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HomeMy WebLinkAbout2014-116AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND LLOYD GOSSELINK, ATTORNEYS -AT -LAW, FOR LEGAL SERVICES RELATING TO THE PREPARATION, DEVELOPMENT, SUBMITTAL, AND OTHER ASSOCIATED PROFESSIONAL LEGAL SERVICES REQUIRED TO SECURE A MUNICIPAL SOLID WASTE (MSW) FACILITY PERMIT AMENDMENT (MSW PERMIT 1590-A) FOR THE CITY OF DENTON, TEXAS MSW FACILITY; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING AN EFFECTIVE DATE (FILE 4703 IN THE ADDITIONAL AMOUNT NOT -TO -EXCEED $400,000; AGGREGATING A TOTAL NOT - TO -EXCEED $480,000). WHEREAS, the City Council deems it necessary and appropriate and in the public interest to continue to engage the legal firm of Lloyd Gosselink, Attorneys -at -Law, a Texas Corporation, located in Austin, Texas to provide the City with professional legal services pertaining to Municipal Solid Waste Permit 1590-A; and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the hereinabove described professional services by the City of Denton, and that limited City staff cannot adequately perform the specialized engineering and other professional 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 of professional services on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and WHEREAS, the City Council hereby finds and concludes that Lloyd Gosselink, Attorneys -at -Law is appropriately qualified under the provisions of the law, to be retained as a law firm for the City, respecting this engagement; and WHEREAS, the City Council has provided in the City budget for the appropriation of funds to be used for the procurement of the foregoing professional services, as set forth in the "First Amendment to Agreement for Professional Legal Services;" NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations contained in the preamble hereto are true and correct and are incorporated herewith as a part of this Ordinance. SECTION 2. The City Manager is hereby authorized to execute a "First Amendment to Agreement for Professional Legal Services" (the "First Amendment") with the law firm of Lloyd Gosselink, Attorneys -at -Law, in the additional amount of not -to -exceed $400,000, for 1 professional legal services pertaining to the interests of the City as hereinabove described, in substantially the form of the First Amendment which is attached hereto as Exhibit "A" which is incorporated herewith by reference. SECTION 3. The award of this First Amendment is on the basis of the demonstrated competence and qualifications of the firm of Lloyd Gosselink, Attorneys -at -Law, and the ability of Lloyd Gosselink, Attorneys -at -Law to perform the professional legal services needed by the City for a fair and reasonable price. SECTION 4. The expenditure of funds as provided for in the attached First Amendment is hereby authorized. SECTION 5. This ordinance shall become effective upon its passage and approval. PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY By. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By 2 STATE OF TEXAS COUNTY OF DENTON FIRST AMENDMENT TO 4,GV,EE1fE11T B#,1-V-P1U!1-)FFSS 18") L4,L LEG,4L SL21LJELLff�g �,l 1'1115 I'llZST i' MENI.)M[`,NT TO AGREEMENT ("First Amendment"), made and entered into this &iy of V,�l , 2014, by and between LLOYD GOSSELINK, Attorneys -at -Law, �i Texas 111-o1iv,Wokfl 'orporation (hereinafter "Consultant"), with Paul Gosselink, Shareholder, having full authority to execute this Agreement on behalf of the firm, 816 Congress Avenue, Suite 1900, Austin, Texas, 78701; and the CITY OF DENTON, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas, 75201 (hereinafter "City"), with the City Manager, having full authority to execute this Agreement on behalf of the City. WITNESSETH: WHEREAS, the City deems it necessary and in the public interest to employ legal counsel to provide additional professional legal services with respect to the proposed expansion of the City's existing landfill; and WHEREAS, Consultant's Air and Waste Practice Group generally breaks down the landfill permitting process into five (5) phases with costs estimated for each phase of the project; this Agreement covers phases I through V of the that project. The Agreement previously entered into by and between the City and the Consultant merely provided for services to be rendered on Phase I of the project, and was in an amount not -to -exceed $80,000 entered into on June 3, 2011. The Permit application is expected to be submitted to the Texas Commission on Environmental Quality ("TCEQ") before June 1, 2014. The professional legal services for the five (5) phases are expected to run from May 2014 through December 31, 2016. WHEREAS, the Consultant is willing to continue to perform such services in a professional manner as an independent contractor; and has competently and efficiently performed similar services for the City in numerous other matters before the PUC (Public Utilities Commission of Texas) and the TCEQ over the past years; and the City has selected Consultant on the basis of demonstrated competence and qualifications necessary to perform the needed services; and