1993-027E:\NPDOCS\NORK\RESOURCE.ORD
ORDINANCE NO. 23.E
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH RESOURCE MANAGEMENT INTERNATIONAL, INC., FOR PERFORMANCE OF
SERVICES RELATING TO A LONG-RANGE POWER SUPPLY STUDY; AUTHORIZING
THE EXPENDITURE OF FUND THEREFORE; AND DECLARING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City Manager is hereby authorized to ex-
ecute an agreement with Resource Management International, Inc.,
for the performance of services relating to a long-range power
supply study for the City of Denton, a copy of which is attached
hereto and incorporated by reference herein.
SECTION II. That the City Council hereby authorizes the ex-
penditure of funds in the manner and amount as specified in the
agreement.
SECTION III. That this ordinance shall become effective imme-
diately upon its passage and approval.
PASSED AND APPROVED this the/day of , 1993.
BOB CASTLEBERRY, MA
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPRiQ)VED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
BY:
C
CONSULTING SERVICES CONTRACT
BETWEEN
CITY OF DENTON
AND
RESOURCE MANAGEMENT INTERNATIONAL, INC.
The CITY OF DENTON, TEXAS, a Home Rule Municipality situated in Denton County, Texas,
hereinafter called "CITY", acting herein by and through its City Manager, together with Resource
Management International, Inc., hereinafter called "CONSULTANT", hereby mutually agree as
follows:
1. GOALS AND OBJECTIVES
CITY desires to contract with CONSULTANT to perform a multi-part study of the CITY'S long
range power supply options. Concerns include:
1. Load Forecast
2. Existing Generation
3. Power Agency and Pool Consideration
4. Options and Submittals
The parties intend to achieve this end by CONSULTANT'S performance of services, including
field surveys, analyses and reported recommendations.
II. CONSULTANT'S SERVICES
CONSULTANT shall render services necessary for the development of the project as outlined
herein. The Scope of Work which CONSULTANT agrees to perform is set forth in Exhibit A,
attached hereto and incorporated by reference herein. Execution of this agreement authorizes
CONSULTANT to proceed with the professional services of Exhibit A.
III. TERM OF AGREEMENT
The term of this Agreement shall begin on the effective date, and end one (1) year after
performance of services.
IV. COMPENSATION TO BE PAID CONSULTANT
CITY agrees to pay CONSULTANT for the services performed hereunder as follows:
A. Compensation:
CONSULTANT shall bill CITY upon completion of each Task itemized in Exhibit A.
CITY shall reimburse CONSULTANT for any applicable sales tax imposed on services
rendered by CONSULTANT to CITY.
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B. Payment:
CITY will pay CONSULTANT within thirty (30) days of receipt of invoice from
CONSULTANT. CITY agrees that any sums billed, not disputed in written form setting
forth specific exceptions and unpaid after thirty (30) days from date of receipt, shall be
subject to a late payment charge of one and one-half (1.5) percent for each month or
fraction thereof past due.
V. SUPERVISION AND CONTROL BY CITY
It is mutually understood and agreed by and between CITY and CONSULTANT that
CONSULTANT is an independent contractor, and as such, shall not be deemed to be or
considered an employee of the CITY OF DENTON, TEXAS for the purposes of income tax
withholding, social security taxes, vacation or sick leave benefits, worker's compensation, or any
other CITY employee benefit. CITY shall not have supervision and control of CONSULTANT
or any employee of CONSULTANT, and it is expressly understood that CONSULTANT shall
perform the services hereunder according to the terms of this agreement at the direction of the
City Manager of the CITY OF DENTON or his designee under this agreement.
VI. SOURCE OF FUNDS
All payments to CONSULTANT under this agreement are to be paid by the CITY from the
Electric Operating Fund of the City of Denton.
VII. INSURANCE
CONSULTANT shall provide Professional Liability Insurance from Design Professional Insurance
Company, which is rated A-,IX by the A. M. Best Company. CONSULTANT shall maintain in
effect at its own expense, employer's liability insurance, one-million dollars ($1,000,000)
aggregate of comprehensive general liability insurance (bodily injury and property damage), five-
hundred thousand dollars ($500,000) aggregate of comprehensive automobile liability insurance
(bodily injury and property damage) with respect to CONSULTANT'S employees and vehicles
assigned to the prosecution of work under this agreement, and one-million dollars ($1,000,000)
aggregate of professional liability insurance. CONSULTANT shall also maintain statutory
worker's compensation insurance. CONSULTANT shall obtain and thereafter maintain in effect,
if available, such additional insurance as may be requested in writing by CITY, the cost of which
will be reimbursed by CITY.
