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Exhibit 1 - Agenda Information Sheet City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: November 5, 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 Quality Pole Inspection and Maintenance, Inc., for electric distribution pole inspection and treatment services for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 6993 – awarded to Quality Pole Inspection and Maintenance, Inc., in the five (5) year not-to-exceed amount of $235,315). The Public Utilities Board recommends approval (5 - 1). RFP INFORMATION/BACKGROUND DME’s distribution power system includes approximately 17,000 poles. The vast majority, approximately 12,000 of these poles are wood. As with any consumable product exposed to natural elements, wood poles are subject to deterioration and rot, which can create a safety issue for the public and the field crews who must work on them. The purpose of this pole inspection is to identify existing poles that are deteriorated and in need of replacement. A pole inspection entails a visual inspection of the pole for problems such as rot, insect or mechanical damage; partially excavating poles that are suspected of exterior decay, and testing the pole for interior decay. If the pole is determined to be structurally safe but has enough decay where treatment could be applied that would extend the life of the pole, then that corrective action is performed. Treatment involves injecting industry-approved compounds to fumigate the interior of the pole or stripping off exterior decay and applying preservatives and/or a protective wrap. Rural Utility Service (an entity of the Federal Government) Bulletin 1730B-121 (Dated 8/13/13) recommends a pole inspection cycle of 10 years for Decay Zone 3. DME’s Service Territory lies within Decay Zone 3’s boundaries. For this reason, DME will establish a minimum of a 10-year pole inspection cycle. With the approval of this contract, DME Engineering and Operations will establish a program to inspect, treat, and if needed replace wood poles on a reoccurring basis every 10 years in order to provide safe, reliable, affordable, and environmentally sustainable electric service. Requests for Proposals was sent to 295 prospective providers of this item. In addition, specifications were placed on the Material Management website for prospective suppliers to download and advertised in the local newspaper. Two (2) proposals were received and evaluated upon published criteria including delivery, compliance with specifications, probable performance and price. Based upon this evaluation, Quality Pole Inspection and Maintenance, Inc. was ranked the highest and determined to be the best value for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com PRIOR ACTION/REVIEW (Council, Boards, Commissions) On October 28, 2019, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Quality Pole Inspection and Maintenance, Inc., for the supply of electric distribution pole inspection and treatment services for DME, in a five (5) year not-to-exceed amount of $235,315. PRINCIPAL PLACE OF BUSINESS Quality Pole Inspection and Maintenance, Inc. Edna, TX ESTIMATED SCHEDULE OF PROJECT: This is a five (5) year contract. FISCAL INFORMATION These items/services will be funded from DME Department account 600500.7899.5880. The budgeted amount for this item is $235,315. 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.