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Exhibit 1 - Agenda Information Sheet City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Materials Management CM: Todd Hileman DATE: September 18, 2018 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Pike Engineering, LLC., for electric engineering services to provide distribution design, construction and standards; distribution system planning services; new distribution customer project designs; project quality control services; and perform distribution system studies for Denton Municipal Electric distribution engineering; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6566 - awarded to Pike Engineering, LLC., in a total not-to-exceed amount of $900,000). The Public Utilities Board recommends approval (6-0). BACKGROUND It has been over five (5) years since Denton Municipal Electric (DME) audited and amended its construction, design, electric service, metering, and materials standards for consistency with current practices and evolving equipment technology. Additionally, short and long-term studies on the electric distribution system allow DME to proactively identify and correct system deficiencies before they affect the quality of electric service provided to customers. Request for Qualifications (RFQ) for professional electric engineering services was sent to 808 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. Three (3) statement of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including identification and understanding of the City’s requirements, past performance and experience, and qualifications of key personnel. The recommended award is to Pike Engineering, LLC, based on its experience with assisting other electric distribution engineering organizations; their comparable studies and actions related to the services DME needs; and the close proximity of their office to Denton which would improve coordination and minimize applicable travel expenses. Currently, there are five (5) specific services Pike Engineering, LLC will provide. These services are: Service 1: Develop and Publish Material, Construction, and Design Standards DME’s Distribution Engineering, Distribution Construction, Distribution Operations & Maintenance, and Meter divisions utilize standards on a daily basis to meet or exceed current regulatory statutes and codes related to electric distribution. Every electric utility is different in the materials and methods used to build its electric distribution system; therefore, an “off-the-shelf” set of standards does not exist. Pike Engineering, LLC, will be used to review DME’s distribution system standards and update them to current practices and processes. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Service 2: Distribution System Short- and Long-Range Planning During the past five (5) years, DME’s distribution system has been hardened through projects that have increased power quality and reliability. The completion of this work was a key factor in DME’s recent promotion from Gold to Platinum level within APPA’s RP3 program. As additional growth is experienced in DME’s electric service territory, there is a need to study/validate capital improvement requirements on a short- and long-term basis to proactively identify system operational issues and address them before they become an issue for the customer. Pike Engineering, LLC has engineers who specialize in these studies. Service 3: Design Services Customer and system growth is occurring in Denton. The need to design/evaluate projects to serve new revenue generating customers, and make the necessary distribution improvements to meet this growth, has been strong and consistent. As necessary, DME will utilize Pike Engineering, LLC to supplement the capacity of DME staff to provide new customer electric system design services. Service 4: Project Quality Control Distribution Engineering is often the focal point for the electric utility’s interactions with the public and internally with other city and intra-utility departments. Compliance with construction and service standards and quality communications are keys to the successful delivery of service. Pike Engineering, LLC will perform quality control reviews of selected projects to verify compliance, accounting, design, etc. This service will assist engineering management to identify and improve staff skills in order to meet service level expectations. Service 5: Preparation of ERCOT Required Interconnection/Impact Studies The Public Utility Commission of Texas (PUCT) in §25.211 (g) (1) requires periodic studies of the electric distribution systems for interference, voltage, flicker, frequency, harmonics, and fault and line clearing. Each of these items can cause power quality and reliability issues for electrically connected customers. DME has historically utilized third-parties to perform these studies since DME does not have the internal expertise to perform these studies. DME will utilize Pike Engineering, LLC to perform these studies when needed. Costs related to this service are reimbursed by the generation interconnection requestor. RECOMMENDATION Award a Professional Services Agreement in the not to exceed amount of $900,000. PRINCIPAL PLACE OF BUSINESS Pike Engineering, LLC Austin, TX ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval. FISCAL INFORMATION These Professional Services will be funded out of Denton Municipal Electric’s Engineering O&M and CIP accounts, depending on whether a task or service is for a specific project or general engineering operating need. 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: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Sheet Exhibit 3: Contract and Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: George Morrow at 940-349-8487.