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HomeMy WebLinkAbout1999-356ORDINANCE NO AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH DIVERSIFIED UTILITY CONSULTANTS, INC, FOR CONSULTING SERVICES PERTAINING TO THE DEVELOPMENT OF A NEW ELECTRIC SERVICE RATE DESIGN FOR DENTON MUNICIPAL ELECTRIC, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council deems it in the public interest to engage Diversified Utility Consultants, Inc, a Corporation ("DUC"), to provide professional consulting services to the City pertaining to the development of a new electric service rate design for Denton Municipal Electric ("DME") in preparation for the expected transition of the City into a competitive deregulated electric marketplace, and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the above -described professional consulting services, and that limited City staff cannot adequately perform the services and tasks with its own personnel, and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act", generally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price, and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the professional consulting services, as set forth in the Professional Services Agreement, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is hereby authorized to execute a Professional Services Agreement with Diversified Utility Consultants, Inc , a Corporation, for professional consulting services pertaining to the development of a new electric service rate design for Denton Municipal Electric, in substantially the form of the Professional Services Agreement attached hereto and incorporated herewith by reference SECTION II That the award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of DUC and the ability of DUC to perform the services needed by the City for a fair and reasonable price SECTION III That the expenditure of funds as provided in the attached Professional Services Agreement is hereby authorized SECTION IV That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the S-�h day of Oak' U , 1999 JAC LER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY By APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY By /PLOA Qj — S \Our Documents\Ordinances\99\DrversrfredUtdrty Consultants PSA DME (rate design) doc STATE OF TEXAS COUNTY OF DENTON PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES PERTAINING TO THE DEVELOPMENT OF A NEW ELECTRIC RATE DESIGN FOR DENTON MUNICIPAL ELECTRIC THIS AGREEMENT is made and entered into as of the day of 1999, by and between the City of Denton, Texas, a Texas Municipal Corporation, with its principal offices at 215 E McKinney Street, Denton, Texas 76201 (hereafter "OWNER") and Diversified Utility Consultants, Inc , Inc , a Texas Corporation, with its offices at 12113 Roxie Drive, Suite 110, Austin, Texas 78729 (hereafter "CONSULTANT"), the parties acting herein, by and through their duly-authonzed representatives and officers WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually AGREE as follows ARTICLE I EMPLOYMENT OF CONSULTANT The OWNER hereby contracts with CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services herein in connection with the Project as stated in the Articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas The professional services set forth herein are in connection with the following described project (the "Project") Professional consulting services pertaining to the development of Phase II of a new electric service rate design analysis and unbundling study for Denton Municipal Electric ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the following basic services in a professional manner A To perform those services as set forth and resolved in the following three (3) letters OWNER'S Request for Proposal appended to the letter dated July 6, 1999 from Cheryl Davenport, CPA, ("Davenport") a Utility Rate Administrator of OWNER, to Dan Lawton, a Principal of CONSULTANT (the "RFP"), which consists of three (3) pages, a copy of which RFP is attached hereto and incorporated herewith by reference as Attachment "A" 2 CONSULTANT'S "Proposal to Review City of Denton's Unbundling and Rate Design," appended to the letter dated August 11, 1999 from CONSULTANT to Davenport (the "Proposal"), which consists of 21 pages, a copy of which s����Uaf.,,Djdp „,,,,,, DWPSAS Page I of 10 Proposal is attached hereto and incorporated herewith by reference as Attachment `B" CONSULTANT'S "Amended Proposal to Review and Perform City of Denton's Unbundling Study and Rate Design Analysis" made in the letter dated August 18, 1999 from CONSULTANT to Davenport (the "Amended Proposal"), which consists of three (3) pages, a copy of which Amended Proposal is attached hereto and incorporated by reference as Attachment "C" B If there is any conflict between the terms of this Agreement and the three (3) Attachments appended to this Agreement, the terms and conditions of this Agreement shall control over the terms and conditions of the Attachments ARTICLE III ADDITIONAL SERVICES Any additional services to be performed by the CONSULTANT, if authorized by the OWNER, which are not included as basic services in the above -described Scope of Services, set forth as provided by Article II above, shall be later agreed -upon by OWNER and CONSULTANT, who shall determine, in writing, the scope of such additional services, the amount of compensation for such additional services, and other essential terms pertaining to the provision of such additional services by the CONSULTANT ARTICLE IV PERIOD OF SERVICE This Agreement shall become effective upon execution by the OWNER and the CONSULTANT and upon the issuance of a notice to proceed by the OWNER, and shall remain in force for the period which may reasonably be required for the completion of the Project, including Additional Services, if any, and any required extensions approved by the OWNER This Agreement may be sooner terminated in accordance with the provisions hereof Time is of the essence in this Agreement CONSULTANT shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule reasonably establishedby the OWNER, acting through its Director of Electric Utilities or her designee ARTICLE V COMPENSATION A COMPENSATION TERMS "Subcontract Expense" is defined as those expenses, if any, incurred by CONSULTANT in the employment of others in outside firms, for services in the area of professional consulting, or related services Any subcontract or subconsultant billing reasonably incurred by the CONSULTANT in connection with the Project shall be invoiced to OWNER at the actual cost 2 "Direct Non -Labor Expense" is defined as that expense, based upon actual cost, for any out-of-pocket expense reasonably incurred by the CONSULTANT in the performance 6��=Wkk nYPMYP, UCTt MDWIP �11 D. PBA Page 2 of 10 of this Agreement for long distance telephone charges, telecopy charges, messenger services, printing and reproduction expenses, out-of-pocket expenses for purchased computer time, prudently incurred travel expenses