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Home My WebLink About1997-264C \DOCS\ORD\RMI2ND ORD ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RESOURCE MANAGEMENT INTERNATIONAL, INC.; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Manager is hereby authorized to execute the second amendment to the professional services agreement with Resource Management International, Inc ("RMI"), a copy of which is attached hereto and incorporated herein, along with any task orders and other documents necessary to the performance of the second amendment. SECTION II. That the expenditure of funds as provided in the attached agreement 1s hereby authorized. SECTION III_. That this ordinance shall become effective immediately upon its passage and approval. �%J PASSED AND APPROVED this the A day lzd of &0�_ 1997 JACIK5LER' MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY M=Yii APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY STATE OF TEXAS § COUNTY OF DENTON 9 SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is the second amendment to the Professional Services Agreement entered into by and between Resource Management International, Inc , a California Corporation (11RMI11) and the City of Denton, Texas, a Texas Municipal Corporation ("CITY"), on the 17th day of September, 1996, for professional and related services provided by RMI to the CITY, hereinafter referred to as the "Base Agreement", this second amendment further amends the First Amendment to Professional Services Agreement entered into by and between RMI and the CITY on the 3rd day of December 1996, which is hereinafter referred to as the "First Amended Agreement" In consideration of the terms and conditions set forth herein, and the mutual promises of the parties, the parties do hereby AGREE I That Section II "Fees For Services" of the Base Agreement and Section II of the First Amended Agreement are hereby amended to include the following provisions For services provided by RMI to the CITY pursuant to the parties, agreement respecting completion of the work in Phase I of the Evaluation Of Power Supply Alternatives RFP Pro]ect, pursuant to Task Order No 96B, the CITY shall pay RMI the total sum of $77,702 69, said sum representing the payment of an additional $22,702 69 in professional fees to RMI II That Section I "Scope Of Services" of the Base Agreement is hereby amended to add the following provisions RMI shall further provide to the CITY the services pertaining to the Evaluation Of Power Supply Alternatives -Phase II pro]ect as set forth in individual task orders made as attachments to this Agreement including, without limitation, Task Order No 97A, a copy of which Task Order is attached hereto as Exhibit "A" and incorporated herewith by reference 0004 That Section II "Fees For Services" of the Base Agreement and Section II of the First Amended Agreement are hereby amended to add the following provisions Services to be provided by RMI to the CITY pursuant to the parties' agreement respecting completion of the Evaluation of Power Supply Alternatives -Phase II pro]ect, the CITY shall pay RMI in accordance with the rates and charges contained in the "Fees For Services" provisions of Exhibit "A" attached hereto CITY shall accordingly pay to RMI, pursuant to the terms of Task Order No 97A, professional fees and expenses in an amount not to exceed $97,000 00 IV That save and except as expressly amended by this Second Amendment to Professional Services Agreement, all the terms, conditions, and covenants of the Base Agreement and the First Amended Agreement shall remain in full force and effect IN WITNESS WHEREOF, the CITY has caused this Second Amendment To Professional Services Agreement to be executed by and through its duly authorized City Manager, and Resource Management Interna- tional, Inc has caused this Second Amendment To Professional Services Agreement to be exec4ted by and through its duly autho- rized officer on this the day ofP��6e./' 1997 CITY OF DENTON, TEXAS BY Te Benavidea, City Manager ATTEST JENNIFER WALTERS, CITY SECRETARY Page 2 APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY RESOURCE MANAGEMENT INTERNATIONAL, INC A California Corporation ATTEST 71 A / 5-/ �" C \R0C8\K\RM12ND K Page 3 ATTACHMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN RESOURCE MANAGEMENT INTERNATIONAL, INC AND THE CITY OF DENTON DATED September 17,1996 TASK ORDER NO 97-A EVALUATION OF POWER SUPPLY ALTERNATIVES - PHASE II This Task Order defines a Scope of Services and Budget for work by Resource Management International, Inc (RMI) for the City of Denton, Texas (City) The activities in this Task Order continue the work performed under Task Order 96-B, Evaluation of Power Supply Alternatives (Phase I) Phase I included the development of a Request For