Exhibit 1 - Agenda Information SheetCity of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: September 19, 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 Stella-Jones Corporation, for the supply of wood
utility poles for Denton Municipal Electric to be stocked in the Warehouse; providing for the expenditure
of funds therefor; and providing an effective date (IFB 8252 – awarded to Stella-Jones Corporation, 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 $8,250,000.00). The Public Utilities Board recommends approval (5 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
This proposal is for a contract to supply wood utility poles used by Denton Municipal Electric (DME) to
construct, operate, maintain facilities, and provide electric service to new customers. The items are ordered
and managed by the Warehouse and used by DME as needed. The current contract is set to expire in
September 2023.
Approximately $3,000,000 has been spent during the contract term, with just under $1,900,000 in poles
ordered in the current fiscal year. Historically, the average annual spending is $350,000. Price increases
averaging 80 percent, extended lead times of 6-8 months, and planning for future developments have driven
the rise in ordering and spending. The proposed not-to-exceed amount of $8,250,000 accounts for these
factors and allows for a contingency.
Invitations to Bids were sent to 48 prospective suppliers of this item, including two (2) Denton firms. In
addition, specifications were placed on the Procurement website for prospective suppliers to download and
advertised in the local newspaper. Two (2) bids were received, with one (1) responding to all lines. The
lowest bid was received by Stella-Jones Corporation.
NIGP Code Used for Solicitation: 540 – Lumber, Siding, and Related
Products
Notifications sent for Solicitation sent in IonWave: 48
Number of Suppliers that viewed Solicitation in IonWave: 12
HUB-Historically Underutilized Business Invitations sent out: 9
SBE-Small Business Enterprise Invitations sent out: 23
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Responses from Solicitation: 2
Responses Meeting Specifications: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 28, 2023, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract to Stella-Jones Corporation, for the supply of wood utility poles for DME, a three (3)
year, with the option for two (2) additional one (1) year extensions, for a total five (5) year not-to-exceed
amount of $8,250,000.
PRINCIPAL PLACE OF BUSINESS
Stella-Jones Corporation
Tacoma, WA
ESTIMATED SCHEDULE OF PROJECT
This is a 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.
FISCAL INFORMATION
These items will be funded from the Warehouse Working Capital account 800100.6801 and charged back
to the using department. Requisitions will be entered on an as-needed basis. The budgeted amount by DME
for this item is $8,250,000. 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: Presentation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Kolby Johnson, 940-349-7597.
Legal point of contact: Marcella Lunn at 940-349-8333.