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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: February 20, 2024 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 Open Systems International, Inc., for the implementation of an Advanced Distribution Management System (ADMS) for Denton Municipal Electric; providing for the expenditure of funds therefore; and providing an effective date (RFP 8255 – awarded to Open Systems International, Inc., in the six (6) year not-to-exceed amount of $3,800,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND Denton Municipal Energy is currently embarking on a significant technological evolution to modernize and enhance its operational infrastructure. This transformation includes migrating its existing Geographic Information System from the Geometric Network (GN) to the Utility Network (UN), which will be hosted within the robust and scalable AWS cloud environment. As part of this holistic modernization effort and in light of the impending end of life for our current Outage Management System (OMS) Responder, Denton Municipal Energy is upgrading to OSI's Advanced Distribution Management System (ADMS), aimed at replacing the existing Outage Management System and achieving greater grid resilience, real-time monitoring, and improved outage response capabilities. Denton Municipal Energy's decision to adopt OSI's Advanced Distribution Management System (ADMS) represents a strategic move towards ensuring a more agile and responsive grid infrastructure. By choosing OSI's ADMS solution, DME is poised to harness advanced analytics, predictive maintenance, and real-time situational awareness to enhance grid reliability, reduce downtime, and provide superior service to its customers. This bold step reaffirms Denton Municipal Energy's dedication to embracing cutting-edge technologies to meet the evolving demands of the energy industry. The Significance of an ADMS System An ADMS plays a pivotal role in the modernization and optimization of our electric distribution operations. Denton Municipal Electric recognizes the critical importance of efficiently managing and monitoring our distribution network to enhance reliability, reduce outage duration, improve customer satisfaction, and ensure the overall resilience of our electrical infrastructure. Here are some key reasons why investing in an ADMS is crucial: City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com • Enhanced Situational Awareness: An ADMS provides real-time visibility into our distribution network, allowing us to promptly identify and respond to power outages, faults, and anomalies. This heightened situational awareness ensures that we can make informed decisions rapidly, minimizing disruptions and improving service reliability. • Efficient Outage Management: By automating outage detection and restoration processes, we can significantly reduce downtime, minimize service interruptions, and optimize resource allocation during emergencies. • Grid Optimization: ADMS enables us to optimize network performance, balance load, and integrate renewable energy resources efficiently, ultimately contributing to sustainability goals and cost savings. • Improved Customer Service: A responsive and effective ADMS ensures faster outage resolution, leading to improved customer satisfaction and trust in our services. OSI's Technical and Professional Experience After a rigorous evaluation of potential vendors, we believe that OSI is the ideal partner for this project. OSI has a proven track record of successfully implementing ADMS in various utility companies worldwide. Here are some key reasons why we have chosen OSI: • Expertise in Utility Solutions: OSI specializes in utility solutions, with a rich history of implementing ADMS for utilities of all sizes. Their deep understanding of the industry's unique challenges and opportunities positions them as a trusted partner. • Advanced Technology: OSI offers state-of-the-art technology, including their monarch™ ADMS platform, which incorporates advanced analytics, optimization algorithms, and real- time data management to ensure the highest level of network efficiency. • Scalability: OSI's solutions are designed to be scalable, enabling us to adapt and expand our system as our utility grows and evolves. • Proven Success: OSI has a strong portfolio of successful implementations across diverse utility environments, underscoring its ability to deliver results and meet project objectives. • Customer Support and Training: OSI is committed to providing comprehensive customer support and training programs to ensure the smooth integration of the ADMS into our daily operations. In conclusion, the selection of OSI as the implementer for our ADMS at Denton Municipal Electric aligns with our commitment to enhancing the reliability and efficiency of our distribution network. OSI's technical expertise, professional experience, and successful track record in implementing similar systems make them the ideal partner for this transformative project. Project Description Estimated 3-Year Expenditure Implementation Services $ 1,255,603 Software License – Phase 1 $ 1,380,279 Software License – Phase 2 $ 704,716 Contingency $459,402 Total $3,800,000 Request for Proposals was sent to 1,279 prospective suppliers, including 39 Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Three (3) proposals were received, with two (2) meeting specifications. References were checked, and proposals were evaluated based upon published criteria including schedule, meeting technical requirements, meeting security requirements, compliance with specifications, probable performance, and price. Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Open Systems International, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 208, 209, 918, and 920 Notifications sent for Solicitation sent in IonWave: 1,279 Number of Suppliers that viewed Solicitation in IonWave: 52 HUB-Historically Underutilized Business Invitations sent out: 147 SBE-Small Business Enterprise Invitations sent out: 505 Responses from Solicitation: 3 Responses Meeting Specifications: 2 PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item will be presented to the Public Utilities Board (PUB) on February 26, 2024, retroactively, due to the February 12, 2024 meeting not having a quorum. RECOMMENDATION Award a contract to Open Systems International, Inc., for the implementation of an Advanced Distribution Management System (ADMS) for Denton Municipal Electric, in a six (6) year not-to-exceed amount of $3,800,000. PRINCIPAL PLACE OF BUSINESS Open Systems International, Inc. Medina, MN ESTIMATED SCHEDULE OF PROJECT This is a six (6) year contract. FISCAL INFORMATION The services will be funded from DME’s account 605179500.1360.3980. Requisition # 163809 has been entered into the Purchasing software system in the amount of $1,500,000. The budgeted amount for this item is $3,800,000. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Jerry Looper, 940-349-7676. Legal point of contact: Marcella Lunn at 940-349-8333.