HomeMy WebLinkAbout1998-060NOTE- Amended by Ordinance No. 98-230.
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT WITH REED CONSULTING GROUP
PROVIDING FOR CONSULTING SERVICES RELATED TO ELECTRIC
RESTRUCTURING, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND
PROVIDING FOR AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That the City Manager is hereby authorized to execute a Professional
Services Agreement providing for professional consulting services related to electric
restructuring with Reed Consulting Group, a copy of which agreement is attached hereto and
incorporated herein
SECTION II That the expenditure of funds as provided in the attached Agreement is
hereby authorized
SECTION III. That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the,?—' day of 1998
JACK R, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY —
APPR ED AS O LEGAL FORM
HERB RT L PROUTYI, CITY ATTORNEY
BY
S \Our Documents\Ordmances\98\Reed Consulting Ord doc
STATE OF TEXAS
COUNTY OF DENTON
PROFESSIONAL SERVICES AGREEMENT
This Agreement is entered into this '59 day of March, 1998, by and between Reed
Consulting Group ("REED"), a Massachusetts corporation, with its principal office at 200
Wheeler Road, Burlington, Massachusetts, 01803, and the City of Denton, Texas ("CITY"), a
Texas municipal corporation, with its principal office at 215 East McKinney Street, Denton,
Texas, 76201, for professional and related consulting services to be provided to City, both parties
acting by and through their duly authorized representatives
WHEREAS, that in consideration of the covenants and agreements herein contained,
REED and the CITY do hereby mutually AGREE as follows
ARTICLE I
SCOPE OF SERVICES
The CITY hereby engages REED, and REED hereby agrees to provide to City the
services set forth in the individual Task Order made an attachment to this Agreement The Task
Order generally provides for a preliminary evaluation of alternatives available to the CITY at this
point in time related to the stranded costs associated with Texas Municipal Power Agency
("TMPA")
ARTICLE II
FEES FOR SERVICES
For services provided by REED to CITY pursuant to this Agreement, CITY shall pay
REED in accordance with the rates and charges set forth in Exhibit "A", "Fees for Services"
attached hereto and made a part of this Agreement for all purposes, provided however such
charges and rates shall not exceed $75,000 00 unless the CITY agrees by an amendment to this
Agreement to increase the maximum fee for services for this engagement
ARTICLE III
BILLING AND PAYMENT
REED shall submit a monthly statement to CITY setting forth the amount due for
services and itemizmg amounts due for expenses CITY shall pay the full amount of such
statement within thirty (30) days after receipt Any sums billed, not disputed in written form
setting forth specific exceptions and unpaid after thirty (30) days from the date of receipt, shall
be subject to a late payment charge equal to one (1) percent for each month or fraction thereof
past due Nothing contained in this article shall require the CITY to pay for any work which is
unsatisfactory as reasonably determined by the Assistant City Manager/Utilities for the CITY, or
which is not submitted in compliance with the terns of this Agreement No late charge shall
apply to any such unsatisfactory or disputed work The CITY shall not be required to make any
payments to REED when REED is in default under this Agreement
ARTICLE IV
INDEPENDENT CONTRACTOR
REED shall provide services to CITY as an independent contractor, not as an employee
of CITY REED shall not have or claim any right ansmg from employee status REED agrees to
perform the services hereunder in connection with the project as stated in this Agreement with
due diligence, and in accordance with the highest professional standards obtained for such
services in the State of Texas
ARTICLE V
TERM AND TERMINATION OF AGREEMENT
A Unless otherwise terminated as provided herein, this Agreement shall become effective
upon execution by the parties and shall terminate when (1) the services provided for herein have
been fully and completely performed, or (2) July 1, 1998, whichever event shall occur first This
Agreement may be sooner terminated in accordance with the provisions hereof Time is of the
essence in this Agreement REED will make all reasonable efforts to complete the services set
forth herein as expeditiously as possible to meet the schedule established by the CITY
B Notwithstanding any other provision of this Agreement, either party may terminate this
Agreement by giving thirty (30) days advance written notice to the other party
C This Agreement may be terminated in whole or in part in the event of either party
substantially failing to fulfill its obligations under the Agreement No such termination will be
