HomeMy WebLinkAbout2000-029ORDINANCE NO 0700 O
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT FOR PROFESSIONAL LEGAL SERVICES
WITH THE LAW FIRM OF LLOYD, GOSSELINK, BLEVINS, ROCHELLE, BALDWIN &
TOWNSEND, P C PERTAINING TO REPRESENTATION OF THE CITY BEFORE THE
PUBLIC UTILITIES COMMISSION OF TEXAS ("PUC") IN THE AREAS OF PUBLIC
UTILITY REGULATORY LAW AND ADMINISTRATIVE LAW, RESPECTING ANY
PERTINENT RULEMAKING PROCEEDING OR PROJECT, INCLUDING
REPRESENTATION PERTAINING TO THE IMPLEMENTATION OF SENATE BILL 7,
AND LEGAL ADVICE CONCERNING COMPLIANCE WITH PUC RULES RESPECTING
THE ACTIVITIES OF DENTON MUNICIPAL ELECTRIC, AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR, PROVIDING FOR RETROACTIVE EFFECT OF
THE AGREEMENT, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council deems it necessary and in the public interest to engage the
law firm of Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P C , of Austin, Texas,
(the "Firm") to provide professional legal services to the City, pertaining to representation of the
City and Denton Municipal Electric ("DME") before the Public Utilities Commission of Texas
("PUC") in the specialized areas of public utility regulatory law and administrative law,
respecting any pertinent rulemaking proceeding or project, representation pertaining to the
implementation of Senate Bill 7, and legal advice concerning compliance with PUC rules
respecting the activities of DME, and
WHEREAS, the City has heretofore twice engaged the Finn to perform similar
professional legal services to those provided for in the Agreement for Professional Legal
Services attached hereto The Firm has continuously and faithfully performed legal services
under the previous Agreements since 1997, and in October 1999, the funds provided for in the
second such Agreement between the City and the Firm were exhausted, because of the high level
of activity warranted by numerous PUC projects pertaining to the implementation of the recently
enacted electric deregulation legislation, Senate Bill 7 Nonetheless, the City requested that the
Firm provide continuous representation to the City and DME on important PUC issues until such
time as terms for a new Agreement for Professional Legal Services could be reached, which new
agreement will provide for additional compensation for the Firm, and until such time such
Agreement could be duly approved by the City Council Accordingly, it is appropriate that the
attached Agreement for Professional Legal Services with the Firm should be ratified and
confirmed, and should be retroactively approved and made effective as of October 1, 1999 in
order to properly compensate the Firm for its work performed heretofore at the specific instance
and request of the City, which work has directly benefited the City, and
WHEREAS, the City Council has provided in the City Budget for the appropriation of
funds to be used for the purchase of the foregoing professional services, as set forth in the
attached Agreement for Professional Legal Services, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the City Manager is hereby authorized to execute an Agreement for
Professional Legal Services with the law firm of Lloyd, Gosselmk, Blevms, Rochelle, Baldwin,
& Townsend, a Texas Professional Corporation, Austin, Texas for professional legal services
pertaining to the heremabove-described matters involving the City of Denton and DME, in
substantially the form of the Agreement for Professional Legal Services attached hereto and
incorporated herewith by reference
SECTION 2 That the award of this Agreement is on the basis of the demonstrated
competence and qualifications of the Firm, and the ability of the Firm to perform the professional
legal services needed by the City for a fair and reasonable price
SECTION 3 That the expenditure of funds as provided for in the attached Agreement
for Professional Legal Services is hereby authorized
SECTION 4 That the Agreement for Professional Legal Services is hereby ratified,
confirmed, and retroactively approved, and shall be effective from and after October 1, 1999
SECTION 5 That except as otherwise provided in Section 4 hereof, this Ordinance
shall become effective immediately upon its passageand approval
PASSED AND APPROVED this the /Ot/day of 2000
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By 4 �A 0S \Our Documents\Ordinances\99\1-loyd Gosselmk PUCT 00 DME PSA doe
AGREEMENT FOR
PROFESSIONAL LEGAL SERVICES
STATE OF TEXAS
COUNTY OF DENTON
THIS AGREEMENT, made and entered into this day of .1aa 2000,
by and between LLOYD, GOSSELINK, BLEVINS, ROCHELLE, BALDWIN TOWNSEND,
P C , a Texas Professional Corporation (hereinafter referred to as "CONSULTANT"), with Lambeth
Townsend, Shareholder, having full authority to execute this Agreement on behalf of the firm, 111
Congress Avenue, Suite 1800, Austin, Texas 78701, and the CITY OF DENTON, a Texas Municipal
Corporation, 215 East McKinney, Denton, Texas 75201 (hereinafter referred to as "CITY"), with
Michael W Jez, 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 engage legal counsel to
provide professional legal services with respect to the City's compliance with the Public Utility
