Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: December 18, 2018
SUBJECT
Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract for the supply of Electric Utility Overhead Distribution
Conductors for the City of Denton Distribution Center; providing for the expenditure of funds therefor; and
providing an effective date (RFP 6563-awarded to Wesco Distribution, Inc., in the five (5) year not-to-
exceed amount of $500,000 and Anixter, Inc., in the five (5) year not-to-exceed amount of $3,500,000, in
a total not-to-exceed amount of $4,000,000).
RFP INFORMATION /BACKGROUND
This RFP is for the annual contract to supply overhead distribution conductors for Denton Municipal
Electric. The conductors (cable) are used to distribute overhead electrical service to its customers. The cable
is used to replace the existing overhead cable that fails and also to extend service to new residential and
commercial customers. The items are stocked by the Distribution Center and used as needed.
Volatility in copper and aluminum prices have made it mandatory and prudent that a procurement method
be crafted that recognizes the reality of conditions in the marketplace and also minimizes cost exposure by
locking in projected quantities. The unit prices recommended for award are based upon published third-
party indices for raw materials provided in the specifications. Throughout the contract, the prices will adjust
(increase or decrease) based upon the previous month’s basis for raw materials.
Request for Proposals was sent to 282 prospective suppliers of this item. In addition, specifications were
placed on the Materials Management website for prospective suppliers to download and advertised in the
local newspaper. Eight (8) proposals were received, seven (7) proposals meeting specifications were
received for Section A and three (3) proposals meeting specification were received for Section B (Exhibit
2). The proposals were evaluated based upon published criteria including lead time, compliance with
specifications, performance, and price. Based upon this evaluation, multiple vendors were ranked the
highest and determined to be the best value for the City.
RECOMMENDATION
Based on historical usage, proposed pricing, and copper and aluminum price volatility the following award
is recommended:
Award a contract with Wesco Distribution, Inc. for the supply of Electric Utility Overhead Distribution
Conductors (Exhibit 2, Section B) in a five (5) year not-to-exceed amount of $500,000.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Award a contract with Anixter, Inc. for the supply of Electric Utility Overhead Distribution Conductors
(Exhibit 2, Section A) in a five (5) year not-to-exceed amount of $3,500,000.
PRINCIPAL PLACE OF BUSINESS
Wesco Distribution, Inc.
Pittsburg, PA
Anixter, Inc.
Corinth, Texas
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract with the sole option of the City of Denton to extend as needed, not to exceed
a total of six (6) months, with all terms and conditions remaining the same.
FISCAL INFORMATION
These items will be funded out of the Distribution Center Working Capital account and charged back to the
using department.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision.
The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence;
Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and
Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this
specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 2.3 Promote superior utility services and City facilities
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluations
Exhibit 3: Ordinance and Contracts
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Laura Hermosillo at 940-349-8438.
Legal point of contact: Mack Reinwand at 940-349-8333.