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Exhibit 1 - Agenda Information Sheet City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: September 17, 2019 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 Techline, Inc. for LED Control System; providing for the expenditure of funds therefor; and providing an effective date (RFP 6992 - awarded to Techline, Inc., in the five (5) year not-to-exceed amount of $2,086,865). The Public Utilities Board recommends approval (7 - 0). RFP INFORMATION/BACKGROUND Since their first installation in Wabash, Indiana in 1880, street lights in a city are considered a necessity for both the security of its citizens and the safety of its motorists. But, there are unending issues that continue to plague every street light in every city: 1) they will burn out, and 2) how does that information get relayed or reported to the utility so the streetlight can be promptly repaired? A street light that no longer works properly can create a hazard; furthermore, it also can become a point of irritation for the citizens who rely on street lights to provide a semblance of security for them and their family in their neighborhood, and to the motorists who rely on the additional light from the streetlights to be able to safely navigate the City’s thoroughfares and streets. Denton Municipal Electric (DME) relies on Denton’s citizens to report street lights that have burned out or are malfunctioning in some fashion. It is known within the utility and the City that the actions needed to identify the location of a single light that is out, and then calling customer service, or using a web-based reporting tool or service, can be both frustrating and time-consuming for the citizen. So, a street light outage can go unreported for an extended period until someone provides that notification to the city or the utility. The fact is a few street light bulbs historically burn out every week for one reason or another; therefore, several non-working street lights can become obvious if they are not reported and repaired in a timely fashion. If a light burns all day (known as a day- burner) the desire for a customer to let the utility know is less urgent than reporting a light out. However, day burners are energy wasters and contribute to the premature failure of the lamp. As lights burn out and are not reported, the increased number of burned-out lights becomes noticeable to the citizens. Bi-annually (2X per year), DME dispatches crews who work overtime hours to ride throughout the entire city, at night, to identify specific lights that are not working properly. They then prepare service tickets to initiate the repair or replacement of the streetlight. The two most recent inspections have identified between 300 to 600+ lights that had burned out. The overtime labor costs to drive throughout the city, and identify which streetlights were out, cost approximately $9,000 for one inspection period and $15,000 on the earlier inspection period. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Since bulbs burn out every day, this process, though labor-intensive but adequate, provides a limited timeframe of confidence that the highest number of streetlights are kept burning; and, it is not the most effective use of personnel or overtime. However, currently available technology will provide DME with more information and notices related to street lights and their operation. Luminaire status reporting automation – a component of the smart utility grid – provides for a more efficient method to let DME know when lights are burned out or are not working properly. A smart controller looks very similar to the existing, old-style, photoelectric device currently used by DME. A photoelectric device on luminaires controls the on/off functionality based on lighting conditions. An LED Smart Controller offers DME detailed monitoring and analysis of all street lighting installations individually throughout the city. Using a Smart Controller (see image to the left for an example), along with its headend application, LED lights that are malfunctioning are automatically reported to DME. The associated headend application provides System Operations (dispatch operations) with transparency of the lighting system health and much greater control of the street lighting system. The City of Denton will realize several benefits with concurrent implementation of a proposed LED Light Control system with the new City of Denton LED retrofit project.  Maintenance Optimization. Benefit to Denton: DME’s current practice to identify burnt out luminaries is to have Operation and Construction staff patrol the City, at night, and make note of luminaires that are not working. After the information is assembled, crews are then dispatched to make necessary repairs. A major issue with this methodology is an area that was fully lit one night may have non-working luminaires the very next night. A second path for luminaire notification is DME depending on citizens to report luminaires that are not working. Currently, a citizen has two methods to do this: 1) by calling customer service to provide the information to them, and 2) using the web-based application. Even though these methods are tried and true, they can be exasperating, or hard, to use and do not appear to be user-friendly in this current age of available new technology and tools. The automated reporting functionality of a smart controller and control system eliminates the need for DME crews to patrol the City at night and citizens to call in or go on-line. When a luminaire stops working, or is not operating “normally”, the smart controller will send a signal to the head end system – which is monitored by DME’s System Operations personnel who can dispatch maintenance crews to make the needed repairs – which can be done much sooner than having to rely on the older manual inspection and notification reporting methodologies. This will lead to a decrease in DME’s response time associated with making street light repairs. This will also provide a documented record for DME Engineering and Operational personnel to watch for patterns or system behaviors that may need to be addressed.  