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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: September 22, 2026 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 utility line locate services for Denton Municipal Electric, and the Water, Wastewater and Technology Services Departments; and providing an effective date (File 9157 – awarded to USIC Locating Services, LLC, in the not-to-exceed amount of $400,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The Texas One Call Law, found in Chapter 251 of the Texas Utilities Code, is designed to protect underground infrastructure by requiring coordination between excavators and utility owners. Under this law, any excavation in Texas must be preceded by a notification to Texas 811 at least two business days before digging begins. Once the notification is submitted, Texas811 alerts all utility owners, including the City of Denton, that underground lines in the requested area must be located and clearly marked. Historically, the City of Denton used a mixed approach in which various utility departments located their own facilities. In 2009, Denton Municipal Electric (DME) shifted to using a third-party contractor to perform electric line locates, reducing internal workload for DME staff. Over the years, the City’s other utilities fiber, water, and wastewater have also transitioned to using a third-party locator service. This contract provides locates for electric, fiber, water, and wastewater infrastructure within the City’s utility service area. The City awarded a five (5) year contract to USIC in 2021, set to expire on September 19, 2026, with a not-to-exceed amount of $5,625,000. An RFP for continued line locate services was issued on April 10, 2026, and closed on May 13, 2026. Contract negotiations with the selected vendor required three (3) months, and the new agreement is now scheduled for City Council consideration on October 13, 2026. Due to a significant increase in line-locate requests, the utilities have surpassed the authorized expenditure limit of the existing contract. A Declaration of Emergency is necessary to allow payment of outstanding monthly invoices and any remaining charges under the current USIC contract. All future expenses will be covered under the new contract once executed. DOE-related costs will be funded through existing utility operating budgets. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Additionally, the proposed contract quantities have been adjusted to accommodate the rapid growth in line-locate requests. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) This item is being taken retroactively due to the emergency payments needing to be paid on the current contract. RECOMMENDATION Approve the emergency payment of utility line locate invoices in the not-to-exceed amount of $400,000. PRINCIPAL PLACE OF BUSINESS USIC Locating Services, LLC Dallas, TX ESTIMATED SCHEDULE OF PROJECT This is a one-time purchase as a Declaration of Emergency. FISCAL INFORMATION These services will be funded from the operating accounts of Electric, Water, Wastewater, and Tech Services. A requisition will be entered for due invoices. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance 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.