Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: September 21, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Open Systems International, Inc., for the renewal
of maintenance, support, and upgrade services of OSI Monarch for Denton Municipal Electric, which is the
sole provider of this software, in accordance with Texas Local Government Code 252.022, which provides
that procurement of commodities and services that are available from one source are exempt from
competitive bidding, and if over $50,000 shall be awarded by the governing body; providing for the
expenditure of funds therefor; and providing an effective date (File 7718 – awarded to Open Systems
International, Inc., in the five (5) year not-to-exceed amount of $1,500,000.00). The Public Utilities Board
recommends approval (6 - 0).
INFORMATION/BACKGROUND
Since 2008, Denton Municipal Electric (DME) has used Open System International’s (OSI) Monarch’s
product for several critical operations. OSI Monarch is a control system that enables utilities to support,
monitor, control, schedule, and optimize complex network operations. This includes 1) the monitoring and
operation of its electric substations via a Supervisory Control and Data Acquisition (SCADA) system
operated from its transmission & distribution (T&D) and Control Centers, 2) the facilitation of the purchase
of electricity with energy market bid submittals to the Electric Reliability Council of Texas (ERCOT), and
3) the sharing of electric load and grid operation data with ERCOT and other third parties through Inter-
Control Center Communications Protocol (ICCP).
This request includes a project to perform a major software upgrade on the current SCADA systems. The
project includes the latest bug fixes, security updates needed for North American Electric Reliability
Corporation Critical Infrastructure Protection (NERC CIP) compliance, as well as major feature
enhancements including short-term load forecasting, and improved data archiving and reporting
capabilities. OSI will perform a full upgrade from a copy of DME's system(s) at their own facilities before
quality assurance testing by DME and technology services staff, and final delivery and implementation.
Additionally, this request seeks to include the costs for five years of maintenance and support renewal for
OSI Monarch to ensure ongoing system reliability.
Project Description Estimated 5-Year Expenditure
Six Project Milestones & Year 1 Support 467,885
Four Project Milestones & Year 2 Support 467,885
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Year 3 Support 120,200
Year 4 Support 120,200
Year 5 Support 120,200
Contingency 203,630
Total $1,500,000
Section 252.022 of the Local Government Code provides that procurement of sole source commodities and
services are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 13, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award with a contract to Open Systems International, Inc., as a sole source supplier, for the renewal of
maintenance, support, and upgrade services of OSI Monarch for Denton Municipal Electric, in a five (5)
year amount not-to-exceed $1,500,000.
PRINCIPAL PLACE OF BUSINESS
Open Systems International, Inc.
Medina, MN
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from Electric and Technology Services Operating Funds.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Larry Collier, 940-349-7539.
Legal point of contact: Marcella Lunn at 940-349-8333.