2007-261ORDINANCE NO. 2007-42~
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 PROFESSIONAL
SERVICES RELATING TO TASK ORDER NO. 07-E, THE NON-OPT-IN-ENTITY LOAD
ZONE ANALYSIS AND STUDIES THAT ARE RELATED TO THE PUBLIC UTILITIES
COMMISSION OF TEXAS MANDATED ORDERS AND THE ELECTRIC RELIABILITY
COUNCIL OF TEXAS NODAL MARKET DESIGN; REGARDING THOSE DECISIONS ON
ISSUES THAT AFFECT THE ABILITY OF DENTON MUNICIPAL ELECTRIC TO SERVE
ITS CUSTOMERS IN A COST-EFFECTIVE AND COMPETITIVE MANNER, AND OTHER
RELATED PROFESSIONAL SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFOR; AND PROVIDING AN EFFECTIVE DATE (NOT TO EXCEED $230,000).
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
professional services to the City relating to Task Order No. 07-E, which is appended to the
Professional Services Agreement (the :Agreement") referenced below; which includes, without
limitation, the preparation of a NOIE Load Zone Analysis relating to the Electric Reliability
Council of Texas ("ERGOT") designed transition to a nodal market design in the Texas electric
market; and services to keep Denton Municipal Electric ("DME") staff informed regarding any
load zone issues that affect the ability of DME to serve its customers in a cost-effective and
competitive manner; and for other professional services; and
WHEREAS, the City staff has reported to the City Council that there is a substantial need
for the above-described highly 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, Texas Local Government Code, Section 252.022(a)(2) provides that a
procurement that is necessary to preserve or protect the public health or safety of the city's
residents is not required to be competitively bid; and likewise, the provisions of Section
252.022(a)(4) provides that a procurement for professional or planning services is not required to
be competitively bid; and
WHEREAS, the City Council of the City of Denton, Texas finds that the professional
services preserve and protect the municipally-owned electrical system of the City; and
WHEREAS, Covington has represented DME continuously and professionally over the
last ten (10) 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. Covington and his
staff are particularly familiar with current Public Utilities Commission of Texas ("PUCT") and
Electric Reliability Council of Texas ("ERCOT") regulations, orders and policies while at the
same time dealing with the current issues, characteristics, operations, and present rate structure
of DME; and that Covington's operations are located in Austin, Texas; 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; the Council finds that these services are in the interests of public welfare;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the facts, findings and statements made in the Preamble hereto are
hereby adopted and are made a part of this ordinance.
SECTION 2: The City Manager is hereby authorized to execute a Professional Services
Agreement with R. J. Covington Consulting, LLC of Austin, Texas, for professional services
relating to Task Order No. 07-E relating to the City and to Denton Municipal Electric, in an
amount not to exceed $230,000; in substantially the form of the Professional Services Agreement
that is attached hereto and incorporated herewith by reference as Exhibit "A."
SECTION 3: 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
price.
SECTION 4: The expenditure of funds as provided in the attached Professional Services
Agreement is hereby authorized.
SECTION 5: This ordinance shall become effective immediately upon its passage and
approval. y~
PASSED AND APPROVED this the U/ `4 day of '2007.
e~
a
PERK . McNEILL, MAYOR
2
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By:
STATE OF TEXAS §
COUNTY OF DENTON §
PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES
PERTAINING TO DENTON MUNICIPAL ELECTRIC
THIS AGREEMENT is made argd enter d into on the A A day of Ayof ' 2007,
but effective from and after c f 2007, by and between the CDenton, Texas, a
Municipal Corporation, with it principal office 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:
ARTICLE I
EMPLOYMENT OF CONSULTANT
The CITY hereby contracts with COVINGTON, a Texas consulting firm comprised of
consultants, engineers and accountants, will perform services hereunder 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 as well as the Task Order 07-E, with diligence and in
accordance with the professional standards customarily obtained for such services in the State of
Texas.
ARTICLE II
SCOPE OF SERVICES
A. COVINGTON shall provide to the CITY professional services and will provide professional
studies and analyses that are designed to target the choices that are available to the City that pertain to
providing DME with the needed analysis of data that it obtains relative to the recasting by the Public
Utilities Commission of Texas C`PUCT") of the entire Texas wholesale electric market design. This is
a design based upon Locational Marginal Pricing LMP") which begins on January 1, 2009. This
market is now referred to as the Texas Nodal market. The Electric Reliability Council of Texas
ERCOT") has been ordered by the PUCT to implement this new system by the use of load zones
within the ERCOT System, which involves a substantial portion of the State of Texas. There will be
developed a finite number of load zones established over the next seven (7) months. DME is defined
as a Non-Opt-In-Entity NOIE") - that is it is a municipally-owned electric utility (also cooperatives
are in this category). DME must make a decision regarding the City's membership in whichever load
zone will result in the more advantageous terns and prices. COVINGTON agrees to perform those
services and tasks more particularly and specifically described in Task Order No. 07-E that is attached
hereto and incorporated herewith by reference.