related to the work on the Project, and similar incidental expenses incurred in connection with the Prol ect B BILLING AND PAYMENT For and in consideration of the professional services to be performed by the CONSULTANT herein, the OWNER agrees to pay CONSULTANT, based upon the satisfactory completion of the basic services tasks set forth in the Scope of Services as shown in Article II above, as follows 1 CONSULTANT shall perform its work on this Project an hourly fee basis, plus reimbursement for all reasonably incurred out-of-pocket expenses, billed monthly CONSULTANT shall bill from time sheets, in minimum '/< hour increments, at the rates set forth in CONSULTANT'S "Manpower and Cost Requirements to Provide Review of City of Denton's Unbundling and Rate Design on Behalf of the City of Denton" schedules respecting compensation and expense price structure, which are identified as Part III of the Proposal, and as amended as Part III of the Amended Proposal, attached hereto as Attachment `B" and Attachment "C", respectively, which have been incorporated herewith by reference The OWNER agrees to pay to CONSULTANT for its professional services performed, and its out -of pocket expenses incurred in the Project, a total amount not to exceed $ 65,000 00 2 Partial payments to the CONSULTANT will be made monthly based on the percent of actual completion of the basic services, rendered to and approved by the OWNER through its Director of Electric Utilities or her designee However, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered The OWNER may withhold the final ten (10%) percent of the above not -to -exceed amount until satisfactory completion of the Project by the CONSULTANT 3 Nothing contained in this Article shall require the OWNER to pay for any work which is unsatisfactory as reasonably determined by the Director of Electric Utilities or her designee, or which is not submitted by CONSULTANT to the OWNER in compliance with the terms of this Agreement The OWNER shall not be required to make any payments to the CONSULTANT at any time when the CONSULTANT is in default under this Agreement 4 It is specifically understood and agreed that the CONSULTANT shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense or reimbursement above the not -to -exceed amount as stated heremabove, without first having obtained the prior written authorization from the OWNER CONSULTANT shall not proceed to perform any services to be later provided for under Article III "Additional Services" without first obtaining prior written authonzationfrom the OWNER C ADDITIONAL SERVICES For additional services authorized in writing by the OWNER in Article III heremabove, CONSULTANT shall be paid based on a to -be -agreed -upon Schedule of Charges Payments for additional services shall be due and payable upon S,QVDaw MCuntre 9 pUC[Rate Dulp1 ill DMPSAm Page 3 of 10 submission by the CONSULTANT, and shall be in accordance with Article V B hereinabove Statements for basic services and any additional services shall be submitted to OWNER no more frequently than once monthly D PAYMENT If the OWNER fails to make payments due the CONSULTANT for services and expenses within sixty (60) days after receipt of the CONSULTANT'S undisputed statement thereof, the amounts due the CONSULTANT will be increased by the rate of one percent (1%) per month from and after the said sixtieth (60th) day, and in addition, thereafter, the CONSULTANT may, after giving ten (10) days written notice to the OWNER, suspend services under this Agreement until the CONSULTANT has been paid in full for all amounts then due and owing, and not disputed by OWNER, for services, expenses and charges Provided, however, nothing herein shall require the OWNER to pay the late charge of one percent (1%) per month as set forth herein, if the OWNER reasonably determines that the CONSULTANT's work is unsatisfactory, in accordance with Article V B of this Agreement, and OWNER has notified CONSULTANT of that fact in writing ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercise reasonable care and due diligence in discovering and promptly reporting to the OWNER any defects or deficiencies in the work of the CONSULTANT or any of its subcontractors or subconsultants ARTICLE VII OWNERSHIP OF DOCUMENTS All documents prepared or furnished by the CONSULTANT (and CONSULTANT's subcontractors or subconsultants) pursuant to this Agreement are instruments of service and shall become the property of the OWNER upon the termination of this Agreement The CONSULTANT is entitled to retain copies of all such documents The documents prepared and furnished by the CONSULTANT are intended only to be applicable to this project and OWNER's use of these documents in other projects shall beat OWNER's sole risk and expense In the event the OWNER uses the Agreement in another project or for other purposes than specified herein any of the information or materials developed pursuant to this agreement, CONSULTANT is released from any and all liability relating to their use in that project ARTICLE VIII INDEPENDENT CONTRACTOR CONSULTANT shall provide services to OWNER as an independent contractor, not as an employee of the OWNER CONSULTANT shall not have or claim any right arising from employee status ARTICLE IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officials, officers, agents, attorneys and employees from and against any and all liability, claims, Ste, m�tgCC ACEMp �11 D�MA� Page 4 of 10 demands, damages, losses and expenses, including but not limited to court costs and reasonable attorney fees incurred by the OWNER, and including without limitation damages for bodily and personal injury, death, or property damage, resulting from the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, attorneys and employees in the execution, operation, or performance of this Agreement Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved ARTICLE X INSURANCE During the performance of the Services under this Agreement, CONSULTANT shall maintain the following insurance with an insurance company licensed to do business inthe State of Texas by the State Insurance Board or any successor agency, that has a rating with A M Best Rate Carriers of at least an "A-" or above A Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate B Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident and with property damage limits for not less than $100,000 for each accident C Worker's Compensation Insurance in accordance with statutory requirements and Employer's Liability Insurance with limits of not less than $100,000 for each accident D Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate E CONSULTANT shall furnish insurance certificates or insurance policies at the OWNER's request to evidence such coverages The insurance policies shall name the OWNER as an additional insured on all such policies to the extent that is legally possible, and shall contain a provision that such insurance shall not be cancelled or modified without thirty (30) days