2013-205ORDINANCE NO. 2013 -205
AN ORDINANCE BY THE CITY OF DENTON TEXAS, AUTHORIZING THE CITY
MANAGER TO EXECUTE THE SECOND AMENDMENT TO A PROFESSIONAL AND
PERSONAL SERVICES CONTRACT WITH AR/WS TEXAS, LP, FOR FURTHER SERVICES
REGARDING THE PROCUREMENT AND DELIVERY OF LAND RIGHTS FOR THE DENTON
MUNICIPAL ELECTRIC 69KV SPENCER TO DENTON NORTH INTERCHANGE
TRANSMISSION LINE UPGRADE PROJECT; AUTHORIZING THE EXPENDITURE OF
ADDITIONAL FUNDS THEREFOR IN AN AMOUNT NOT -TO- EXCEED $191,800; AND
PROVIDING AN EFFECTIVE DATE (FILE 4744 -AR/WS TEXAS, LP AGGREGATING AN
AMOUNT NOT -TO- EXCEED $637,200).
WHEREAS, on June 21, 2011 by Ordinance No. 2011 -102, the Council awarded a
Professional Services Agreement for Appraisal Services and Right -of -Way Acquisition to AR/WS
Texas LP, in the amount of $381,800 for services regarding the procurement and delivery of land
rights for the Denton Municipal Electric 69kV Kings Row to Spencer Transmission Line Upgrade
Project (hereafter the "Project "); and
WHEREAS, on March 6, 2012 by Ordinance No. 2012 -047, the Council awarded a First
Amended Professional and Personal Services Agreement to AR/WS TEXAS, L.P. in the further
amount of $63,600 aggregating a not -to- exceed amount of $445,400 for additional services to be
rendered on the Project; and
WHEREAS, there appears to the Council that further professional and personal services must
be completed in order to move the Project forward to completion; and Staff having recommended,
the Public Utilities Board, having approved, and the City Manager having recommended to the
Council that the "Second Amendment to Professional and Personal Services Agreement with
AR/WS TEXAS, L.P." (hereafter the "Second Amendment ") be authorized to amend such
Agreement with respect to the scope of work and an increase in the payment amount; and said fees
under the proposed Amended Agreement are fair and reasonable, and are consistent with and not
higher than the recommended practices and fees published by the professional associations
applicable to the provider's profession; and such fees do not exceed the maximum provided by law;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager is hereby authorized to enter into the "Second Amendment
to Professional and Personal Services Agreement with AR/WS TEXAS, L.P." (the Second
Amendment) which increases the amount of the engagement by and between the City of Denton,
Texas and AR/WS Texas LP, which is on file in the office of the Purchasing Agent, in the additional
amount of $191,800, which amount is hereby approved; and the expenditure of funds therefor is
hereby authorized in accordance with said Second Amendment. The total purchase order amount
therefore increases to the amount of not -to- exceed $637,200.
SECTION 2. The City Council of the City of Denton, Texas hereby expressly delegates the
authority to expend funds and to take any actions that may be required or permitted to be performed
by the City of Denton under File No. 4744, to the City Manager of the City of Denton, Texas, or his
designee.
SECTION 3. This ordinance shall become effective, and is hereby confinned and ratified as
of August 20, 2013.
PASSED AND APPROVED this the Z0 day of , 2013.
MARK A. B rMAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
r
By:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By: /C� C- t-1)
6 -ORD -File 4744
STATE OF TEXAS §
COUNTY OF DENTON §
SECOND AMENDMENT TO
PROFESSIONAL AND PERSONAL SERVICES AGREEMENT WITH AR/WS TEXAS, LP
(FILE #4744)
This "Second Amendment to Professional and Personal Services Agreement with AR /WS
TEXAS, LP" (hereafter the Second Amendment ") is made and entered into as of the � day
of , 2013, but effective as of the 1St day of August, 2013; by and between the City
of Denton, Texas, a Texas municipal corporation, with its principal office at 215 East McKinney
Street, Denton, Denton County, Texas 76201, hereinafter called "OWNER;" and AR/WS
TEXAS, LP, a Limited Partnership, with its office at 1500 Industrial Boulevard, Suite 230,
Abilene, Texas 79602, hereinafter called "AR/WS TEXAS, LP" each acting herein, by and
through their duly authorized officials, officers and representatives.
Previously, on June 22, 2011, the City of Denton, Texas engaged the firm of AR/WS
TEXAS, LP, a Limited Partnership, of Abilene, Texas, by a "Professional Services Agreement
for Land Appraisal Services and for Land Rights Acquisition Services Relating to the Denton
Municipal Electric 69 KV Kings Row to Spencer Transmission Line Upgrade Project (Phase II)"
(hereafter the "Agreement "), in order to perform professional services related to the valuation of
and the acquisition of tracts of land in relation to the Capital Improvements Plan of the City's
owned electric utility, Denton Municipal Electric (hereafter "DME "). The Agreement provided
for an expenditure of not -to- exceed $381,800 for such professional services and particularly
described the services to be rendered on Exhibit "A" thereto; the City Council, by Ordinance No.
