2006-023
ORDINANCE NO. 2006- iJ 2. .3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH R. J. COVINGTON CONSULTING, LLC FOR CONSULTING
SERVICES RELATING TO TASK ORDER NO. 06-A; PROVIDING FOR SERVICES
BEFORE THE PUBLIC UTILITIES COMMISSION OF TEXAS, INCLUDING, WITHOUT
LIMITATION, COMPLIANCE ISSUES, PROTECTION OF DENTON MUNICIPAL
ELECTRIC'S INTERESTS AND THE INTERESTS OF ITS RATEPAYERS,
IMPLEMENTATION OF THE NODAL MARKET DESIGN, ISSUES RELATED TO
MONITORING THE NEW MARKET, MARKET POWER ISSUES, RESOURCE
ADEQUACY IN THE NODAL MARKET, AND OTHER ISSUES AFFECTING DME'S
CONDUCT OF ITS BUSINESS; AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council deems it in the public interest to continue to engage the
firm of R. J. Covington Consulting, LLC of Austin, Texas ("Covington"), to provide further
professional consulting services to the City r elating to Task Order No. 06-A; which includes,
without limitation, services before the Public Utilities Board of Texas ("PUCT") including,
without limitation, compliance issues, protection of Denton Municipal Electric's ("DME")
interests and the interests of its ratepayers, implementation of the nodal market design, issues
related to monitoring the new market, market power issues, resource adequacy in the nodal
market, as well as other issues that affect the conduct of the DME business; and
WHEREAS, the City staff has reported to the City Council that there is a substantial need
for the above-described specialized professional services, and that limited City staff cannot
adequately perform the 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;
and
WHEREAS, Covington has represented DME continuously and ably over the last nine
(9) years, and has proven to be a valuable, reliable, affordable, and competent professional
resource that has expertise in, and is well-acquainted with the electric operations as well as the
financial and regulatory framework of Denton Municipal Electric ("DME"), as well as its
relations with the PUC and ERCOT. Covington's operations are located in Austin, Texas.
Covington and his staff are particularly familiar with the characteristics, operations, and present
rate structure ofDME: and
WHEREAS, the City Council has provided in the City Budget for the appropriation of
funds to be used for the purchase of the professional services, as set forth in the Professional
Services Agreement; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I: That the City Manager is hereby authorized to execute a Professional
Services Agreement with R. J. Covington Consulting, LLC of Austin, Texas, for professional
consulting services relating to Task Order No. 06-A, to the City and to Denton Municipal
Electric, in an amount of not to exceed $100,000; in substantially the form of the Professional
Services Agreement that is attached hereto and incorporated herewith by reference as Exhibit
"A."
SECTION 2: That the award of this Agreement by the City is on the basis of the
demonstrated competence, knowledge, and qualifications of Covington and the ability of
Covington to perform the professional services needed by the City for a fair and reasonable
pnce.
SECTION 3: That the expenditure of funds as provided in the attached Professional
Services Agreement is hereby authorized.
SECTION 4: That this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the /7'f1t day of CJMjj.tllM{- , 2006.
~~AcL
EULINE BROCK, MAYOR
ATTEST:
~~~~=w:;;::RY
~
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY!JW1~~~
S:\OUf Documents\Ordinances\06\R J Covington Consulting LLC-DME-Ord Aprv TO 06-A - 2006.do
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STATE OF TEXAS
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COUNTY OF DENTON
PROFESSIONAL SERVICES AGREEMENT FOR CONSUL T1NG SERVICES
PERTAINING TO DENTON MUNICIPAL ELECTRIC
THIS AGREEMENT is made and entered into on the /11:/1 day of
2006, by and between the City of Denton, Texas, a Municipal Corporation, with it
at 215 East McKinney Street, Denton, Texas 76201 ("CITY"); and R. J. COVINGTON
CONSULTING, LLC, a Texas Limited Liability Corporation, with its principal office at 11044
Research Boulevard, Suite A-325, Austin, Texas 78759, hereafter "COVINGTON"; acting herein
by and through their duly authorized representatives.
WITNESSETH, that in consideration of the covenants, promises and agreements herein
contained, the CITY and COVINGTON do hereby AGREE as follows:
ARTTrf F T
EMPLOYMENT OF CONSULTANT
The CITY hereby contracts with COVINGTON, as an independent contractor, and
COVINGTON hereby agrees to perform the services herein in connection with the Scope of
Services as stated in the Articles to follow, with diligence and in accordance with the professional
standards customarily obtained for such services in the State of Texas.