prior written notice to OWNER and CONSULTANT In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation of coverage, deliver copies of any such substitute policies, furnishing at least the same policy limits and coverage, to OWNER ARTICLE XI ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation No arbitration or alternate dispute resolution ansmg out of or relating to, this Agreement involving one party's disagreementmay include the other party to the disagreement without the other's approval S\a. nMCMM DUCI�ff .p �11 DWMA&C Page 5 of 10 ARTICLE XII TERMINATION OF AGREEMENT A Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by providing thirty- (30) days advance written notice to the other party B This Agreement may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement No such termination will be effected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance or other reason(s), and not less than thirty (30) calendar days to cure the failure, and (2) an opportunity for consultation with the terminating party prior to termination C If the Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall immediately cease all services upon receipt of the written notice of termination from OWNER, and shall render a final bill for services to the OWNER within twenty (20) days after the date of termination The OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily performed, and for reimbursable expenses prior to notice of termination being received by CONSULTANT, in accordance with Article V of this Agreement Should the OWNER subsequently contract with a new consultant for the continuation of services on the Project, CONSULTANT shall cooperate in providing information to the OWNER and to the new consultant If applicable, OWNER shall allow CONSULTANT a reasonable time to transition and to turn over the Project to a new consultant CONSULTANT shall turn over all documents prepared or furnished by CONSULTANT pursuant to this Agreement to the OWNER on or before the date of termination, but may maintain copies of such documents for its files ARTICLE XIII RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval of the work by the OWNER shall not constitute nor be deemed a release of the responsibility and liability of the CONSULTANT, its officers, employees, agents, subcontractors, and subconsultants for the accuracy and competency of their designs or other work performed pursuant to this Agreement, nor shall such approval by the OWNER be deemed as an assumption of such responsibility by the OWNER for any defect in the design or other work prepared by the CONSULTANT, its principals, officers, employees, agents, subcontractors, and subconsultants ARTICLEXI NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered to, or telecopied to, or mailed to the respective parties by depositing same in the United States mail at the addresses shown below, postage prepaid, certified mail, return receipt requested, unless otherwise specified herein Ste, mw,�connm.� UCIM.. ', �11 Dmn4� Page 6 of 10 To CONSULTANT Diversified Utility Consultants, Inc Dan Lawton, Principal 12113 Roxie Drive, Suite 110 Austin, Texas 78729 Fax (512) 257-2243 City of Denton, Texas Sharon Mays, Director, DME 901-A Texas Street Denton, Texas 76201 Fax (940)349-7334 All notices under this Agreement shall be effective upon their actual receipt by the party to whom such notice is given, or three (3) days after mailing of the notice, whichever event shall first occur ARTICLE XV ENTIRE AGREEMENT This Agreement consisting of ten (10) pages and three (3) attachments constitutes the complete and final expression of the Agreement of the parties and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, understandings, and agreements which may have been made in connection with the subject matter of this Agreement ARTICLE XVI SEVERABILITY If any provision of this Agreement is found or deemed by a court of competentlurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement, and shall not cause the remainder to be invalid or unenforceable In such event, the parties shall reform this Agreement, to the extent reasonably possible, to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the original intentions of the parties respecting any such stricken provision ARTICLE XVII COMPLIANCE WITH LAWS The CONSULTANT shall comply with all federal, state, local laws, rules, regulations, and ordinances applicable to the work performed by CONSULTANT hereunder, as they may now read or as they may hereafter be amended ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, the CONSULTANT shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap S%a. m�ContMas UCJJ to�lp P 11 UMEPSAMc Page 7 of 10 ARTICLE XIX PERSONNEL A CONSULTANT represents that it has or will secure at its own expense all personnel required to perform all the services required under this Agreement Such personnel shall not be employees or officers of, nor have any contractual relations with the OWNER CONSULTANT shall immediately inform the OWNER in writing of any conflict of interest or potential conflict of interest that CONSULTANT may discover, or which may anse during the term of this Agreement B OWNER requires that CONSULTANT carefully safeguard all documents, data, and information provided by OWNER to CONSULTANT incident to this engagement CONSULTANT recognizes that such documents, data, and information involve sensitive, competitive issues, in some cases confidential information, in some cases proprietary information, and the disclosure of such information by CONSULTANT to any third party, without the express written consent of OWNER, is expressly prohibited by OWNER, and would likely cause significant economic loss and detriment to OWNER Any such disclosure of information by CONSULTANT shall constitute a material default of this Agreement CONSULTANT represents to OWNER that it will safeguard OWNER's information and will, upon OWNER'S request, provide OWNER with CONSULTANT'S policies regarding its procedures for identifying conflicts of interest, and its procedures and safeguards which are in place which would apply to CONSULTANT'S treatment and handling of OWNER'S documents, data, and information during this engagement C All services required hereunder will be performed by CONSULTANT or under its direct supervision All personnel engaged in performing the work provided for in this Agreement, shall be qualified, and shall be authorized and permitted under state and local laws to perform such services ARTICLE XX ASSIGNABILITY The CONSULTANT shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the OWNER CONSULTANT shall promptly notify OWNER of any change of its name as well as of any significant change in its corporate structure or in its operations ARTICLE XXI MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed The parties further agree that the provisions of this Article will not be waived unless as herein set forth Swa mwjs�Cunwujnv UCJUOUalp �11 DMNA� Page 8 of 10 ARTICLE XXII MISCELLANEOUS A