WHEREAS, the City desires to engage the Consultant to render the professional services in connection therewith, for a fair and reasonable price; consistent with, and for a fee not higher than the recommended practices and fees published by the applicable professional associations; and such fees do not exceed any maximum provided by law; all in accordance with the provisions of Chapter 2254 of the Texas Government Code (the "Professional Services Procurement Act"); and the Consultant is willing to provide such services; NOW, THEREFORE, in consideration of the promises and mutual obligations herein, the City and Consultant do hereby mutually AGREE as follows, to wit: I Page 1 I. Scope of Services: The Consultant shall perform the following services on Phase I of the Project in a professional manner working as an independent contractor not under the direct supervision and control of the City: A. Services to be provided: A detailed description of the legal services to be provided is found in an engagement letter from Paul Gosselink, Shareholder of Consultant, to Vance Kernler, General Manager of the Solid Waste Department of the City, bearing a date of March 25, 2014, consisting of four (4) pages. To consult with the City Manager, the Assistant City Manager for Utilities, the General Manager of the Department of Solid Waste, the City Attorney, and/or other designated personnel or staff regarding the status of Phases I through V of the Project regarding and any and all aspects of the professional services to be performed; and to preserve the Attorney/Client privilege, work product, and all other applicable exceptions to the discovery or disclosure of documents produced by the City and the Consultant under the Scope of Services hereinabove. B. The Consultant shall perform all the services required by this First Amendment in a timely fashion, and shall complete them in compliance with schedules established by the City through its General Manager of Solid Waste, as appropriate to carry out the terms and conditions of this Agreement. 11. Term: This First Amendment shall be effective as of the date of approval of this First Amendment. The First Agreement shall terminate either upon the completion of the professional services provided for herein or upon the exhaustion of all professional fees provided for hereunder or any amendments hereto; whichever event shall first occur. This First Amendment may be sooner terminated in accordance with the provisions hereof. Time is of the essence of this First Amendment. Consultant shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible during the term of this First Amendment, and to meet the schedules established by the City, through its General Manager of Solid Waste, or his designee. 111. Compensation and Method of Payment: A. The Consultant shall charge the following fees for its professional services provided to the City hereunder, based upon the following hourly billing rates for the attorneys and support staff involved in this matter for the year 2014: Staff Hourly Rate Paul Gosselink, Shareholder $350.00 Duncan Norton, Shareholder $335.00 Jeff Reed, Associate $235.00 Other Attorneys; Averaging $300.00 lam Paralegals $ 120.00 Law Clerks $ 90.00 Consultant agrees that all charges for the legal services hereunder, including expenses as set forth in Section 111. C. below, shall not exceed an additional $400,000, totaling an aggregate of not -to -exceed $480,000. B. The Consultant shall endeavor to have the attorneys and employees listed in Section III.A, above, reasonably attempt to reduce costs by utilizing other qualified shareholders, associates, and paralegals wherever feasible or possible. The Consultant shall bill the City through the submission of itemized invoices, statements, and other documentation, together with support data indicating the progress of the work and the services performed on the basis of monthly statements, showing hourly rates indicating who performed the work, what type of work was done, and descriptions and/or details of all services rendered, including a daily, and an entry -by -entry reflection of billable time spent on this engagement, along with specific descriptions and supporting documentation, if available, respecting any reasonable and necessary out-of-pocket expenses incurred by Consultant in performing the professional services provided for under this First Amendment. Professional fees shall be billed in minimum one -tenth (I /10) hour increments. C. Additionally, the City shall either pay directly or reimburse the Consultant, as the case may be, for reasonable and necessary actual out-of-pocket expenses, including but not limited to, long-distance telephone, telecopier, reproduction, postage, overnight courier, and transportation and travel. All copies will be charged at the rate of fifteen cents ($.15) 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 or appropriate. The parties agree that the charges for outgoing telecopies from Consultant shall be $,25 per page and that there will be no charge for incoming telecopies. D. The parties anticipate that invoices or statements for professional