Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: December 16, 2025
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
ratifying the expenditure of funds by the City Manager, for the emergency purchase of switchgears for
Denton Municipal Electric; and providing an effective date (File 8954 – awarded to Texas Electric
Cooperatives, Inc., in the not-to-exceed amount of $260,200.00). The Public Utilities Board will consider
this item on Monday, December 15, 2025.
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
This Declaration of Emergency is for switchgears needed to provide restoration of, and service to customers.
It is founded on current supply chain issues being experienced across the electric utility industry, including
Denton Municipal Electric (DME). All current projects have zero (0) switchgears/switches for outages; the
purchase is for new 25kV switches.
Section 252.022 of the Texas Local Government Code provides exemptions associated with purchasing
requirements, which include (1) a procurement made because of a public calamity that requires the
immediate appropriation of money to relieve the necessity of the municipality’s residents..., and (2) a
procurement necessary to preserve or protect the public health or safety of the municipality’s residents.
Denton’s current inventory of switchgears is at levels reserved for normal, daily electric service operational
responsibilities and emergency response. For new construction, DME prioritizes switchgears on a first-
come, first-ready basis for customers and developers who have inspections and permits complete.
Supply chain issues for distribution assets continue to be an issue for DME. Major shortages are being
experienced nationwide of critical electric utility equipment such as electric distribution transformers,
underground cable, substation equipment, and other equipment necessary to maintain and provide for
electric service in Denton. The need for this Declaration of an Emergency stems from lead times on
switchgears approaching 56 weeks in some instances. Vendors cannot provide reliable estimates of lead
times for equipment, and many of our switchgears on order have been pushed back. Table 1 provides a list
of orders for switchgears needed under this Declaration of an Emergency to help mitigate some of the
supply chain issues and help support DME’s stock levels of switchgears. Failure to declare an emergency
could cause inventory levels to drop further below minimum acceptable levels, while also halting large
construction projects like Hunter Ranch.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Table 1
Transformer Size Transformer Cost Quantity Total Cost
S&C 422 Switchgear $65,050 4 $260,200
Purchase Order Total Cost $260,200
Approval of a Declaration of an Emergency, with a one-time spend authority of $260,200, allows DME to
better position its switchgear inventory for service and minimize the growing backlog of switchgear orders.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 15, 2025, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Approve the emergency purchase of switchgears for Denton Municipal Electric, in the estimated
expenditure amount of $260,200.
PRINCIPAL PLACE OF BUSINESS
Texas Electric Cooperatives, Inc.
Georgetown, TX
ESTIMATED SCHEDULE OF PROJECT
This is a single purchase processed as an Emergency Declaration. Delivery of the switchgears was on
Wednesday, November 5, 2025.
FISCAL INFORMATION
These items will be funded from Denton Municipal Electric Capital Improvement Program. Purchase Order
#212844 has been entered into the Purchasing software system in the amount of $260,200. The budgeted
amount for this item is $260,200.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Quote
Exhibit 3: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Randy Key, 940-349-7665.
Legal point of contact: Marcella Lunn at 940-349-8333.