Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: June 19, 2018
SUBJECT
Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal
corporation, accepting competitive bids and awarding a contract for the supply of Underground Utility
Locating Services; providing for the expenditure of funds therefor; and providing an effective date (IFB
6736- awarded to USIC Locating Services, LLC, for one (1) year, with the option for two (2) additional
one (1) year extensions, in a total not-to-exceed amount of $1,200,000 for all years). The Public Utilities
Board recommends approval (6-0).
BID INFORMATION
Any person digging on property is required by the Texas Railroad Commission to contact DIGTESS to
identify all underground utilities in the area. The intent is to ensure safe digging, limiting injuries caused
by striking underground services. DIGTESS is the regional entity in Texas that provides a centralized
location for residents and contractors to notify of an intent to dig. Upon receipt of a request, DIGTESS
sends notices to the utilities that may be near the dig site. Each utility has 48 hours to respond to the notice
from DIGTESS. DME has opted to outsource the locating services to a third party through this solicitation.
Denton Municipal Electric (DME) has utilized the use of an outside contractor for doing line locates since
2009. Prior to 2009, they were completed by DME Service Truck Personnel. A service trucks primary
responsibility is maintaining system reliability, trouble shooting, maintaining streetlights, new meter
connects, disconnects, and reconnects. For a service truck to complete one line locate, it can cost DME
$125.91 per hour for labor and vehicle.
After hours locates, otherwise known as emergency line locates, are completed by the on call personnel,
this consists of a Senior Lineman, a helper (lineman III or lineman IV), service truck, and a ¾ ton pickup.
These calls are usually single locates requested by other utilities (water, phone and cable TV) when making
emergency repairs to their systems, these locates cost DME $191.36 per hour.
Using an outside vendor for this service will benefit DME in the following areas:
1. Service Trucks will maintain productivity on maintenance job orders, streetlight repairs, system
reliability, and customer service.
2. Over time costs will not increase for on call personnel.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Invitation for Bids were sent to 217 prospective suppliers of this service. 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 by USIC Locating Services, LLC.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 11, 2018, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with USIC Locating Services, LLC for Underground Line Location Service, in the three
(3) year not-to-exceed amount of $1,200,000.
PRINCIPAL PLACE OF BUSINESS
USIC Locating Services, LLC
Indianapolis, IN
ESTIMATED SCHEDULE OF PROJECT
Line locates are received daily thru DIGTESS and must be responded to within 48 hours, and the tickets
must be completed within five days. Locates will range from 15 to 50 daily depending on construction and
growth.
FISCAL INFORMATION
These services will be funded from Electric Operations 600200 operating budget under Outside Contract
Services. The budget amount for this service is $365,000 annually. The Communications (Fiber) portion
will be funded from account 600800 for $100,000 annually. The cumulative total budgeted amount for
this service is $1,395,000.
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: Bid Tabulation
Exhibit 3: Contract
Exhibit 4: Ordinance
Respectfully submitted:
Karen Smith, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: George Morrow at 940-349-8487