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Exhibit 1 - Agenda Information Sheet City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: December 14, 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 Professional Services Agreement with Burns & McDonnell, Engineering Company Inc., to provide engineering and professional services to the DME Electric Engineering Department as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7740 – Professional Services Agreement for engineering and professional services awarded to Burns & McDonnell, Engineering Company Inc., in the three (3) year not-to-exceed amount of $1,500,000.00). INFORMATION/BACKGROUND There are numerous technical requirements for the electric distribution system which are managed by Denton Municipal Electric’s Engineering department. Short and long-term studies of the electric distribution system allow DME to proactively identify and correct system deficiencies before they affect the quality of electric service provided to customers. Denton’s current customer growth is positive and significant. DME’s Engineers and Techs work diligently to design, estimate, and manage multiple projects within the DME service territory; but there are times when outside assistance is beneficial for a timely response. DME has recently released a collection of Construction Standards that have been reviewed and approved by multiple departments and sealed by a Professional Engineer in the State of Texas. As new construction methods and materials are identified that are beneficial to DME’s customers, the Construction Standards will require updates from time to time. It is advantageous for a third party to perform audits of projects. An audit provides a greater understanding of design and construction compliance with Construction Standards and allows for improvements to be made in criteria, practices, or processes. As technology continues to evolve for the electric utility industry, DME will assess opportunities to utilize new technology to improve service, reliability, and the cost-effectiveness of operating the electric utility. These requirements help DME to be fiscally responsible and responsive to its customers. DME Engineering has utilized a professional services contract to provide engineering services from 2017 to the present. The DME has greatly benefited from the expertise in system design, system planning, and the creation of new standards. The existing contract is not renewable and has expired on September 10, 2021. DME recommends having a similar contractor in place for three more years and has selected Burns & McDonnell, Engineering Company Inc. through competitive proposals in response to Request for Qualifications (RFQ 7740) to choose an engineering firm to provide engineering services described in more detail in the Scope of Work. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com There are six (6) specific services Burns & McDonnell Engineering Company, Inc. will provide. These services are: Engineering Service 1: Electric Distribution System Short and Long-Term Planning DME's distribution system has been hardened during the past five (5) years through Capital Improvements Plans (CIP) and increased the system’s power quality and reliability. The completion of this work has played a critical role in DME's recent promotion from Gold to Platinum level within American Public Power Association’s Reliable Public Power Program (APPA's RP3) and its receipt of the Excellence in Reliability Award for the third year straight. DME's electric service territory is experiencing additional growth and there is a need to study and validate CIP plan requirements on a short- and long-term basis to proactively identify system operational issues and address them before they become an issue for the customer. Burns & McDonnell Engineering has engineers on its staff who specialize in these studies. Engineering Service 2: Electric Distribution Design The electrical distribution system design solves challenges related to design and development to ensure that they are economical, safe, and reliable. This also includes electrical layouts, grounding, and voltage drop, etc. As population and system growth occurs in Denton, the need to design/evaluate projects to serve new revenue-generating customers and make the necessary distribution system improvements to meet this growth has been solid and consistent. Therefore, as required, DME will utilize Burns & McDonnell Engineering to supplement the capacity of DME staff to provide new customer electric system design services. Engineering Service 3: Electric Construction and Materials Standards The DME has been a proponent of electric utility standards since its inception in 1905. Standards benefit the City's economy and design, construction, procurement, maintenance, and operating processes within DME. These benefits have proven crucial over the years. They are even more valuable today, with the advent of communications technology, the computerization of traditional electro-mechanic devices, and the introduction of smart grid technologies. Distribution Engineering, Distribution Construction, Distribution Operations & Maintenance, and Meter divisions utilize standards daily to meet or exceed current regulatory statutes and codes related to electric distribution. Every electric utility is different in the materials and methods used to build its electric distribution system; therefore, an "off-the-shelf" set of standards does not exist. Burns & McDonnell Engineering will be used to review DME's distribution system standards and update them to current practices and processes. Engineering Service 4: Post Construction Audits Distribution Engineering is often the focal point for the DME's interactions with the public and internally with other city and intra-utility departments. Compliance with construction and service standards and quality communications are keys to the successful delivery of service. Burns & McDonnell Engineering will perform audits and quality control reviews of selected projects to verify compliance, accounting, design, etc. In addition, this service will assist engineering management in identifying and improving staff skills to meet service level expectations. Engineering Service 5: Operational Technology While there are no current industry-standard definitions of Information Technology and Operational Technology (OT) in the electric power industry, it is possible to delineate the two. Information Technology is related to the use of systems such as computers and telecommunications for the storage, retrieval, and sending of information; while, OT is typically associated with field-based devices connected to the distribution system and the infrastructure for monitoring and controlling those devices. It includes control center-based systems such as Supervisory Control and Data Acquisition (SCADA) and Advanced Distribution Management System (ADMS). DME has been deploying OT intelligence-enabled devices for a few years. At present, most load tap changers, capacitor banks, gang-operated air break switches, reclosers, sectionalizer, and other load-break switches are OT-ready. DME is currently developing the business and deployment plans for an ADMS system and will use Burns & McDonnell Engineering's planning, design, and deployment expertise. Engineering Service 6: Additional Services When a request is submitted to interconnect a 500 kW AC distributed generation resource, such as solar panels or batteries, the Public Utility Commission of Texas (PUCT) in §25.211 (g) (1) requires periodic studies of the electric distribution systems for interference, voltage, flicker, frequency, harmonics, and fault and line clearing. Each of these items can create power quality issues for connected customers. DME utilizes third parties to perform these studies. DME will utilize Burns & McDonnell Engineering to conduct these studies when needed. The generation interconnection requestor reimburses costs related to this service. The estimated expenditures associated with this contract are shown below: Project Description Estimated 3 -Year Expenditure Engineering/Professional Services Year 1 500,000 Engineering/Professional Services Year 2 500,000 Engineering/Professional Services Year 3 500,000 Total $1,500,000 Request for Qualifications (RFQ) for professional engineering services was sent to 925 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. Ten (10) statement of qualifications (SOQ) were received, with nine (9) meeting specifications. The SOQs were evaluated based on published criteria including identification and understanding of the City’s requirements, past performance and experience, qualifications of key personnel, expected performance and past customer satisfaction, and schedule to complete tasks. Based upon this evaluation, the recommended award is to Burns & McDonnell, Engineering Company Inc., and is determined to be the most qualified firm for the City. NIGP Code Used for Solicitation: 918 - (Service Only) - Consulting Services & 925 - (Service Only) - Engineering Services, Professional Notifications sent for Solicitation sent in IonWave: 925 Number of Suppliers that viewed Solicitation in IonWave: 147 HUB-Historically Underutilized Business Invitations sent out: 104 SBE-Small Business Enterprise Invitations sent out: 392 Responses from Solicitation: 10 Responses Meeting Specifications: 9 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 13, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award a contract to Burns & McDonnell, Engineering Company Inc., to provide engineering and professional services to the DME Electric Engineering Department, in a three (3) year not-to-exceed amount of $1,500,000. PRINCIPAL PLACE OF BUSINESS Burns & McDonnell, Engineering Company Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract with the option to renew for an additional year. FISCAL INFORMATION These services will be funded from Electric Operating Funds. 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 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Jerry Fielder, 940-349-7173. Legal point of contact: Marcella Lunn at 940-349-8333.