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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: March 2, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or her designee, to execute a Professional Services Agreement with MRE Consulting, Ltd., for Energy Trading and Risk Management (ETRM) Consulting for the Denton Municipal Electric Department as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7538 – Professional Services Agreement for consulting services awarded to MRE Consulting, Ltd., in the three (3) year not-to-exceed amount of $350,000.00). INFORMATION/BACKGROUND Denton Municipal Electric manages a wholesale energy portfolio valued in the hundreds of millions of dollars. The market risk of this portfolio is assessed daily by DME staff per normal industry practice. In recent years the tools used to do these assessments were a mixture of applications many of which rely on human input. Computer-based applications are the preferred industry standard for this function as recommended by an outside consultant (Deloitte). DME acted on this recommendation and purchased an ETRM system from Allegro Development Corp. on June 23, 2020. Imbedded in the Allegro contract is a basic installation and setup of the system in a projected multi-week timeframe that is currently slated for completion in February. DME understood that that the basic manufacture’s configuration package was a solid starting point, but that certain customization would be needed to match DME’s operation, which has some unique characteristics as a vertically integrated and not- for-profit utility. DME planned and budgeted for this additional consultation assistance in order to create unique tools and reports tailored to its operation. Prior to and during the implementation of the new Allegro system, DME has been utilizing a consulting firm (Deloitte) to provide an ETRM system and advisory recommendations connected with its utilization. The Deloitte engagement is ending in the first quarter of 2021. Engagement with this firm (MRE Consulting, Ltd.) will ensure that DME has consulting expertise available for this role. Request for Qualifications (RFQ) for professional consulting services was sent to 603 prospective firms for these services. In addition, the RFQ was placed on the Materials Management website for prospective respondents to download, and advertised in the local newspaper. Three (3) statements of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including identification and understanding of the City’s requirements, past performance and experience, and availability to complete tasks. Based upon this evaluation, the recommended award is to MRE Consulting, Ltd. and is determined to be the most qualified firm for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 918 – (Service Only) – Consulting Services Notifications sent for Solicitation sent in IonWave: 603 Number of Suppliers that viewed Solicitation in IonWave: 64 HUB-Historically Underutilized Business Invitations sent out: 52 SBE-Small Business Enterprise Invitations sent out: 182 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 8, 2021, this item will go to the Public Utilities Board (PUB) for recommendation. RECOMMENDATION Award a contract with MRE Consulting, Ltd. for Energy Trading and Risk Management (ETRM) Consulting for the Denton Municipal Electric Department, in a three (3) year not-to-exceed amount of $350,000. PRINCIPAL PLACE OF BUSINESS MRE Consulting, Ltd. Houston, TX ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract. FISCAL INFORMATION These services will be funded from Electric Operation Funds. Individual contracts will be negotiated with the firm and purchase orders will be issued as needed. 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: Evaluation Sheet Exhibit 3: Ordinance and Contract Exhibit 4: Presentation Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Smith Day, 940-349-7561. Legal point of contact: Marcella Lunn at 940-349-8333.