CONSULTANT agrees that OWNER shall, until the expiration of three (3) years after the final payment made by OWNER under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of the CONSULTANT involving transactions relating to this Agreement CONSULTANT agrees that OWNER shall have access during normal working hours to all necessary CONSULTANT facilities and shall 'be provided adequate and appropriate working space in order to conduct examinations or audits in compliance with this Article OWNER shall give CONSULTANT reasonable advance notice of all intended examinations or audits B Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas This Agreement shall be governed by and construed in accordance with the laws of the State of Texas C For purposes of tins Agreement, the parties agree that Dan Lawton, Principal of CONSULTANT ("Lawton") shall serve as the Project Manager of CONSULTANT, respecting this engagement This Agreement has been entered into with the understanding that Lawton shall serve as the CONSULTANT's Project Manager and the key person serving the OWNER on this Project Any proposed changes requested by CONSULTANT, respecting Lawton serving as the key person on the Project, shall be subject to the approval of the OWNER, which approval the OWNER shall not unreasonably withhold Nothing herein shall, limit CONSULTANT from using other qualified and competent members of its firm to perform the other services required herein, under its supervision or control D CONSULTANT shall commence, carry on, and complete its work on the Project with all applicable dispatch, and in a sound, economical, efficient manner, and in accordance with the provisions hereof In accomplishing the Project, CONSULTANT shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the OWNER E The OWNER shall assist the CONSULTANT by placing at the CONSULTANT's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project and arranging for the access to, and make all provisions for the CONSULTANT to enter in or upon, public and private property as required for the CONSULTANT to perform professional services under this Agreement OWNER and CONSULTANT agree that CONSULTANT is entitled to rely upon information furnished to it by OWNER without the need for further inquiry or investigation into such information F The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement IN WITNESS WHEREOF, the City of Denton, Texas has executed this Agreement in four (4) original counterparts, by and through its duly-authonzed City Manager, and CONSULTANT has executed this Agreement by and ou h its duly -authorized undersigned officer and Principal, on this the day of / � ,1999 s�M�u�onM��UCI"10�IP �11 DW MKS Page 9 of 10 "CITY" CITY OF DENTON, TEXAS By ei� is 1 W ez, Ci er ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY A.j.�A By "CONSULTANT" DIVERSIFIED UTILITY CONSULTANTS, INC A Texas Coworation Pnncipal ATTEST By Po S c tars 8�mwMean 9„0 C,�,,� p �11 DWMAE Page 10 of 10 Y s wA- vf'- 01 I P A 1CYHIC .:n 11 July 6 1999 Dan Lawton Diversified Utility Consultants, Inc 12113 Roxie Drive Austin, TX 78729 Dear Dan. Sul i r.,n v„,, U,nm.I T,,", I have attached a scope of work for the rate design and a copy of the electric system unbundling study prepared by R W Beck We would like to get this project moving very quickly because it was budgeted in the current fiscal year Therefore we need to encumber the funds before September 30 1999 Please return the unbundling study with your proposal I look forward to hearing from you Sincerely. Cheryl Davenport, CPA Utility Rate Administrator (940) 349-8466 davenport@cityofdenton com Aifach --+ "A" REQUEST FOR PROPOSAL CITY OF DENTON DENTON,TEXAS The scope of work provides services to the City of Denton in two separate tasks ■ Task A — Unbundling and Rate Design Services III Task B — Presentation, Education and Public Process Services to be provided to the City Council and Public Utilities Board [ask A and Task B services will be intertwined during the courSc of the study in order to keep the Board and City Council current with study results Task A should develop rates that would provide a smooth transition to retail competition Among the issues to be considered in developing rates are the sale of Denton s generation Senate Bill 7 and results of the PUC distribution tariffs workshop As Denton moves towards adoption of proposed rates developed in Task A the City will require presentation, education, facilitation, or other services to help dectsion-makers evaluate the impact of proposed rates The education process will be ongoing throughout the project and involve the Public Utilities Board and City Council Each mecting will be tutoiial and conducted in a format to encourage questions and open dialogue Concepts as developed in the course of Task A will be presented and discussed as it applies to Denton s Situation Proposals should price each task separately Task A should provide separate prices for each item listed Task B should provide a price per meeting TASK A UNBUNDLING AND RATE DESIGN SERVICES V I DEVELOPMENT OF TEST YEAR REVENUE RbQUIREMENT 2 MARGINAL COST ANALYSIS AND PRODUCTION COST MODELING 3 UPDATE R W BECK UNBUNDLING AND REVIEW RESULTS WITH CITY 4 DEVELOPMENT OF DATABASE FOR RATE DESIGN AND PRICING ANALYSIS 5 RATE DESIGN TASKI$ ,-1 PRESENTATION, EDUCATION, AND PUBLIC PROCESS SERVICES 16T g; ;Rate "i$p IOI for traditional cost of service allocation including examples of rates inuse 'a today y ttich`afthe following ■ City of Denton • A Texas IOU ■ A company currently operating in a deregulated environment An additional one -day meeting with utility staff as described in Task A 4 is included under the cost estimate for this meeting 2YD MEETING Rate Design for an industry preparing for deregulation including new types of rates that would be necessary Examples should include rates specifically for Denton 3NO MEETING New Rate Design 1 heory for a Competitive Market including marginal cost and pricing Again specific examples for Denton should be included in the presentation with an emphasis on marginal costing and what it means 4"' MEETING Portfolio of tools needed in a deregulated market including the kind of took available and the ones that would most benefit Denton ST" MEETING Presentation of rate design for Denton 6"' MEETING Open meeting to revtcw topics previously presented or discuss new topic DIVERSIFIED UTILITY CONSULTANT$. INC SO&%$ AOXIM D=V8 9VITV 7,30 AVETIN TX 7*789 Tffi.LQlNOlIi,63M �N II000 Pw]c llit�li��Oti1 August 11, 1999 Cheryl Davenport, C P A Utility Rate Administrator 901-A Texas Street Denton, Texas 76201 RE PropnsaLtoRextet-Catx ofDentonillnkuadhma_nd xate_Design Dear Ms Davenport Diversified Utility Consultants, Inc ("DUCI") is pleased to submit this proposal to the City of Denton ("City") to analyze the unbundling and rate design issues DUCI is a Texas Corporation located in Austin, Texas, with an international client base The principals of DUCI, Messrs Pous and Lawton, have over forty (40) years of utility