A RTlrT F II
SCOPE OF SERVICES
A. COVINGTON shall provide to the CITY professional consulting services pertammg to
assisting Denton Municipal Electric ("DME") in addressing issues associated with the Public
Utilities Commission of Texas ("PUCT") regarding regulatory support of DME, including
attending workshops and hearings at the PUCT, analyzing proposed rules and policies, preparation
of comments, as well as industry monitoring and evaluation. This matter involves issues that will
affect how DME conducts its business. The PUCT is currently addressing issues related to the
implementation of the nodal market design, issues related to monitoring the new market, market
power issues, and resource adequacy in the nodal market. COVINGTON will work with DME
staff to develop and present the DME position on these issues effectively. COVINGTON agrees to
perform those services and tasks more particularly and specifically described in Task Order No. 06-
A attached hereto and incorporated herewith by reference.
B. To consult with the City Manager, Assistant City ManagerlUtilities, the Director of Electric
Utilities, the Utility Attorney, and any other designated administrative personnel regarding any and
all aspects of the services to be performed pursuant to this Agreement.
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ARTTrf F m
PERIOD OF SERVICE
This Agreement shall become effective on the date this Agreement is approved and upon the
issuance of a notice to proceed by Denton Municipal Electric ("DME"). The termination date of
this Agreement shall be upon the earliest to occur of the following events: completion of the work
described herein and in the attached Task Order No. 06-A; or upon the depletion and exhaustion of
the $100,000 not-to-exceed amount provided for herein; or upon fifteen (15) day's written notice to
terminate, issued by the Director of Electric Utilities, DME. This Agreement may be sooner
terminated in accordance with the provisions hereof. Time is of the essence in this Agreement.
COVINGTON shall make all reasonable efforts to complete the services set forth herein as
expeditiously as possible and to meet the schedule established by the CITY, acting through its
Director of Electric Utilities.
ARTTrT F TV
COMPENSA nON
A. COMPENSATION TERMS:
"Direct Non-Labor Expense" is defined as that expense for any assignment incurred
hereunder by COVINGTON for supplies, long-distance telephone, telecopier, reproduction
expense, overnight courier, photocopy expense, transportation, travel, communications,
subsistence and lodging away from home and similar incidental expenses reasonably incurred
in connection with that assignment.
B. BILLING AND PAYMENT:
I. For and in consideration of the professional services to be performed by COVINGTON
herein, the CITY agrees to pay COVINGTON, a total fee, including reimbursement for direct
non-labor expense, not to exceed $100,000 for those services described in Task Order No.
06-A.
2. The fee for the services described in this Agreement to be performed by COVINGTON
are to be billed the rates as set forth in Exhibit "A" attached hereto and incorporated herewith
by reference. Billing shall be reported in minimum one-quarter (1/4) hour increments.
3. Payments to COVINGTON will be made by the CITY on the basis of detailed monthly
statements rendered to the CITY through its Director of Electric Utilities. The fee bills as
submitted, shall be allowed and approved by the Director of Electric Utilities. However,
under no circumstances shall any monthly statement for services exceed the value of the work
performed at the time a statement is rendered.
4. Nothing contained in this Article shall require the CITY to pay for any work which is
unsatisfactory as reasonably determined by the City Manager or the Director of Electric
Utilities, or which is not submitted in compliance with the terms of this Agreement. The City
shall not be required to make any payments to COVINGTON when COVINGTON is in
default under this Agreement.
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5. It is specifically understood and agreed that COVINGTON shall not be authorized to
undertake any work pursuant to this Agreement which would require additional payments
by the CITY for any charge, expense or reimbursement above the maximum not-to-
exceed fee as stated, without first having obtained written authorization from the CITY.
C. PAYMENT
If the CITY fails to make payments due COVINGTON for services and expenses within forty
(40) days after receipt of COVINGTON'S undisputed statement thereof, the amounts due
COVINGTON will be increased by the rate of one percent (1%) per month from the said
forty (40th) day, and in addition, COVINGTON may, after giving ten (10) days' written
notice to the CITY, suspend services under this Agreement until COVINGTON has been
paid in full all amounts due for services, expenses and charges provided. However, nothing
herein shall require the CITY to pay the late charge of one percent (I %) set forth herein if the
CITY reasonably determines that the work of COVINGTON is unsatisfactory, in accordance
with this Article TV, Compensation, and the CITY notifies COVINGTON in writing of any
such defect.
