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PUB recommends $67.99M transmission contract and approves $22.26M breaker purchase
Summary
The Denton Public Utility Board unanimously recommended a not-to-exceed $67.99 million contract for transmission-line construction with Integrated Power Company and approved a multiyear purchase agreement for high-voltage circuit breakers with Stuart Irby (distributor) for roughly $22.26 million; staff said most costs are recoverable and lead times for breakers are two to four years.
The Denton Public Utility Board unanimously recommended adopting an ordinance to secure transmission-line construction services and approved a separate unit-cost contract for high-voltage circuit breakers during its Dec. 15 meeting.
Mark Zimmer, a DME engineering representative, told the board that DME issued an RFP for transmission-line construction services to support multiple CIP projects over the next five years. "Integrated Power Company received the highest evaluated score and lowest overall price," Zimmer said, and staff recommended a not-to-exceed amount for those projects totaling $67,990,000. Zimmer said the contract also covers emergency services and that DME is not obligated to spend the total amount if projects are not executed.
Board members asked whether the majority of the contract amount would be recoverable; staff said distribution-related work would not be recoverable but that most transmission costs would be reimbursed, estimating roughly a 90/10 recoverable-to-nonrecoverable split. The presentation also noted the contract allows for escalation adjustments in later years to address inflation.
On a separate item, the board approved a multiyear unit-cost contract to buy high-voltage circuit breakers from the distributor listed in the packet (Stuart Irby) with Siemens identified as a manufacturer. Zimmer said typical domestic lead times for these breakers are two to four years, which informed the planning and long-term purchase strategy.
Both procurement recommendations were approved by voice vote with no recorded dissents.
What happens next: The board's recommendation advances the contracts for city ordinance or final execution steps according to city procurement rules; DME will issue purchase orders as needed under the unit-cost contract and manage project-specific recoveries and reimbursements.
