HomeMy WebLinkAbout1997-326ORDINANCE NO
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT
FOR PROFESSIONAL LEGAL SERVICES WITH THE LAW FIRM OF BERNSEN, JAMAIL
& GOODSON, L L P , AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND
PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
5E, TIC ON I. That the City Manager is hereby authorized to execute a Contract for
Professional Legal Services with the law firm of Bernsen, Jamail & Goodson, L L P regarding
various legal issues and matters related to the Denton Municipal Electric Utility, a copy of which
contract is attached hereto and incorporated herein
LFF.CTION II. That the expenditure of funds as provided in the attached contract is
hereby authorized
al CTION III. That this ordinance shall become effective immediately upon its passage
and approval , i
PASSED AND APPROVED this the y'/— day of 1997
2 c4L
JACK MILLER, MAYOR
ATTEST
JENNIF13R WALTERS, CITY SECRETARY
m
AS TO LEGAL FORM
PROUTY, CITY ATT
BY IV\J.r� `;2
P 1Aam".ptW0L\Doce\0RD%aM=Je dordw. doc
CONTRACT FOR PROFESSIONAL LEGAL SERVICES
STATE OF TEXAS §
COUNTY OF DENTON §
This AGREEMENT, made and entered into this the day of /VDT
1997, by and between Bernsen, Jamail & Goodson, L L P , a Texas limited liability partnership,
with Daniel R Richards having full authority to execute this Agreement on behalf of Bernsen,
Jamail & Goodson, L L P , hereinafter referred to as "Consultant", and the CITY OF DENTON,
a Texas municipal corporation, 215 E McKinney, Denton, Texas 75201, hereinafter referred to
as "City"
WITNESSETH
WHEREAS, the City needs to employ legal counsel to provide professional legal services
to evaluate options with respect to its electric generation facilities and contractual agreements as
well as any related proceedings and negotiations, and
WHEREAS, the Consultant is willing to perform such services in a professional manner
as an independent contractor, and
WHEREAS, the City desires to engage the Consultant to render the professional services
in connection therewith, and the Consultant is willing to provide such services,
NOW, THEREFORE, in consideration of the promises and mutual obligations herein, the
parties hereto do hereby mutually AGREE as follows
I. Scope of Services The Consultant shall perform the following services in a
professional manner working as an independent contractor not under the direct supervision and
control of the City
A Services to be provided
1 Consultant shall evaluate and advise the City with respect to its
obligations to the Texas Municipal Power Agency, its members, and its
bond holders, evaluate and advise the City with respect to its ability to
modify or restructure its obligations to the Texas Municipal Power
Agency, its members, and its bond holders, evaluate and advise the City
with respect to its options as related to the City's continued ownership of
certain electric generation and transmission facilities, assist the City in any
related negotiations, and consult with the City Manager, Executive
Director for Utilities, the Director of Electric Utilities, the City Attorney
and the other designated administrative personnel regarding any and all
aspects of the special services to be performed, including legal research
and advice with respect to such matters
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The Consultant shall perform all the services required in a timely
fashion, and shall complete same in compliance with schedules
established by the City through its Director for Electric Utilities
and City Attorney through discussions with the Consultant, as
appropriate to carry out the terms and conditions of this
Agreement
II Term: This Agreement shall be for a term of twelve (12) months,
beginning effective November 1997 and ending November �, 1998 This Agreement
may be sooner terminated in accordance with the provisions hereof Time is of the essence of
this Agreement, and the Consultant shall make all reasonable efforts to complete the services set
forth herein as expeditiously as possible during the term of this Agreement, and to meet the
schedules established by the City, through its Director for Electric Utilities and City Attorney, or
as the progress of this matter may require
III. Compensation and Method of Payment
A The Consultant shall charge the following fees for its professional services
hereunder, based on the following hourly billing rates for the attorneys and
support staff involved in this matter
Daniel R Richards $150 00/hour
other attorneys with firm $125 00/hour
paralegal support $50 00/hour
law clerk support $50 00/hour
Attorney time will be billed at 25 hour minimum billing increments
B The Consultant will try to reduce costs by utilizing qualified principals,
associates, paralegals, and law clerks wherever feasible The Consultant
shall bill the City through the submission of itemized invoices, statements,
and other documentation, together with support data indicating the
progress of the work and the services performed on the basis of monthly
statements showing hourly rates indicating who performed the work, what
type of work was done, and descriptions and/or details of all services
rendered, along with specific description and supporting documentation, if
available, respecting any reasonable and necessary out-of-pocket expenses
incurred
C Consultant and the City agree that all charges for the legal services
hereunder, including reasonable out-of-pocket expenses, shall not exceed
Eighty-two Thousand Five Hundred Dollars ($82,500 00)
D The City shall either pay directly or reimburse the Consultant, as the case
may be, for reasonable and necessary actual out-of-pocket expenses,
including but not limited to, long-distance telephone, telecopier,
reproduction, postage, overnight courier, and travel All copies will be
charged at the rate of ten cents ($ 10) per copy for copies made within
Consultant's offices, with as much photocopying as possible being done
by outside vendors at bulk rates or by the City to reduce costs if bulk
copying is necessary The parties agree that the charges for outgoing
telecopier from Consultant shall be twenty-five cents ($ 25) per page and
that there will be no charge by Consultant for incoming telecopier
E The parties anticipate invoices or statements for services will be generated
on a monthly basis and that said invoices or statements will be sent on or
about the 15t' day of each month The City shall make payment to the
Consultant within thirty (30) days of the satisfactory completion of
services and receipt of an itemized invoice or statement All reimbursable
expenses, including but not necessarily limited to travel, lodging, and
meals shall be paid at the actual cost, pursuant to the terms, conditions,
and limitations heremabove set forth All invoices and bills shall be
approved by the Director of Electric Utilities and the City Attorney
F It is understood that the Consultant shall work with the coordination and
general supervision of the Director for Electric Utilities and the City
Attorney
G All notices and invoices shall be made in writing and may be given by
personal delivery or by mail Notices and invoices sent by mail shall be
addressed respectfully to Herbert L Prouty, City Attorney, 215 E
McKinney, Denton, Texas 76201 When so addressed, the notice,
invoice, and/or payment shall be deemed given upon deposit in the United
States Mail, postage prepaid In all other instances, notices, invoices,
and/or payments shall be deemed given at the time of actual delivery
Changes may be made in the names and addresses of the responsible
person or office to whom notices, invoices, and/or payments are to be sent,
provided reasonable notice is given
IV. Professional Competency
A The Consultant agrees that in the performance of these professional
services, Consultant shall be responsible for the level of competency and
shall use the same degree of skill and care presently maintained by other
practicing professionals performing the same or similar types of work
For the purpose of this Agreement, the key person who will be performing
most of the work hereunder shall be Daniel R Richards However,
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nothing herein shall limit Consultant from using other qualified and
competent members of its firm to perform the services required herein
B Pleadings, motions, orders, notices, instruments, discovery documents,
reports, and other legal documents prepared or obtained under the terms of
this Agreement are instruments of service and the City shall retain
ownership and a property interest therein If this Agreement is terminated
at any time for any reason prior to payment to the Consultant for work
under this Agreement, all such documents prepared or obtained under the
terms of the Agreement shall upon termination be delivered to and become
the property of the City upon request and without restriction on their use
or further compensation to the Consultant
V Establishment and Maintenance of Records Full and accurate records
shall be maintained by the Consultant at its place of business with respect to all matters covered
by this Agreement Such records shall be maintained for a period of at least three (3) years after
receipt of final payment under this Agreement
VI. Audits and Inspection: At any time during normal business hours and upon
reasonable notice to the Consultant, there shall be made available to the City all of the
Consultant's records with respect to all matters covered by this Agreement The Consultant shall
permit the City to audit, examine, and make excerpts or transcripts from such records, and to
make audits of contracts, invoices, materials, and other data relating to all matters covered by this
Agreement
V11. Accomplishment of Project: The Consultant shall commence, carry on,
and complete any and all projects with all practicable dispatch, in a sound, economical and
efficient manner, and, in accordance with the provisions hereof and all applicable laws In
accomplishing the projects, the 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 City
VIII. Indemnity and Independent Contractor Relat►onshim
A The Consultant shall perform all services as an independent contractor not
under the direct supervision and control of the City Nothing herein shall
be construed as creating a relationship of employer and employee between
the parties The City and Consultant agree to cooperate in the defense of
any claims, action, suit, or proceeding of any kind brought by a third party
which may result from or directly or indirectly arise from any negligence
and/or errors or omissions on the part of the Consultant or from any breach
of the Consultant's obligations under this Agreement In the event of any
litigation or claim under this Agreement in which Consultant is joined as a
party, Consultant shall provide suitable counsel to defend the City and
Consultant against such claim, provided the Consultant shall have the right
to proceed with the competent counsel of its own choosing The
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Consultant agrees to defend, indemnify and hold harmless the City and all
of its officers, agents, servants, and employees against any and all such
claims to the extent of coverage by Consultant's professional liability
policy The Consultant agrees to pay all expenses, including but not
limited to attorneys' fees, and satisfy all judgments which may be incurred
or rendered against the Consultant's professional liability insurance policy
Nothing herein constitutes a waiver of any rights or remedies the City may
have to pursue under either law or equity, including, without limitation, a
cause of action for specific performance or for damages, a loss to the City,
resulting from Consultant's negligent errors or omissions, or breach of
contract, and all such rights and remedies are expressly reserved
B Consultant shall maintain and shall be caused to be in force at all times
during the term of this Agreement, a legally binding policy of professional
liability insurance, listed by Best Rated Carriers, with a rating of "A-" or
above, issued by an insurance carrier approved to do business in Texas by
the Texas Department of Insurance Such coverage shall cover any claim
hereunder occasioned by the Consultant's negligent professional act and/or
error or omission, in an amount not less than Two Million Dollars
($2,000,000 00) combined single limit coverage occurrence In the event
of change or cancellation of the policy by the insurer, the Consultant
hereby covenants to forewith advise the City thereof, and in such event,
the Consultant shall, prior to the effective date of change or cancellation,
serve substitute policies furnishing the same coverage The Consultant
shall provide a copy of such policy or the declarations page of the policy,