ARTWI F V
OBSERVATION AND REVIEW OF THE WORK
COVINGTON will exercise reasonable care and due diligence in discovering and promptly
reporting to the CITY any defects or deficiencies in his work or the work of any subconsultants
performed hereunder.
ARTWI F VI
OWNERSHIP OF DOCUMENTS
All documents, analyses and other data prepared by COVINGTON under this Agreement ("Work
Products") are instruments of service and are and shall remain the property of CITY.
COVINGTON shall have the right to make and retain copies and use all Work Products; provided,
however, the use shall be limited to the intended use for which the services and Work Products are
provided under this Agreement. COVINGTON may use and may copyright certain non-sensitive
Work Products as property of COVINGTON; provided that prior written approval is obtained from
CITY, whose approval shall not be unreasonably withheld, and providing that copywriting will not
restrict CITY'S right to retain or make copies of the Work Products for its information, reference
and use on the Project or services under the Agreement.
The Work Products shall not be changed or used for purposes other than those set forth in this
Agreement without the prior written approval of COVINGTON. If CITY releases the Work
Products to a third party without COVINGTON'S prior written consent, or changes or uses the
Work Products other than as intended hereunder, CITY does so at its sole risk and discretion and
COVINGTON shall not be liable for any claims or damages resulting from or connected with the
release or any third party's use of the Work Products.
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ARTTrT F vn
INDEPENDENT CONTRACTOR
COVINGTON shall provide services to the CITY as an independent contractor, not as an
employee of the CITY. COVINGTON shall not have or claim any right arising from employee
status.
A RTTrT F VITI
INDEMNITY AGREEMENT
COVINGTON shall indemnify and save and hold harmless the CITY and its officers, agents,
and employees from and against any and all liability, claims, demands, damages, losses and
expenses, including but not limited to court costs and reasonable attorney's fees incurred by the
CITY, and including without limitation, damages for bodily and personal injury, death and property
damage, and damage for professional malpractice resulting from the negligent acts or omissions of
COVINGTON or any subconsultants, in performance of this Agreement. COVINGTON'S liability
under this Article VIII is expressly limited to the amount of COVINGTON'S insurance coverage as
set forth in Article IX.
Nothing in this Agreement shall be construed to create a liability to any person who is not a
party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or
equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement,
including the defense of governmental immunity, which defenses are hereby expressly reserved.
A RTlrT F IX
INSURANCE
During the performance of the Services under this Agreement, COVINGTON shall maintain
the following insurance with an insurance company licensed to do business in the State of Texas by
the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of
at least an "A-" or above:
A. Comprehensive General Liability Insurance with bodily injury limits of not less than
$500,000 for each occurrence and not less than $500,000 in the aggregate, and with property
damage limits of not less than $100,000 for each occurrence, and not less than $100,000 in
the aggregate.
B. Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each
person and not less than $500,000 for each accident; and with property damage limits of not
less than $100,000 for each accident.
C. Professional Liability Insurance with policy limits of not less than $1,000,000 annual
aggregate.
D. COVINGTON shall furnish insurance certificates or insurance policies at the CITY's request
to evidence such coverages. The insurance policies shall name the CITY as an additional
insured on all such policies to the extent legally possible, and shall contain a provision that
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such insurance shall not be canceled or modified without thirty (30) days prior written notice
to CITY and COVINGTON. In such event, COVINGTON shall, prior to the effective date of
the change or cancellation, deliver substitute policies furnishing the same coverage to the
CITY.
ARTTrI F X
ARBITRATION AND ALTERNATE DISPUTE RESOLUTION
The parties agree to settle any disputes under this Agreement by submitting the dispute to
arbitration or other means of alternate dispute resolution such as mediation. No arbitration or
alternate dispute resolution arising out of or relating to, this Agreement involving one party's
disagreement may include the other party to the disagreement without the other's approval.
