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Exhibit 1 - Agenda Information Sheet - Amend 1City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: December 12, 2023 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services Agreement between the City of Denton and MRE Consulting, Ltd., amending the contract approved by City Council on March 2, 2021, in the not-to-exceed amount of $350,000.00; said first amendment to continue to provide for Energy Trading and Risk Management Consulting Services for the Denton Municipal Electric Department and to extend the contract through September 4, 2024; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7538 – providing for an additional first amendment expenditure amount not-to-exceed $87,500.00, with the total contract amount not-to-exceed $437,500.00, and extending the contract to September 4, 2024). STRATEGIC ALIGNMENT This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful Leadership. INFORMATION/BACKGROUND Denton Municipal Electric (DME) manages a wholesale energy portfolio valued in the hundreds of millions of dollars. The market risk of this portfolio is assessed daily by DME staff per normal industry practice. Computer-based applications are the preferred industry standard for this function as recommended by an outside consultant (Deloitte). DME acted on this recommendation and purchased an ETRM system from Allegro Development Corp. on June 23, 2020, and planned and budgeted for this additional consultation assistance to create unique tools and reports tailored to its operation. On March 2, 2021, MRE Consulting, Ltd. was contracted to ensure DME had consulting expertise available for this role. MRE has provided general support guidance on the alignment of processes with leading practices, addressed system issues causes, reviewed procedural user documentation to align with system operability, implemented new system modules, created unique tools and reports, and trained DME staff across FY 2021- 2024. The item for consideration remedies language to include a term until September 4, 2024. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 2, 2021, the City Council approved a contract with MRE Consulting, Ltd., in the not-to-exceed amount of $350,000 (Ordinance 21-324). On December 11, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award Amendment No. 1 with MRE Consulting, Ltd., to continue to provide Energy Trading and Risk Management Consulting Services for the Denton Municipal Electric Department and extend the contract through September 4, 2024, in a not-to-exceed amount of $87,500, for a total amended contract amount of $437,500. PRINCIPAL PLACE OF BUSINESS MRE Consulting, Ltd. Houston, TX ESTIMATED SCHEDULE OF PROJECT This contract expires on September 4, 2024. FISCAL INFORMATION These services will be funded from Electric Operation Funds account 600001600. Requisition #196132 will be increased as needed for individually negotiated contracts with the firm. The total amended amount of this contract is $437,500. 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: Original Ordinance and Contract Exhibit 3: Ordinance and Amendment 1 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Chris Lutrick, 940-349-7152. Legal point of contact: Marcella Lunn at 940-349-8333.