Exhibit 1 - Agenda Information SheetCity of Denton
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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 Interfaith Ministries of Denton, Inc., for a utility
assistance program for low-income households for the Customer Service Department; providing for the
expenditure of funds therefor; and providing an effective date (RFP 8269 – awarded to Interfaith Ministries
of Denton, Inc., in the five (5) year not-to-exceed amount of $1,538,409.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Foster Economic Opportunity and Affordability.
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 2011, the program has been funded by a combination of customer donations and
allocations from Denton Municipal Utilities (DMU). During the last 25 years, Interfaith Ministries has
administered this program on behalf of the City of Denton.
In 2018, Customer Service in cooperation with Community Development developed a set of guidelines for
the partner agency with criteria necessary to screen and evaluate applications for assistance. Also, by the
guidance of the Public Utilities Board and City Council, program guidelines were updated to ensure
assistance continued to be available to low- and fixed-income families with postpaid and prepaid utility
accounts.
In April 2021, an internal audit of the P.L.U.S One program was conducted by the City’s Internal Audit
Department. Improvements were made by the agency in the areas of documentation retention, client data
reporting, reconciliation of funds, expanded accessibility, and customer satisfaction data.
Since October 2018, 2,278 families have received assistance through the P.L.U.S. One program totaling
$870,329. The funds provided for these families have helped improve financial stability following a
financial crisis while ensuring the continuation of utility services.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Budgeted Program Amount $225,000.00 $225,000.00 $225,000.00 $225,000.00 $225,000.00
Contingency-Emergency Funding $65,565.17 $67,239.73 $69,147.05 $71,332.34 $73,853.07
Contingency-Administrative
Increases $5,746.58 $12,291.93 $19,791.18 $28,441.58
$290,565 $297,986 $306,439 $316,124 $327,295
Contracted costs outlined above cover the budgeted program at $225,000 per year with two contingency
considerations.
City contracts include an allowance for the vendor to increase administrative costs by up to 8% annually.
The contingency allowance covers the increase of administrative costs plus coverage for a small increase
to the program funding to ensure the total program dollars available for distribution to customers is not
reduced ($171,585.00 annually).
The second contingency allows funding of emergent needs at the City Council's discretion. After
administrative costs, emergency funding would allow up to $250,000 of additional distributable funds to be
available without exhausting the contract before year 5.
Requests for Proposals were sent to 523 prospective suppliers of this service. 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 criteria
including schedule, compliance with specifications, probable performance, and price. Best and Final Offer
(BAFO) was requested from the firm. The department is awarding the contract to Interfaith Ministries of
Denton, Inc.
NIGP Code Used for Solicitation: 952 - (Service Only) - Human
Services
Notifications sent for Solicitation sent in IonWave: 163
Number of Suppliers that viewed Solicitation in IonWave: 9
HUB-Historically Underutilized Business Invitations sent out: 25
SBE-Small Business Enterprise Invitations sent out: 71
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 Interfaith Ministries of Denton, Inc., for a utility assistance program for low-income
households for the Customer Service Department, in a five (5) year not-to-exceed amount of $1,538,409.
PRINCIPAL PLACE OF BUSINESS
Interfaith Ministries of Denton, Inc.
Denton, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from PLUS One Expenditure account 870100.7883. Requisitions will be
entered on an as-needed basis. The budgeted amount for this item is $1,538,409. 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: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Christa Foster, 940-349-7421.
Legal point of contact: Marcella Lunn at 940-349-8333.