Loading...
Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: August 15, 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 J & B Five Point Construction, LLC, for winterization construction for the Denton Energy Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 8267 – awarded to J & B Five Point Construction, LLC, in the not-to- exceed amount of $1,184,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: 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 equipment outage risks at the Denton Energy Center (DEC) associated with winter weather. The Public Utility Commission of Texas (PUCT) also established new weatherization requirements applicable to 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. DME will utilize a general contractor to perform the recommended freeze protection modifications, which will include new piping, electrical work, and installation of engine coolant mixture tanks. The original antifreeze system design provided freeze protection down to 19°F by using a 19% solution of monopropylene 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. These modifications 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. Request for Proposals was sent to 561 prospective suppliers, including 37 Denton firms. 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 references were checked to ensure the vendor can provide the services requested in the Scope of Work. The proposal was evaluated based on published City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com criteria including schedule, compliance with specifications, probable performance, and price. The department is awarding the contract to J & B Five Point Construction, LLC. NIGP Code Used for Solicitation: 913 - (Service Only) - Construction Services, Heavy (Incl. Maintenance and Repair Services) Notifications sent for Solicitation sent in IonWave: 561 Number of Suppliers that viewed Solicitation in IonWave: 18 HUB-Historically Underutilized Business Invitations sent out: 49 SBE-Small Business Enterprise Invitations sent out: 185 Responses from Solicitation: 1 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 14, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award a contract with J & B Five Point Construction, LLC, for winterization construction for the Denton Energy Center, in a not-to-exceed amount of $1,184,000. SUSTAINABILITY MEASURES As one of the most energy-efficient natural gas generating units in ERCOT coupled with state-of-the-art emissions control systems, enabling generation during extreme cold weather events avoids purchasing electric power from less efficient, higher emission fossil fuel-fired generators. Relationship to Sustainability Framework Focus Area: Resiliency and Public Health. PRINCIPAL PLACE OF BUSINESS J & B Five Point Construction, LLC Justin, TX ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion date of Winter 2023. FISCAL INFORMATION These items will be funded from DEC Winterization account 605091500.1360.5200. Requisition OR# 160593 has been entered into the Purchasing software system in the amount of $1,184,000. The budgeted amount for this item is $1,184,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: LLC Members Exhibit 3: 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.