ARTTrI F Xl
LIMITATION OF LIABILITY
To the extent permitted by law, the total liability of COVINGTON to CITY for any and all
claims arising out of this Agreement, whether caused by negligence, errors, omissions, strict
liability, breach of contract or contribution, or indemnity claims based on third-party claims, shall
not exceed one million dollars ($1,000,000).
ARTTrI F xn
CONSEQUENTIAL DAMAGES
In no event and under no circumstances shall COVINGTON be liable to CITY for any
interest, loss of anticipated revenues, earnings, profits, or increased expense of operations, or for
any consequential, indirect or special damages.
ARTTrI F xm
PROFESSIONAL STANDARDS
COVINGTON will perform services under this Agreement with the degree of skill and
diligence normally practiced by professional engineers or consultants performing the same degree
of similar services. No other warranty or guarantee, expressed or implied, is made with respect to
the services furnished under this Agreement and all implied warranties are disclaimed.
A RTTrI F XIV
TERMINATION OF AGREEMENT
A. Notwithstanding any other provision of this Agreement, either party may terminate this
Agreement by giving thirty (30) days advance written notice of termination to the other party.
B. This Agreement may be terminated in whole or in part in the event of either party
substantially failing to fulfill its obligations under this Agreernent. No such termination will
be effected unless the other party is given: (I) written notice (delivered by certified mail,
return receipt requested) of intent to terminate and setting forth the reasons specifYing the
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nonperformance, and not less than ten (10) business days in which to cure the failure; and (2)
an opportunity for consultation with the terminating party prior to termination.
C. Ifthis Agreement is terminated prior to completion of the services to be provided hereunder,
COVINGTON shall immediately cease all services and shall render a final bill for services to
the CITY within thirty (30) days after the date of termination. The CITY shall pay
COVINGTON for all services properly rendered and satisfactorily performed and for
reimbursable expenses to termination incurred prior to the date of termination in accordance
with Article N, Compensation. Should the CITY subsequently contract with a new
consultant for the continuation of services on the Project, COVINGTON shall cooperate in
providing information. COVINGTON shall turn over all documents prepared or furnished by
COVINGTON pursuant to this Agreement to the CITY on or before the date of termination,
but may maintain copies of such documents for its use.
ARTIf'T F xv
RESPONSIBILITY FOR CLAIMS AND LIABILITIES
Approval by the CITY shall not constitute nor be deemed a release of the responsibility and
liability of COVINGTON, or any subconsultants of COVINGTON, for the accuracy and
competency of their designs or other work product.
ARTTrI F XVI
NOTICES
All notices, communications, and reports required or permitted under this Agreement shall be
personally delivered or mailed to the respective parties by depositing same in the United States mail
at the address shown below, certified mail, return receipt requested unless otherwise specified
herein. Mailed notices shall be sent to the parties at the following addresses:
To COVINGTON:
To CITY:
RJ. Covington Consulting, LLC
Attn: Richard J. Covington, President
11044 Research Blvd., Suite A-325
Austin, Texas 78759
City of Denton, Texas
Attn: City Manager
215 East McKinney Street
Denton, Texas 76201
and to
City of Denton, Texas
Attn: Director of Electric Utilities
901-A Texas Street
Denton, Texas 76205
All notices shall be deemed effective upon receipt by the party to whom such notice is given
or within three days after the date of mailing.
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ARTTrT F XVTT
ENTIRE AGREEMENT
This Agreement consisting of nine (9) pages, and three (3) additional pages consisting of
Task Order No. 06-A, constitutes the complete and final expression of the agreement of the parties
and is intended as a complete and exclusive statement of the terms of their agreements and
supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions,
communications and agreements which may have been made in connection with the subject matter
hereof.
ARTTrT F xvm
SEVERABILITY
If any provision of this Agreement is found or deemed by a court of competent jurisdiction to
be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement
and shall not cause the remainder to be invalid or unenforceable. In such event, the party shall
reform this Agreement to replace such stricken provision with a valid and enforceable provision
which comes as close as possible to expressing the intention of the stricken provision.
ARTTrT F XIX
COMPLIANCE WITH LAWS
COVINGTON shall comply with all federal, state, local laws, rules, regulations, and
ordinances applicable to the work covered hereunder as they may now read or hereinafter be
amended.
ARTTrT F XX
DISCRIMINA nON PROHIBITED
In performing the services required hereunder, COVINGTON shall not discriminate against
any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical
handicap.