Commission ("PUC") electric transmission service rules as well as any rulemaknng proceeding or any
project relating to electric transrmssion service as well as respecting the implementation of Senate Bill
7, or otherwise affecting the City 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 City
and Consultant do hereby mutually AGREE as follows, to wit
I Scope of Services: The Consultant shall perform the following services in a
professional mariner working as an independent contractor not under the direct supervision and
control of the City
A Services to be provided
Consultant shall represent the City before the PUC concerning the City's
compliance with the PUC's Transmission Service Rules and concerning any
rulemaking proceeding or project relating to transmission service, implementing
Senate Bill 7, or otherwise affecting the City, including, without limitation, the
professional legal services with regard to submitting pleadings and comments and
attending all uncontested hearings and other proceedings in relation to these matters,
and to consult with the City through its Denton Municipal Electric ("DME") staff
with regard to all filings, uncontested hearings, and other issues related to this
project Provided, however, if the City elects to participate in a contested case
proceeding at the PUC relating to transmission service or any other matter, the
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parties agree that it will be necessary to enter into a separate professional services
agreement, to provide for such additional legal services
To consult with the City Manager, Assistant City Manager for Utilities, the Director
of Electric Utilities, the City Attorney, the Assistant City Attorney for Utilities, and
other designated administrative personnel or staff regarding any and all aspects of
the professional services to be performed, including legal research, analysis, and
advice with respect to such matters This will include coordinating activities with
the Director of Electric Utilities, the City Attorney and their respective staff to
efficiently perform the services required 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 Agreement in a timely
fashion, and shall complete same in compliance with schedules established by the City
through its Director of Electric Utilities as appropriate to carry out the terms and
conditions of this Agreement
H. Term: This Agreement shall be effective as of October 1, 1999, and shall terminate
either upon the completion of the professional services provided for herein, or on December 31
2000, or upon the exhaustion of all professional fees provided for hereunder, whichever event shall
first occur This Agreement may be sooner terminated in accordance with the provisions hereof
Time is of the essence of this Agreement 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 of Electric Utilities, or her designee
M. 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
Staff Hourly Rate
Lambeth Townsend, Shareholder $ 200 00
Georgia Crump, Shareholder $ 190 00
Richard Hamala, Associate $ 180 00
Paralegal $ 8000
Law Clerk $ 7500
Consultant agrees that all charges for the legal services hereunder, including expenses as set
forth in Section III C below, shall not exceed $ 75,000 00
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
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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 description
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 Agreement Professional fees shall be billed in mrmmum one -tenth (1/10) 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 by Consultant 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 itermzed 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 approved by the Assistant City Manager for
Utilities, or his designee, and by the City Attorney
E It is understood and agreed that the Consultant shall work under the coordination and general
supervision of the Director of Electric Utilities and the City Attorney
F All notices, invoices, and payment shall be made in writing and may be given by personal
delivery or by mail Notices, invoices, statements, and payments sent by mail shall be
addressed respectively, to Herbert L Prouty, City Attorney, 215 East McKinney, Denton,
Texas 76201 as to the City, and to Lambeth Townsend, Lloyd/Gosselink, 111 Congress
Avenue, Suite 1800, 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 United
States 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 For
the purpose of this Agreement, the key persons who will be performing most of the work
hereunder shall be Lambeth Townsend and Georgia Crump, Shareholders However, nothing
herein shall limit Consultant from using other qualified and competent members of the firm to
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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 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 temvnation 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 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 excepts or transcripts from such records, and to make audits of contracts,