2011 -102, approved said Agreement; and
As work progressed by AR/WS TEXAS, LP, under the Agreement, it became necessary
for the expansion of the original Agreement because of an increase in the number of tracts to be
acquired, which decision was reached after several public hearings concerning the location of
Phase II of the project; the number of tracts to be acquired by the City increased from 35 to 42,
which exceeded the original cost estimate, and accordingly a "First Amended Professional and
Personal Services Agreement" (hereafter the "First Amendment ") was entered into by and
between the OWNER and AR/WS TEXS, LP for the additional not -to- exceed amount of $63,600
on the 6th day of March, 2012; which First Amendment was approved by the Council by
Ordinance No. 2012 -047, enacted on the 6th day of March, 2012; and
As work further progressed on the project, on May 20, 2013 AR/WS TEXAS, LP,
communicated with the City, in a letter, which four (4) page letter is attached hereto as Exhibit
"A," and is incorporated herewith by reference, stating that a number of additional factors which
had not been provided for in either the Agreement or the First Amendment had arisen which
would necessarily have AR/WS TEXAS, LP, incur additional time and expense. These factors
were: several previously unknown parcels of real property were added to the project, re- rerouting
of the project necessitated several additional title insurance commitments, introductory letters
needed to be prepared, survey permits needed to be acquired, and additional research was
required on one of the tracts in particular; and
Accordingly, the OWNER and AR/WS TEXAS, LP, have proposed this "Second
Amendment to Professional and Personal Services Agreement with AR/WS TEXAS, LP"
(hereafter the "Second Amendment "); which Second Amendment provides for additional
professional and personal services fees of not -to- exceed amount of $191,800, totaling a fee of
not -to- exceed $637,200; and request that this Second Amendment be approved, confirmed and
ratified, effective August 1, 2013, in order to continue the necessary services by AR/WS
TEXAS, LP, on the project in an uninterrupted manner; and
This timely acquisition of the tracts of land, and ultimately the completion of the project,
is essential to the continued reliability of Denton Municipal Electric in serving its customers.
WITNESSETH, that in consideration of the covenants and agreements herein contained,
the parties hereto do mutually agree to amend the terms of the Original Agreement and the First
Amendment relating to the Project for the second time (the "Second Amendment ") as follows:
ARTICLE I
INCREASE OF COMPENSATION AMOUNT
In Paragraph B, lines 3 and 4 of Article V of the Original Agreement delete "not to
exceed the amount of $381;800;" and Paragraph B, line 3 and 4 of Article V of the First
Amendment delete "not to exceed an additional sum of $63,600 for this Change Order,
aggregating the total sum of $445,400;" and instead substitute the following language: "not to
exceed an additional sum of $191,800 for this Second Amendment, aggregating the total sum of
$637,200."
ARTICLE II
EFFECT OF THIS SECOND AMENDMENT
CONSULTANT AND OWNER hereto agree, that except as specifically provided for by
this Second Amendment, that all of the terms, covenants, conditions, agreements, rights,
responsibilities, and obligations of the Parties, set forth in the Original Agreement and the First
Amendment, shall be and will remain in full force and effect.
IN WITNESS HEREOF, the City of Denton, Texas has executed this Second
Amendment, by its duly authorized City Manager; and CONSULTANT has executed this
Second Amendment by and through its duly authorized undersigned officer on this the 201 day
of , 2013.
2
"OWNER"
THE CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By: L =
GEORGE C. CAMPBELL, CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APP&OVED ASLT'O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By:
"CONSULTANT"
AR/WS TEXAS, LP
By:
Its
3
EXHIBIT "A"
Consultant to the City or Denton
May 20, 2013
Pamela England
Real Estate Specialist
City of Denton
Real Estate and Capital Support
901 -A Texas Street, Second Floor
Denton, Texas 76209
Dear Pamela:
Pa BoN 548
Abileae, TX 79608
35,672.5540 phone
325.672.5549 fax
As we discussed, I have prepared a report detailing expected cost, billings through March 31, 2013 and
the amount remaining on the contract which includes the first amendment. The reason for the second
amendment Is that since the first amendment, several previously unknown parcels were added to the
project, relocations were added, rerouting required additional title commitments, Introductory letters
and survey permits and additional research was required on the Carter tract. Below t have summarized
what is on the attached spreadsheet justifying the request:
Ori Inal Contract Amount;
$,981,6 .00
First Amendment to the Contract:
6$,600-00
Total Contract Amount;
$445,400.00
Amount I3ililed thru 3- 31 -13:
$300,866.5 6
Amount Remaining on Contract:
$144,533.44
Services Remalnin to be Billed:
$336,333.44
Amount Remaining on Contract:
144 533 4
Requested Second Amendmennt:
$191,800.00
Thank you For your assistance In this matter. if you have anyquestlons, please feel free to call.
Very truly yours,
Charles M. Davis
CMD: Enclosures
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