affected, unless the breaching party is given (1) written notice, delivered by certified mail, return
receipt requested, of intent to terminate, 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
D If the Agreement is terminated prior to completion of the services to be provided
hereunder„ REED shall immediately cease all services and shall render a final bill for services to
CITY within thirty (30) days after the date of termination, and CITY shall pay REED for all
services properly rendered and reimbursable expenses to termination incurred prior to the date of
termination in accordance with Article III hereof Should the CITY subsequently contract with a
new consultant for continuation of services on the project as defined in the attached Task Order,
REED shall fully cooperate in providing information All documents prepared or furnished by
REED pursuant to this Agreement shall become the property of the CITY but REED may
maintain copies of such documents for its use
Professional Services Agreement
Reed Consulting Group — Page 2
ARTICLE VI
INSURANCE
During the performance of the services under this Agreement, REED shall maintain the
following insurance with an insurance company licensed to do business in the State of Texas by
the State Insurance Commission or any successor agency that has a rating with Best Rate
Carriers of at least an "A-" or above
A Comprehensive General Liability Insurance with bodily injury limits of not less
than $1,000,000 for each occurrence and not less than $1,000,000 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 of not less than $100,000 for each accident
C Worker's Compensation Insurance in accordance with statutory requirements and
Employers' 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 REED shall furnish insurance certificates or insurance policies at the CITY's
request to evidence such coverages The insurance policies shall name the CITY
as an additional insured on all such policies to the extent lawfully possible and
shall contain a provision that such insurance shall not be canceled or modified
without thirty (30) days prior written notice to CITY and REED In such event,
REED shall, prior to the effective date of the change or cancellation, promptly
deliver to CITY substitute policies or certificates providing or evidencing the
same coverage
ARTICLE VII
LIABILITY
A REED shall indemnify and hold harmless the CITY, its officials, employees, attorneys
and agents, from and against any and all liability, claims, demands, damages, losses, and
expenses, including, but not limited to, court costs and reasonable attorney's fees incurred by
CITY, for which REED is determined to be legally liable resulting from negligent acts, errors,
or omissions by REED, its directors, officers, agents, and employees in performance of services
required by this Agreement Liability, claims, demands, damages, losses, or expenses resulting
from the negligent acts, errors or omissions, whether active or passive, by CITY, its officials,
employees, attorneys, and agents are excluded from REED's obligations pursuant to this
paragraph
Professional Services Agreement
Reed Consulting Group — Page 3
B REED's indemnification of the CITY, as provided in Article VII A above, as to any act
or omission constituting professional malpractice, shall be expressly limited to the amount of
fees payable to REED as set forth in Article II of this Agreement
C REED's indemnification of the CITY, as provided in Article VII A above, resulting from
any negligent acts, errors, or omissions of REED, other than professional malpractice, shall be
expressly limited to the proceeds of its applicable insurance coverage, as identified in Article
VI A, B & C of this Agreement
D 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 either 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 VIII
OBSERVATION AND REVIEW OF THE WORK
REED shall exercise reasonable care and due diligence in discovering and promptly
reporting to the CITY any defects or deficiencies in the work of REED or of any contractors,
subcontractors, or subconsultants working on the project
ARTICLE IX
RESPONSIBILITY FOR CLAIMS AND LIABILITIES
Approval by the CITY shall not constitute nor be deemed a release of the responsibility
and liability of REED, its employees, associates, agents and consultants for the accuracy and
competency of their designs or other work Nor shall such approval be deemed to be an
assumption of such responsibility by the CITY for any defect in the work prepared by REED,
its employees, associates, agents and consultants
ARTICLE X
ATTORNEY'S FEES
If either party hereto shall become involved in litigation ansmg out of this Agreement or
the performance thereof, the prevailing party shall be entitled to reasonable attorney's fees,
costs and expenses This provision shall be construed as applicable to the entire Agreement