Greater control over individual luminaires plus zonal control of a “grouping” of luminaires. Benefit to Denton: Individual luminaires or zones/areas of luminaires can be programmed, through the head end system, to turn sections or groups of streetlights on or off at different times. For example, consider a case where a group is hosting a firework display and wants all the street lights adjacent to the fireworks venue turned off for the maximum enjoyment of the citizens. Identified luminaires can be turned off during that fireworks display. When the fireworks display is over, the luminaires are then turned back on to provide more light for the safety and security of the citizens as they make their way to their automobiles and home. With LED luminaires, there is no “warm-up” needed for the lights and full brightness is immediately available. Smart Controller  Dimming. Benefit to Denton: With the installation of 4000 K luminaires along major and minor thoroughfares, there may be areas adjacent to residential areas where these lights could potentially be considered too bright. Dimming can be a tool used by DME at these locations where a reduction in the light level from the streetlights is desired. Please note the color temperature of the light would not be changed, but the number of lumens exiting the luminaire is reduced. Dimming can also provide additional energy savings. All the LED luminaires being purchased by DME will be capable of dimming.  Engineering Data. Benefit to Denton: A smart control system provides DME’s distribution engineers with several real-time distribution systems operation parameters such as voltage, current, power factor, frequency, and energy use. This data will be used by DME Engineers to understand and monitor the efficiency of not only the street light system but the distribution system also. As an additional plus, the smart controller can be used for billing purposes if necessary. This functionality is being used by Burbank, California to bill 5G telecommunication companies for the energy used by their equipment on Burbank’s street lights.  Internal GPS. Benefit to Denton: Smart controllers will contain internal GPS units to identify the exact location of street lights and assure the mapping and billing associated with the street lighting system is accurate. When a light gets moved, or removed, a report is generated to notify all appropriate personnel of the change. This capability will become a tool in asset management for DME.  Installation Cost Savings Benefit to Denton: Labor associated with the installation of a smart controller, or smart photocell, during the installation of LED luminaires, adds no cost to the overall initial installation of an LED luminaire. If a smart controller is not installed during the initial installation of the LED luminaire, there likely will be significant costs later for crews to re-visit every luminaire and install a smart controller.  The Future and Smart Cities Benefit to Denton: The system recommended by DME to control the LED street lights is 5G technology. 5G utilizes a higher-frequency band of the wireless spectrum and is considered the future of communication technology which is seen as the backbone of Smart Cities applications. If desired, DME will continue to work with Denton’s Information Technology group to size the 5G system’s capacity to support a potential future implementation of certain Smart Cities applications that could be desirable such as environmental recording, video, facial recognition, and pedestrian and traffic congestion. DME’s proposed base service would not include Smart Cities applications; therefore, any Smart Cities applications would be operated and controlled by Denton’s Information Technology group. The communication system used by DME will act only as a conduit, or path, to transmit Smart Cities data to the appropriate City of Denton party or application. ESTIMATED PAYBACK (LUMINAIRE RETROFIT & LED CONTROL SYSTEM) Estimated Project Cost: Retrofit: $3,933,645 Control: $2,802,925 Integrations: $300,000 TOTAL $7,036,570 Annualized Savings1: $643,014 per year 1 Based on a 10-year life-cycle cost including energy savings, materials, and labor of anticipated maintenance for HPS vs. LED lighting, and labor (OT) reduction due to bi-annual field check of all lighting in City. Material adder included Requests for Proposals were sent to 848 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Seven (7) proposals were received, but only four (4) bids meeting specification were evaluated based upon published criteria including delivery, compliance with specifications, probable performance and price. Based upon this evaluation, Techline, Inc. was ranked the highest and determined to be the best value for the City. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On September 9, 2019, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Techline, Inc., for the supply of LED Control System for DME, in a five (5) year not-to-exceed amount of $2,086,865. PRINCIPAL PLACE OF BUSINESS Techline, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is a five (5) year contract with ten (10) year warranty service for the software and hosting services. FISCAL INFORMATION These items/services will be funded from DME Department account 645082645 on an as needed basis. The budgeted amount for this item is $2,086,865. 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: Jerry Fielder, 940-349-7173. Legal point of contact: Mack Reinwand at 940-349-8333.