rate and regulation expenence In particular, Messrs Pous and Lawton have testified and/or made formal presentations before federal, state, municipal, and provincial regulatory bodies, REA Cooperative boards and U S Environmental Protection Agency review boards on all aspects of utility cost of service, ratemaking, and rate design DUCI is well qualified to perform the various services necessary to complete a thorough analysis of the City's unbundling and rate design issues DUCI's personnel have the extensive, current and relevant utility rate regulation expenence necessary to review the accounting, engineering and economic issues reflected in the City s request In addition, Messrs Pous and Lawton have been involved in more than 200 different utility rate regulation proceedings and, moreover, have been project leader, negotiator and/or expert witness for the vast majonty of such engagements As shown on the resumes of Mr Lawton and Mr Pous they are very familiar with these types of issues As DUCI has been involved in numerous similar past reviews, DUCI has an excellent understanding of the numerous underlying methods, procedures and theories that most likely will be needed to perform the necessary studies DUCI's pnor expenence is set forth in Part I of this proposal Based in part on this prior experience, DUCI has set forth in Part II of this proposal its understanding of the scope of work necessary for this case DUCI has further enumerated in Part II a detailed plan of action to complete the necessary tasks associated with a comprehensive rate review in a timely and cost efficient %lttac.l'�maw-t' manner Bas rOtt our understanding of the Company's prior practices, DUCT has set forth in Part III an eshm9t , pince,of $16,625 to complete Task Ain the proposal This price includes all out -of• pocket ex s, but does not include the charges associated with any services or expenses that have or will be defined as additional services Also included in Part III is a breakout to complete Task B included in the proposal DUCI has set forth an estimated total cost of $10,000 to prepare for and attend the 8 meetings It is our intent and desire to provide the City with the highest quality analyses and work product at the most economical cost DUCI is prepared to modify the scope of service and corresponding costs in order to meet any appropriate changes proposed by the City As can be seen from the resumes in Part I of this proposal, the personnel who will be available to the City for the analyses, discussions and educational meetings have substantial experience in the areas of cost of service for electric, gas, water, and other types of utilities These staff members also have experience to rate design analyses, cost allocations, corporate auditing, as well as substantial experience with regard to review of revenue requirement issues DUCT personnel have testified before various regulatory commissions and are very well experienced in working with electric utilities We would like to thank you for allowing DUCI to submit this Proposal We are prepared to commence work on this project immediately upon selection, and would complete the project in a timely and efficient manner Should you have any questions with regard to this proposal or other matters, please feel free to contact Dan Lawton at (512)257-2600 Sincerely, Diversi ed Utility Consultants, Inc Enclosure PART I - QUALIFICATIONS General Description Prior Experience Individual Experience Personnel Reference List PART II • WORK PLAN Project Summary Tasks Additional Services PART III - PRICE PROPOSAL General Manpower Materials, Supplies and Other Iterntted Direct Costs E' 4 5 6 6 7 i PART QUALIFICATIONS Central Power & Light Co (5) Northwestern Utilities Limited (2) Gulf State Utilities (7) Perdenales Electric Cooperative Mid Systerns Energy Resources, Inc Public Service Company of Oklahoma Hawahan Electric Company Southwest Gas Centra Gas Alberta Inc Public Service Indiana City of North Little Rock Electric South Carolina Electric & Gas (3) United Irrigation District Nova Gas Transrmssion Lumted Northwest Power Corporation Edmonton Power (2) El Paso Electric Co (3) Southern Union Gas Company (7) West Texas Uttltties (2) Engeras Company (4) Southwestern Public Service Cc (4) Indiana Gas Company Lower Colorado River Authority (2) Westar Gas Transmission Cc Louisiana Power & Light Cc Rio Grande Gas Company Texas -New Mexico Power Co (3) Entex Gas Company (2) Texas Utilities Electric Co (2) Lone Star Gas Company (5) Southern Califorma Edison Electric United Cities Gas Company Florida Power & Light Co Centra Gas Limited Devers Canal System (2) City of Austin (5) Maine Yankee Atomic Power Co (2) Indianapolis Water Company Carolina Power & Light Co City of Round Rock Texas Water System Sierra Pacifle Power Co (4) Scenic Oaks Water Supply Co Montana Power Company (3) United Irrigation District Nevada Power Company (2) Hidalgo County Irrigation District Indiana Michigan Power Company Canadian Western Natural Gas Company Alberta Power Lunited (3) Southern Utilities Company TransAlta Utilities (3) El Paso County WCID-Wesrway Magic Valle flectric Coo ranve Travis Coun WCID-#2A 2 PART QUALIFICATIONS PART l 11 I A I IFICATIONS GENMAL DESI-R1f11IIN DUCI ib inwrpurdted In the State of Texas and provides service% to hnth a national and international client base DUCI waa fuunal on November 26, 1986, by the two principals of the firm, Mr Jacob Potts and Mr Daniel 1 Lawton Both punt.ipaia of ttic firm have extensive utility regulatory backgrounds, having worked for a public scrvicc commission and an etet,uic utility company, as well as an international utility consulting firm representing the public (non-mvestoi owned) utility sector Utl( I's clients are predominantly governmental entities Since it's nit.cptwu, DUCI hab expanded its operation The current %tatt has obtained amongst them 7 undergraduate and gtaduatc de)4rees in engineering accounting, economics, business and law The firm has an extensive microcomputet bybtciu to dbbist it in the performance of tasks and cornmumcation with clients as necessary to complete any engagenicut where such capainhhes are required The relevant corpoi ate enpeuc it c of DUCI to analyzing a utility s rate filing is aihstanttal During the last twelve (12) years DUCI has been dit"tly involved to the following rate cases or rate -related investigations (the figure w ithin the "()" indicates dillcicut cnkdKements) PART I QUALIFICATIONS The professional personnel assigned to this project are as follows Dan Lawton Jack Pous Sara Coleman Ruth Runyon Wenzel The resumes of these individuals are provided at the end of this section In addition to the resumes, a listing of prior cases in which testimony has been presented is provided The primary work assignments for each individual are as follows Dan Lawton, a principal in DUCI, with an undergraduate and graduate degree in economics and a law degree, will be responsible for directing analyses of the unbundling and rate design Jack