Exhibit 1 - Agenda Information Sheet - Amendment 3City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: January 12, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a third amendment to a contract between the City of Denton and USIC Locating
Services, LLC, amending the contract approved by City Council on June 19, 2018, in the not-to-exceed
amount of $1,200,000.00; amended by Amendments 1-2 approved by Purchasing; said third amendment to
continue to supply underground utility locating services; providing for the expenditure of funds therefor;
and providing an effective date (File 6736 – providing for an additional third amendment expenditure
amount not-to-exceed $300,000.00, with the total contract amount not-to-exceed $1,500,000.00).
INFORMATION/BACKGROUND
The proposed amendment is for the continuation of underground utility locating services. Any person
digging on a property is required by the Texas Railroad Commission to contact Texas 811 to identify all
underground utilities in the area. The intent is to ensure safe digging and limit injuries caused by striking
underground services. Texas 811 is the regional entity that provides a centralized location for residents and
contractors to notify of an intent to dig. Upon receipt of a request, Texas 811 sends notices to the utilities
that may be near the dig site. Each utility has 48 hours to respond to the notice from Texas 811. The City
has opted to outsource the locating services to USIC Locating Services, LLC, through this solicitation.
The current contract is not sufficiently funded for all required services through the contract term. A third
amendment is proposed to the existing contract, which will allow the City time to procure a new contract
without service interruption.
The original contract not-to-exceed amount was $1,200,000. Amendments 1 and 2 amended the pricing
structure as allowed by the agreement. The recommended third amendment adds $300,000 to the contract
for a total of $1,500,000
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 19, 2018, City Council approved a contract with USIC Locating Services, LLC, in the not-to-
exceed amount of $1,200,000 (Ordinance 18-938).
On June 6, 2019, Purchasing approved Amendment 1 with USIC Locating Services, LLC., to accept
updated pricing.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
On June 16, 2020, Purchasing approved Amendment 2 with USIC Locating Services, LLC., to accept
updated pricing.
On January 11, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award Amendment No. 3 with USIC Locating Services, LLC, to continue to supply underground utility
locating services, in the not-to-exceed amount of $300,000, for a total amended contract amount of
$1,500,000.
PRINCIPAL PLACE OF BUSINESS
USIC Locating Services, LLC
Indianapolis, IN
ESTIMATED SCHEDULE OF PROJECT
This contract expires on June 17, 2021.
FISCAL INFORMATION
These services will be funded from various Denton Municipal Electric Capital Project Funds. Requisitions
will be entered on an as-needed basis. The City will only pay for services rendered and is not obligated to
pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Amendment 1
Exhibit 4: Amendment 2
Exhibit 5: LLC Members
Exhibit 6: Ordinance and Amendment 3
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Brad Watts, 940-349-7500.
Legal point of contact: Marcella Lunn at 940-349-8333.