2010-153
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ORDINANCE NO: 2010-153
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
AUTHORIZING THE CITY MANAGER TO EXECUTE A FOURTH AMENDIVIENT TO
AGREEMENT FOR PROFESSIONAL LEGAL SERVICES WITH THE LAW FIRM OF
WALKER SEWELL LLP FOR PROFESSIONAL LEGAL SERVICES RELATING TO
LITIGATION STYLED: EX PARTE TEXAS MUNICIPAL POWER AGENCY, CAUSE NO.
D-1-GN-08-003426, PENDING IN THE 126TH JUDICIAL DISTRICT COURT IN AND FOR
TRAVIS COUNTY, TEXAS; EX PARTE TEXAS MUNICIPAL POWER AGENCY - II,
CAUSE NO. D-1-GN-08-3693, PENDING IN THE 261ST JUDICIÁL DISTRICT COURT IN
AND FOR TRAVIS COUNTY; AND THE LITIGATION STYLED TEXAS MUNICIPAL
POWER AGENCY, PLAINTIFF VS. CITY OF BRYAN, TEXAS, DEFENDANT, COUNTER-
PLAINTIFF AND THIRD-PARTY PLAINTIFFi VS. CITY OF DENTON, TEXAS AND THE
CITY OF GARLAND, TEXAS, THIRD-PARTY DEFENDANTS, CAUSE NO. 28169,
PENDING IN THE 506T" JUDICIAL DISTRICT COURT IN AND FOR GRIMES COUNTY,
TEXAS; TOGETHER WITH SIXTEEN RELATED PUBLIC UTILITY COMMISSION OF
TEXAS REGULATORY PROCEEDINGS; PROVIDING FOR RETROACTIVE APPROVAL;
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council deems it necessary, appropriate, and in the public interest
to continue to engage the law firm of Walker Sewell LLP of Dallas, Texas as its outside legal
counsel to provide further professional legal services relating to the completion of the above
numbered and entitled litigation, as well as other TMPA related litigation issues; and
WHEREAS, the City Manager, within his delegated authority, has previously approved
the original Agreement for Professional Legal Services with the Firm in the amount not-to-
exceed $90,000 on September 22, 2008, effective from and after September 18, 2008; then after
litigation and related matters moved forward, the City Council, by Ordinance No. 2009-058 -
approved the First Amendment to Agreement for Professional Legal Services with the Firm, on
the 3`d day of March, 2009 in a further amount not-to-exceed an additional $105,000, totaling a
not-to-exceed aggregate of $195,000; and on the 2"d day of June, 2009, the City Council, by
Ordinance No. 2009-127, approved the Second Amendment to Agreement for Professional Legal
Services in the further amount of not-to-exceed $200,000, totaling $395,000 in the aggregate;
and on the 6th day of October, 2009, the City Council, by Ordinance No. 2009-127, approved the
Third Amendment to Agreement or Professional Legal Services in the further amount of not-to-
exceed $50,000, totaling $445,000 in the aggregate; and
WHEREAS, City staff hereby recommends that the City Council enter into a Fourth
Amendment to Agreement for Professional Services ("Third Amendment") for a further amount,
not to exceed an additional $25,000, totaling an aggregate of $470,000; and
WHEREAS, on the 24th day of May, 2010 the Public Utilities Board unanimously
approved the Fourth Amendment to Agreement for Professional Legal Services, by a vote of 6-
0; and I
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WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional
Services Procurement Act," generally provides that a city may not select a provider of
professional services on the basis of competitive bids, but must select the provider of
professional services on the basis of demonstrated competence, knowledge, and qualifications,
and for a fair and reasonable price; and the City Council hereby finds and concludes that Walker
Sewell LLP is appropriately qualified under the provisions of the law to continue to be retained
as outside legal counsel for the City; and
WHEREAS, the City Council has provided in the City budget for the appropriation of
funds to be used for the procurement of the foregoing professional legal services, as set forth in
the Fourth Amendment; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1: The recitations in the preamble are true and correct and are incorporated by
reference herewith as a part of this ordinance.
SECTION 2: The City Manager is hereby authorized to execute a"Fourth Amendment
to Agreement for Professional Legal Services" (the "Fourth Amendment") with the law firm of
Walker Sewell LLP of Dallas, Texas for continued professional legal services in the further not-
to-exceed amount of $25,000, which aggregate not-to-exceed $470,000, relating to the above
numbered and entitled litigation, and in other related TMPA activities, in substantially the form
of the Fourth Amendment attached hereto as Exhibit "A" and incorporated herewith by
reference.
SECTION 3: The award of this Fourth Amendment is on the basis of the demonstrated
competence and qualifications of Walker Sewell, LLP and the ability of Walker Sewell LLP to
continue to perform the professional legal services needed by the City for a fair and reasonable
price.
SECTION 4: The expenditure of funds as provided in the attached Fourth Amendment
to Agreement for Professional Legal Services is hereby authorized, and the previous
expenditures regarding this litigation are hereby ratified, confirmed and approved.
SECTION 5: This ordinance shall be confirmed, ratified and effective from and after
March l, 2010. Otherwise, this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the ~ day of Jk&~ , 2010.