B. To consult with the City Manager, Assistant City Manager/Utilities, the General Manager of
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DME, the Utility Attorney, and any other designated administrative personnel regarding any and all
aspects of the services to be performed pursuant to this Agreement.
ARTICLE III
PERIOD OF SERVICE
This Agreement shall become effective retroactively on the / ` b tday of VOL 2007 and
upon the issuance of a notice to proceed by Denton Municipal Electric ("Dt 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. 07-E; or upon the depletion and exhaustion
of the $230,000 not-to-exceed amount provided for herein; or upon fifteen (15) day's written notice to
terminate, issued by the General Manager of 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 General Manager of DME.
ARTICLE IV
COMPENSATION
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:
L For and in consideration of the professional services to be performed by COVINGTON
and its subcontractor herein, the CITY agrees to pay COVINGTON, a total fee, including
reimbursement for direct non-labor expense, not to exceed $230,000 for those services described
in Task Order No. 07-E.
2. The fee for the services described in this Agreement to be performed by COVINGTON
are to be billed at the rates previously agreed to. 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 General Manager of DME. The fee bills as
submitted, shall be evaluated, and if the same are in accordance with this Agreement, allowed
and approved by the General Manager of DME. 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
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unsatisfactory as reasonably determined by the Assistant City Manager for Utilities or the
General Manager of DME; 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.
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 (1%) set forth herein if the CITY reasonably
determines that the work of COVINGTON is unsatisfactory, in accordance with this Article IV,
Compensation, and the CITY notifies COVINGTON in writing of any such defect.
ARTICLE 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 in the work of any subconsultants
performed hereunder.
ARTICLE 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 fight 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, non-confidential, non-
Public Power 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 fight 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.
ARTICLE VII
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.
ARTICLE VIII
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.
ARTICLE 1X
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 "A2 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
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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 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.
ARTICLE 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.
ARTICLE XI
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).
ARTICLE XII
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.
ARTICLE XIII
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.
ARTICLE XIV
TERMINATION OF AGREEMENT
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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 Agreement. No such termination will be effected unless
the other party is given: (1) written notice (delivered by certified mail, return receipt requested)
of intent to terminate and setting forth the reasons specifying the 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. If this 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 IV,
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.
ARTICLE 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.
ARTICLE 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:
R.J. Covington Consulting, LLC
Attn: Richard J. Covington, President
11044 Research Blvd., Suite A-325
Austin, Texas 78759
To CITY:
City of Denton, Texas
Attn: City Manager
215 East McKinney Street
Denton, Texas 76201
and to
City of Denton, Texas
Attn: General Manager, DME
6
1659 Spencer Road
Denton, Texas 76205
All notices shall be deemed effective upon receipt by the party to whom such notice is given or
within three (3) days after the date of mailing.
ARTICLE XVII
ENTIRE AGREEMENT
This Agreement consisting of nine (9) pages, and three (3) additional pages consisting of Task
Order No. 07-E, 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.
ARTICLE XVIII
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.
ARTICLE 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.
ARTICLE XX
DISCRIMINATION 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.
ARTICLE XXI
PERSONNEL
A. COVINGTON represents that he has secured, or will secure at his own expense any additional
personnel required to perforn 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
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state and local laws to perform such services.
ARTICLE XXII
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.
ARTICLE XXIII
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 fights 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.
ARTICLE XXI V
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 fight 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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affect the substantive terms or conditions of this Agreement.
IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be
executed in four (4) original counterparts, by its duly authorized City Manager; and R.J. C vington
Con ulting, LC has executed this Agreement by its duly authorized officer on this the day of
2007.
"CITY"
CITY OF DENTON, TEXAS
A Municipal Corporation
By: 2,__
George C. Campbell, City Manager
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By
AJN X~YA 9
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By:
"COVINGTON"
R. J. COVINGTON CONSULTING, LLC
A Texas Limited Liability Corporation
W. C. Starnes, Vice-President
EXHIBIT "A"
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND
R.J. COVINGTON CONSULTING, LLC
TASK ORDER NO. 07-E
NOTE Load Zone Analysis
The work provided for in this Task Order is directed as an extension of the existing activities that
R. J. Covington, Consulting, LLC ("RJC") provides to Denton Municipal Electric ("DME") at
the Electric Reliability Council of Texas ("ERCOT"), related to transition to a nodal market
design in the Texas electric market. RJC will work with DME staff ("Staff') to determine
critical issues, develop a proposed market framework and analyze the impacts of DME
participating in a regional NOTE load zone, or possibly forming their own NOIE load zone prior
to implementation of the nodal market design.
