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Exhibit 1 - Agenda Information Sheet - Amendment 4City of Denton ______________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: July 20, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a fourth amendment to a contract between the City of Denton and Primoris Distribution Services, Inc., amending the contract approved by City Council on September 11, 2018, in the not-to-exceed amount of $900,000.00; amended by Amendments 1, 2 and 3 approved by Purchasing; said fourth amendment to continue to provide overhead distribution construction services; providing for the expenditure of funds therefor; and providing an effective date (File 6582 – providing for an additional fourth amendment expenditure amount not-to-exceed $225,000.00, with the total contract amount not-to- exceed $1,125,000.00). The Public Utilities Board recommends approval (5 - 0). INFORMATION/BACKGROUND In 2019, Denton Municipal Electric (DME) started a process of inspecting the existing electrical infrastructure within the City of Denton. This process involves inspecting over 12,000 utility poles within the City’s service area. This inspection will cover all DME pole assets this year and then the following years the poles will be inspected in cycles. Pole inspection quantities will be scheduled by DME engineering. The inspection has already identified over 1,000 poles out of the 7,000 poles inspected so far that will need attention and involve needed repairs and or complete replacement of the identified poles. Under contract 6582, we have changed out 166 of the identified poles needing repairs and or replacement. In December of 2019, Amendment 1 was executed to update the pricing of the original contract. In May of 2020, Amendment 2 was executed for a 5% price reduction due to the Covid19 pandemic. In March 2021, Amendment 3 was done to redact the 5% discount reduction. Contract 6582 expires on September 11, 2021, and the new Overhead Contract RFP is currently in the bidding process. The additional funding will help finish out the remainder of the contract and be able to keep crews working towards replacing identified poles that need replacing. We have requested the full 25% based on the amount of poles we can change out until the new contract is in place. An estimate for an average pole change-out can be $4,000 to $6,000 a pole and our goal is to replace 30 to 40 poles prior to the new contract being in place. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On December 10, 2019, Purchasing approved Amendment 1 with Primoris T&D Services, LLC, for additional services to the contract. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.co m On May 5, 2020, Purchasing approved Amendment 2 with Primoris Distribution Services, Inc. for a 5% price reduction due to Covid19. On March 24, 2021, Purchasing approved Amendment 3 with Primoris Distribution Services, Inc. to redact the 5% discount reduction. On July 12, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award Amendment No. 4 with Primoris Distrubution Services, Inc., to continue to provide overhead distribution construction services, in the not-to-exceed amount of $225,000, for a total amended contract amount of $1,125,000. PRINCIPAL PLACE OF BUSINESS Primoris Distrubution Services, Inc. Valley View, TX ESTIMATED SCHEDULE OF PROJECT This contract will expire on September 21, 2021. FISCAL INFORMATION The project will be funded from Certificates of Obligation Funds. EXHIBITS Exhibit 1: Agenda information Sheet Exhibit 2: Original Ordinance and Contract Exhibit 3: Amendment 1 Exhibit 4: Amendment 2 Exhibit 5: Amendment 3 Exhibit 6: Ordinance and Amendment 4 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.