1997-264C \DOCS\ORD\RMI2ND ORD
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND
AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RESOURCE
MANAGEMENT INTERNATIONAL, INC.; AUTHORIZING THE EXPENDITURE OF
FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
~ That the city Manager is hereby authorized to
execute the second amendment to the professional services agreement
with Resource Management International, Inc ("RMI"), a copy of
which is attached hereto and incorporated herein, along with any
task orders and other documents necessary to the performance of the
second amendment.
~ That the expenditure of funds as provided in the
attached agreement is hereby authorized.
~ That this ordinance shall become effective
immediately upon 1ts passage and apprpval.
PASSED AND APPROVED this the~® day of ~, 1997
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
STATE OF TEXAS
COUNTY OF DENTON
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is the second amendment to the Professional
Services Agreement entered into by and between Resource Management
International, Inc , a California Corporation (,'RMI") and the City
of Denton, Texas, a Texas Municipal Corporation ("CITY"), on the
17th day of September, 1996, for professional and related services
provided by RMI to the CITY, hereinafter referred to as the "Base
Agreement", this second amendment further amends the First
Amendment to Professional Services Agreement entered into by and
between RMI and the CITY on the 3rd day of December 1996, which is
hereinafter referred to as the "First Amended Agreement"
In consideration of the terms and conditions set forth herein,
and the mutual promises of the parties, the parties do hereby
AGREE
I
That Section II "Fees For Services" of the Base Agreement and
Section II of the First Amended Agreement are hereby amended to
~nclude the following provisions
For services provided by RMI to the CITY pursuant to the
parties' agreement respecting completion of the work in Phase
I of the Evaluation Of Power Supply Alternatives RFP Project,
pursuant to Task Order No 96B, the CITY shall pay RMI the
total sum of $77,702 69, said sum representlng the payment of
an addlt~onal $22,702 69 in professional fees to RMI
II
That Section I "Scope Of Services" of the Base Agreement is hereby
amended to add the following prov~slons
RMI shall further provide to the CITY the services pertaining
to the Evaluation Of Power Supply Alternatives-Phase II project
as set forth in ~ndlvldual task orders made as attachments to
th~s Agreement lncludlng, wlthout limitation, Task Order No
97A, a copy of which Task Order ~s attached hereto as Exhibit
"A" and incorporated herewith by reference
III
That Section II "Fees For Services" of the Base Agreement and
Section II of the First Amended Agreement are hereby amended to add
the following provisions
Services to be provided by RMI to the CITY pursuant to the
parties' agreement respecting completion of the Evaluation of
Power Supply Alternatives-Phase II project, the CITY shall pay
RMI in accordance with the rates and charges contained in the
"Fees For Services" provisions of Exhibit "A" attached hereto
CITY shall accordingly pay to RMI, pursuant to the terms of
Task Order No 97A, professional fees and expenses in an amount
not to exceed $97,000 00
IV
That save and except as expressly amended by this Second Amendment
to Professional Services Agreement, all the terms, conditions, and
covenants of the Base Agreement and the First Amended Agreement
shall remain in full force and effect
IN WITNESS WHEREOF, the CITY has caused this Second Amendment
To Professional Services Agreement to be executed by and through
its duly authorized City Manager, and Resource Management Interna-
tional, Inc has caused this Second Amendment To Professional
Services Agreement to be executed by and thr_.Qug~ its. duly autho-
~ ~ day of ~/]~g/~f--
rlzed officer on this the ,
1997
CITY OF DENTON, TEXAS
Ted'Benavldes, City Manager
ATTEST
JENNIFER WALTERS, CITY SECRETARY
Page 2
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
RESOURCE MANAGEMENT
INTERNATIONAL, INC
A California Corporation
ATTEST
C \DOCS\K\RMI2ND K
Page 3
ATI'ACHMENT TO
PROFESSIONAL SERVICES AGREEMENT
Biff WEEN
RESOURCE MANAGEMENT INTERNATIONAL, INC AND
THE CITY OF DENTON
DATED September 17,1996
TASK ORDER NO 97-A
EVALUATION OF POWER SUPPLY ALTERNATIVES - PHASE II
Tlus Task Order defmes a Scope of Services and Budget for work by Resource
Management International, Inc (RMI) for the City of Denton, Texas (C~ty) The
act~wties m thru Task Order continue the work performed under Task Order 96-B,
Evaluation of Power Supply Alternatives (Phase I) Phase I included the development
of a Request For Proposals for Power Supply (RFP) and the screening of proposals
