Loading...
Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance CFO: Antonio Puente, Jr. DATE: April 21, 2020 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 Interfaith Ministries of Denton, Inc., for a utility assistance program for low-income households; providing for the expenditure of funds therefor; and providing an effective date (RFP 7244 - awarded to Interfaith Ministries of Denton, Inc., for one (1) year to provide annual administrative services in the amount of $22,500, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $625,000 for annual administrative services and anticipated distributions for a utility assistance program for low-income households). INFORMATION/BACKGROUND Denton Municipal Utilities’ Prevent Loss of Utility Service (P.L.U.S. One) program was created in 1983 to provide qualifying customers facing a temporary financial crisis with the funds necessary to pay their utility bills. Since April of 2011, the program has been funded by a combination of customer donations and allocations from Denton Municipal Utilities (DMU). Since April of 2011, 2,271 families have received needed assistance through the P.L.U.S One program for a total amount of $730,764. The funds provided to those families have helped them reestablish themselves following a financial crisis while ensuring that utility services are not interrupted or are restored. Utilities Customer Service in cooperation with Community Development staff developed a set of guidelines for the partner agency with criteria necessary to screen and evaluate applications for assistance. As part of the Request for Proposal (RFP) process to secure a partner agency, City staff, with the direction of the Public Utilities Board and City Council, updated the program guidelines to ensure assistance continues to be available for low and fixed income families with postpaid and prepaid utility accounts. In February of 2018, the PLUS One program was updated to allow for a greater scope in assisting local families. These updates allow assistance twice in one twelve (12) month period of time in addition to assistance with deposits. This allows us to serve approximately 325 families with the average assistance totaling $353. Currently, the program is funded at $125,000 annually. During the new term of the contract, this will allow assistance to 290 families at current rates. Over the five (5) year term of the contract, it is anticipated that 1,450 families will be helped to maintain services through financial hardship at a total cost of $625,000. In addition to updated criteria, staff requested more detail in the reporting of clients who have applied but were ultimately declined for assistance. City staff is requesting data on the number of clients requesting City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com assistance, the number of clients approved – including the amount, and the number of clients denied assistance – including the reason why, the number of appeals received, client demographics, the total amount received from DMU, and the total amount administered. The updated reporting requirements will allow the City to evaluate the need for more or less funding or if further adjustments to criteria are warranted. On December 5, 2019, staff issued a Request for Proposal (RFP) to vendors qualified to administer a utility assistance program. Requests for proposals were sent to 68 agencies. A selection committee comprised of five representatives from Customer Service, Community Development, and the Solid Waste departments reviewed submitted proposals. A Pre-bid meeting was held on December 19, 2019, where two (2) vendors attended along with representatives from Customer Service, Denton Municipal Electric, Community Development, and Materials Management. Vendors were presented with the information regarding the RFP and were allowed to ask questions. Vendors were also instructed to submit any additional questions to the Materials Management department. The three submissions were evaluated by representatives from Customer Service and Denton Municipal Electric. The submissions were evaluated based on the specified criteria. In addition, a request for the Best and Final Offer was requested from each vendor. One response to the BAFO was received from Interfaith Ministries. The original response included an administrative cost of $27,000. Their best and final offer is $22,500. Requests for Proposals was sent to 68 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Three (3) proposals were received and evaluated based upon published criteria including delivery, compliance with specifications, probable performance, and price. Based upon this evaluation, Interfaith Ministries of Denton, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 952 – Human Services Notifications sent for Solicitation sent in IonWave: 68 Number of Suppliers that viewed Solicitation in IonWave: 12 HUB-Historically Underutilized Business Invitations sent out: 5 SBE-Small Business Enterprise Invitations sent out: 32 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) This item will go to the Public Utilities Board (PUB) retroactively once the PUB meetings resume. RECOMMENDATION Award a contract with Interfaith Ministries of Denton, Inc., for a utility assistance program for low-income households, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $625,000. PRINCIPAL PLACE OF BUSINESS Interfaith Ministries of Denton, Inc. Denton, TX FISCAL INFORMATION These services will be allocated using a combination of customer donations and allocations from Denton Municipal Utilities. Requisition #146258 has been entered into the Purchasing software system in the amount of $62,500. The budgeted amount for this item is $625,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: David Gaines, (940) 349-8260 . Legal point of contact: Mack Reinwand at 940-349-8333.