable Natural Gas (RNG) Facility to treat landfill and digester gas at the City of Denton Landfill for
the Solid Waste and Water Utilities Departments, in a twenty (20) year term.
PRINCIPAL PLACE OF BUSINESS
Mayhill Renewables, LLC
Midland, TX
SUSTAINABILITY MEASURES
Currently, to manage the landfill gas as required by Texas Commission on Environmental Quality
regulations, all landfill gas is diverted to a flare station, then flared off (destroyed). The flare requires a
major maintenance expense as well as the electrical need for mechanized components, resulting in a revenue
loss.
Landfill gas can be considered an asset for the City of Denton, as it produces a financial profit. This asset
is being protected and utilized efficiently. Many advantages are gained by producing a clean, reusable
landfill gas.
Air quality is improved by not producing possible gas emissions, therefore minimizing greenhouse gas
emissions. Gaining a financial profit is advantageous versus losing this byproduct by destruction is a
sensible alternative.
All governing and operating permits will be secured by Mayhill Renewables, LLC. to ensure all
environmental needs are met. Mayhill Renewables can provide and maintain a software program or website
for the project to share information, manage documents, and publish reports and information to keep all
those involved informed on all aspects of the project.
ESTIMATED SCHEDULE OF PROJECT
This project will be started upon approval. A timeline will be provided by Mayhill Renewables for the
development and construction, and then the operations aspect of the project. This is a twenty (20) year
contract with options to terminate by either party.
FISCAL INFORMATION
This is a revenue-generating contract; the City shall receive an allocation of the Net Sales Revenue from
the sale of Landfill Gas to Third Party Purchasers.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Lease Agreement
Exhibit 4: Presentation
Exhibit 5: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Brenda Haney, 940-349-8056.
Legal point of contact: Marcella Lunn at 940-349-8333.