2013-191ORDINANCE NO. 2013-191
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING A PROFESSIONAL
SERVICES AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND
SGS ENGINEERING, LLC, FOR STRUCTURAL, ELECTRIC DESIGN, AND OTI�R
ENGINEERING RELATED CONSULTING SERVICES FOR DENTON MUNICIPAL
ELECTRIC CAPITAL IlVIPROVEMENT PROJECTS; AUTHORIZING THE EXPENDITURE
OF FUNDS THEREFOR; AND PROVIDING AN EFFECTNE DATE (FILE 4755-
AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT IN THE NOT-TO-EXCEED
AMOUNT OF $6,675,000 FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $7,935,000).
WHEREAS, the City Council deems that it is in the public interest to continue to engage
the engineering firm of SGS Engineering, LLC to provide professional engineering and design
consulting services for the City of Denton, Texas that are related to Denton Municipal Electric
(DME) Capital Improvement Projects; and
WHEREAS, the Public Utility Board of Denton considered this item at its July 22, 2013
meeting and recommended approval by a vote of 6-0; and
WI�REAS, City staff has reported to the City Council that there is a substantial need for
the further above-referenced professional engineering services, and that limited City staff cannot
adequately perform the specialized services and tasks with its own personnel; and
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 on the basis of
demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION l. The preamble to this ordinance is incorporated herewith by reference as a
part of this ordinance.
SECTION 2. The City Manager is hereby authorized by the City Council to execute a
"First Amendment to Professional Services Agreement for Engineering Firm" (the "First
Amendment") with SGS Engineering, LLC for further professional engineering and consulting
services related to professional services necessary for DME, for an additional fee of not-to-
exceed $6,675,000 (with the previous Agreement, totaling a fee not-to-exceed $1,260,000); in
substantially the form of the "First AmendmenY' that is attached hereto, which is incorporated
herewith by reference.
SECTION 3. The award of this Agreement by the City is on the basis of the
demonstrated competence, knowledge, and qualifications of SGS Engineering, LLC and the
demonstrated ability of SGS Engineering, LLC to perform the services needed by the City for a
fair and reasonable price.
SECTION 4. The expenditure of funds as provided in the attached Agreement is hereby
authorized.
SECTION 5. This ordinance shall become effective immediately upon its passage and
approval.
)
PASSED AND APPROVED this the � day of ��� , 2013.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By. !�-�
APPROVED AS TO LEGAL FCSRM:
ANITA BURGESS, CITY ATTORNEY
�
BY:
4-ORD- 4755
THE STATE OF TEXAS
COUNTY OF DENTON
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
�HEREAS, a"Professional Services Agreement — File No. 4755 — For Design and Other
Professional Engineering Services" (hereafter the "Agreement") was entered into on the 19�' day of
July, 2011, by and between the City of Denton, Texas and the firm of SGS Engineering, LLC, a
Limited Liability Corporation (hereafter the "CONSULTANT"), acting by and through its duly
empowered officer; with its corporate offices at 401 50�' Street, Lubbock, Texas 79404; and the City
of Denton, Texas, a Texas municipal corporation, acting by and through its duly authorized and
empowered City Manager (hereafter "CITY"); said Agreement being in the original not-to-exceed
amount of $1,260,000, and which Agreement provided for certain necessary professional electric
design and engineering services in support of the City's capital improvement plan regarding a
substation relay design for six substations, for two transmission line design projects, field verification
of seven previous projects to determine compliance with NERC rules, and four new transmission line
design projects for Denton Municipal Electric ("DME"); and
WI�REAS, both CONSIJLTANT and the CITY have each resolved that the Agreement
should be expanded and amended as to certain provisions, to wit: NOW, THEREFORE,
In consideration of the covenants and agreements herein contained, CONSULTANT and the
CTI'Y mutually agree to amend the Agreement by this "First Amendment to Professional Services
Agreement" (hereafter the "First Amendment"), as the scope of services to be rendered by
CONSLTLTANT to the CITY has been greatly broadened to also provide for further engineering and
design services regarding a number of additional projects relative to the implementation of DME's
e�ensive present Capital Improvement Plan ("CIP"); which services are more particularly described
in the Scope of Services document attached hereto as E�ibit "A"; and which additional professional
services will require an amount not-to-exceed an additional $6,675,000, totaling a not-to-exceed
expenditure of $7,935,000 in professional fees, which are necessary to provide for the orderly
implementation of the DME Capital Improvement Plan; and
SECTION I.
EXPANDED BASIC SERVICES
For Basic Services the total compensation to be paid to CONSITLTANT by CITY shall be an
additional not-to-exceed $6,675,000, totaling $7,935,000 for the professional services.
SECTION II.
ENTIltE AGREEMENT
The First Amendinent includes within its provisions that certain executed Professional
Services Agreement dated July 19, 2011.
SECTION III.
AMENDED AGREEMENT
Save and except as amended hereby, all of the remaining clauses, sentences, paragraphs,
sections and subsections of the Professional Services Agreement executed on July 19, 2011; provided
however, that Paragraph XI.D. of the Agreement shall be amended to state that the policy limits of the
Professional Liability Insurance coverage is "not less than $1,000,000 annual aggregate."
SECTION N.
SURVNAL OF AGREEMENT
The Agreement shall remain in full force and effect; provided however, that the E�chibit "A"
atta.ched to this First Amendment, and incorporated herewith by reference, shall provide for additional
professional engineering and design services to be performed in a professional manner by
CONSLTLTANT, as contained therein.
