Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
CFO: Antonio Puente, Jr.
DATE: March 3, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a third amendment to a Professional Services Agreement between the City of
Denton and Telvent USA, LLC, amending the contract approved by City Council on May 7, 2013, in the
not-to-exceed amount of $491,813.75; amended by Amendment 1-2 approved by Purchasing; said third
amendment to provide continued vendor support of the Denton Municipal Electric (DME) ArcFM Solution
and associated software modules along with new hardware and software upgrades; 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; providing for the expenditure of funds therefor; and providing an effective date (File 5770 –
providing for an additional three (3) year term and third amendment expenditure amount not-to-exceed
$142,000, with the total contract amount not-to-exceed $722,980.75). The Public Utilities Board
recommends approval (6 - 0).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) must maintain a master repository of records and maps for the installed
electric system equipment. A geographic information/facilities management system (referred to as “GIS”)
was the method chosen by the City of Denton over twenty years ago. GIS software assists utilities by
increasing productivity and improving services through effective management of spatial data. ArcFM is
based on the industry-leading ESRI ArcGIS platform, consists of a family of configurable models and a set
of sophisticated tools designed to provide a highly efficient asset management solution for DME.
The ArcFM electric GIS tool allows DME the capability to run database queries on the transmission and
distribution electric systems infrastructure, fiber communications infrastructure, and create engineering and
operations maps. The electric GIS has become a core product for DME and is now used to provide GIS data
that assists with financial fixed asset accounting, budget preparations, and presentations requiring governing
board approvals, distribution engineering analysis, and outage management tracking and reporting. Over
time, there have been other software that have had integrations to the Schneider suite of software’s that
require continued maintenance and support.
It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure
availability of upgrades, software fixes, and access to knowledge and support resources. The Technology
Services department could not identify any local vendors that could provide software maintenance for this
application. If the ArcFM electric GIS tool is not used, then Technology Services would need to identify a
similar custom product that has not been tested or recommend by ESRI, which is our current GIS application
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
provider. The cost for a custom product can vary anywhere from $50,000 - $450,000 for initial
implementation, and between $40,000 - $200,000 for recurring maintenance and support. Therefore,
keeping this maintenance from the above vendor is the best value for the City of Denton.
Telvent USA, LLC is the sole-source vendor for maintenance for the ArcFM Solutions Software systems
and associated software modules. They are a wholly owned subsidiary of Schneider Electric Holdings, Inc,
operating under the Schneider Electric brand but maintain the legal name of Telvent USA, LLC.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 7, 2013, City Council approved a contract with Telvent USA, LLC, in the not-to-exceed amount
of $491,813.75 (Ordinance 2013-118).
On October 27, 2016, Purchasing approved Amendment 1 with Telvent USA, LLC, in the not-to-exceed
amount of $84,000.
On August 8, 2018, Purchasing approved Amendment 2 with Telvent USA, LLC, in the not-to-exceed
amount of $4,667.
On February 24, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award Amendment No. 3 with Telvent USA, LLC, for continued vendor support of the Denton Municipal
Electric (DME) ArcFM Solution and associated software modules along with new hardware and software
upgrades, in a three (3) year not-to-exceed amount of $142,500.
PRINCIPAL PLACE OF BUSINESS
Telvent USA, LLC
Fort Collins, CO
ESTIMATED SCHEDULE OF PROJECT
This is a three (3) year contract.
FISCAL INFORMATION
These items/services will be funded from Technology Services operating account 830900.6504. Requisition
#145110 has been entered into the Purchasing software system in the amount of $38,670. The budgeted
amount for this item is $142,500.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: LLC Members
Exhibit 3: Original Ordinance and Contract
Exhibit 4: Amendment 1
Exhibit 5: Amendment 2
Exhibit 6: Ordinance and Amendment 3
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Melissa Kraft, 940-349-7823.
Legal point of contact: Mack Reinwand at 940-349-8333.