Exhibit 1 - Agenda Information SheetCity of Denton
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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 City Manager, or their designee, to execute a contract with UST General Contracting, LLC
for the demolition of the Bio Mass Power Generation Facility located at the City of Denton Landfill;
providing for the expenditure of funds therefor; and providing an effective date (IFB 7632 - awarded to
UST General Contracting, LLC, in the not-to-exceed amount of $199,697.49). The Public Utilities Board
recommends approval (5 - 0).
INFORMATION/BACKGROUND
In the Summer of 2020, the City of Denton purchased the generation station at the City of Denton Landfill
from DTE Bio Mass Energy, who formerly owned and operated the station. At the time, the City was under
contract to supply the facility landfill gas to operate the machinery and also purchase the electricity
generated through a Purchase Power Agreement. An opportunity surfaced for the City to purchase the
facility, which would provide long-term benefits since electricity in the current and projected future market
is cheaper than what DME is purchasing it for within this contract.
The title for the facility was transferred to the City on September 1, 2020, and operations and maintenance
(O&M) activities were executed by DME personnel. Consistent with the analysis provided to Council to
justify the purchase of the facility, staff promptly analyzed: O&M cost, the actual cost of generation, and
the emissions produced. City staff confirmed all assumptions used to justify the purchase and the facility
was retired from operation. In addition to the high O&M cost, the emissions emitted by the engine when
operating were greater than flaring all of the landfill gas produced.
Denton’s Solid Waste Department presented an alternative beneficial reuse option for landfill gas
production and proposed to PUB and Council to replace the facility with a high British Thermal Unit (BTU)
gas production facility. Proposals are being sought for such a beneficial reuse facility.
Staff developed specifications for the demolition project and the City conducted a formal solicitation for
the demolition services.
Although the landfill gas is currently being flared, future, beneficial reuse of the Biomass/Landfill Gas
resource is in the planning phase. Specifications are in development to prepare a Request for Qualifications
(RFQ) to produce a High BTU pipeline quality gas for sale on the open market. The City anticipated receipt
and selection of a qualified, 3rd party vendor by the end of this fiscal year. Consideration of the proposal
will be reviewed by the Public Utilities Board and Council prior to award. In preparation for future COD
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
expansions, the site of the former DTE Landfill Gas to Energy facility will be used as the location to
construct the future Solid Waste Fleet Facility thus, requiring demolition to make way for the future facility.
Invitation for Bids was sent to 655 prospective suppliers of this item, including 53 Denton firms. In addition,
specifications were placed on the Materials Management website for prospective suppliers to download and
advertised in the local newspaper. Two (2) bids were received, with one (1) meeting specifications. The
lowest bid was received by UST General Contracting, LLC.
NIGP Code Used for Solicitation: 912 - (Service Only) - Construction
Services, General (Incl. Maintenance
And Repair Services) & 913 - (Service
Only) - Construction Services, Heavy
(Incl. Maintenance & Repair Services)
Notifications sent for Solicitation sent in IonWave: 655
Number of Suppliers that viewed Solicitation in IonWave: 27
HUB-Historically Underutilized Business Invitations sent out: 56
SBE-Small Business Enterprise Invitations sent out: 249
Responses from Solicitation: 2
Responses Meeting Specifications: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On July 12, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with UST General Contracting, LLC, for the demolition of the Bio Mass Power
Generation Facility located at the City of Denton Landfill, in a not-to-exceed amount of $199,697.49.
PRINCIPAL PLACE OF BUSINESS
UST General Contracting, LLC (USTGC)
Keller, TX
ESTIMATED SCHEDULE OF PROJECT
This project will be started upon approval with a completion date within 45 days.
FISCAL INFORMATION
The demolition will be funded by Electric Operations Capital Improvement Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: LLC Members
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Jason Brown, 940-349-7140.
Legal point of contact: Marcella Lunn at 940-349-8333.