invoices, materials, and other data relating to all matters covered by this Agreement
VII Accomplishment of Project: The Consultant shall commence, cant' on, and complete
this professional engagement with all practicable dispatch, in a sound, economical and efficient
matter, and, in accordance with the provisions hereof and all applicable laws hi accomplishing the
projects, the Consultant shall take such steps as are appropriate to insure that the work involved is
properly coordinated with any related work being carved on by the City
VIII. Indemnitv and Independent Contractor Relationship•
A 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 anse 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 City and Consultant
against such claim, provided the Consultant shall have the right to proceed with the competent
counsel of its own choosing The Consultant agrees to defend, indemnify and hold hamiless
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 attorney's 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
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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
Cameo, with a rating of "A-" or above, issued by an insurance carrier approved to do business
in Texas by the State Insurance Commission Such coverage shall cover any claim hereunder
occasioned by the Consultant's negligent professional act and/or error, act, or omission, in an
amount not less than $1,000,000 combined single limit coverage per occurrence hi the event
of change or cancellation of the policy by the insurer, the Consultant hereby covenants to
immediately notify the City in writing thereof, and in such event, the Consultant shall, prior to
the effective date of change or cancellation, serve a substitute policy furnishing the same or
higher amount of coverage The Consultant shall provide a copy of the declarations page of
such policy to the City through its Director of Electric of 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 position 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
B This Agreement may be temnnated 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 [I] written notice (delivered by certified snail, return receipt
request) 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 Practices 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, in order to be effective, shall be in writing and signed by the City and the Consultant
XIL Compliance with Laws. 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
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hereafter be amended, including but not limited to the Texas Disciplinary Rules of Professional
Conduct
XIII. Governing 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
construed in accordance with, and governed by the laws of the State of Texas Venue andjunsdiction
of any suit or cause of action ansing under or in connection with this Agreement shall lie exclusively
in a court of competentjunsdiction sitting in Denton County, Texas
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
XV. Personnel:
A Consultant represents that it has or will secure at its own expense all personnel required
to perform the services required under this Agreement Such personnel shall not be
employees nor have any contractual relations with the City Consultant shall inform the
City of any conflict of interest or potential conflict of interest that may anse during the
term of this Agreement, in accordance with Consultanfs 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 licensed,
authorized, or permitted under state and local laws to perform such services
XVI. Assignability. 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
XVILSeverability: 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
XVIII. Responsibilities for Chthns 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 shareholders, associates, employees, officers, or agents in connection with this engagement
XIX. Modification of Agreement: No waiver or modification of this Agreement or of any
covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed
by the party to be charged therewith 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 The parties further agree that the provisions of this article will
not be waived as herein set forth
XX. 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
XXI. Binding 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 permmed by this Agreement
IN WITNESS HEREOF, the City of Denton, Texas has executed this Agreement in four (4)
original counterparts by and through its duly -authorized City Manager, and Consultant has executed
this Agreement by aiA through its duly-authonzed undersigned Shareholder, dated this the
day of 12000
CITY OF DENTON, TEXAS
A Texas Municipal Colanager
n
By
Michael tb
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By
�kaV�� zt—)A-A�—
APP44VED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By A � 1
LLOYD, GOSSELINK, ROCHELLE, BLEVINS
ROCHELLE, BALDWIN & TOWNSEND, P C
A Texas Professional Corporation
ATTEST
4 ..
By 4 Gl {il ` u �l �✓
S \O en ts\Conftwts\99\11oyd Goswlmk PSA 00 FUC DME doe
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