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Exhibit 1- Agenda Information Sheet - Amendment 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: July 23, 2019 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 for the purchase of natural gas for use in the Solid Waste Department’s CNG Fuel Pumps; in accordance with Texas Local Government Code 252.022, which provides an exemption from competitive bidding for this purchase; and providing an effective date (File 6795 - awarded to Luminant Energy Company, LLC, in the not-to-exceed amount of $75,000). INFORMATION /BACKGROUND The City of Denton operates a significant fleet of Compressed Natural Gas (CNG) fuel collection vehicles to provide solid waste and recycling services to its residents and businesses. In April 2018, the City of Denton commissioned its CNG fueling facility at the City of Denton Landfill resulting in the necessity to contract with a third party to supply natural gas to the station. Natural gas is supplied to the open market under one of two scenarios; using a fixed price scenario based on the spot market the date the purchase agreement is signed and a dynamic model basing the commodity price on the spot market at the time the CNG is pumped/delivered. Because of the City’s relatively low volume CNG demands and the need to ensure fixed pricing, we elected to accept fixed-price proposal to avoid the staff time required to monitor the commodity market and to apply budgeting predictability. Luminant Energy Company, LLC, is the only supplier that will contract with the City of Denton using the fixed cost model. The City’s Current agreement with its CNG Supplier, Luminant Energy Company, LLC, expires July 31, 2019. A new contract will need to be executed prior to August 1, 2019, to ensure the City’s Solid Waste CNG fleet remains operational. The purpose of this ordinance is to provide the City Manager the authority to contract with Luminant Energy Company, LLC, to purchase up to $75,000 worth of Compressed Natural Gas (CNG) for fueling City of Denton Fleet Vehicles. In accordance with Texas Local Government Code 252.022, the procurement of items necessary to preserve or protect the public health or safety of the municipality’s residents need not be submitted to competitive bids and this Section has been construed to cover solid waste collection, hauling and disposal. See Browning-Ferris, Inc. v. City of Leon Valley, 590 S.W.2d 729 (Tex. App.-SAT 1979), reh. denied); Texas Atty. Gen. Op. No. JC-0281 (2000). PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On July 22, 2019, this item will be presented to the Public Utilities Board for recommendation to the City Council for consideration. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com RECOMMENDATION Award a contract with Luminant Energy Company, LLC, for Compressed Natural Gas (CNG) for fueling City of Denton Fleet Vehicles, in the not-to-exceed amount of $75,000. PRINCIPAL PLACE OF BUSINESS Luminant Energy Company, LLC Dallas, TX ESTIMATED SCHEDULE OF PROJECT Providing this authority will ensure the ability to acquire CNG for the City of Denton Solid Waste and Recycling Fleet for approximately 12 months. FISCAL INFORMATION These services will be funded from Solid Waste account – 660800.7842 in the amount of $75,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: LLC Members Exhibit 3: Sample Agreement Exhibit 4: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Brian Boerner at 940-349-8001. Legal point of contact: Larry Collister at 940-349-8333.