Exhibit 1-Agenda Information Sheet lcCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: December 12, 2017
SUBJECT
Consider adoption of an ordinance accepting competitive bids and awarding a contract for the supply of
Electric Utility 2500 MCM AAC “Lupine” Transmission Conductor for Denton Municipal Electric to be
stocked in the City of Denton Distribution Center; providing for the expenditure of funds therefor; and
providing an effective date (IFB 6552-awarded to Wesco Distribution in the three (3) year not-to-exceed
amount of $140,000).
BACKGROUND
Denton Municipal Electric (DME) has substation projects approved in its five year Capital Improvement
Plan that will require installation of 2500 MCM AAC conductor. This conductor is used in substations for
the interconnection of equipment and bus. For substation construction projects, 2500 MCM AAC is used
as jumpers between transmission lines to bus, and switches to breakers.
As these commodities are “common stock items” in the Distribution Center working capital inventory under
City of Denton General Government, they are not reviewed by the Public Utilities Board. The Distribution
Center orders goods in coordination with DME for specific projects under construction. The items are
temporarily stored in the Distribution Center until they are needed on the jobsite and then transferred to
DME through an inventory management system. The items are ordered as needed, taking into account the
contracted lead time and the need by date by the using department. The need by date is established by
ensuring that citizen, customer, and developer timelines all form the basis of when the construction work
must be complete by with an operational City of Denton service; furthermore, it factors in City of Denton
construction crew schedules and construction sequencing with job site contractors.
Invitations for Bid were sent to 321 prospective suppliers for these items. In addition, specifications were
placed on the Materials Management website for prospective suppliers to download and advertised in the
local newspaper. Two (2) bids were received, with one firm offering two solutions. Staff recommends
awarding to the Wesco Distribution as the lowest responsible bidder meeting specification. Line Item 3
will not be awarded as no pricing was submitted by the vendor.
RECOMMENDATION
Award a contract for Electric Utility 2500 MCM AAC “Lupine” Transmission Conductor to Wesco
Distribution in the three (3) year not-to-exceed amount of $140,000.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRINCIPAL PLACE OF BUSINESS
Wesco Distribution
Tulsa, OK
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) 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
The items in this bid will be funded out of the Distribution Center working capital account and charged
back to the using department. The costs for material purchased under the proposed agreement will be funded
out of amounts budgeted for specific projects. The work proposed will be in the transmission category.
These costs for transmission projects will ultimately be recovered through the Public Utility Commission
Transmission Cost of Service Program (TCOS).
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence;
Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and
Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this
specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Public Infrastructure
Related Goal: 2.3 Promote superior utility services and facilities
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Tabulation Sheet
Exhibit 3: Ordinance
Exhibit 4: Contract
Respectfully submitted:
Karen Smith, 349-8436
Purchasing Manager
For information concerning this acquisition, contact: Karen Smith at 940-349-8436