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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement DCM: David Gaines DATE: July 19, 2022 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 Power Monitors, Inc., for the purchase of pole mounted, ethernet-based three-phase PMI End-of-Line voltage and current recording, monitoring, metering, software, integration, accessories, and devices for Denton Municipal Electric, which is the sole provider of these items, 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 8008 – awarded to Power Monitors, Inc., in the three (3) year not-to- exceed amount of $204,643.74). The Public Utilities Board recommends approval (6 - 0). INFORMATION/BACKGROUND In 2017, Denton Municipal Electric (DME)’s Electric Engineering researched methodologies to reduce power consumption during the Utility’s four-coincident-peak (4CP) months. 4CP is the average of DME’s peaks during the highest ERCOT grid peak hours for each of the four summer months. Distribution grid management, through peak shaving, during the 4CP months will lead to a reduced annual energy cost and more importantly, lower Transmission Cost of Service (TCOS). DME engineering performed industry-wide research and evaluated several methods for peak shaving. Conservation Voltage Reduction (CVR) was seen as very attractive due to its ease of implementation and low upfront cost. CVR is the practice of intentionally lowering the voltage on primary distribution circuits while maintaining voltage within the acceptable voltage range defined by the American National Standards Institute (ANSI) standards. As a proof-of-concept, DME Electric Engineering selected six feeders with varying load profiles and ran a pilot program in 2019 using PMI’s voltage monitoring and recording devices. Successful execution of CVR protocols requires the Utility to know, in real-time, that the delivery voltage at the end of a circuit is within standards. To provide this information, DME chose PMI’s Boomerang product for reporting real-time, end of the circuit, and voltage. Boomerangs are microprocessor-based sensors that are managed through Software as a Service (SaaS) and provide accurate voltage telemetry and triggering in real-time via the Utility’s current Advanced Metering Infrastructure ethernet/Trilliant radio system. The proof-of-concept was successful and DME’s Systems Operators run CVR every 4CP season. To expand DME’s CVR capability and increase TCOS and energy savings for its customers, DME is proposing the purchase of (100) additional PMI Boomerang monitors. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 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 July 11, 2022, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Power Monitors, Inc., for the purchase of pole mounted, ethernet-based three-phase PMI End-of-Line voltage and current recording, monitoring, metering, software, integration, accessories, and devices for Denton Municipal Electric, in a three (3) year not-to-exceed amount of $204,643.74. PRINCIPAL PLACE OF BUSINESS Power Monitors, Inc. Mt. Crawford, VA ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract. FISCAL INFORMATION These items/services will be funded from DME's CIP budget account: 605131500 Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $204,643.74. 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: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Sam Mall, 940-349-7325. Legal point of contact: Marcella Lunn at 940-349-8333.