HomeMy WebLinkAboutExhibit 1 - Agenda Information Sheet City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: June 16, 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 Open Systems International, Inc., for continued
maintenance and support of the Supervisory Control and Data Acquisition (SCADA) system for Denton
Municipal Electric, which is the sole provider of this software, in accordance with Texas Local Government
Code 252.022, which provides that procurement of commodities and services that are available from one
source are exempt from competitive bidding, and if over $50,000, shall be awarded by the governing body;
providing for the expenditure of funds therefor; and providing an effective date (File 9041 – awarded to
Open Systems International, Inc., in the three (3) year not-to-exceed amount of $791,693.00). The Public
Utilities Board recommends approval (5 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
Since 2008, Denton Municipal Electric (DME) has used Open System International’s (OSI) Monarch
product for several critical operations. OSI Monarch is a control system that enables utilities to support,
monitor, control, schedule, and optimize complex network operations, which include:
1. The monitoring and operation of its electric substations via a Supervisory Control and Data
Acquisition (SCADA) system operated from its transmission & distribution (T&D) and Control
Centers.
2. The facilitation of the purchase of electricity with energy market bid submittals to the Electric
Reliability Council of Texas (ERCOT).
3. The sharing of electric load and grid operation data with ERCOT and other third parties through
Inter-Control Center Communications Protocol (ICCP).
This contract provides continued maintenance and support for the SCADA system with OSI for an
additional three years. The Maintenance and Support package includes essential bug fixes, security updates
required for North American Electric Reliability Corporation Critical Infrastructure Protection (NERC CIP)
compliance, major feature enhancements, troubleshooting services, and archiving and reporting
capabilities. Renewing the sole‑source contract with OSI for ongoing maintenance, support, and patch
management of this critical application is vital to the reliability and security of the electric system. Monarch
Support (T&D) is the maintenance and support of the Transmission and Distribution SCADA system.
Monarch Support (GMS) is the maintenance and support of the Generation Management System SCADA
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
system. Monarch Support (Patch) is the support system that allows us to patch the software on all SCADA
systems.
FY 26-27 FY 27-28 FY 28-29 Total
Monarch Support (T&D) $97,470.00 $104,293.00 $111,593.00 $313,356.00
Monarch Support (GMS) 85,406.00 91,385.00 97,782.00 274,573.00
Monarch Support (Patch) 50,939.00 54,505.00 58,320.00 163,764.00
Contingency 40,000.00
Total $791,693.00
Section 252.022 of the Local Government Code provides that procurement of sole source commodities and
services are exempt from competitive bidding, and if over $50,000, shall be awarded by the governing body.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 8, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award with a contract to Open Systems International, Inc., as a sole source supplier, for continued
maintenance and support of the Supervisory Collection and Data Acquisition (SCADA) system for Denton
Municipal Electric, in a three (3) year not-to-exceed amount of $791,693.
PRINCIPAL PLACE OF BUSINESS
Open Systems International, Inc.
Medina, MN
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
These services will be funded from Denton Municipal Electric Operating Budget account 600750.7899.
Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $791,693.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Jerry Looper, 940-349-7676.
Legal point of contact: Leah Bush at 940-349-8333.