received m response to the RFP
Phase II refocuses the RFP process to mcorporate mformatmn learned m Phase I Phase
II w,ll include ~dentffymg partias mterested m the purchase of the Caty's TMPA assets
and sohc~tmg proposals for the best use of the Cxty's generation Phase II wall also
include nagotmt~ons w~th those mterasted part~es to armve at an agreement for the sale
of certain assets and the repowermg or other use of other assets Power supply
contracts to replace power previously owned or operated by TMPA and/or the Caty
will also be a part of Phase II activities
SCOPE OF SERVICES
The followmg outlines representative aci~vities to be completed under flus Task Order
· RMI will mterview major national energy compamas to dascmbe the mtent of
Denton and Garland (Cxtias) w~th respect to TMPA and the City's owned local
generation assets These meetings wdl provide a status report on the Denton RFSP
2035 and explain how the process wdl proceed Letters of mterest m partiopatmg m
the process will be sohc~ted from each company
· Oo. ce the letters of interest are returned (wuthm one week of the meetings), RMI and
Denton wdl ~dentffy the compames w~th whom negotiatmns wdl proceed
RMI will asmst the Cxty m providing data to companies, arranging plant tours,
coorchnatmg and part~opatmg m meetings, and xdentffymg and researching
questions related to the use or sale of assets The C~ty will retain the necessary legal
and bond counsel to provide legal opinions as necessary
· RMI anticipates extenmve negotiations wxth 2 to 4 part~es These negotmt~ons
be related to the sale of the Caty's share of TMPA, and vamous proposals for the best
use of the Cxty's other generation assets
· RMI w, ll evaluate the econonuc terms of the proposals and calculate the net present
value of the different proposals m order to assmt m determining the best offer
97A - 1
Exhibit "A"
In the evaluahon, RMI wR1 run, as needed, the PROSYM produchon cost program to
model alternative generation and purchased power configurations to evaluate the
economucs associated with chfferent options under d~fferent scenarios
· RMI will work with the City and the compames to address questions related to the
prowslon of ancillary serwces and transnusslon These factors will be addressed m
negotmt~ons and mcluded m the econonuc analysis
· As part of negohatmns, RMI will work with the C~ty to ~dentffy and evaluate the
comparues ab~hty to assume rink assoc,ated with varmt~ons m costs related to fuel,
transmmslon, and other factors
· RMI will prowde presentations to staff, the Utthty Board, and members of Council
as requested A final report will be provided comparing alternative proposals
should there not be a clear winner
· RIVE will perform services as necessary to support tins process to secure power
supply for the future, as d~rected by C~ty staff
BUDGET
Budget for work performed under flus Task Order m difficult to estunate due to the
variables revolved, such as the number of part~es to be included m the negotmt~on
process The estunated budget for flus Task Order m $97,000 Tins assumes that the
Cat)' of Garland approves a lrke amount Should Garland not approve a hke budget,
RMI w.ll subnut a new Task Order and Budget All work will be billed on a monthly
bas~s
Ttus Task Order ~s authorized and made an attachment to the above identified
Professional Services Agreement through the signatures below
Authorized by Accepted/~y~
Caty of Denton, Texas Res~ur~. e ~an~ger~nt International, Inc
97A - 2
FEES FOR SERVICES
RESOURCE MANAGEMENT INTERNATIONAL, INC
1997
Professaonal and support servaces, except for testamony, shall be balled at the followmg
ra~es
Managing Executave Consultant $166 per hour
Pnncapal Executtve Consultant $150 per hour
Executave Consultant $142 per hour
Prmcapal Consultant $131 per hour
Supervasmg Consultant $116 per hour
Seruor Consultant $106 per hour
Assocaate Professaonal $ 92 per hour
Analyst $ 81 per hour
Research Assastant $ 61 per hour
Techmcaan $ 53 per hour
Office Servaces $ 49 per hour
The above rates shall be adjusted each year, commencang January 1, 1998, to reflect the
change an rates officaally estabhshed by the RMI Board of Darectors
Testamony shall be balled at not less than eaght (8) hours per day
Reproductaon, print~ng, commumcat~ons, computer servaces, and other n~scellaneous
support servaces shall be balled at rates for such servaces as detemuned from t~me to
t~me and officially estabhshed by the RMI Board of Darectors plus ten (10) percent
All travel, food, lodgmg, and rmscellaneous expenses, except automobale mileage,
associated wath the provmlon of servaces hereunder shall be balled at cost Automobale
mileage shall be balled at $0 30 per rrule
Chent shall reamburse R.MI for any apphcable sales tax ~mposed on servaces rendered
by RMI to Chent