Exhibit 1 - Agenda Information SheetCity of Denton
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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 contract with SigmaFlow, LLC, for NERC compliance software
services for the City of Denton; providing for the expenditure of funds therefor; and providing an effective
date. (RFP 6704 - awarded to SigmaFlow, LLC, for one (1) year, with the option for four (4) additional one
(1) year extensions, in a total not-to-exceed amount of $311,250 for all years). The Public Utilities Board
recommends approval (6-0).
RFP INFORMATION /BACKGROUND
Denton Municipal Electric (“DME”) is considered a Registered Entity by the North American Electric
Reliability Corporation (“NERC”), which regulates organizations in the electric power industry. DME is
required to comply with over 350 NERC Reliability Standards, which if not met, can result in Civil Penalties
of up to $1,000,000 per violation, per day. DME is seeking approval of a contract for NERC Compliance
Management Software (CMS) to mitigate the risks of penalties and manage the City’s financial resources
in a responsible manner.
The major functions of the NERC CMS solution are:
Monitor NERC Reliability Standards updates
o Searchable library of NERC Reliability Standards by version
Workflow Management
o Automated workflow emails & reminders
o Automated escalation & ability to delegate approval
o Allow system configuration adjustment over time
o Automated alerts for non-compliance
o Viewable tasks queue
Task Assignment
o Accessible by multiple users simultaneously
o Various permissions granted to users
Evidence Collection & Indexing
o Secured logs of user activity, task mgmt., notifications, & deletions
o Data storage & search capabilities
Reporting
o Non-compliance reports
o Access rights & roles
o Generate Reliability Standards Audit Worksheets (“RSAWs”)
o Daily & weekly summaries for mgmt.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Requests for Proposals was sent to 528 prospective suppliers of this item. In addition, specifications were
placed on the Materials Management website for prospective suppliers to download and advertised in the
local newspaper. Two (2) proposals were received and evaluated based upon published criteria including
delivery, compliance with specifications, probably performance and price. Based upon this evaluation,
SigmaFlow, LLC, was ranked the highest and determined to be the best value for the City (Exhibit 2).
If approved, staff will utilize this solution to reduce the risk of regulatory penalties, prepare for audits,
increase compliance staff performance, and provide management with compliance metrics.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 10, 2018, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with SigmaFlow, LLC for NERC Compliance Software for a one (1) year, with the option
for four (4) additional one (1) year extensions, in a total not-to-exceed amount of $311,250 for all years.
PRINCIPAL PLACE OF BUSINESS
SigmaFlow, LLC
Frisco, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) year contract with the options to extend the contract for four (4) additional one (1)
year periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
These services will be funded from the Denton Municipal Electric Risk and Regulatory division compliance
budget account 604227497.
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 City facilities
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: George Morrow at 940-349-8487.