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HomeMy WebLinkAbout1998-230ORDINANCE NO 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 4f day of , 1998 J MILLER, MAYOR ATTEST' JENNIFER WALTERS, CITY SECRETARY BY APP OVED L TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY /p \\Svc utd\VOLI\shared\dept\Legal\MtkeCopeland's Work\Reed Amended Ord doe 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 SCOPE OF SERVICES 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 1 Other TMPA Cities 2 First Southwest Company 3 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 Prescott C 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 -authorized signatories set forth herembelow Authorized by CITY OF DENTON, TEXAS By Dated ATTEST JENNIFER WALTERS,, CI TY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY VC=4 Accepted by REED CONSULTING GROUP By 1,1,1 Co Date 12'( k 8 \\Svc unl\VOLT\shared\dept\Legal\MikeCopeland's Work\Iteed Amended Task Order doc