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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: March 7, 2023 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 Techline, Inc., for the purchase of high strength aluminum transmission conductors for Denton Municipal Electric, providing for the expenditure of funds therefor; and providing an effective date (RFP 8168 – awarded to Techline, 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 $3,290,000.00). The Public Utilities Board recommends approval (4 - 0). INFORMATION/BACKGROUND Denton Municipal Electric (DME) has several planned transmission line projects in its approved five-year Capital Improvement Plan (CIP) that will require the purchase of high-strength transmission conductors. DME solicited a Request for Proposals (RFP) to provide high strength 1926.9 Shaped Wire Compact Concentric-Lay-Stranded Aluminum Conductor, Steel-Supported (ACSS/TW) aluminum conductor (Cumberland), and high-strength 959.6 ACSS/TW aluminum conductors (Suwannee) for several proposed projects. The lengths are estimated as the final designs are not complete. The transmission lines are designed in a bundled conductor configuration, with two conductors per phase, and six conductors per line length. This type of construction requires the contractor to pull two reels of conductor at the same time. So, the actual conductors required exceed the transmission line length. The RFP allowed for the proposers to provide Southwire or General Cable pricing in their proposal. Three proposals were received. Based on the evaluation, Techline Inc. was ranked the highest and proposed the lowest General Cable price and lowest Southwire price and ultimately determined the best value for the City. The contract estimate is based on General Cable pricing for the month of January 2023. A 10% adder was included for up to ten percent escalation during the contract period. The proposed contract does not require the expenditure of any minimum amount. Purchase orders will be issued based on need in project construction schedules. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Project Description Estimated 5-Year Expenditure Year 1 $892,044.67 Year 2 $400,360.40 Year 3 $695,604.63 Year 4 $100,909.10 Year 5 $1,201,081.20 Total: $3,290,000.00 Requests for Proposals were sent to 380 prospective suppliers, including 13 Denton firms, for this item. In addition, specifications were placed on the Procurement 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, probable performance, and price. Based upon this evaluation, Techline, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 691 - Power Transmission Equipment (Electrical, Mechanical, Air and Hydraulic) & 285 - Electrical Equipment and Supplies (Except Cable and Wire) Notifications sent for Solicitation sent in IonWave: 380 Number of Suppliers that viewed Solicitation in IonWave: 20 HUB-Historically Underutilized Business Invitations sent out: 35 SBE-Small Business Enterprise Invitations sent out: 150 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On February 27, 2023, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Techline, Inc., for the purchase of high-strength aluminum transmission conductors for Denton Municipal Electric, 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 $3,290,000. PRINCIPAL PLACE OF BUSINESS Techline, Inc. Fort Worth, 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. Orders will be placed as project schedules require and will be delivered within 52-80 weeks. FISCAL INFORMATION The costs for material purchased under the proposed agreement will be funded out of amounts budgeted for specific projects. The work proposed will be in the transmission category. Costs for transmission projects will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Projected Conductor Needs Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169. Legal point of contact: Marcella Lunn at 940-349-8333.