Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET DEPARTMENT: Procurement
INTERIM ACM: Cassey Ogden
DATE: February 7, 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 an engagement between the City of Denton and Lloyd Gosselink Rochelle & Townsend, P.C., amending the engagement approved by the City Manager on April 28, 2022, in the not-to-exceed amount of $99,500.00; said first amendment to provide additional legal
services for the City of Denton; providing for the expenditure of funds therefor; and providing an
effective date (File 8006 – providing for an additional first amendment expenditure amount not-to-exceed $100,500.00, with the total contract amount not-to-exceed $200,000.00). INFORMATION/BACKGROUND
In February 2021 Winter Storm Uri hit the state of Texas causing significant power outages across the state. As a result of the alleged damage caused by the power outages caused by the winter storm, hundreds of lawsuits were filed throughout the state of Texas by plaintiffs against the different energy providers and generators that operate in Texas. The lawsuits generally allege that the proximate cause of the damages
claimed was negligence on behalf of the named defendants.
Due to the number of similar litigation filed, the state of Texas put forth a Multi-Disitrict Litigation (“MDL”) court to oversee and overhear all the cases. The Court selected 5 cases to be the bellweather cases to represent the entirety of the litigation filed. The City of Denton was named as a defendant in three
out of the 5 cases selected by the MDL court.
This matter was initially set for a closed session on March 22, 2022, with outside counsel Lloyd Gosselink present to discuss the various legal options the City had available to it. Although the City of Denton had not been properly served, service was ultimately waived so that the City of Denton could
present its full legal defenses and be part of the litigation and the important appeals that would follow in
the MDL cases. The MDL court has heard arguments on the Motions to Dismiss by the defendants, including the City of Denton’s Motion to Dismiss, and denied the Motions to Dismiss. This order is currently being appealed.
Regardless of the outcome of the MDL court order, appeals will follow from the non-prevailing side to
the Texas Court of Appeals due to the novel and significant legal issues being presented in this litigation. In order to proceed with the litigation and appeal in this matter, additional funding will need to be approved by City Council.
City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On April 28, 2022, the City Manager approved an engagement with Lloyd Gosselink Rochelle & Townsend, P.C., in the not-to-exceed amount of $99,500. This item will be presented to the Public Utilities Board (PUB) on February 13, 2023, retroactively, due
to the need to pay invoices.
RECOMMENDATION Award Amendment No. 1 with Lloyd Gosselink Rochelle & Townsend, P.C., to provide additional legal
services for the City of Denton, in a not-to-exceed amount of $100,500, for a total amended contract
amount of $200,000. PRINCIPAL PLACE OF BUSINESS
Lloyd Gosselink Rochelle & Townsend, P.C.
Austin, TX ESTIMATED SCHEDULE OF PROJECT
We anticipate the appellate process to begin in early spring with a decision by the Court of Appeals in late
Fall 2023. The appeal to the Texas Supreme Court will likely begin in early 2024, and if they select it for review, a final decision at the end of the year or early 2025. FISCAL INFORMATION
These services will be funded from Denton Municipal Electric operating account 600001.7856. Purchase Order #200299 will be revised to include the first amendment amount of $100,500.00. The total amended amount of this contract is $200,000.00.
EXHIBITS
Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance
Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager
For information concerning this acquisition, contact: Caleb Garcia, Deputy City Attorney, 940-349-8359.