ARTICLE XI
NOTICES
A Any notice, demand, information, invoice, report, or item otherwise required, authorized,
or provided for in this Agreement, unless otherwise specified herein, shall be deemed properly
given if delivered in person or sent by United States Mail, First Class Postage prepaid
Professional Services Agreement
Reed Consulting Group — Page 4
CITY REED
Howard Martin, Assistant City Manager/Utihties Reed Consulting Group, Inc
City of Denton, Texas James Coyne, Vice President
215 E McKinney Street 200 Wheeler Road
Denton, TX 76201 Burlington, MA 91803
B All notices mailed shall be deemed effective upon receipt by the party to whom such
notice is given
ARTICLE XII
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 ansing out of or relating to, this Agreement involving
one parry's disagreement may include the other party to the disagreement without the other's
approval
ARTICLE XIII
OWNERSHIP OF DOCUMENTS
All documents prepared or furnished by REED (and REED's subcontractors or
subconsultants) pursuant to this Agreement are instruments of service and shall become the
property of the CITY upon the termination of this Agreement REED is entitled to retain copies
of all such documents The documents prepared and furnished by REED are intended only to
be applicable to this project and the CITY's use of these documents in any other project shall be
at the CITY's sole risk and expense In the event the CITY uses the documents in another
project or for other purposes than specified herein any of the information or materials developed
pursuant to this Agreement, REED is released from any and all liability relating to their use in
that project
ARTICLE XIV
ACCESS TO RECORDS OF REED BY CITY
REED agrees that the CITY shall, until the expiration of three (3) years after the final
payment under this Agreement, have access to and the right to examine any directly pertinent
books, documents, papers and records of REED involving transactions relating to this
Agreement REED agrees that the CITY shall have access during normal working hours to all
necessary REED facilities and shall be provided adequate and appropriate working space in
order to conduct audits in compliance with this section The CITY shall give REED reasonable
advance notice of intended audits
Professional Services Agreement
Reed Consulting Group — Page 5
ARTICLE XV
PERSONNEL
A REED 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, or have any contractual relations with the CITY REED shall inform the CITY of
any conflict of interest or potential conflict of interest that may anse during the term of this
Agreement
B All services required hereunder will be performed by REED or under its supervision All
personnel engaged in work shall be qualified and shall be authorized and permitted under state
and local laws to perform such services
ARTICLE XVI
DISCRIMINATION PROHIBITED
In performing the services required hereunder, REED shall not discriminate against any
person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical
handicap.
ARTICLE XVII
COMPLIANCE WITH LAWS
REED shall comply with all federal, state, local laws, rules, regulations, and ordinances
applicable to the work covered hereunder as they may now read or hereinafter amended
ARTICLE XVIII
COORDINATION OF WORK ON THE ENGAGEMENT
A REED shall commence, carry on, and complete this engagement with all applicable
dispatch; in a sound, economical, efficient manner, and, in accordance with the provisions
hereof In accomplishing the project, REED shall take such steps as are appropriate to ensure
that the work involved is properly coordinated with related work being carved on by the CITY
B The CITY shall assist REED by placing at REED's disposal all available information
pertinent to the project, including previous reports, any other data relative to the project and
arranging for access to, and make all provisions for REED to enter in or upon, public and
private property as required for REED to perform services under this Agreement
C REED agrees to cooperate fully with Resource Management International, Inc ("RMI"),
R J Covington Consulting ("Covington") and City staff, together with the CITY's outside
attorney$ and consultants in achieving an effective, efficient evaluation REED agrees to work
in close coordination with RMI, Covington, City staff, as well as with the CITY'S outside
attorneys and consultants in order to maximize the efficiency and quality of the project
Professional Services Agreement
Reed Consulting Group — Page 6
deliverables to the CITY considering the aggressive schedule of this project The CITY is
relying upon REED to maintain open lines of communication with RMI and Covington at all
times in order to coordinate the work and to avoid any conflict or any unnecessary duplication