Pous, a principal in DUCI, with an undergraduate degree in engineering and a masters in management, will be responsible for directing analyses of engineering and accounting issues Mr Pous will conduct the workshops discussed in Task B of your proposal to the City Council and Public Utilities Board on the development of the study, sale of generating units, Senate Bill 7 and the outcomes of workshops held by the PUCT regarding distribution tariffs Sara Coleman and Ruth Runyon Wenzel, Certified Public Accountants with undergraduate degrees in business administration, will be responsible for analyzing accounting issues 4 .,,., - . e W "vq awu More important than the overall number of cases in which Messrs Pous and Lawton have been engaged is the type and level of involvement The roles and duties of each of the project leaders in tlus proposal have been as project leader, actual negotiators and/or as expert witnesses in the vast majority of these cases, and exclusively in these roles and positions in all cases undertaken in the past twelve (12) years Most of these cases involved the review and analysts of utilities' cost of service issues, depreciation studies, cost of capital, and rate design issues We believe that the above noted information details DUCI's qualifications to analyze and assist the City of Denton in its Unbundling and Rate Design Services Further confirmation of DUCI's qualifications can be obtained from a review of the following professional resumes and testimony listings of the key individuals assigned to this project, as well as by contacting the references included to this section of the proposal 3 PART I QUALIFICATIONS The professional personnel assigned to this project are as follows Dan Lawton Jack Pous Sara Coleman Ruth Runyon Wenzel The resumes of these individuals are provided at the end of this section In addition to the resumes, a listing of prior cases to which testimony has been presented is provided The primary work assignments for each individual are as follows Dan Lawton, a principal in DUCI, with an undergraduate and graduate degree in economics and a law degree, will be responsible for directing analyses of the unbundling and rate design Jack Pous, a principal in DUCI, with an undergraduate degree in engineering and a masters in management, will be responsible for directing analyses of engineering and accounting issues Mr Pous will conduct the workshops discussed in Task B of your proposal to the City Council and Public Utilities Board on the development of the study, sale of generating units, Senate Bill 7 and the outcomes of workshops held by the PUCT regarding distribution tariffs Sara Coleman and Ruth Runyon Wenzel, Certified Public Accountants with undergraduate degrees in business administration, will be responsible for analyzing accounting issues PART QUALIFICATIONS la almost all cases listed above, expert testimony was filed in the rate proceeding before a state, provincial, or Federal regulatory agency DUCI and/or its personnel have relied upon their specific and general knowledge of the utility operation involved, including gas distribution systems The key personnel involved in the above cases are those assigned to this project The two project leaders, Messrs Pous and Lawton, have analyzed well in excess of 200 different rate filings of utility companies within the past 12 years In addition, the number of municipal, cooperative and/or state agency rate filings either developed and/or reviewed, substantially increases the number of rate -related engagements in which Messrs Pous and Lawton have participated More important than the overall number of cases in which Messrs Pous and Lawton have been engaged is the type and level of involvement The roles and duties of each of the project leaders in this proposal have been as project leader, actual negotiators and/or as expert witnesses in the vast majority of these cases, and exclusively in these roles and positions in all cases undertaken in the past twelve (12) years Most of these cases involved the review and analysis of utilities' cost of service issues, depreciation studies, cost of capital, and rate design issues We believe that the above noted information details DUCI's qualifications to analyze and assist the City of Denton in its Unbundling and Rate Design Services Further confirmation of DUCI's qualifications can be obtained from a review of the following professional resumes and testimony listings of the key individuals assigned to this project, as well as by contacting the references included in this section of the proposal PART QUALIFICATIONS ]a PEER FA1,.1�' IJS-T The following list of references Is comprised of individuals thoroughly familiar with DUCrs professional qualifications and capabilities Each of these individuals can attest to our ability to meet tight deadlines while still providing a supenor work product Mr Merril Nunn Mr Norman Gordon City Attorney Diamond Rash City of Amarillo 300 E Main Street P O Box 1971 7th Floor Amarillo, Texas 79186 El Paso, Texas 79901 (806)378-3000 (915)533-2277 Mr Harry Wright Mr Jim Boyle City Attorney Law Offices of Jim Boyle City of Port Neches 1005 Congress Ave 1221 Duncanville Street Ste 550 Port Neches, Texas 77651 Austin, Texas 78701 (409)722-0486 (512)474-1492 Mr Dave Cook John Michael Adrogna, Esq City of Dallas Miller, Balis & O'Neil, P C City Controllers Office 1101 14th Str, , N W #1400 Revenue and Taxation Division Washington, D C 20005 1500 Marilla 2BS (202)789-1450 Dallas, Texas 75201 (214)670-3442 Mr Jim Horwood Mr J Alan Bryan Spiegel & McDiarmid 2600 Manulife Place 1350 New York Avenue, N W 10180-101 Street Washington D C 20005 Edmonton, Alberta T6J 3Y2 (202)879.4003 (403)423-5730 5 DANIEL J. LAWTON PRINCIPAL, DIVERSIFIED UTILITY CONSULTANTS, INC B A. ECONOMICS, MERRIMACK COLLEGE M.A ECONOMICS, TUFTS UNIVERSITY Pnor to beginning his own consulting practice, Diversified Utility Consultants, Inc , in 1986, Mr Lawton had been in the utility consulting business with a national engineering and consulting firm In addition, Mr Lawton has been employed as a senior analyst and statistical analyst with the Department of Public Service of Minnesota Prior to Mr Lawton's involvement in utility regulation and consulting he taught economics, econometncs, statistics and computer science at Doane College Mr Lawton has conducted numerous financial and cost of capital studies on electric, gas and telephone utilities for vanous intervenors before local, state and federal regulatory bodies In addition, Mr Lawton has provided studies, analyses and expert testimony on statistics, econometrics, accounting, forecasting, and cost of service issues Other projects in which Mr Lawton has been involved include rate design, analyses for electric, gas and telephone utilities Mr Lawton has developed software systems, data bases and management systems for cost of service analyses In addition, Mr Lawton has developed and reviewed numerous forecasts of energy and demand used for utility generation