RJC will work with DME management and Staff, to define critical decisions, timelines for
decision making, and critical items and assumptions for analysis. Once critical items are
identified, RJC will work with an independent nodal modeling consultant to refine the analysis
parameters and assumptions such that they are usable in the nodal model and accurately convey
the assumptions and conditions defined by RJC and DME management and Staff.
Once modeling results are obtained, RJC will analyze and interpret the modeling results,
determine if additional modeling scenarios need to be analyzed and report the results back to
DME management and Staff.
The nodal market is targeted to begin January 2009. Nodal protocols require that NOIEs
desiring to participate in or form their own NOTE load zone apply for their NOIE load zone by
six months prior to the opening of the nodal market. There are only seventeen (17) NOTE load
zones available, so an early determination may be advantageous for DME. RJC works with
DME to make the work performed under this task order as effective and efficient as possible in
order to budget expenditures. However, RJC stresses that this project may be subject to
expansion of scope based on results achieved, and DME should be aware that actual expenses
incurred for this project may be significantly higher, or on the other hand, may be lower than
initial estimates. RJC will keep the General Manager of DME informed of the status of the
budget. Work may be stopped at any time by notification of RJC by the General Manager of
DME to stop work.
Task Order 07-E
NOIE Load Zone Analysis
Scope of Services
Task A Development Activities
Task A-1 Determine Viable Modeling Options
1. RJC will make an initial estimate of data inputs and outputs necessary to effectuate the
nodal modeling runs that are necessary to make an effective decision as to whether DME
should (for their own NOIE load zone) either participate in a regional NOIE load zone, or
should remain in the ERCOT North settlement zone.
2. RJC will poll various firms offering nodal modeling capabilities and gather information
concerning their modeling efforts, including critical modeling inputs and outputs, sources of
forecasted market activities, resources and loads, turnaround time for modeling runs,
available output data, and costs of modeling runs.
3. RJC will summarize the various modeling options available to DME for presentation to
DME management and Staff, and will provide recommendations, if any, of which modeling
option(s) may best meet project goals.
Task A-2 Determination of Analysis Parameters and Model to Utilize in Analysis
1. RJC will work with companies representing the identified acceptable modeling option(s) to
determine the parameters of the modeling analysis that is necessary to complete the analysis
and assist DME in negotiating an effective agreement for modeling services.
2. RJC will perform research and develop assumptions and critical output data which meet the
needs of both DME and RJC, as well as the system requirements of the nodal system modeling
provider.
Task B Analyzing System Modeling Results
Task B-1 Review of Modeling Results
1. RJC will review the requested output from the modeling runs provided by the contracted
nodal system modeling company and interpret the significance of these outputs.
2. RJC will determine if additional modeling sensitivity scenario runs are needed to make an
effective decision concerning DME's decision tojoin a regional NOIE load zone, create their
own NOIE load zone, or remain in the North zone.
3. RJC will summarize their findings and interim recommendations to DME management and
will make a presentation to DME management as requested.
Task B-2 Perform Additional Modeling as Needed
Based on the results achieved in Task B-1, RJC will research and develop revised
assumptions and outputs for new nodal system modeling runs as needed. This may become
an iterative process requiring additional modeling runs and scenarios based on results of
previous modeling runs.
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Task Order 07-E
NOIE Load Zone Analvsis
2. RJC will summarize all relevant additional findings, if any, and provide final
recommendations to DME management.
Budget
This Task Order will involve budgeting funds for both work performed by RJC and the work which
will be performed by a nodal modeling company, as its subcontractor. The initial budget estimate
below assumes that an initial modeling run and one additional modeling run will be needed.
RJC estimated budget $ 80,000
Nodal Modeling Studies (2) $150,000
Total estimated budget $230,000
Because of the uncertainty of the level of activity required by RJC, this budget is an estimate only.
Additional funds may be required to complete this work. RJC will bill this Task Order monthly
together with supporting documentation of activities performed. RJC will send the monthly
invoices to the General Manager of DME. The work being performed under this Task Order will be
under the supervision of the General Manager of DME, will be performed pursuant to Professional
Services Agreement, and may be modified at any time upon appropriate notice or amendment by
the City of Denton, Texas to RJC.
EXECUTED this the 1/~ day of
AUTHORIZED BY
"CITY'
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By: Z
George C. Campbell
City Manager
Dated: / / 16 / O
~1 2007.
ACCEPTED BY
«JC»
R.J. COVINGTON CONSULTING, LLC
A Texas Limited Liability Corporation
By:
W. C. Starnes
Vice-President
Dated: /0//~ e
ATTEST:
JENNIFER WALTERS CITY SECRETARY
By:
APPROVED AS LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By:
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