HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: February 17, 2026
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 with AMS Group LLC, for power transformer disposal
(scrap) services for Denton Municipal Electric; providing for the sale of obsolete assets; and providing an
effective date (IFB 8971 – awarded to AMS Group LLC, in the revenue amount of $401,777.00). The Public
Utilities Board recommends approval (6 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Promote Sustainability and the Environment.
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) maintains and operates generation, transmission, and distribution
facilities in and around the greater Denton area. The system provides electric service to approximately
63,000 customers. Over the last 12 years, DME has upgraded or replaced the old 69kV transmission system
components (substations and transmission lines) with 138kV facilities. The system upgrades also included
the reconstruction of older 138kV substations.
A key component of a distribution substation is the power transformers. Power transformers step down high
voltage (138kV or 69kV) to distribution voltage (13.2kV). The useful life of the units is around 30 years.
Therefore, it was decided to retire the older units and utilize new transformers in the new stations. The
transmission voltage upgrade made the 69kV units obsolete. In total, DME has nine (9) power transformers
that have no system use.
Before the transmission system upgrades, DME utilized a dual-voltage system. This configuration required
the use of Auto Transformers. Auto transformers were used on the DME system to convert 138kV to 69kV.
Again, the system upgrade made the two auto transformers obsolete.
As stated above, the power and auto transformers are so massive that they were retired in place. The units
contain thousands of gallons of mineral oil and weigh in excess of 50 tons for power transformers and 100
tons for autos. Therefore, DME issued an IFB for the disposal (sale) of the units. The scope of work requires
the vendor to provide all equipment and labor to completely remove the units from sites in a manner that
complies with all city and regulatory requirements.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Invitation for Bids was sent to 58 prospective suppliers of this item. In addition, specifications were placed
on the Procurement website for prospective suppliers to download, and advertised in the local newspaper.
Seven (7) bids meeting specifications were received. The highest bid was received by AMS Group LLC.
NIGP Code Used for Solicitation: 285, 912, 913, 926, and 941
Notifications sent for Solicitation sent in IonWave: 1,910
Number of Suppliers that viewed Solicitation in IonWave: 25
HUB-Historically Underutilized Business Invitations sent out: 224
SBE-Small Business Enterprise Invitations sent out: 642
Responses from Solicitation: 7
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 9, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with AMS Group LLC, for power transformer disposal (scrap) services for Denton
Municipal Electric, in a not-to-exceed amount of $401,777.
PRINCIPAL PLACE OF BUSINESS
AMS Group LLC
Houston, TX
ESTIMATED SCHEDULE OF PROJECT
This project will be started upon approval, with a completion date by June 2026.
FISCAL INFORMATION
The proceeds from the contract will be returned to the Electric Fund.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Bid Tabulation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Chris Lutrick, 940-349-7152.
Legal point of contact: Leah Bush at 940-349-8333.