services will be generated on a monthly basis and that said invoices or statements will be sent to the City by Consultant on or about the 15th day of each month. The City shall make payment to the Consultant within thirty (30) days after receipt of an appropriate itemized invoice or statement. To the extent that any fees or expenses are disputed by the City, the City shall notify Consultant within thirty (30) days after its receipt of the invoice or statement, and shall otherwise pay all undisputed amounts set forth in the invoice or statement within thirty (30) days after its receipt of the 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 set forth herein. All invoices or statements shall be a reviewed and approved by the City Attorney or her designee. E. It is understood and agreed that the Consultant shall work under the coordination and general supervision of the General Manager of Solid Waste, or his designee. RM F. All notices, invoices, statements, and payments shall be made in writing and may be given by personal delivery or by mail. As to notices: to General Manager of Solid Waste, City of Denton, Texas, 1527 South Mayhill Road, Denton, Texas 76208 or to his designee. As to invoices, statements, or payments: to the General Manager of Solid Waste at the address stated hereinabove; and to the City Attorney, 215 East McKinney Street, Denton, Texas 76201 as to the City; and to Paul Gosselink, Lloyd Gosselink, 816 Congress Avenue, Suite 1900, Austin, Texas 78701, as to the Consultant. When so addressed, the notice, invoice, statement and/or payment shall be deemed given upon deposit of same in the U. S. Mail, postage prepaid. In all other instances, notices, invoices, statements, 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 which notices, invoices, statements and/or payments are to be sent, provided reasonable notice is given. IV. Professional Competency: A. Consultant agrees that in the performance of these professional services, Consultant shall be responsible to 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 in the State of Texas. The key Shareholder who will coordinate most of the work hereunder shall be Paul Gosselink, Shareholder. However, nothing herein shall limit Consultant from using other qualified and competent members of the firm to perform the services required herein if such delegation is reasonably appropriate and properly protects the City's interests. B. Any agreements, ordinances, notices, instruments, memoranda, reports, letters, and other legal documents prepared or obtained under the terms of this First Amendment are instruments of service and the City shall retain ownership and a property interest therein. If this First Amendment is terminated at any time for any reason prior to payment to the Consultant for work under this First Amendment, all such documents prepared or obtained under the terms of the First Amendment 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 First Amendment. Such records shall be maintained for a period of at least three years after receipt of final payment under this First Amendment. 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 First Amendment. 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 First VDD The Consultant oba| commence, carry on, and complete this professional engagement with all practicable dispatch; in u sound, euononoiod and efficient matter; and, in accordance with the provisions hereof and all applicable laws. In accomplishing the project, the Consultant shall take such mbqs as are appropriatetn insure that the work involved is properly coordinated with any related work being carried on by the City. A. Consultant shall perform all services asunindependent contractor not under the direct supervision and control of the City. Nothing herein obu| be construed as creating uvo|u1inuahip of employer and employee between the parties. The City and Consultant agree to cooperate in the defense of any u1uinux, oution, uuit, or proceeding of any kind brought hyathird party which may result from nrdirectly or indirectly m,ixo from any negligence and/or errors or onoiuuiouo on the pad of the Consultant or from any breach of the Consultant's obligations under this First Amendment. In the event of any litigation or claim under this First Amendment in vvhiob Consultant is joined as opudy. Consultant shall provide muitoh|o counsel to defend City and Consultant against such claim, provided the Consultant shall have the right tnproceed with the competent counsel ofits own choosing. The Consultant agrees kzdefend, indemnify and bn|d 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 nttncucy`o fecm, and satisfy all judgments that may be incurred or rendered against the [onmu|tun1`m professional liability insurance policy. Nothing herein constitutes owaiver nfany rights or remedies the City may have to pursue under either law orequity, including, without |innita1iVn, auauae of action for specific performance orfor damages, a loss tothe City, resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved. Q. Consultant shall maintain and shall be caused to be in force at all