of effort During the course of this project the CITY expects, and REED agrees to refrain from,
any action against any consultant hired by the CITY on this project which might disrupt or
impair the course of work being performed for the CITY on this project
ARTICLE XIX
SEVERAL OBLIGATIONS
Except where specifically stated in this Agreement to be otherwise, the duties, obligations
and liabilities of the parties are intended to be several and not joint or collective Nothing
contained in this Agreement shall be construed to create an association, trust, partnership, or
joint venture or impose a trust or partnership duty, obligation, or liability on or with regard to
either party Each party shall be individually and severally liable for its own obligations under
this Agreement
ARTICLE XX
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 and no evidence of any waiver or modification shall be offered or received in
evidence in any proceeding ansing between the parties hereto out of or affecting this
Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or
modification is in writing, and duly executed The parties further agree that the provisions of
this Article will not be waived unless as herein provided
ARTICLE XXI
ASSIGNABILITY
REED 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 CITY
ARTICLE XXII
SUCCESSORS ININTEREST
This Agreement shall be binding on, and inure to the benefit of, each party's successors
and assigns
Professional Services Agreement
Reed Consulting Group — Page 7
ARTICLE XXIII
ENTIRE AGREEMENT
This Agreement 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 and contemporaneous offers, promises, representations, negotiations,
discussions, communications, and agreements which may have been made in connection with
the subject matter hereof
ARTICLE XXIV
SEVERABILITY
If any provision of this Agreement is found or deemed by a court of competent
jurisdiction 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 party shall reform this Agreement to replace such stricken provision with a valid and
enforceable provision which comes as close as possible to expressing the intention of the
stricken provision
ARTICLE XXV
GOVERNING LAW
This Agreement shall be construed and interpreted according to, and the rights of the
parties shall be governed by, the laws of the State of Texas Venue of any suit or cause of
action under this Agreement shall lie exclusively in Denton County, Texas
ARTICLE XXVI
WAIVER
Any waiver at any time by either party of its rights with respect to a default under this
Agreement, or with respect to any other matters ansmg in connection with this Agreement, shall
not be deemed a waiver with respect to any subsequent default or other matter
ARTICLE XXVII
CAPTIONS
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 HEREOF, the City of Denton, Texas has caused this Agreement to be
executed by its duly authorized City Manager and Rhas executed this Agreement through
its duly authorized undersigned officer on this the J day of March, 1998
Professional Services Agreement
Reed Consulting Group — Page 8
"CITY"
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
BY
Ted Benavides, City Manager
ATTEST
JENNIFER WALTERS, CITY SECRETARY
e
By _
AP PR ED A TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
"REED"
REED CONSULTING GROUP
A Massachusetts Corporation
WITNESS
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Professional Services Agreement
Reed Consoltmg Group — Page 9
EXHIBIT A
FEES FOR SERVICES
Professional and support services, except for testimony, shall be billed at the following rates
President
$300 per hour
Executive Vice President
$240 per hour
Senior Vice President
$230 per hour
Vice President
$230 per hour
Assistant Vice President
$190 per hour
Senior Economist
$170 per hour
Senior Project Manager
$170 per hour
Project Manager
$160 per hour
Senior Consultant
$145 per hour
Staff Consultant
$130 per hour
Senior Technical Consultant
$110 per hour
Consultant
$110 per hour
Assistant Consultant
$ 90 per hour
Research Librarian
$ 75 per hour
Administrative Assistant
$ 45 per hour
The above rates shall be adjusted each year, commencing July 1, 1998, to reflect the change in
rates officially established by REED
Testimony shall be billed at one and one-half (1 '/2) times the above stated hourly rates
Reproduction, printing, communications, computer services, and other miscellaneous support
services shall be billed at rates for such services as determined from time to time and officially
established by REED
All travel, food, lodging, and miscellaneous expenses, except automobile mileage, associated
with the provision of services hereunder shall be billed at cost Automobile mileage shall be
billed at $0 32 per mile
CITY shall reimburse REED for any applicable sales tax imposed on services rendered by REED
to CITY
ATTACHMENT TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
