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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.