~ - MA A. B UGHS, MAYOR
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By: ~
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THE STATE OF TEXAS §
§
COUNTY OF DENTON §
FOURTH AMENDMENT TO AGREEMENT FOR
PROFESSIONAL LEGAL SERVICES
THIS FOURTH AMENDMENT to that certain "Agreement for Professional
Legal Services (hereafter the "Agreement") in the original not-to-exceed amount of
$90,000 was previously approved by the Public Utilities Board and thereafter approved
within the delegated authority of the City of Denton, City Manager; and said Agreement
was heretofore entered into by and between the City of Denton, Texas, a Texas Municipal
Corporation with its offices at 215 East McKinney Street, Denton, Texas 76201
(hereafter referred to as "CITY"); and the law firm of Walker Sewell, LLP., whose
principal office is at 901 Main Street, Suite 5000, Dallas, Texas (hereafter referred to as
the "CONSULTANT") on September 22, 2008, to be ratified and effective from and after
September 17, 2008; and
CITY and CONSULTANT further amended said Agreement for the first time for
the purpose of providing additional funds to add to the previous approved Agreement for
further legal services to be performed by CONSULTANT regarding the same
engagements wherein CONSULTANT is representing the City, regarding numerous
contested cases and hearings brought by the City of Bryan, Texas and the Texas
Municipal Power Agency ("TMPA") in several counties, involving the three Northern
Cities (the Cities of Denton, Garland and Greenville) as Defendants and Intervenors; and
these matters have steadily progressed, resulting in two dismissals of the Northern Cities
and preparation for trial of the bond validation case; which First Amendment to
Agreement for Legal Services (hereafter "First Amendment") was in the further not-to-
exceed amount of $105,000, and which Agreement was approved by the City Council on
March 3, 2009, by Ordinance No. 2009-058; totaling a not to exceed aggregate of
$195,000; and
CITY and CONSULTANT further amended said Agreement for the second time
for the purpose of providing additional funds to add to the previously approved
agreements for further legal services to be performed by the CONSULTANT regarding
the same engagements wherein CONSULTANT is representing the City regarding
numerous contested cases, that has continued in several counties involving the same
parties. In order to further pursue the City's legal objectives in the contested litigation is
was necessary and appropriate that CONSULTANT continue representation of the City
of Denton through the entry of judgment and beyond regarding the remaining pending
cases that involve Denton, the City of Bryan, Texas and TMPA, that are now pending, as
well as for any potential appeal that may be made by the City of Bryan, Texas or TMPA.
City and CONSULTANT earlier estimated that this case will probably require at least
$200,000 in additional funds to be added to the existing not-to-exceed amount authorized
of $195,000 First Amended Agreement, by the Second Amendment to Agreement for
Professional Legal Services" (hereafter "Second Amendment") thereby constituting an
aggregate amount of not-to-exceed $395,000; and which Second Amendment was
approved by the Public Utilities Board on the 18th day of May, 2009 by a vote of 6-0; and
by the City Council on the 2"d day of June, 2009; and
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The above litigation, numerous Public Utility Commission proceedings involving
TMPA and its Member Cities, and a mediation of all of the issues involved in the same is
completed; with the hope that all four cities and the TMPA can reach an appropriate
settlement to end all of the expensive and complex litigation; and CONSULTANT has
expended the funds previously authorized by the Council, in the amount of $395,000; and
the CITY and CONSULTANT, based upon the progress of the case, estimated that an
additional not-to-exceed $50,000 in professional fees and expenses was necessary to
resolve the outstanding issues; and
The above litigation and numerous Public Utilities Board proceedings involving
TMPA and its Member Cities, is drawing to a close, and the financing aspect of issuance
of debt to satisfy the various parties' interests is being finalized; and numerous pleadings
and orders are being prepared for all nineteen cases and proceedings; the issues have now
been nearly resolved; it is Staff's belief that in order to fully pay its fee bill for March and
April 2010, received on May 11, 2010, and to secure a final disposition of all cases and
proceedings, that the further sum of $25,000 is necessary.
NOW THEREFORE, the CITY and CONSULTANT (hereafter collectively
referred to as the "Parties"), in consideration of their mutual promises and covenants, as
well as for other good and valuable considerations, do hereby AGREE to the following
Fourth Amendment, which amends the following terms and conditions of the said
Agreement, to wit:
1.
The provisions of Paragraph C., Third Paragraph of the Agreement are hereby
amended and in all things deleted, with the following language to be the new provisions
of Paragraph C, Third Paragraph of the Agreement, which is hereby substituted, as
follows, to wit:
"CONSULTANT estimates, as it is presently unknown about the extent of the
further involvement of the City in this TMPA/Bryan-related multi-party litigation, and
City agrees that all charges for the legal services hereunder, including reasonable out-of-
pocket expenses shall not exceed the additional amount of $25,000 authorized in this
Fourth Amendment for Professional Legal Services, and thereby a total amount of not-to-
exceed $470,000 in the aggregate is authorized. The City Manager is hereby authorized
to expend the funds."
II.
The Parties hereto agree, that except as specifically provided for by this Fourth
Amendment, that all of the terms, covenants, conditions, agreements, rights,
responsibilities, and obligations of the Parties, set forth in both the Agreement, First
Amendment, Second Amendment and Third Amendment shall be and will remain in full
force and effect.
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IN WITNESS WHEREOF, the City of Denton, Texas and the law firm of Walker
Sewell LLP have eách executed this Fourth Amendment to Agreement for Professional
Legal Services in four (4) original counterparts, by and through eir respective duly
authorized representatives and officials on this the ~ day of , 2010;
but to be effective, ratified and confirmed from and after the 1 St day f March 2010.
"CITY"
CITY OF DENTON, TEXAS
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~ A Texas Municipal Corporation
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By:
GEOR C. CAMPBELL
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By: APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By. ~
"CONSULTANT"
WALKER SEWELL LLP
Texas Limited Liability Partnership
B • 4k
fAMÊS . WALKER, Partner
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