ARTTrr F XXT
PERSONNEL
A. COVINGTON represents that he has secured, or will secure at his own expense any
additional personnel required to perform all the services required under this Agreement.
Such personnel shall be subconsultants of COVINGTON, and shall not be employees or
officers of, nor have any contractual relations with the CITY. COVINGTON shall inform the
CITY of any conflict of interest or potential conflict of interest that may arise during the term
of this Agreement.
B. All services required hereunder will be performed by COVINGTON or under his supervision.
All personnel engaged in work shall be qualified and shall be authorized and permitted under
state and local laws to perform such services.
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ARTTrT F XXTT
ASSIGNABILITY
COVINGTON shall not assign any interest in this Agreement and shall not transfer any
interest in this Agreement (whether by assignment, novation or otherwise) without the prior written
consent of the CITY.
ARTI('J F xxm
MODIFICATION
No waiver or modification of this Agreement or of any covenant, condition, limitation herein
contained shall be valid unless in writing and duly executed by the party to be charged therewith
and no evidence of any waiver or modification shall be offered or received in evidence in any
proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or
obligations of the parties hereunder, and unless such waiver or modification is in writing, duly
executed; and, the parties further agree that the provisions of this section will not be waived unless
as herein set forth.
ARTTrT F XXN
MISCELLANEOUS
A. COVINGTON agrees that CITY shall, until the expiration of three (3) years after the final
payment under this Agreement, have access to and the right to examine any directly pertinent
books, documents, papers and records of COVINGTON involving transactions relating to
this Agreement. COVINGTON agrees that the CITY shall have access during normal
working hours to all necessary COVINGTON facilities and shall be provided adequate and
appropriate working space in order to conduct audits in compliance with this section. The
CITY shall give COVINGTON reasonable advance notice of any intended audits.
B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton
County, Texas. This Agreement shall be governed by, and construed in accordance with the
laws of the State of Texas.
C. COVINGTON shall commence, carry on, and complete the work required by this
engagement with all applicable dispatch, in a sound, economical, efficient manner and in
accordance with the provisions hereof. In accomplishing the work, COVINGTON shall take
such steps as are appropriate to ensure that the work involved is properly coordinated with
related work being carried on by the CITY.
D. The CITY shall assist COVINGTON by placing at COVINGTON's disposal all available
information pertinent to the work required by this engagement, including previous reports,
any other data relative to the project and arranging for the access to, and make all provisions
for COVINGTON to enter in or upon, public and private property as required for
COVINGTON to perform services under this Agreement.
E. The captions of this Agreement are for informational purposes only and shall not in any way
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141 002
executed in four (4) original counterparts, by its duly authorized City Manager; and R.~1~.ltngton
Consulting, LLC has executed this Agreement by its duly authorized officer on this the day of
?fl.(j/)I/r ,2006.
"CITY"
CITY OF DENTON, TEXAS
A Municipal Corporation .
By ~a1A*
Howard Martin, ~ City Mana.gcr
:.IJJ-Iffl m
ArrEST:
JENNIFER WALTERS, CITY SECRETARY
\
APPR D AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BytIMj)j)A ~ Q
"COVINGTON"
R. J. COVINGTON CONSULTING, LLC
A Texas Limited Liability Corporation
By: ~~~
Richard J Co' n, e'
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EXHIBIT A
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND
R.J. COVINGTON CONSULTING, LLC
TASK ORDER NO. 06-A
Regulatory Services
This Task Order is for continuing assistance to Denton Municipal Electric staff ("Staff') as they
address the continuing changes to the electric industry. Task Order No. 06-A specifically
focuses on activities at the Public Utility Commission of Texas ("PUCT"). The PUCT is
currently addressing issues that will affect the way DME conducts it business. It is important for
DME to be aware of changes to remain in compliance with Texas regulations and to protect its
interests and the interests of its ratepayers. In particular, the PUCT is now addressing issues
related to the implementation of the nodal market design, issues related to monitoring the new
market, market power issues, and resource adequacy in the nodal market. Covington ("RJC")
will work with DME staff to develop and present the DME position on those issues that may
affect DME and the City of Denton, Texas.
The PUCT has concluded hearings on the nodal market design in Docket No. 31540 and RJC is
currently working with DME staff and legal counsel preparing briefs in response to the testimony
given during the hearings. If a satisfactory transition plan is not adopted by the PUCT
Commissioners, DME may decide to challenge the decision through an appeal or in the courts.