expansion studies as well as municipal financing Mr Lawton has represented numerous murucipalities as a negotiator inutility related matters Such negotiations ranged from the settlement of electric rate cases to the negotiation of provisions in purchase power contracts A list of cases in which Mr Lawton has provided testimony is attached JACOB POUS, P E PRINCIPAL, DIVERSIFIED UTILITY CONSULTANTS, INC V B S INDUSTRIAL ENGINEERING M.S MANAGEMENT I graduated from the University of Missouri in 1972, receiving a Bachelor of Science Degree in Engineering, and I graduated with a Master of Science in Management from Rollins College in 1980 I have also completed a.series of depreciation programs sponsored by Western Michigan University, and have attended numerous other utility related seminars Since my graduation from college, I have been continuously employed in various aspects of the utility business I started with I(ansas City Power Sc Light Company, working in the Rate Department, Corporate Planning and Economic Controls Department, and for a short time in a power plant My responsibilities included preparation of testimony and exhibits for retail and wholesale rate cases I participated in cost of service studies, a loss of load probability study, fixed charge analysis, and economic comparison studies I was also a principal member of project teams that wrote, installed, maintained, and operated both a computerized series of depreciation programs and a computerized financial corporate model I joined the firm of R W Beck and Associates an international consulting engineering firm with over 500 employees performing predominantly utility related work in 1976 as an Engineer in the Rate Department of its Southeastern Regional Office While employed with that firm I prepared and presented rate studies for various electric gas water, and sewer systems prepared and assisted in the preparation of cost of service studies, prepared depreciation and decommissioning analyses for wholesale and retail rate proceedings, and assisted in the development of power supply studies for electric systems I resigned from that firm in November 1986 in order to co-found Diversified Utility Consultants, Inc At the time of my resignation, I held the titles of Executive Engineer, Associate and Supervisor of Rates in the Austin office of R W Beck and Associates As a principal of the firm of Diversified Utility Consultants, Inc , I have presented and prepared numerous electric, gas, and water analyses in both retail and wholesale proceedings These analyses have been performed on behalf of clients, including public utility commissions throughout the United States and Canada I have been involved in over 100 different utility rate proceedings, many of which have resulted in settlements prior to the presentation of testimony before regulatory bodies I am registered to practice as a Professional Engineer in the states of Florida Texas Mississippi, North Carolina Arizona, New Mevco, Ark.uisati Ol.lahonia and Louv Tana SARA 41 COLEMAN, C.P.A. DIVERSIFIED UY'ILITY CONSULTANTS, INC. B B.A. - ACCOUNTING I graduated from the University of St Thomas in 1990, receiving a Bachelor of Business Administration in Accounting I am a Certified Public Accountant licensed to practice in the State of Texas I am a Diplomate of the American Board of Forensic Examiners I have also attended utility related seminars including the "Annual Regulatory Studies Program" sponsored by the National Association of Regulatory Utility Commissioners and administered by Michigan State University's Graduate School of Business I began working for the public accounting firm of Arthur Andersen tx Company in Houston, Texas in July 1990 During my employment with Arthur Andersen 5L Company, I provided financial and audit services to public and private corporations My responsibilities included all aspects of financial reporting, financial statements and footnote preparation This included evaluation of compliance with technical requirements and the Security Exchange Commission's reporting regulations At the time of my resignation, I was an Experienced Senior Auditor In July 1993, I joined the Public Utility Commission of Texas as a Regulatory Accountant While employed at the Public Utility Commission of Texas, I reviewed and analyzed various utility applications as they related to accounting issues My responsibilities also included preparing and testifying on accounting issues in various utility hearings I resigned from the Public Utility Commission of Texas in December 1996 I have been involved in several rate proceedings, many of which have resulted in settlements prior to the presentation of testimony before regulatory bodies I joined the firm of Diversified Utility Consultants, Inc as a Senior Consultant My responsibilities include analyzing regulatory issues in various utility rate proceedings A list of cases in which I have provided testimony is attached RUTH RUNYON WENZEL, C P A BBA, ACCOUNTING Ms� Wenzel received a Bachelor of Business Administration degree with a major in Accounting from the University of Texas at Austin in 1981 She is a Certified Public Accountant licensed to practice in the State of Texas and has attended continuing professional education courses sponsored by the Texas Society of Certified Public Accountants In January 1982, Ms Wenzel began employment with the public accounting firm of Gibson, Johnson & Co She was involved in areas of taxation, auditing and management advisory services In 1986 she joined the firm of Gibson, Melvin & Paddock where she continued her public accounting practice In 1987 Ms Wenzel was employed by the Public Utility Commission of Texas as a regulatory accountant Her responsibilities with the Texas Commission included preparation and analyses of studies involving cost of service issues related to rate proceedings of electric utilities She served as a testifying witness on behalf of the Commission through 1994 Ms Wenzel began employment with Diversified Utility Consultants Inc rit June, 1994 where she has participated in the analysis of numerous utility rate proceedings before both state and federal regulatory authorities A list of cases in which Ms Wenzel has provided testimony is attached .1 PART I1 WORK PLAN X The scope of services necessary to properly investigate the numerous and complex financial, economical, unbundling, rate design, and accounting issues requires a consultant that has previously and successfully performed many similar analyses This concept of extensive prior specific experience is crucial in this particular situation due to the fundamental changes that are occurring in the utility industry and the City of Denton specifically The series of tasks delineated in this section of the proposal reflect what DUCT believes is necessary to comply with a review of the City of Denton's unbundling and rate design issues and advice on the proper regulatory positions in the changing regulatory environment Also to make recommendations and provide