2016-066ORDINANCE NO. 2016-066
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND SUPPLEMENTAL
AND AMENDED ENGAGEMENT LETTER WITH LLOYD GOSSELINK ROCHELLE &
TOWNSEND, P.C. FOR PROFESSIONAL LEGAL SERVICES RELATING TO THE
PENDING LITIGATION ENTITLED THE CITY OF DENTON, TEXAS V NRG POWER
MARKETING, LLC, ET AL; AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFOR; PROVIDING FOR RETROACTIVE CONFIRMATION, RATIFICATION AND
APPROVAL THEREOF; PROVIDING AN EFFECTIVE DATE (FILE NO. 5771 — IN THE
ADDITIONAL AMOUNT OF NOT -TO- EXCEED $400,000, AGGREGATING NOT -TO-
EXCEED $995,000).
WHEREAS, the City Council deems it necessary, appropriate, and in the public interest
to continue the engagement of Lloyd, Gosselink, Rochelle & Townsend, P.C., Austin, Texas to
provide professional legal services relating to the pending litigation entitled: The City of Denton,
Texas v NRG Power Marketing, LLC, et al; and
WHEREAS, on February 13, 2015, the Acting City Manager approved the original
Engagement Letter to provide professional legal services relating to the claims of the City
against NRG; and
WHEREAS, on July 21, 2015, the City Council considered a supplement and first
amendment to the Engagement Letter, in the additional not -to- exceed amount of $500,000; and
enacted Ordinance No. 2015 -214; and
WHEREAS, now there is a need to further supplement and amend the Engagement Letter
for a second time as there are two new parties defendant involved in the case, which case is now
set for non jury trial in the month of November 2016, in the additional amount of $400,000,
totaling a not -to- exceed amount of $995,000; 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 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 the law
firm of Lloyd, Gosselink, Rochelle & Townsend, P.C., Austin, Texas (the "Firm ") is
appropriately qualified under the provisions of the law 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 additional professional legal services, as
set forth in the second supplemental and amended Engagement Letter; 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
herewith as part of this ordinance.
SECTION 2. The City Manager, or his designee, is hereby authorized to execute a
second supplemental and amended Engagement Letter dated March 2, 2016 with the law firm of
Lloyd, Gosselink, Rochelle & Townsend, P.C., Austin, Texas for further professional legal
services relating to the pending litigation entitled: The City of Denton, Texas v NRG Power
Marketing, LLC., et al; which second supplemental and amended Engagement letter is attached
hereto as Exhibit "A" and is incorporated herein by reference.
SECTION 3. The award of this second supplemental and amended Engagement Letter is
on the basis of the demonstrated competence and qualifications of Lloyd, Gosselink, Rochelle &
Townsend, P.C. (the "Firm ") and the ability of the Firm 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 second supplemental
and amended Engagement Letter is hereby authorized, and the previous expenditures regarding
this project are hereby confirmed, ratified and approved.
SECTION 5. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED dais flic .. ....... day of 201.6.
M
CHRIS WATTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
LM
: ITA BURGESS, CITY ATTORNEY
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Lloyd
Gosselink
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Mr. de la FIICr(te's Direct Line: (5 12) 322 -5849
Email: idelalticntcu.igla%viirni.com
March 2, 2016
Ms. Anita Burgess
City Attorney
City of Denton
215 East McKinney
Denton. "Texas 76201
816 Congress Avenue, Suite 1900
Austin,Texas 78701
Telephone: (512) 322 -5800
Facsimile: (512) 472 -0532
www.Iglawrirm.com
Re: Second Supplement and Amendment to February 13, 2015
Engagement Letter — City of Denton
Billing File Number: 1060 -48
Dear Anita:
This letter supplements and amends the February 13, 2015, Engagement Letter between
the City of Denton and Lloyd Gosselink Rochelle & Townsend, P.C. ( "Lloyd Gosselink ")
regarding the City's claims against NRG Power Marketing, LLC ( "NRG ") to expressly authorize
additional amounts payable above the Ninety -Five Thousand Dollars ($95,000) authorized in the
Engagement Letter and the Five Hundred Thousand Dollars ($500,000) authorized in the July 2,
2015 Supplement and Amendment. The efforts to reach an early, negotiated resolution of the
dispute between the City and NRG have not been successful. Therefore, contested litigation of
the dispute is necessary. To that end, this letter supplements and amends the February 13, 2015,
Engagement Letter and the July 2, 2015 Supplement and Amendment and constitutes express
authorization by the City to increase the amounts payable related to the Representation provided
to the City by Lloyd Gosselink by an additional sum not to exceed Four Hundred Thousand and
No/] 00 Dollars ($400,000.00).
If this Second Supplement and Amendment to the parties' Engagement Letter is
acceptable, we would appreciate you signing and returning one of the enclosed four originals of
this document.
Since • M
ose E. e la Fuente
Lloyd Gosselink Rochelle & Townsend, P.C.
March 2, 2016
Page 2
Approved As to Legal Form:
Anita Burgess, City Attotpey
JEF:cad
George C. Campbell, Ci Manager
4 1 1 .
Date