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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement CFO: Cassey Ogden DATE: September 20, 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 Johnston Technical Services, Inc., through the Department of Information Resources (DIR) Cooperative Purchasing Network Contract No. DIR-CPO- 4792, for the purchase of Microwave Network Equipment and Service for the Water Production Department; providing for the expenditure of funds therefor; and providing an effective date (File 8075 – awarded to Johnston Technical Services, Inc., for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $300,000.00). The Public Utilities Board recommends approval (5 - 0). INFORMATION/BACKGROUND Water Production uses microwave radios to communicate with all of its facilities. The type of communications used with these radios is data or process and access control, city network, phones, and security camera feeds to the Lake Ray Roberts Water Treatment Plant, Lake Lewisville Water Treatment Plant, and other remote sites which include elevated storage and pump stations. The reliability of this network is very important for the management of the water treatment process, distribution system pressure, and water quality. Johnson Technical Services (JTS) has been used by Water Production since 2003 and is very familiar with the network and equipment. Chapter 271.102 of the Local Government Code authorizes local governments to participate in a cooperative purchasing program with another local government or local cooperative organization. Instead of competitive bidding, items and services may be purchased through such agreements as the agreements have already been bid by the sponsoring entity or agency. By doing this as a cooperative effort, the combined purchasing usage of these entities was utilized to realize competitive pricing and reduced administrative costs of individual bidding. Year Total 2022 – 2023 $60,000 2023 – 2024 $60,000 2024 – 2025 $60,000 2025 – 2026 1 year extension $60,000 2026 – 2027 1 year extension $60,000 Total for 5 years: $300,000 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Pricing obtained through the Department of Information Resources (DIR) Cooperative Purchasing Network has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On January 28, 2020, Council approved the interlocal agreement with the Department of Information Resources Purchasing Network (Ordinance 20-196). On August 22, 2022, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Johnston Technical Services, Inc., for the purchase of Microwave Network Equipment and Service for the Water Production Department, in a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $300,000. PRINCIPAL PLACE OF BUSINESS Johnston Technical Services, Inc. Dallas, TX ESTIMATED SCHEDULE OF PROJECT This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. This DIR contract expires on May 28, 2026. FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. 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: Pricing Sheet Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Brian Smith, 940-349-7627. Legal point of contact: Marcella Lunn at 940-349-8333.