Exhibit 1-Agenda Information Sheet-2City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: November 7, 2017
SUBJECT
Consider adoption of an ordinance accepting competitive bids and awarding a contract for the supply of
Electric Utility Aluminum Pipe Bus to be stocked in the City of Denton Distribution Center; providing for
the expenditure of funds therefor; and providing an effective date (IFB 6556-awarded to the lowest
responsible bidder meeting specification, Techline, Inc. in the three (3) year not-to-exceed amount of
$600,000).
BACKGROUND
Denton Municipal Electric (DME) has substation projects approved in its five year Capital Improvement
Plan that will require installation of aluminum pipe bus. Aluminum pipe bus acts as a transmission
conductor and connects equipment throughout the substation. DME uses 6061-T6 aluminum, extruded,
seamless, bendable, schedule 40 pipe in the standard pipe sizes of 2”, 2½”, 3”, 3½”, 4” and 5”. Orders will
be placed based on project schedules.
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 106 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. One (1) bid was received. Staff recommends awarding to the Techline Inc. as the lowest
responsible bidder meeting specification.
RECOMMENDATION
Award a contract for Electric Utility Aluminum Pipe Bus to Techline, Inc. in the three (3) year not-to-
exceed amount of $600,000. This amount includes a contingency for unforeseen maintenance/repairs/new
projects.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRINCIPAL PLACE OF BUSINESS
Techline Inc.
Fort Worth, TX
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: 2.5 Develop Capital Improvement Program (CIP) based on community
needs
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