Without a reasonable transition approach between today's zonal market structure and the new
nodal market, DME and its ratepayers could suffer rising electricity prices due to increased costs
for delivery of energy in the Dallas-Fort Worth area. DME continues to work to achieve a
transition plan that will allow for the different levels of transmission build-out in different
regions. Because DME is in the North zone which has the largest concentration of generation
owed by a single entity, DME must also be concerned about the issues of market power and the
ability of ERCOT and the PUC to monitor market power in the nodal market. In addition, the
issue of insuring there are adequate generation resources to serve load has never been more
critical. In the nodal market, not only will insufficient generation reserves affect reliability, but it
will also affect the pricing of generation. These activities at the PUCT will have a significant
effect on DME as the new market unfolds.
Task Order 06-B, executed even date herewith, allows RJC to supplement DME staffs efforts to
keep track of the vast amount of information that is needed to keep up with activities at the
PUCT and the Electric Reliability Council of Texas ("ERCOT"). RJC will assist the DME staff
in identifying those issues needing DME's attention. In addition to surveying and reporting on
ongoing activities at the PUCT and ERCOT, RJC is a resource providing extensive regulatory
experience to assist DME's staff in the evaluation of the impact on DME of various issues.
Task Order 06-A
Regulatory Services
Task Order No. 06-A addresses regulatory issues at the PUCT. Market issues at ERCOT are
provided for in a separate task order (No. 06-B). All work performed at the PUCT is conducted
under the direction of the Director of Electric Utilities.
Scope of Services
Task A
PUCT Rel!ulatorv Support
Task A-I
Attending Workshops and Hearings at PUCT
I. RJC will stay informed on activities at the PUCT and will attend workshops and hearings
as directed by DME.
2. When appropriate, RJC will participate in workshops and hearings to represent interests
ofDME and the City in accordance with the directions ofDME.
3. RJC will work with DME staff in development of positions that should be taken, and
strategies for working with parties involved, during the nodal system design and
implementation.
Task A-2
Analyze Proposed Rules and Policies
I. PUCT proposed new rules and rule changes will be analyzed.
2. RJC will discuss proposed new rules, and changes to existing rules with DME staff and
legal counsel, helping to identify areas of concern and preparing positions that represent the
interests of the City.
3. RJC will meet with PUCT staff and other parties as appropriate to discuss proposed rules,
and present DME's concerns regarding such proposals.
Task A-3
Preparation of Comments
I. RJC will prepare or assist in preparing comments to be filed with the PUCT representing the
City's position on issues brought up in proposed rules, projects and dockets.
2. These comments will be coordinated through DME staff and legal counsel.
3. RJC will assist the City's legal counsel as necessary in the preparation and filing of
comments and testimony in dockets that have been identified by DME staff as requiring
intervention to protect DME and the City's interest.
Task B
Industrv Monitorinl! and Evaluation
I. RJC will maintain continuing communication with DME staff and legal counsel in order
to monitor proposed industry changes and address those issues affecting municipalities.
2. An ongoing dialogue will be maintained with DME staff and the legal counsel in order to
evaluate changing operating and market requirements and conditions, and evaluate their
potential effects on DME operations.
3. Information necessary to supplement and support the decision-making process will be
provided as requested.
4. A summary of activities at the PUC and ERCOT will be provided weekly.
2013
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Task Order 06-A
Regulatory Services
Budget
This Task Order provides for a not to exceed amount of $100,000 for professional fees and
expenses. This Task Order will not be exceeded without the prior written approval of the City.
RJC will bill monthly with supporting documentation of activities performed and expenses
incurred. The work being performed will be under the supervision of the Director of Electric
Utilities and may be modified at any time upon appropriate notice to RJC.
EXECUTED this the /1ilt day of (jdf1/M /J~, 2006.
AUTHORIZED BY:
"CITY'
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
B'~.
Howard Martin
Interim City Manager
Dated: ;//7 / () (;;
I I
ATTEST:
JENNIFER WALTERS
CITY SECRETARY
ACCEPTED BY:
I'RJC"
R.J. COVINGTON CONSULTING, LLC
By: 1lco~t
Dated: / /5/~~
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER
CITY ATTORNEY
By:
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