times during the term of this P(nd Amendment, u legally binding policy of professional liability insurance, listed hvBest Rated Carriers, with urating of"}\-°orabove, issued hvon insurance carrier approved to do business in Texas by the State Insurance Commission. Such coverage abul cover any x\oinn hereunder occasioned by the Consultant's negligent professional act and/or error, oct, or omission, in an amount not lcmm than $1'000,000 combined single limit coverage per occurrence. In the event of change or cancellation of the policy bythe insurer, the Consultant hereby covenants to immediately notify the City in writing thereof, and in such event, the Consultant ohu|L prior to the effective date of change or cancellation, serve o substitute policy furnishing the same nrhigher amount ofcoverage. The Consultant uho|| provide ucopy nfthe declarations page of such policy tothe City through its EM General Manager of Solid Waste simultaneously with the execution of this First IX. Termination of Agreement: A. Inconnection with the work outlined inthis First Amendment, bisagreed and fully understood by the Consultant that the City may ouoce1 or indefinitely suspend further work hereunder urterminate this First /\oocodmenU at any time upon n«btco notice to Couou|1ou1" Consultant obuU cease all work and labor being performed under this First Amendment. Consultant may terminate this First /\nucud/ueut by giving the City fifteen (15) days written notice that Consultant is no longer in u position to continue representing the City. Consultant xbu\l invoice the City for all work satisfactorily completed and shall he conupeuao1od in accordance with the terms of this First Amendment. All reports and other documents, or data, or work related to the project shall become the property ofthe City upon termination of this First Amendment, B. This First Amendment may hcterminated iuwhole m in part, in writing, by either party inthe event ofsubstantial failure by the other party to fulfill its obligations under this First Amendment through no fault of the terminating pauy. Provided. however, that no such termination may be affected, un\cyo the other party in given [l] written notice (delivered by ucnifiod mail, return receipt request) of intent to terminate, and not less than tbirty(3O) calendar days tn cure the failure; and, [2] an opportunity for consultation with the terminating party prior to termination. C. Nothing contained herein melsewhere inthis First Amendment shall require the City to pay for any work vvbioh is unsatisfactory or which is not submitted in compliance with the terms ofthis First Amendment. X. The Consultant agrees that, if necessary, it will use its best efforts to resolve any disputes regarding the First Amendment through the use of mediation or other forms of alternate dispute resolution set forth in Chapter 154 ofthe Texas Civil Practices and Remedies Code (\/.}\.T.C.S.). X8. This First Amoodoutot represents the entire agreement and understanding between the parties and any negotiations, proposals, or oral agreements are intended to be in1carotod herein and to be superseded by this p/riMcu First Amendment. Any supplement or amendment to this First Amendment, in order to he effective, sbu|| he in writing and signed by the City and the Consultant. X11. The Consultant shall comply with all federal, state, 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. X118 For the purpose ofdetermining okuuo nfogrosoo�n� uod lawgovcmingomnc,thimBrst Amendment imentered into in the City and County ofDenton, State of Texuo, and uho|1 be construed in accordance with, and governed by the laws nfthe State nfTexas, Venue and jurisdiction of any suit or cause of action arising under or in connection with this First /\ooendrncnt shall lie exclusively in a court of competent jurisdiction sitting in Denton County" Texas. XIV. In performing the services required hereunder, the Consultant shall not discriminate against any person on the basis of race, oolor, religion, sex, national origin or ancestry, age, or physical handicap. A. Consultant represents that khas mwill secure at its own expense all personnel required to perform the services required under this First Amendment. Such personnel mhm]| not be employees nor have any contractual relations with the City. Consultant shall io0boo the City of any conflict of interest or potential conflict of interest that may arise during the term of this First Amendment, in accordance with Consultant's responsibilities under the Texas Disciplinary }lulcm 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 licensed,or pcnuk1od under state and local kzno to perform such XJV1. The Consultant shall not assign any interest inthis First /\nuendnueut and shall not transfer any interest in this First Amendment (vhctbcr by assignment, novation, or otbon,inc) without the prior written consent nythe City thereto. XVKD. All agreements and covenants contained herein are severable, and in the event any of thcnn, with the exception of those contained in sections headed "Scope of Scrviocx", "Independent Contractor Qc|atioonbip°,and "Compensation and Method of Payment" bereof, ubu|| be held to be invalid byany court ofcompetent jurisdiction, this First Amendment shall be interpreted as though such invalid agreements or covenants were not contained herein. XV111. Approval by the City abu|\ not constitute nor he deemed u nc|caac of the responsibility and liability of the Cnoxu\tout for the accuracy and competency of its work; nor obul1 such approval be deemed to he an assumption of such responsibility of the City for any defect in any report orother documents prepared by the Consultant, its shareholders, associates, employees, officers, or agents in connection with this eogugsnuout. XIX No waiver or modification of this First Aououdoueo1 o,mfany covenant, ooud|tiou, or iinnito1ino herein contained abu|| be valid uo|eom in writing and duly executed by the party to be charged therewith. No evidence ofany waiver nr nondifiun1inu Em shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this First Amendment, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed as aforesaid. The parties further agree that the provisions of this article will not be waived as herein set forth. XX. The captions of this First Amendment are for informational purposes only and shall not in any way affect the substantive terms or conditions of this First Amendment. XXI. BindinEffect: This First Amendment 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 First Amendment. IN WITNESS HEREOF, the City of Denton, Texas has executed this First Amendment in four (4) original counterparts by and through its duly authorized City Manager; and Consultant has exeCUted this 1,irst Amendment by and throw)h its duly HU11101'iMl undersigned Shareholder; dated this the--�_Oehday ol'_— f 2LO 14. "CITY55 CITY OF DENTON, TEXAS A Texas Municipal Corporation By: —CCAM PBEIA, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY By: Lk APPR( V F" 1) AS' LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: Page 8 ATTEST: B "CONSULTANT" LLOYD GOSSELINK, P.C. A Texas Professional Corporation By• PAUL GOSSELINK, Shareholder Page 9 Exhibit 816 Congress Avenue, SON 1900 0 Austin, Texas 78701 G51 2MINO p '71 7 ossefin k M4721532 f �04 NAM j I' i () k N �-- Y S .\ 'I I � 'kV lglawfirm.corn M i Goyse I ink's I )ti cc i I mv, (5 12) 322 .5806 1 M PPSUMN U Qla" n= CM11 CONFIDENTIAL PRIVILIMED A'I"l'ORNEY-CLIEN'I'COiVIMIJNICA'I'ION ATTORN EV WORK PRODUCT N/larch 25,2014 Vance KC111ler ineow or solid Waste services City or Denton 1527 South MayhIl Road DwHon, Oxas 76208 low Legal Fees Stinnne for permitting orwe propow expansion or Be ny orDenWn Umhrill Dear Mr. Ken-fler You have asked that Lloyd GosselhA, provide a revised estimated budget for legal services and cosh; Mr the CAI of Denton's proposal expansion of its existing landfill In Hog of some of the technical issues that have delayed the project, "]'his letter follows the sa.nie format cis TC OH&W letter brit changes the timelines, adds sonic tasks and adjusts the estimated costs. Lkgd CRawlink's Air and Waste Practice Group generally breaks down the permitting process into five phases, xvidi certain costs estimated fbr each phase, We arrive at a site -specific budget by modifying those general cost estimates to take into consideration the site -specific facts g of a particular case, Typically, the most significant site -specific factor is the anticipated level of opposition expected from competitors or neighborhood groups romied to oppose the project. The first phase began in 2013 and MH continue until the submittal of the application to the ITIA). TO eNpect that the application "Al be SUbrnittCd [)Ctbre JUIle 1, 2014. The second phase covers the time period during which the permit Nqdicadon is submitted to the 'l"Cl--Q until it bus been declared technically complete and potentially until other required permits are acquired, Ms phase is anticipated to he completed in cub, 2015. The third phase. cover's Be tirne period subsequent to the permit application being declared technically complete and continues until Such tillic as the application is either approved without a hearing or I-e[lerred LO the State Office of Adminkuttive I learhigs (SOAH) An a homing. Ilds phase is anticipated W begin in early 2015 and end late in that your. The JOS phase is the contested use hearing phase Mich MH Rely occur K early 2016 and continue through the end of 2016, The 1-11111 phase which inctudes post - MAIN such as appeals, irnecessury, is anticipated to occur in 2016, Amend 1 -File 4703 Lloyd Gosselink Rochelle & Townsend, PC Exhibit A March 25, 2014 Page 2 Phase I: 2013 — 6/1/2014 This phase includes the time period prior to filing the application. Attorney Tasks: o Review and comment on draft application. o Legal research on issues as they arise. o Coordinate with consultants. o Retain consulting experts. o QA/QC meetings. o Direct and review consultant activities. o Coordinate as needed with Local and State Officials. o Coordinate with Federal agencies. • Costs: o Estimated attorney's fees and costs: $100,000 - $175,000. Phase II: 6/1/2014 — 3/1/2015 This phase will cover the time period during which the permit application is submitted to the TCEQ until it has been declared technically complete. We anticipate this phase will be completed in early 2015 and involve the following specific tasks: Attorney Tasks: o Coordinate with client and technical consultants regarding proposed revisions to the application due to TCEQ concerns. o Discuss and meet with TCEQ staff regarding technical completeness and adequacy of permit application. o Coordinate with Local and State Officials. o Coordinate regarding public notices. o Meet with TCEQ management regarding policy issues, if needed. o Negotiate with Local Officials and citizen groups regarding agreements and/or approvals. o Legal research on issues as they arise. o Conduct and participate in phone calls and correspondence with client, engineering group, other experts, and TCEQ. o Coordinate with Federal agencies • Costs: o Estimated attorney's fees and costs: $50,000 - $125,000. Phase III: 3/1/2015—10/1/2015 This phase will cover the time period subsequent to the permit application being declared technically complete and will continue until such time as the application is either approved without Amend 1 - File 4703 Exhibit A March 25, 2014 Page 3 a hearing or referred to the State Office of Administrative Hearings (SOAR) for a hearing. This phase is likely to be completed in late 2015. We have identified the following specific tasks that we anticipate will occur in Phase III: Attorney Tasks: o Monitor task schedules and coordinate with engineer group and other experts. o Potentially continue to work with Federal agencies. o Coordinate with TCEQ regarding required public notices. o Legal research on issues as they arise. o Mediate and/or meet with prospective protestants to try to resolve all or some issues. o Work with TCEQ staff on Executive Director's Response to Comments. o Coordinate public meeting(s), to include: ■ Helping with presentation, ■ Helping coordinate exhibits, and ■ Helping coordinate with TCEQ staff. o Draft responses to hearing requests to seek to limit parties and issues. o Potentially begin work on prefiled testimony and exhibits, including review of prior transcripts and depositions. Distribute relevant materials to experts. • Costs: o Estimated attorney's fees and costs: $55,000 - $140,000. Phase IV: 10/1/2015—10/1/2016 This phase will cover the contested case hearing and post -hearing phase, through consideration of the PFD by the Commission. Attorney Tasks: o Conduct mediation and/or meetings with protestants and draft settlement documents. o Complete pre -filed testimony with experts and other witnesses. o Prepare for and attend jurisdictional hearing. o Propound and respond to discovery. o Review documents produced. o Prepare for and conduct hearing on the merits. o Prepare and respond to post -hearing briefs and Proposal for Decision. o Prepare for and participate in TCEQ Final Decision Agenda. o Research legal issues. • Costs: o Estimated attorney's fees and costs to be determined after first three phases are completed. Amend 1 - File 4703 March 25, 2014 Page 4 Phase V: 1/1/2015 — 9/1/2015 If needed, this phase will include responding to any motions for rehearing at TCEQ and/or defending the permit from State District Court challenges. It does not include possible Appellate Court challenges. • Attorney Tasks: o Respond to Motions for Rehearing at TCEQ. o Coordinate with TCEQ and Texas Attorney General's Office. o Conduct Travis Co. District Court Administrative Appeal. Costs: o Estimated attorney's fees and costs: to be determined after Phases III and, if it occurs, Phase IV are completed. The fees and costs contained in this budget estimate are based on the expectation that two lawyers and one paralegal will be needed on this case. Our 2014 billing rates are as follows: Paul Gosselink ($350.00 per hour); Duncan Norton ($335.00 per hour); Jeff Reed ($235.00 per hour); other attorneys to assist with legal research, briefing, and other preparations (average $300.00 per hour); a paralegal ($120.00 per hour); and law clerks ($90.00 per hour). We anticipate that Paul Gosselink and Jeff Reed will be the attorneys primarily responsible for this representation. If the case includes a contested case hearing, other attorneys may be included to handle specific tasks. We will maintain these rates for the next two years. We may revise these rates in 2016. Please understand that the wide range of costs projected for this case is primarily due to the uncertainties regarding the level of opposition and technical issues that might arise. The time estimates are also approximate and largely dependent on TCEQ and SOAH schedules, which can vary significantly depending on workloads and opposing party considerations. Settlement with protestants can significantly reduce these costs, depending on the timing of such settlement. We very much appreciate the opportunity to work with the City on this matter. We value Denton as a firm client. Once you have had the chance to review this estimate of legal and consultant fees, please feel free to call if you have any questions or wish to discuss this important matter further. Sincerely, Paul Gosselink PGG/mpj 4379704.2