REED CONSULTING GROUP
THE CITY OF DENTON
DATED February 24, 1998
Financial Advisory Services — Options Assessment
This Task Order defines a Scope of Services and Budget for work by Reed Consulting
Group (REED) for the City of Denton, Texas (City) The activities in this Task Order
are designed to study and present alternatives to the City for resolution of its investment
and related financial obligations primarily associated with the Texas Municipal Power
Agency (TMPA)/Gibbons Creek Power Plant Other generation assets owned by the
Cities may also be considered, particularly those with debt obligations
This work is intended to serve as a precursor to the financial advisory role previously
discussed Prior to proceeding with a divestiture plan, the City requires an evaluation of
the alternatives for its existing generation ownership which satisfactorily addresses the
City's potential stranded costs and bond obligations in the deregulating electric
environment
SCOPE OF SERVICES
Task A — Identify the Alternatives
REED will first examine the City's ownership in electric generation assets (and
contracts for output) to fully understand the current situation related to generating
assets The focus of this task will be to determine
• Ownership structure
• Contractual obligations
• Financial obligations
Review the status of electric restructuring in Texas
Legislative status
Public Utilities Commission requirements and proposals
IOU and municipal precedents in the state on generation ownership and
stranded cost resolution issues
Review municipal precedent in comparable situations
• Financial restructuring
• Asset sales
• Stranded cost recovery mechanisms
Based on REED's experience in generation asset divestiture and electric
unbundling, REED will work with the City and its advisor(s) to develop
alternatives for its existing generation asset related obligations These alternatives
may include
• Proceed with divestiture
a) alone
b) with Garland
c) with Garland, Greenville and Bryan
• Maintain status quo
• Conduct an asset appraisal and approach the legislature for stranded cost
assistance
• Securitization
• Release the assets to unregulated merchant plant status
• Others to be identified
Task B — Evaluate the Alternatives
Provide a basis for financial evaluation of the alternatives
• Examine the financial models constructed for this purpose and build on and
complete evaluations already begun
• To the extent possible, complete this model to allow for financial scenario
evaluation
• If the existing model is not capable, create a new model to capture the
essential financial implications of alternative scenarios
• Develop baseline market assumptions with assistance from the City, public
sources, and REED market knowledge
Quantitatively (where possible) and qualitatively evaluate the alternatives
• Stranded cost exposure
• Cash flows available for debt
• Impacts on customer rates, and taxpayers
• Bond covenants
Task C — Present and Discuss Findings, Conclusions and Recommendations
Summarize results of Tasks A and B in summary presentation form
Review with the City Manager, Utility Board management, and other Advisors
Present the findings, conclusions, and recommendations to the City Council
PROJECT TEAM
REED will provide a highly qualified project team The team will draw on the firm's
extensive experience in finance and electric asset rationalization Consulting staff, which
will effectively leverage the experience of senior staff to manage overall project costs,
will support senior staff The following project team is proposed
Hourly
Name
Title
Rate
Area of Responsibility
John J Reed
President
$300
Project Advisor
Malcolm R Ketchum
Executive Vice President
$240
Project Advisor
Mark C Pocmo
Sr Vice President
$230
Financial Advisor
James M Coyne
Vice President
$230
Project Manager
Frederick J Nemergut
Vice President
$210
Electric Municipal/ Finance
Prescott C Hartshorne
Sr Project Manager
$170
Finance/Bond Covenants
Sajid Malik
Staff Consultant
$130
Consulting Support
Natalie D Cameron
Consultant
$110
Consulting Support
In addition to the core project team, REED will rely upon other members of its staff for
specific areas of project expertise and consulting support
BUDGET and TIMING
Budget for work performed under this Task Order is difficult to estimate with certainty
due to some unknowns concerning the financial modeling status, the number of
alternatives evaluated and the depth of analysis the City will require The estimated
budget for this Task Order is $75,000 All work will be billed on a monthly basis with
supporting documentation of activities performed
The estimated time required to complete this assignment is approximately 6 weeks once
work commences
This Task Order is authorized and made an attachment to the above -identified
Professional Services Agreement through the signatures below