This First Amendment shall be executed in four originals.
SIGNED AND DATEJ�,p the d -authoriz partners, representatives and officers of the
parties hereto effective on the� day of 2013.
«C�.�.�,,,
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
:
API�,�OVED 1siS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By: 1
�
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
Bv: ,4
J
GEORGE C. CAMPBELL, CITY MANAGER
�
"CONSiILTANT"
SGS ENGINEERING, L.L.C.
A Limited Liability Corporation
BY����^-,l � ` � � �Cr f �� �
Exhibit A
ENGINEERING. LLC.
�uly 15, 2013,
Re: 2011 Professional Services Agreement
Extension Proposal
Mr. Chtick Sears
Denton Municipal Electric
1685 Spencer Road
Denton, TX 76205
Dear Chuck:
SGS Engineering, LLC, ("SGS") propases to amend the cur�'ent Professional Services Agreement with
the City o£I�enton entered into in 2011. This will allow SG� to continue to provide design and other
professional engineering services to Den#on Municipal Electric ("DME") for its Capital Improvement
Program. The proposal value listed is a nat-to-exceed value based on the projects defined as part of the
]7ME Capital Itnprovement Program along with miscellaneaus services requested by DME.
SGS proposes to continue providing professional services billed on an hourly basis under the tez'ms and
condirions of the previoas ageement. Services will be bill�d in accordance with the SGS rates in effect
at the time services are rendered. Sexvices will be rendered at the direction af AlVIE. In addition to
undertaking new projects, this will allow SGS to complete tvork that was started under the existing
contract. The projects that are in progress are listed later in this proposal with amounts hilled to date aud
estimated. amounts remaini.ng to he billed. ,
Thank you for your consideration of this proposal. We look forward to continuing our successful working
relationship.
Sincerely,
SGS Engineering,
.!�-e'�N� � ' ' �
Travis B. Neal, Partner
SGS Engineering, LLC � 401 50th Street � Lubbock, Texas 7940� � MAiN 806.795.6827 � Fax 806.795.7526
SGS
;ct Estimate for Profe;
E:
Description
ew North Substation
orth Lakes Substation Relocation
ew West Substation
�cust Substation RebuIld
RCO Substation Relocation
ickory Substation Relocation
ew i.INT Substation
. Worth Substation Addition
ew Substaton - Pockrus and ARCO
ew Substaton - Loop 288 and McKinney
ew Substaton - Denton North area
ew 5ubstaton - Sroencer Water Treatment
Wells Interchange
istrial Substation
�drow Substation
mie Brae Substarion
thwest Switch
Christal Substation
ton West Interchan€
v West Switch
station to be named
Substation Relay Upg�
oper Creek Substation
Substation Rebuild
igs Row Substation
;Kinney Substation
neeri�2g
�l Services in Sup
IT A
)13
F
�ckrus - Arco 138kV Transmission Line
ew Transmission Line from West 138kV Source
-ansmission Line Additions to Support the 138kV Addition to the Pockrus Substation
-ansmission Line Additions to Support the New North Substarion
-ansmission Line Additions to Support Reconstruction of the North Lakes Substataon
-ansmission Line Additions to Support the New West Substation
�ansmission Line Additions to Support Reconstruction of the Locust Substation
onstruct and Reroute Transmission in the Area North of Spencer Interchange
ew Transmission Line from New West Switch Station to RD Wells
:ansmission Line Additions to Support Reconstruction of the Arco Substation
-ansmission Line Additions to Support Reconstruction of the Hickory Substation
-ansmission Line Additions to Support IJNT Area Substation
�ansmission Line to Support the new Substation in the Area of Spencer and Loop 288
�ccar Transmission Line Reroute
Lakes - Bonnie Brae 69kV Transmission Line
n North - North Lakes
Row - Denton North 69kV Transmission Line
�t of CIP
Planned In-Service Estimated Cost SGS
Year
2015
2016
2017
2016
2015
2017
2016
2016
2018
2017
2018
2018
2017
2018
2015
2017
2017
2016
2017
2017
2018
2018
$150
$150
$150
$150
$250
$150
$150
$75,
$150
$150
$150
$150
$125
$125
$75;
$75,
$50;
$175
$15
$IS
2014 $125,000
2014 $50,000
2014 $200,000
2015 $135,000
2015 � $75,000
$200,000
Sub[otal $3,6`10,00i
$50,000
$150,00(
$30,000
$30,000
$30,000
$30,000
$125,000
$1
$I
$50
$25
610(
sGS�
Project Estimate for Profes:
EX
�J,
Description
Woodrow - Kings Row 69kV Transmission Line
5pencer Interchange - Spencer Switch
5pencer Switch - Locust 69kV Transmission Line
Hickory - Locust 69kV Transmission Line
3pencer - Pockrus 138kV Transmission Line
Transmission Line Additions to Support the McKinney Substation
Transmission Line Additions to Support the Cooper Creek Substation
n Line Construction :
Concrete Installation
ous Job Sunervision
;ineering
nal Services in` Support of CIl'
BTT A '
20��
Planned In-Service Estimated Cost SGS
Year
$125,000
$10,000
$20,000
$ l OQ000
$125,000
Transmission
Construction
Total
$3
$450,000
$200,000
$100,000
$750,000
$85