HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: May 19, 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 Online Information Services, Inc., for fraud
detection and credit risk assessment for the Customer Service Department; providing for the expenditure of
funds therefor; and providing an effective date (RFP 9001 – awarded to Online Information Services, Inc.,
in the five (5) year not-to-exceed amount of $320,000.00). The Public Utilities Board will consider this item
on Monday, May 18, 2026.
INFORMATION/BACKGROUND
A ruling known as the Identity Theft Red Flag Regulation was jointly issued by the Federal Trade
Commission, Office of Thrift Supervision, and several other governing agencies, implementing Section 114
of the Fair and Accurate Credit Transaction Act of 2003 (FACT ACT) that came in to effective May 1,
2009.
As part of compliance with federal guidelines, the City of Denton Utilities Customer Service has to provide
fraud protection, credit risk assessment, and debit recovery solutions. Use of a system allows the City to
verify the identity of customers via telephone in order to reduce the opportunity for identity fraud in
accordance with federal law. This service is utilized when a new account is set up and any time a new
person is added to an account as an authorized party. Historically, the City has spent $51,314 a year for
these services, but expects an increase in usage over the contract term due to growth.
Year Estimate Expenditure
Year 1 $55,000
Year 2 $55,000
Year 3 $55,000
Year 4 $55,000
Year 5 $55,000
Contingency $45,000
Total $320,000
Request for Proposals was sent to 263 prospective suppliers of this item, including four (4) Denton firms.
In addition, specifications were placed on the Procurement website for prospective suppliers to download
and advertised in the local newspaper. Three (3) proposals were received and evaluated based upon
published criteria, including compliance with specifications, schedule, probable performance, and price.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Online
Information Services, Inc. was ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation:
943 - (Service Only) - Financial
Services
Notifications sent for Solicitation sent in IonWave: 263
Number of Suppliers that viewed Solicitation in IonWave: 7
HUB-Historically Underutilized Business Invitations sent out: 35
SBE-Small Business Enterprise Invitations sent out: 56
Responses from Solicitation: 3
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 18, 2026, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Online Information Services, Inc., for fraud detection and credit risk assessment for
the Customer Service Department, in a five (5) year not-to-exceed amount of 320,000.
PRINCIPAL PLACE OF BUSINESS
Online Information Services, Inc.
Winterville, NS
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from Customer Service Department account 870100.7866. Requisitions
will be entered on an as-needed basis. The budgeted annual amount for this item is $55,000. $265,000
will be budgeted in future fiscal years to align with the contract terms and expenditures. The expenditure
is a recurring cost and will create recurring obligations. The City will only pay for items purchased and is
not obligated to pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Christa Foster, 940-349-7412.
Legal point of contact: Leah Bush at 940-349-8333.