Proposals for Power Supply (RFP) and the screening of proposals received in response to the RFP Phase II refocuses the RFP process to incorporate information learned in Phase I Phase II will include identifying parties interested in the purchase of the Caty's TMPA assets and soliciting proposals for the best use of the City's generation Phase II will also include negotiations with those interested parties to arrive at an agreement for the sale of certain assets and the repowering or other use of other assets Power supply contracts to replace power previously owned or operated by TMPA and /or the City will also be a part of Phase II activities SCOPP OF SERVICES The following outlines representative activities to be completed under this Task Order • RMI will interview major national energy companies to describe the intent of Denton and Garland (Cities) with respect to TMPA and the City's owned local generation assets These meetings will provide a status report on the Denton RFSP 2035 and explain how the process will proceed Letters of interest in participating in the process will be solicited from each company • Once the letters of interest are returned (within one week of the meetings), RMI and Denton will identify the companies with whom negotiations will proceed • RMI will assist the City in providing data to companies, arranging plant tours, coordinating and participating in meetings, and identifying and researching questions related to the use or sale of assets The City will retain the necessary legal and bond counsel to provide legal opinions as necessary • RMI anticipates extensive negotiations with 2 to 4 parties These negotiations will be related to the sale of the City's share of TMPA, and various proposals for the best use of the City's other generation assets • RMI will evaluate the economic terms of the proposals and calculate the net present value of the different proposals in order to assist in determining the best offer 97A -1 Exhibit "A" • In the evaluation, RMI will run, as needed, the PROSYM production cost program to model alternative generation and purchased power configurations to evaluate the economics associated with different options under different scenarios • RMI will work with the City and the companies to address questions related to the provision of ancillary services and transmission These factors will be addressed in negotiations and included in the economic analysis • As part of negotiations, RMI will work with the City to identify and evaluate the companies ability to assume risk associated with variations in costs related to fuel, transmission, and other factors • RMI will provide presentations to staff, as requested A final report will be should there not be a clear winner the Utility Board, and members of Council provided comparing alternative proposals • RMI will perform services as necessary to support this process to secure power supply for the future, as directed by City staff BUDGET Budget for work performed under this Task Order is difficult to estimate due to the variables involved, such as the number of parties to be included in the negotiation process The estimated budget for this Task Order is $97,000 This assumes that the City of Garland approves a like amount Should Garland not approve a like budget, RMI will submit a new Task Order and Budget All work will be billed on a monthly basis 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 By Date Accepted By International, Inc 97A - 2 FEES FOR SERVICES RESOURCE MANAGEMENT INTERNATIONAL, INC 1997 Professional and support services, except for testimony, shall be billed at the following rates Managing Executive Consultant $166 per hour Principal Executive Consultant $150 per hour Executive Consultant $142 per hour Principal Consultant $131 per hour Supervising Consultant $116 per hour Senior Consultant $106 per hour Associate Professional $ 92 per hour Analyst $ 81 per hour Research Assistant $ 61 per hour Technician $ 53 per hour Office Services $ 49 per hour The above rates shall be adjusted each year, commencing January 1,1998, to reflect the change in rates officially established by the RMI Board of Directors Testimony shall be billed at not less than eight (8) hours per day Reproduction, printing, communications, computer services, and other rruscellaneous support services shall be billed at rates for such services as deterrruned from time to time and officially established by the RMI Board of Directors plus ten (10) percent All travel, food, lodging, and iruscellaneous expenses, except automobile rmleage, associated with the provision of services hereunder shall be billed at cost Automobile mileage shall be billed at $0 30 per mile Client shall reimburse RMI for any applicable sales tax imposed on services rendered by RMI to Client