Authorized by
City of Denton, Texas
Accepted by
Reed Consulting Group
By
Byer` 1"
Dated 3 3 q 8
Dated &5 A0
W \001\MRK\Professional Services Agreement\Prof Service Agreement Denton Financial
ORDINANCE NO �D
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH REED
CONSULTING GROUP FOR CONSULTING SERVICES RELATED TO ELECTRIC
RESTRUCTURING BY ADDING A TASK ORDER AND AUTHORIZING THE PAYMENT
OF ADDITIONAL COMPENSATION, AND PROVIDING FOR AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Manager is hereby authorized to execute an amendment to
the Professional Services Agreement ("Agreement") between Reed Consulting Group ("REED")
and the City, heretofore entered into by the parties on March 3, 1998 for professional services
with regard to the City's investment and related financial obligations primarily associated with
the Texas Municipal Power Agency/Gibbons Creek Power Plant, which amendment is in
substantially the form of Task Order No 98-A, a copy of which task order is attached hereto and
made a part of this ordinance for all purposes, which Agreement is amended by adding
additional professional services to be rendered by Reed and providing for an additional amount
of fees and expenses not to exceed $100,000 00 for the additional professional services to be
performed by Reed
SECTION II That the expenditure of funds as provided for in the attached Task Order
No 98-A is hereby authorized
SECTION III That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY
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ATTACHMENT TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
REED CONSULTING GROUP AND
THE CITY OF DENTON
TASK ORDER NO.98-A
Financial Advisory Services — Options Assessment — Phase II
This Agreement amends the Professional Services Agreement (the "Agreement") entered into by
the parties hereto on March 3, 1998, and defines a Scope of Services and Budget for additional
professional services to be performed by Reed Consulting Group ("REED") for the City of
Denton, Texas ("CITY") The activities in this Task Order are designed to complete the
evaluation of alternatives for the City with regard to its investment and related financial
obligations primarily associated with the Texas Municipal Power Agency ("TMPA")/Gibbons
Creek Power Plant
SCOPE10FSERVICES
Task A — Refine the Analysis
Revisit analysis of Denton's cost of generation
Run additional scenarios
Compare/contrast with Garland
Revise Base Case as needed
Task B — Support the City in Discussions with other Parties
Other TMPA Cities
First Southwest Company
Legal Advisors of City
Task C — Present and Discuss Findings, Conclusions and Recommendations
1 Review with the City Manager, Public Utility Board members, City Utility Management,
and other City Advisors
2 Present the findings, conclusions, and recommendations to the City Council
PROJECT TEAM
REED will provide a continuation of its existing project team
Hourly
Name Title Rate Area of Responsibility
John J Reed President $300 Project Advisor
James M Coyne Vice President $230 Project Manager
PrescottiC Hartshorne Sr Project Manager $170 Financial Analysis
In addition to the core project team specified in the March 3, 1998 Professional Services
Agreement between the parties, REED will rely upon other members of its staff for specific areas
of project expertise and consulting support as the project reasonably dictates
BUDGETAND TIMING
REED shall perform the professional services provided for in this Task Order on a time and
expense basis in accordance with the provisions of the Professional Services Agreement between
Reed and the City, dated March 3, 1998
The budget for work to be performed under this Task Order is highly dependent upon the steps
required to reach successful negotiations with other TMPA cities and the depth of additional
analysis which the City may require The estimated budget for this Task Order is not to exceed
$100,000 for professional services and expenses All work will be billed on a monthly basis with
itemized documentation of activities performed clearly set forth in each billing invoice
Reed and the City AGREE, that except as amended by this Task Order No 98-A, all the terms,
conditions, covenants and provisions of the Professional Services Agreement between
themselves, dated March 3, 1998, shall remain in full force and effect
This Task Order No 98-A is APPROVED and AGREED TO, and is made an attachment to, and
is incorporated by reference to the above -identified Professional Services Agreement as
evidenced by the signatures of the parties' duly-authonzed signatories set forth herembelow
Authorized by
CITY OF DENTON, TEXAS
By /l�G
Dated
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBpERT L PROUTY, CITY ATTORNEY
dUCEJ
BY
Accepted by
REED CONSULTING GROUP
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