1998-117S \Our Do cun'e~ts\Ordmanc~s\9 8~,mended RJ Ordinance doc
o INANcE NO ¢g-//q
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAG]~R TO EXECUTE A FIRST AMENDMENT TO THE PROFESSIONAL SERVICES
AGREEMENT FOR CONSULTING SERVICES RELATING TO THE DENTON
MUNICIPAL ELECTRIC UTILITY WITH R J COVINGTON CONSULTING FOR
PROFESSIONAL SERVICES RELATED TO ELECTRIC RESTRUCTURING AND
DEREGULATION, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, on the 16th day of February, 1998 the City entered into a "Professional
Services Agreement For Consulting Services Relating To The Denton Municipal Elecmc
Utility" ("Agreement") with R J Comngton Consulting ("Covington"), wherein Covington
agreed to perforr~t professional and consulting services pertaining to electric utility restmctunng,
and in smd Agr~ment, the City agreed to pay Covington an amount not to exceed $25,000 00
for professional sc~rvlces rendered under such Agreement, which Agreement has now been
substantially performed, and
WHEREAS, several events have occurred since the City entered into the above
Agreement, which impact upon the position of the City's Municipal Electric Utility as it
approaches the upcoming Texas Legislative Session, which urgently requires that Denton obtmn
adchtlonal professional and consulting services in order to protect its position and advance its
interests, and
WHEREAS, it appears to the Council that it is in the best interest of the C~ty to obtmn
such ad&tlonal professional and consulting services by entenng into an amended agreement with
Covington NOW THEREFOR,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That the City Manager is hereby authorized to execute the First
Amendm*nt To Professional Services Agreement For Consulting Services Relating To The
Denton Municipal Electric Utility (the "First Amended Agreement") with R J Covington
Consulting for the provision of additional professional and consulting services related to elecmc
restructuring and deregulation, a copy of which First Amended Agreement is attached hereto and
incorporated herewith by reference, along with any Task Orders and other documents necessary
in the performance of the First Amended Agreement
~ That the expenditure of funds as provided in the attached First Amended
Agreement is hereby anthonzed
SECTION III. That this orchnance shall become effective immediately upon its passage
and approval
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPRDVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
STATE OF TEXAS §
COUNTY, OF DENTON §
FIRST AMENDMENT TO PROFESSIONAL SERVICES
AGREEMENT FOR CONSULTING SERVICES
RELATING TO THE DENTON MUNICIPAL ELECTRIC UTILITY
THIS FIRST AMENDMENT, to the Profesmonal Services Agreement For Consulting
Services Relating To The Denton Mumelpal Electric Utthty, entered into on the 16th day of
February, 1998, by and between R $ Covington Consulting, a sole proprietorship, with its
pnnclpal offices at 12304 Saber Trml, Austin, Texas ("Covington"), and the City of Denton,
Texas, a Texas Mumcxpal Corporation, with ~ts pnnc~pal offices at 215 E McIQnney, Denton,
Texas ("City") for profesmonal and related eonsultmg services provided to the C~ty, which
Agreement is hereinafter referred to as the "Base Agreement"
In consideration of the mutual promises of the parties, the terms and conditions set forth
herein, and for other good and valuable eonmderatlons expressed here~n, the parties hereby
AGREE tO amend the smd Base Agreement as follows
I
That Article II "Scope of Services" of the Base Agreement is hereby amended by adding
the following additional provisions
II C Covington shall provide to the Caty those services set forth m Task Order No 98-
B (Tasks A, B, C, and D)
II D Covington shall provide to the C~ty those services set forth ~n Task Order No 98-
C (Tasks A, B, C, and D)
II
That Article III "Period of Service" of the Base Agreement is hereby amended by adding
the following additional provisions
AS to the period of service respecting the completion of Task Orders 98-B and 98-C, the
term of thru Agreement shall be from May 1, 1998 to April 30, 1999
III
That Article IV B 1 "Compensatlon/Bflhng and Payment" of the Base Agreement is
hereby amended by adding the following addtuonal prowmon
W~th respect to the additional professional services to be performed by Covington
pursuant to Task Order 98-B, the City agrees to pay Covington, a further professional fee,
including reimbursement for d~rect non-labor expense, not to exceed $47,000 00 With respect
to the additional professional serwces to be performed by Covington pursuant to Task Order 98-
C, the City agrees to pay Covington a further professional fee, lnclud~ng reimbursement for
d~reet non-labor expense, not to exceed $12,000 00
IV
That Article XIV "Entire Agreement" of the Base Agreement ~s hereby amended to
replace the entire paragraph contmned m Article XIV, w~th the following language, to w~t
Tlus Agreement, consisting of mne (9) pages, plus Exhibit "A" (Fees For Servmes), Task
Order No 98-B and Task Order No 98-C, whmh Exhibit "A" and Task Orders are incorporated
by reference herewith, constitutes the complete and final expression of the Agreement of the
part, es and ~s intended as a complete and exclusave statement of the terms of their Agreement
and supersedes all prior contemporaneous offers, promises, representations, negotiations,
dascuss~ons, eommumcattons and agreements which may have been made ~n connection with the
subject matter hereof
V
That save and except as emended hereby, all the terms, conditions, covenants, clauses,
and sentences of the Base Agreement shall remmn in full force and effect
IN WITNESS WHEREOF, the C~ty of Denton, Texas has caused this F~rst Amended
Agreement to be executed m duplicate original counterparts, by its duly-authorized City
Manager, and Comngton bas executed .th~s Agreement by 1ts duly-authorized Owner and
Propnetor on this the ~ dayof ~9/~/~ ,1998
PASSED AND APPROVED this the ~_]~_ day of ~'/' / ,1098
"CITY"
CITY OF DENTON, TEXAS
A MUNICIPAL CORPORATION
~'ed Benawdes, C~ty Manager
ATTEST ~
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
"COVINGTON"
R J COVINGTON CONSULTING
BY
Rmhard J Cowngtg~v
Owner & Proprietor
ATTEST
By
F ~shared~degtXLCaL\Our Documents\Contracts\98~Arnendod RJ Consulting doc
EXHIBIT A
FEES FOR SERVICES
Professional and support servmes, except for testimony, shall be billed at the following rates
President $145 00 per hour
V~ce President $120 00 per hour
Consultant $ 90 00 per hour
Assistant Consultant $ 60 00 per hour
Adm~mstrat~ve Assistant $ 45 00 per hour
The above rates shall be adjusted each year, commencing January 1, 1998, to reflect the change
~n rates offiemlly estabhshed by R J Covington Consulting
Testimony shall be billed at not less than eight hours per day
Reproduction, pnntlng, commumcatlons, computer servmes, and other m~scellaneous support
services shall be btlled at rates for such servmes as detenmned from t~me to t~me and officmlly
estabhshed by R J Covmgton Consulting
All travol, food, lodging, and other work-related expenses, except automobile mileage,
assocmted wath the proms~on of sermces hereunder shall be billed at cost Automobile mileage
shall be billed at the rmleage rate as pubhshed by the Internal Revenue Servme from t~me to
hme
C~ty shall pay to R J Cowngton Consulting any apphcable sales tax, ~f m fact there ~s any sales
tax lawfully owing, which arises from, and becomes due and owing regarding services
performed by R J Cowngton Consultants
S \Our Docurnonts\Contract~\98\Covmgton Exh:blt A doc