Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with AMS Group LLC, for power transformer disposal (scrap) services for Denton Municipal Electric; providing for the sale of obsolete assets; and providing an effective date (IFB 8971 - awarded to AMS Group LLC, in the revenue amount of $401,777.00).

The City Council is considering an ordinance to authorize the City Manager to execute a contract with AMS Group LLC for the disposal of obsolete power transformers for Denton Municipal Electric (DME). This contract, awarded through IFB 8971, is expected to generate $401,777.00 in revenue for the city's Electric Fund. DME has nine power transformers and two auto transformers that are no longer in use due to system upgrades to a 138kV system. AMS Group LLC will be responsible for the complete removal of these units, which are large and contain significant amounts of mineral oil, in compliance with all city and regulatory requirements. The project is expected to be completed by June 2026.