2013-324ORDINANCE NO. 2013 -324
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING A PROFESSIONAL
SERVICES AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND
POWER ENGINEERS, INC. FOR ELECTRICAL TRANSMISSION LINE DESIGN, AND
OTHER ENGINEERING RELATED CONSULTING SERVICES FOR DENTON
MUNICIPAL ELECTRIC CAPITAL IMPROVEMENT PROJECTS; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; PROVIDING AN EFFECTIVE DATE (FILE 5174 -
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT IN THE ORIGINAL
NOT -TO- EXCEED AMOUNT OF $1,576,050, AMENDMENT ONE IN THE AMOUNT OF
$820,492, FOR A TOTAL NOT -TO- EXCEED AMOUNT OF $2,396,542).
WHEREAS, the City Council deems that it is in the public interest to continue to engage
the firm of Power Engineers, Inc., of Austin, Texas to provide professional engineering and
design consulting services for the City of Denton, Texas that are related to Denton Municipal
Electric; and
WHEREAS, the Public Utility Board of Denton considered this item at its November 11,
2013 meeting and recommended approval by a vote of 7 -0; and
WHEREAS, 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 1. 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 electrical transmission line design,
and other engineering related consulting services" (the "First Amendment ") with Power
Engineers Inc., for further professional engineering and design services related to professional
services necessary for Denton Municipal Electric, for an additional fee of not -to- exceed
$820,492 (with the previous Agreement, totaling a fee not -to- exceed $1,576,050); in
substantially the form of the "First Amendment" 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 Power Engineers, Inc. and the
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demonstrated ability of Power Engineers, Inc. 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 j9#1 day of \mm_, 2013.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY 9:) 1 . B ,, �°
STATE OF TEXAS §
COUNTY OF DENTON §
FIRST AMENDMENT TO
PROFESSIONAL SERVICES AGREEMENT WITH POWER ENGINEERS, INC.
(FILE #5174)
This "First Amendment to Professional Services Agreement with POWER Engineers,
Inc., Lenexa, Kansas, Texas (hereafter the "First Amendment ") is made and entered into as of
the ftUl day of , 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 POWER Engineers, Inc. a Corporation,
with its offices at 11035 Strang Line Road, Lenexa, Kansas 66215, hereinafter called "POWER"
each acting herein, by and through their duly authorized officials, officers and representatives.
WHEREAS, previously on February 12, 2013, the City of Denton, Texas engaged the
firm of POWER Engineers, Inc., a Corporation, by a "Professional and Personal Services
Agreement" (hereafter the "Agreement "), and approved by the City Council on February 12,
2103 by Ordinance No. 2013 -50; in order to have the firm perform professional and personal
services regarding the siting of electric substations and the routing of electric transmission lines,
all in accordance with the 2013 -2017 Capital Improvements Plan of the City; said Agreement
providing for the expenditure of not -to- exceed $1,576,050 for such services; and
WHEREAS, as work under the Agreement progressed, it became apparent that the scope
of the project has significantly broadened, to include professional services for the design, and
assistance with specifications, procurement and construction monitoring for electric transmission
lines; specifically including structural and electric designs for electric transmission lines, and
further that the scope of the undertaking has increased since the approval of the Agreement,
namely, increasing the workload significantly, wherein the City has now committed to taking
over and owning several sections of the Texas Municipal Power Agency 138 kV loop around the
City, including seven (7) transmission line projects for which the Agreement was not structured
to include any services on; and further, that NERC has recently made a regulatory requirement
that transmission owners, such as DME, provide evidence that field conditions and line
configurations after construction match those conditions expressed in the design of such
facilities; and
WHEREAS, OWNER and POWER have proposed this "First Amendment to
Professional Services Agreement with POWER Engineers, Inc." (hereafter the "First
Amendment "); which First Amendment provides for additional professional services fees of not-
to- exceed $820,492, totaling a fee of not -to- exceed $2,396,542; and request that this First
Amendment be approved, in order to provide the necessary services by POWER on the projects;
and
WHEREAS, the services to be rendered by POWER incident to this First Amendment are
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 Agreement for the first time (the
"First Amendment ") as follows:
ARTICLE I
INCORPORATION OF PREAMBLE BY REFERENCE
The Preamble to this First Amendment is hereby incorporated by reference herewith for
all purposes.
ARTICLE II
AMENDMENT AND ADDITION TO SCOPE OF SERVICES
POWER shall perform, in addition to those services provided for in the Agreement, the
specific services that are contained in and provided for in that certain twenty -six (26) page
document entitled "Budget, Scope of Plan and Work Plan" which provides for professional
services to be rendered by POWER to the City for the following electric transmission line
rebuild and reconfiguration projects:
• Teasley- Corinth 138 kV Rebuild
• Corinth - Pockrus 138 kV Rebuild
• Pockrus- Spencer 138 kV Upgrade Reconfiguration and Clearance (TMPA)
• Denton North -Arco 13 8 kV Rebuild
• Arco - Cooper Creek 138 kV Rebuild
• Masch Branch138 kV SS Cut -In
• Other transmission line design and project support as assigned by DME
ARTICLE III
INCREASE OF COMPENSATION AMOUNT
The original Agreement provided for an expenditure authority of not -to- exceed
$1,576,050; and by this First Amendment the expenditure authority is being hereby increased by
not -to- exceed $820,492, aggregating a sum not -to- exceed $2,396,542.
ARTICLE IV
EFFECT OF THIS FIRST AMENDMENT
POWER and OWNER agree, that except as specifically provided for by this First
Amendment, that all of the terms, covenants, conditions, agreements, rights, responsibilities, and
obligations of the Parties, set forth in the Original Agreement, shall be and will remain in full
force and effect.
IN WITNESS HEREOF, the City of Denton, Texas has executed this First Amendment,
by its duly authorized City Manager; and POWER has executed this First Amendment by and
through its duly authorized undersigned officer on this the JV1 day of N n\1djnLrZ- , 2013.
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"OWNER"
THE CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By �� m ..,,
GI..10141E C. CAM[ lJl.. I CITY MANAGER
NAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
t
By:
A7A . ........... . . . .....
"POWER"
POWER Engineers, Inc..
A Corporation
ATTEST: