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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: October 13, 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 USIC Locating Services, LLC, for utility locating and marking of all existing and future installed utility lines for Denton Municipal Electric, Technology Services, Water, and Wastewater Departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 9036 – awarded to USIC Locating Services, LLC, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $10,526,000.00). The Public Utilities Board recommends approval (5 - 0). 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 (2) 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 will provide locates for electric, fiber, water, and wastewater infrastructure within the City’s utility service area. Department Year 1* Year 2* Year 3* Year 4* Year 5* Electric $800,000.00 $825,000.00 $850,000.00 $875,000.00 $900,000.00 Fiber 310,000.00 320,000.00 330,000.00 340,000.00 350,000.00 Water 435,000.00 450,000.00 463,000.00 475,000.00 490,000.00 Wastewater 435,000.00 450,000.00 463,000.00 475,000.00 490,000.00 Annual Total $1,980,000.00 $2,045,000.00 $2,106,000.00 $2,165,000.00 $2,230,000.00 NTE $10,526,000.00 *Estimated annual expenses. Actual expenses will be based on the number of field locates completed. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Request for Proposals was sent to 437 prospective suppliers, including 28 Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Four (4) proposals were received, references were checked, and proposals were evaluated based upon published criteria, including price, safety, compliance with specifications, and probable performance. Best and Final Offer (BAFO) was requested from the top firm. Based upon this evaluation, USIC Locating Services, LLC was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 962 - (Service Only) - Miscellaneous Services, No. 2 (Not Otherwise Classified) Notifications sent for Solicitation sent in IonWave: 437 Number of Suppliers that viewed Solicitation in IonWave: 30 HUB-Historically Underutilized Business Invitations sent out: 56 SBE-Small Business Enterprise Invitations sent out: 178 Responses from Solicitation: 4 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On October 5, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with USIC Locating Services, LLC, for utility locating and marking of all existing and future installed utility lines for Denton Municipal Electric, Technology Services, Water, and Wastewater Departments, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $10,526,000. PRINCIPAL PLACE OF BUSINESS USIC Locating Services, LLC Dallas, TX ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These services will be funded from Electric Operations and Maint. account 600200.7899, Water Distribution outside contracted services account 630200.6545, Wastewater Collections outside contracted services account 640200.6545, and Technology Services IT Communications outside contracted services account 830201.7899. Each department will enter a requisition into the Purchasing software system in the current fiscal year. The remaining amount will be budgeted in future fiscal years to align with the contract terms and expenditures. These products and services will be utilized on an as-needed basis. 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: Presentation Exhibit 4: 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.