whichever is reasonably satisfactory, to the City through its Executive
Director for Public Utilities simultaneously with the execution of this
Agreement
IX. Termination of Agreement:
A In connection with the work outlined in this Agreement, it is agreed and
fully understood by the Consultant that the City may cancel or indefinitely
suspend further work hereunder or terminate this Agreement at any time
upon written notice to Consultant, Consultant shall cease all work and
labor being performed under this Agreement Consultant may terminate
this Agreement by giving the City fifteen (15) days written notice that
Consultant is no longer in a positron to continue representing the City
Consultant shall invoice the City for all work satisfactorily completed and
shall be compensated in accordance with the terms of this Agreement All
reports and other documents, or data, or work related to the project shall
become the property of the City upon termination of this Agreement
E
B This Agreement may be terminated in whole or in part, in writing, by
either party in the event of substantial failure by the other party to fulfill
its obligations under this Agreement through no fault of the terminating
party Provided, however, that no such termination may be affected,
unless the other 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
C Nothing contained herein or elsewhere in this Agreement shall require the
City to pay for any work which is unsatisfactory or which is not submitted
in compliance with the terms of this Agreement
X Alternate Dispute Resolution: The Consultant agrees that, if necessary, it
will use its best efforts to resolve any disputes regarding the Agreement through the use of
mediation or other forms of alternate dispute resolution set forth in Chapter 154 of the Texas
Civil Practice and Remedies Code (V A T C S )
XI. Entire Agreement: This Agreement represents the entire agreement and
understanding between the parties, and any negotiations, proposals, or oral agreements are
intended to be integrated herein and to be superseded by this written Agreement Any
supplement or amendment to this Agreement to be effective shall be in writing and signed by the
City and the Consultant
XII Compliance with Laws: The Consultant shall comply with all federal, state,
and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as
they may now read or hereafter be amended, including but not limited to the Texas Disciplinary
Rules of Professional Conduct
X11I. Governma Law: For the purpose of determining place of agreement and law
governing same, this Agreement is entered into in the City and County of Denton, State of Texas,
and shall be governed by the laws of the State of Texas Venue and jurisdiction of any suit or
cause of Action arising under or in connection with this Agreement shall be exclusively in a court
of competent jurisdiction sitting in Denton County
XIV. 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
C
XV. Personnel.
A The 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 have any
contractual relations with the City Consultant shall inform the City of
any conflict of interest or potential conflict of interest that may arise
during the term of this Agreement, in accordance with Consultant's
responsibilities under the Texas Disciplinary Rules of Professional
Conduct
B All services required hereunder will be performed by the Consultant or
under its direct supervision All personnel engaged in work shall be
qualified and shall be authorized or permitted under state and local laws to
perform such services
XVI. Consent to Represent the City of Garland. Texas. The City understands
that Consultant may enter into an agreement for professional legal services with the City of
Garland, Texas, and that the scope of Consultant's work to be performed for the City of Garland,
Texas, will be similar to, or possibly the same as Consultant's work to be performed for the City
of Denton under this Agreement Because of the close ties and relations between the City of
Denton and the City of Garland, and their involvement in similar legislative issues, the City
consents to the Consultant's engagement as a consultant to the City of Garland, and directs
Consultant, where possible, to coordinate work performed on behalf of both cities so that the
maximum advantage to the cities may be attained
XVIL Ass►gnab► &' 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 City thereto
XVIII Severabil►ty: All agreements and covenants contained herein are
severable, and in the event any of them, with the exception of those contained in sections headed
"Scope of Services," "Independent Contractor Relationship," and "Compensation and Method of
Payment" hereof, shall be held to be invalid by any court of competent jurisdiction, this
Agreement shall be interpreted as though such invalid agreements or covenants were not
contained herein
XIX Responsibilities for Claims and Liability Approval by the City shall not
constitute nor be deemed a release of the responsibility and liability of the Consultant for the
accuracy and competency of its work, nor shall such approval be deemed to be an assumption of
such responsibility of the City for any defect in any report or other documents prepared by the
Consultant, its employees, officers, agents, and consultants
XX. Modification of Agreement: No waiver or modification of this
Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in
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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 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 as aforesaid, and, the
parties further agree that the provisions of this section will not be waived as herein set forth
XXI. 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
XXII. Bindine Effect This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, administrators, legal
representatives, successors, and assigns where permitted by this Agreement
IN WITNESS HEREOF, the City of Denton, Texas, has caused this Agreement to be
executed by its duly authorized City Manager and Consultant4as executed t is Agreement
through its duly authorized undersigned officer, dated this the 2 day of A1,011,61V 64r,
1997
ATTEST;
JE IFER WALTERS, ITYA'SECRETARY
By
AP OVED AS TO LEGAL FORM
HERBERT L PROUTnY, CITY ATTORNEY
By M � �A ,Y
F
CITY OF DENTON
Ted Benavides, City Manager