Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: June 27, 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 Freeport Welding & Fabricating, Inc., for three (3)
60,000 gallon tanks for the Denton Energy Center’s Winterization Project; providing for the expenditure of
funds therefor; and providing an effective date (RFP 8220 – awarded to Freeport Welding & Fabricating,
Inc., in the not-to-exceed amount of $1,279,570.00).
STRATEGIC ALIGNMENT
Enhance Infrastructure and Mobility
INFORMATION/BACKGROUND
In late 2021, Denton Municipal Electric (DME) initiated a comprehensive study of options that could be
implemented to reduce or eliminate risks associated with winter weather. The Public Utility Commission
of Texas (PUCT) also established new weatherization requirements for the Denton Energy Center (DEC)
and all generating units and transmission equipment across Texas in response to winter storm Uri. Based
upon the results of a comprehensive analysis of options provided by Black & Veatch (BV), DME selected
specific cost-effective measures to permanently reduce the risk of freeze damage to DEC equipment and
included $2.2 million in the FY23 Capital Improvement Plan (CIP) to make the recommended changes.
Due to supply chain issues and lead times, three (3) 60,000-gallon tanks will need to be fabricated and
purchased separately from the remainder of the procure and construct scope for the DEC winterization
project. This separate procurement activity is to ensure the completion of the construction portion of the
project before the fall/winter 2023 deadline. The original system design provided freeze protection down
to 19°F by using a 19% solution of mono propylene glycol and water as antifreeze. While freeze protection
down to 19°F may be sufficient for most historic winters at the DEC, winter storm Uri in 2021 demonstrated
that this level of freeze protection is insufficient for extreme weather events outside of the normal. The
tanks will allow for separate antifreeze mixtures for winter and summer seasons which will provide added
antifreeze measures during extreme cold events and will also prevent the derating of equipment during the
summer months.
Project Description Estimated Expenditure
Waste Tank 60,000 Gallon Tank $ 430,010
Summer Mix 60,000 Gallon Tank $ 430,010
Winter Mix 60,000 Tank $ 419,550
Total $1,279,570
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Requests for Proposals/Bids was sent to 356 prospective suppliers of this item. In addition, specifications
were placed on the Procurement website for prospective suppliers to download and advertised in the local
newspaper. One (1) proposal was received and evaluated based upon published criteria including delivery,
performance, compliance with specifications, and price. Based upon this evaluation, Freeport Welding &
Fabricating, Inc., was ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation: 830 - Tanks (Metal, Plastic, Wood, And
Synthetic Materials): Mobile, Portable,
Stationary, And Underground Types, 941 -
Equipment Maint., Repair, And Related
Services For Power Generation And
Transmission Equip., 690 - Power Generation
Equipment, Accessories, And Supplies
Notifications sent for Solicitation sent in IonWave: 356
Number of Suppliers that viewed Solicitation in IonWave: 16
HUB-Historically Underutilized Business Invitations sent out: 22
SBE-Small Business Enterprise Invitations sent out: 116
Responses from Solicitation: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 26, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Freeport Welding & Fabricating Inc, for three (3) 60,000 gallon tanks for the Denton
Energy Center Winterization Project, in a not-to-exceed amount of $1,279,570.00.
PRINCIPAL PLACE OF BUSINESS
Freeport Welding & Fabricating Inc
Freeport, Texas
ESTIMATED SCHEDULE OF PROJECT
This is a one-time expenditure for capital equipment. Fabrication of the tanks is expected to begin upon
approval, with an anticipated delivery date of September 2023.
FISCAL INFORMATION
These items will be funded from DEC Winterization account 605091500.1360.5200. Requisition OR#
159918 has been entered into the Purchasing software system in the amount of $1,279,570.00. The budgeted
amount for this item is $2,200,000.
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: Cody Tenorio, 940-349-7532.
Legal point of contact: Marcella Lunn at 940-349-8333.