VIII. INDEMNIFICATION
CONSULTANT shall, and does hereby agree to indemnify and hold harmless the CITY OF
DENTON from any and all damages, loss or liability of any kind whatsoever, by reason of injury
to property or third persons to the extent directly and proximately caused by the error, omission
or negligent act of CONSULTANT, its officers, agents, employees, invitees, and other persons
for whom it is legally liable, in the course of the performance of the agreement, and will, at its
costs and expense, defend and protect the CITY OF DENTON against any and all such claims
and demands. CONSULTANT's obligations to indemnify CITY hereunder shall not extend to
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any claims, demands, damages, or expenses resulting from the negligent acts, errors, or
omissions, whether active or passive, by CITY, its officers, agents, employees, representatives,
or others. CONSULTANT shall not be liable for incidental or consequential damages.
IX. WHOLE CONTRACT
This Agreement represents the entire and integrated agreement between CITY and
CONSULTANT, and supersedes all prior negotiations, representations or agreements, either
written or oral. This Agreement may be amended only by written instrument executed by the
signatories hereto.
X. RIGHTS OF THIRD PARTIES
Nothing contained in this Agreement shall create a contractual relationship with or a cause of
action in favor of a third party against either CITY or CONSULTANT.
XI. CHOICE OF LAW AND VENUE
This agreement shall be governed by the law of the State of Texas, and venue for its construction
and enforcement shall he in the courts of Denton County, Texas.
XII. CANCELLATION
CITY and CONSULTANT each reserve the right to cancel this agreement at any time by giving
the other party fourteen (14) days written notice of its intention to cancel. If the agreement is
canceled before completion, the CITY agrees to compensate CONSULTANT for services provided
and expenses incurred prior to notice of cancellation.
XIII. SEVERABILITY
If any section, subsection, paragraph, sentence, clause, phrase or word in this agreement or
application thereof to any person or circumstance is held invalid by any court of competent
jurisdiction, such holding shall not affect the validity of the remaining portions of this
agreement, and the parties hereby declare they would have enacted such remaining portion
despite any such invalidity.
Executed this lY' day of 1993.
CIT F DENTON, TEXAS
V. HARRELL, CITY
3
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY.
APPR ED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY: Q N c3 ~Q
RESOURCE MANAGEMENT INTERNAT INC.
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RICHARD FOLT4 V PRESIDENT
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EXHIBIT A
TO CONSU TING SERVICES CONTRACT
DATED 1993
BETWEEN CITY OF DENT , TEXAS AND RMI
FOR A
LONG-RANGE POWER SUPPLY STUDY
The City of Denton, Texas, hereinafter called "CITY," and Resource Management International,
Inc., here fter called "CONSUL' ANT;' have executed a CONSULTING SERVICES CONTRACT
dated 1993. Pursuant to the terms and conditions of the
CONSULTING SERVI "S CONTRACT, CITY hereby authorizes, and CONSULTANT agrees to
provide professional services related to, the preparation of a Long-Range Power Supply Study.
SCOPE OF SERVICES
CONSULTANT shall provide professional services as follows:
Task 1 - Data Request and Review
CONSULTANT will prepare a data request for such documents as power supply agreements,
accounting and financial documents, bond ordinances, operating reports, load information, and
information about CFFY's power plant. CONSULTANT will review this information, and such
review may result in a request for additional information.
Task 2 - Review Load Forecast
CONSULTANT will review CITY's load forecast to assess the methodology, reasonableness of
the modeling approach, the types and sources of input data, and the consistency of the forecast's
assumptions. CONSULTANT will not independently verify the accuracy of specific inputs or
outputs.
CONSULTANT will also review CITY's customer base to identify possible new demand side
management programs for the CITY's consideration. CONSULTANT is to merely identify
possible demand side management programs which may have benefits for CITY, and
CONSULTANT is not to evaluate such programs. If CITY authorizes CONSULTANT to evaluate
new or existing demand side management programs, CITY will execute a separate Consulting
Service Contract.
Task 3 - Review of Agency and Pool Considerations
CONSULTANT will review CITY's power supply contracts to identify CITY's operational
responsibilities, opportunities, and constraints. Consultant will meet with CITY to discuss the
dispatching and accounting procedures implemented by CITY's power suppliers under the
contracts.
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Task 4 - Review Existing Generating Facilities
CONSULTANT will observe CiTY's gas-fired generating, writs to identify possible enhancements
which can increase capacity or improve efficiency, identify any necessary changes to the
operation or additions of equipment to comply with the Clean Air Act Amendments of 1990, and
to estimate both capital and operating (including fuel) costs for analysis and subsequent tasks.
CONSULTANT's review will be at a reconnaissance level; CONSULTANT shall perform no
design work as part of these services.
Task 5 - Prepare Interim Report
CONSULTANT will prepare an interim report to summarize its findings from its review of
CITY's load forecast, CITY's power supply contracts, and CITY's existing gas-fired generating
facilities. CONSULTANT will submit its interim report in draft form to Crf Y for its review and
coirmient. CONSULTANT will meet with CITY to discuss the draft interir•_r report. After
discussion with CITY, CONSULTANT will finalize the interim report and submit it to CITY.
task 6 - Analyze Technical Feasibility of 21M Cogeneration Facility
CONSULTANT shall retain the engineering firfa of Lutz, Daily Sk Brain ("SUBCONTRACTOR")
as a subcontractor to assess the technical feasibility of a possible cogeneration facility at Texas
Woman's University ("TWU").