educational discussions with the City Council and the Public Utilities Board regarding the rate design study, asset sales, Senate Bill 7, and deregulation in the industry Specifically, how these issues effect the City of Denton Once notified of selection by the City, a detailed review of the City's unbundling and rate design and available current financial information will be conducted and discussed with the staff and officials of the City The City will provide its revenue requirement and billing determinant frequency, by class The following is a general outline and synopsis of the major tasks that we V anticipated by the City in performing a comprehensive analysis for Task A to the proposal TASK A MAN HOURS DESCRIPTION 1 42 Review and make recommendation, on the Citys final revenue requirement 2 26 Review and utilize R W Beek s unbundling study and review revision with City 3 64 Rate Design for Genco, Transco, Disco and Provider of Last Resort (PLR) Services Review of Ctty's existing revenue requirement and a review of historical and pro forma adjustments to the revenue requirement Propose necessary adjustments to be compliant with current regulatory requirements of the City Review prior year unbundling study and make adjustments where necessary Throughout the process, keep the staff informed PART II P WORK PLAN I Develop and analyze the price analysis and rate design alternatives and develop a rate design for the City taking into account the competitive changes taking place in the industry DUCI will provide the various workshops and presentation services delineated in Section B of the proposal DUCI will provide additional services as requested by the City Additional services may include, but are not limited to additional analyses, additional copies, attendance at additional meetings Charges for these services are not included in the cost estimate set forth herein Additional services will be charged at the hourly rates for the individual personnel set forth in Part III, plus out-of-pocket expenses Requests for additional services of an,* member of DUCI should be made in written form, if time constraints permit 7 PART III PRICE PROPOSAL DUCT proposes to be compensated on an hourly fee basis plus reimbursement for all out-of- pocket expenses reasonably incurred DUCT proposes to invoice the City on a monthly basis for services rendered and all out-of-pocket expenses incurred during that month The tables at the end of tlus Part sets forth the personnel, hourly fees and estimated number of hours for each individual who will participate in this project DUCI recognizes the City's need to schedule public meetings and DUCT will attend such meetings at a mutually agreed to time and date The tables at the end of this Part lists the various non -labor related costs anticipated to be incurred in the prosecution of this project PART III PRICE PROPOSAL MANPOWER AND COST REQUIREMENTS TO PROVIDE REVIEW OF CITY OF,DCNTON'S UNBUNDLING AND RATE DESIGN 4N BEHALF OF THE CITY OF DENTON COLEMANr LAWTON PODS WENZEL TOTAL TOTAL TASK a1201h 1132511r] 3112541Q HOURS AMOUNT 1 24 8 10 42 Y5 000 2 16 10 0 26 $3,250 3 A$ H a 65 S7 97S Hours 88 27 18 133 Amount 71 &= St 800 $IEL ESTIMATED EXPENSES -TASKA Pnnting $300 Postage & Delivery $75 Phone $ZS Total Expenses 3.i.s4 GRAND TOTAL - TASKA E16 625 LABOR REQUIREMENTS - TASK B PODS/ LAWTON TOTAL IASK M1 51hrl AMOUNT Six Meetings 68 $8,125 ESTIMATED EXPENSES - TASK B Printing $150 Postage $30 Transportation $245 Hotel & Meals 3250 Air Travel Total Expenses 31.875 GRAND TOTAL - TASK A f1D o00 GRAND TOTAL - TASKS A & B x Y, ,r DIV79R9TFIED UTILITY ,p'00NSULTANT9. INC ' SC1;D ROX= D1Ct M SV=110 AVOTtd Tx 7a799 TRtJWWOws; 16321999.9999 PAZ 45109049.9 August 18, 1999 Cheryl Davenport, C P A Utility Rate Administrator 901-A Texas Street Denton, Texas 76201 RE Amended Proposal to Review and Perform City of Denton's Unbundling Stj v and Rate Design Analysis Dear Ms Davenport Per our telephone conversation earlier this week, DUCI is submitting this amended, proposal to the City of Denton ("City") to include the following additional services that we discussed The following is a general description of additional services to be performed in Task A • Task 4 - A Production Cost Model will be developed if generation or production ("GENCO") rates are required to be calculated The Production Cost Analysis will review the optimal supply mix to City power supply costs This analysis will assist the City in budgeting for its power supply in the competitive environment This analysis is estimated at 100 hours of labor time • Task S - Development of the City Rate Design and Pricing Analysis using the developed revenue requirement This database, based on the City's historical bill frequency, will be used to analyze various rate design "demand tilts" in con)unction with the unbundled revenue requirement by functionalized costs and rate classes This is estimated at 120 hours • Initial consultation with the City regarding detailed scope of each A-ftax"-f r task and development of information required to be provided by the City to the consultants for each task, This is estimated at 16 hours In DUCI's original proposal, it estimated 6 meetings for Task B Given that the City Council and Regulatory Board meet on different days, DUCI has included an additional 6 meetings as requested per our discussion Based on our understanding of the City s request, DUCI has set forth as Alternative B, its price proposal to include these additional services DUCI has estimated a price of $45,000 to complete Task A and a price of $20,000 to complete Task B These are only meant to provide a general outline of DUCI's analysis I hope this has provided enough detail for the additional services we discussed on the phone Once again we would like to thank you for allowing DUCI to submit this Proposal to the City We are prepared to commence work on this project immediately upon selection, and would complete the project in a timely and efficient manner Should you have any questions with regard to this proposal or other matters, please feet free to contact Dan Lawton at (512)257-2600 Sincerely, kversifi d Utility Consultants, Inc 0 y M < < p, NiLoo AND COS 6@;gy1RWENTS �VNOFCITY Oh bUNSUNOUp * AND RATE DESIGN ItF OF THE 017 Y OF DENTON ALTERNATIVE 0 LARORREQUIREMENTS . TASKA OLEMAW LAWTON PODS WENZEL TOTAL TOTAL SASK (5j2UW t9728MRi 11100MR1 HOURS AMOUN.I 1 24 5 to 42 $500 2 16 10 0 25 $3 260 3 45 S S 54 $718W 4 60 20 20 100 $12,000 5 60 40 20 120 i14 500 Initial Consult 16 0 a JA 52.000 Hours 224 w 58 30 AmaW 12R 000 110 7SO Lum S4A.5W Pnr&w S300 Postage & Delivery $75 Phone $76 TOTALEXPENSES um GRAND TOTAL . TA$K A SAS 000 t AROR REQUIREMENTS . TASK R POUS/ LAWTON TOTAL IASK (3125MR) AMOUNT WsWe Meetvge 116250 Hours 130 Amain i1$2SG S16250 PART III RICE PROPOSAL CopylPrintirg 5350 TrarnpaWion - Tw" Meetings 5500 Hotel 6 Me& - Twat" Meetings SSW Air Tn" - Twewe Meetings $2 40D TOTALEXPENSES 53760 GRAND TOTAL - TASK 0 920.000 GRAND TOTAL - TA41K A A 13 Upw