1998-230AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH REED
CONSULTING GROUP FOR CONSULTING SERVICES RELATED TO ELECTRIC
RESTRUCTURING BY ADDING A TASK ORDER AND AUTHORIZING THE PAYMENT
OF ADDITIONAL COMPENSATION, AND PROVIDING FOR AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Manager is hereby authorized to execute an amendment to
the Professional Services Agreement ("Agreement") between Reed Consulting Group ("REED")
and the City, heretofore entered into by the parties on March 3, 1998 for professional services
w~th regard to the City's investment and related financial obligations primarily associated with
the Texas Municipal Power Agency/Gibbons Creek Power Plant, which amendment ~s ~n
substantially the form of Task Order No 98-A, a copy of which task order is attached hereto and
made a part of this ordinance for all purposes, which Agreement is amended by adding
additional professional services to be rendered by Reed and prow&ng for an additmnal amount
of fees and expenses not to exceed $100,000 00 for the ad&t~onal professional services to be
performed by Reed
SECTION II That the expenditure of funds as provided for in the attached Task Order
No 98-A is hereby authorized
SECTION III That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the 4 -- day of~ ., 1998
(/
J~.flK'MILLER, MAYOR
ATTEST'
JENNIFER WALTERS, CITY SECRETARY
APProVED ~S ~O LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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ATTACHMENT TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
REED CONSULTING GROUP AND
THE CITY OF DENTON
TASK ORDER NO. 98-A
Financial Adwsory Services - Options Assessment - Phase II
Th~s Agreement amends the Professional Services Agreement (the "Agreement") entered xnto by
the part~es hereto on March 3, 1998, and defines a Scope of Services and Budget for addmonal
professional services to be performed by Reed Consulting Group ("REED") for the C~ty of
Denton, Texas ("CITY") The activities m this Task Order are des:gned to complete the
evaluation of alternatives for the City with regard to ~ts ~nvestment and related financial
obhgat~ons primarily associated w~th the Texas Mumc~pal Power Agency ("TMPA")/G~bbons
Creek Power Plant
SCOPE OF SER VICES
Task A - Refine the Analysis
1 Revisit analys~s of Denton's cost of generation
2 Run addmonal scenarios
3 Compare/contrast w~th Garland
4 Rewse Base Case as needed
Task B - Support the City in Discussions with other Parties
1 Other TMPA Cities
2 First Southwest Company
3 Legal Advisors of C~ty
Task C - Present and Discuss Findings, Conclusions and Recommendations
1 Review w~th the C~ty Manager, Pubhc Utlhty Board members, C~ty Ut~hty Management,
and other City Adwsors
2 Present the findings, conclusions, and recommendations to the City Council
PROJECT TEAM
REED will provide a continuation of its existing project team
Hourly
Name Title Rate Area of Responslblht¥
John J Reed President $300 Project Adwsor
James M Coyne Vice President $230 Project Manager
Prescott C Hartshorne Sr Project Manager $170 Financial Analysis
In addition to the core project team specified in the March 3, 1998 Professional Services
Agreement between the parties, REED will rely upon other members of its staff for specffic areas
of project expertise and consulting support as the project reasonably dictates
BUDGET AND TIMING
REED shall perform the professional services provided for in this Task Order on a time and
expense basis in accordance w~th the prowslons of the Professional Services Agreement between
Reed and the C~ty, dated March 3, 1998
The budget for work to be performed under this Task Order is highly dependent upon the steps
required to reach successful negotmt~ons with other TMPA cities and the depth of adthtlonal
analysis which the C~ty may require The estimated budget for this Task Order is not to exceed
$100,000 for professional services and expenses All work will be billed on a monthly basis with
itemized documentation of activities performed clearly set forth in each bflhng invoice
Reed and the City AGREE, that except as amended by this Task Order No 98-A, all the terms,
conditions, covenants and provisions of the Professional Services Agreement between
themselves, dated March 3, 1998, shall remain in full force and effect
This Task Order No 98-A is APPROVED and AGREED TO, and is made an attachment to, and
is Incorporated by reference to the above-ldentffied Professional Services Agreement as
ewdenced by the signatures of the parties' duly-authorized signatories set forth here~nbelow
Authorized by Accepted by
CITY OF DENTON, TEXAS REED CONSULTING GROUP
Dated
ATTEST
JENNIFER WALTERS, CITY SECRETARY
U !
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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