SUBCONTRACTOR shall provide the following professional services:
1. Review 1986 nVU Cogeneration Sludv - SUBCONTRACTOR shall review the existing
1986 TWU Cogeneration Study and shall analyze the net benefits to CITY on alternatives
which were proposed in the study.
2. Field Trip - A fielct trip will be made by an experienced engineer to:
A. Discuss the 1986 Cogeneration Feasibility Study prepared for 11VU.
B. Rev.ew data on TWU's electric, steam and chilled water systems.
C. Discuss possible interconnection arrangements between TWU and CITY.
D. Discuss operation and maintenance of a cogeneration facility.
3. Technically Feasible Cogeneration Configuration - Based on electric, steam and chilled
water load growth projections provided by CONSULTANT, SUBCONTRACTOR will
recommend a technically feasible cogeneration configuration for further analysis. The
cogeneration plant will be located either on the IWU campus or at the Spencer Power
Plant.
4. Conceptual Construction Cost Estimgtg and Construction Schedule - SUBCONTRACTOR
shall develop a conceptual project cost estimate and a schedule providing the estimated
time to design, construct and place in operation the cogeneration facility.
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5. Overation and Maintenance Cost Estimate - SUBCONTRACTOR shall prepare an
estimate of the operation and maintenance costs, excluding fuel, for the cogeneration
facility.
6. Report - SUBCONTRACTOR will document its work in a manner satisfactory for
inclusion in CONSULTANT'S reports to CITY.
Task 7 -Identify Options
CONSULTANT will identify the options available to CITY and develop power supply plan to
serve CITY's projected loads for analysis in subsequent tasks. CONSULTANT's services in this
task shall include the following efforts:
• CONSULTANT will develop a table showing CITY's loads, resources, appropriate
planning reserves, and the resulting surpluses or deficits by year for a study period
of 1994 through 2013.
• CONSULTANT will draft a letter for CITY to use in soliciting expressions of interest
to provide CITY with power and energy. CONSULTANT will also provide a list of
names and addresses of possible power suppliers to CITY.
• CONSULTANT will review replies received by CITY to ensure sufficient information
is provided so the CONSULTANT can evaluate these options. CONSULTANT will
contact certain respondents to obtain additional information or to clarify information
presented.
• CONSULTANT will develop various power supply plans using such options as:
- Purchase power
- Repowering CITY's generation to establish a combined cycle unit(s)
- Addition of new generation at CITY's existing plant site
- Participation in the next unit or units contemplated by the Texas Municipal Power
Agency
- Participation in generating units constructed or operated by others
- Participation in a possible cogeneration facility at the TWU
- Modifications of CITY's existing generating units, including modifications or
improvements to accommodate refuse-derived fuel in a waste-to-energy facility
Task S - Economic Analysis
CONSULTANT will prepare an economic analysis of each plan developed in Task 6.
CONSULTANT will meet with CITY to discuss its economic analysis and to identify additional
economic analyses to be performed.
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Task 9 - Prepare Report
CONSULTANT will draft a report summarizing its reviews, analyses, conclusions, and
recommendations relating to CITY's long-range power supply program. The draft report will
explain the analyses performed, the assumptions made, and the alternatives and options
considered in establishing the recommended power supply program. CONSULTANT will
submit its report in draft form to CITY for its review and comment. CONSULTANT will meet
with CITY to discuss the draft report. After discussion with CITY, CONSULTANT will
incorporate the comments appropriately and provide CITY with 24 copies of the final report.
Task 10 - Presentation of Results
CONSULTANT will present the long-range power supply study to CITY's Public Utility Board,
City Council, and utility representatives. Consultant will be available for a meeting with CITY's
Public Utility Board and a separate meeting with the City Council.
SCHEDULE
CONSULTANT anticipates completing these services on the schedule presented in Figure 1
attached hereto.
COMPENSATION
CONSULTANT shall bill CITY upon completion of each task as follows:
Task 1 - Data Request and Review
$3,200
Task 2 - Review Load Forecast
9,100
Task 3 - Review of Agency and Pool Considerations
7,600
Task 4 - Review Existing Generating Facilities
16,300
Task 5 - Prepare Interim Report
8,300
Task 6 - Analyze Technical Feasibility of TWU Cogeneration Facility
20,000
Task 7 - Identify Options
10,900
Task 8 - Economic Analysis
19,300
Task 9 - Prepare Report
13,200
Task 10 - Presentation of Results
114000
$118,900
If CONSULTANT'S services are terminated for any reason, CONSULTANT shall bill CITY for
the time spent and expenses incurred on Tasks not yet completed.
AUTHORIZATION
Authorization of services pursuant to this Task Order is by execution of the CONSULTING
SERVICES CONTRACT.
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