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Exhibit 1 - Agenda Information Sheet - Power EngineersCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: May 12, 2020 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 Power Engineers, Inc., for program management, construction inspection services, and professional engineering services, for the Capital Improvement Program for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6862 – awarded to Power Engineers, Inc., for three (3) years, with the option for two (2) additional one (1) year extensions, in a total five (5) year not-to-exceed amount of $5,070,304.) INFORMATION /BACKGROUND Denton Municipal Electric (DME), in pursuit of its Capital Improvement Program (CIP) for substation and transmission line projects, requires the services of consultants for support and assistance with program management, construction inspection and certain engineering services. Power Engineers, Inc., has submitted a proposal to provide engineering, program management, site and route selection support, and construction inspection services. These services are intended to meet the temporary needs of the CIP program. Over time, there will not be sufficient work to justify full time staff for these services as projects are completed. Using outside resources is an efficient and reasonable method for obtaining the temporary and specialized services needed. The approved DME CIP contains nine substation projects and 18 transmission line projects to be built, upgraded, or reconstructed and energized in the next 5 years. The quantity and complexity of the CIP projects that DME is undertaking requires program management services. Program management is the process of managing by means of scheduling, tracking, creating plans for, and reporting on a number of aspects of projects. The CIP includes gas insulated substations at two sites, overhead transmission lines, underground transmission line segments, and substation and transmission line conversions from 69kV to 138kV. Projects for new facilities and replacements of facilities are included in the CIP. Program management is needed to carefully and properly plan for and track critical aspects of projects. The program will also include planning for removal of retired equipment and facilities. Scheduling and coordination of these projects will be complex and will require significant effort to develop sequencing plans that are accurate, that keep the lengths of outages as short as reasonable, and that promote the highest levels of safety. One of the major items that DME needs to accomplish through the program management effort is reviewing and updating its internal process documents to bring them into alignment with the new version of the Denton Development Code. These processes outline the procedural steps necessary for various aspects of permitting and development of property for projects. Almost every process has changed significantly with the recent City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com revision of the development code. There are at least 16 different process documents that must be updated. The number of processes needed will likely change with the new code. Construction inspection is another major aspect of the program management portion. This is intended to provide the expertise in the field on projects to ensure that the work done by the contractor is correct and in accordance with the plans and specifications. The largest parts of the effort in substation construction is site work, foundations, grounding, concrete fencing, concrete retaining walls, and conduit installation. This is all in the civil engineering field. DME does not have sufficient work to employ a knowledgeable civil inspector full time. Power Engineers, Inc., has successfully provided various engineering and site and route selection services for DME projects for several years. This proposed professional service contract is structured such that DME only pays for actual work performed and that there is no guarantee of any minimum expenditure. Only work needed will be authorized and paid for. The term of the contract is for three years with two annual renewals. The contract may be terminated with 30 days notice at any time with no penalty. Requests for Qualifications (RFQ) for Professional Engineering Services for Electric Transmission and Substation Capital Program Management Services was sent to 295 prospective firms for these services. In addition, the RFQ was placed on the Materials Management website for prospective respondents to download, and advertised in the local newspaper. Two (2) statement of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including identification and understanding of the City’s requirements, experience and qualifications, key personnel and project team available for work categories upon request, and indicators of probable performance. Based upon this evaluation, the recommended award is to Power Engineers, Inc. and is determined to be the most qualified firm for the City. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On May 11, 2020 this item will go to the Public Utilities Board (PUB) for recommendation. RECOMMENDATION Award a contract with Power Engineers, Inc., for program management, construction inspection services and professional engineering services, for the Capital Improvement Program for Denton Municipal Electric, in a three (3) year, with the option for two (2) additional one (1) year extensions, in a total five (5) year not- to-exceed amount of $5,070,304. PRINCIPAL PLACE OF BUSINESS Power Engineers, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT(S) This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These services will be funded through the using department’s budget on an as-needed basis. The City will only pay for services rendered and is not obligated to pay the full contract amount unless needed. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Project List Exhibit 3: Evaluation Sheet Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Chuck Sears, 940-349-7111. Legal point of contact: Mack Reinwand at 940-349-8333.