2007-148FILE REFERENCE FORM 2007-148
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
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FILES Late 1a111A1~
First Amendment to Agreement -Ordinance No. 2008-171 08/05/08 ~ R
ORDINANCE NO.2007-~_
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. 07-C PROVIDING FOR CONTINUING
REGULATORY SERVICES AT THE ELECTRIC RELIABILITY COUNCIL OF TEXAS
AND THE PUBLIC UTILITIES COMMISSION OF TEXAS REGARDING TRANSMISSION
COSTS AND THE RATES TO BE PAID BY DENTON MUNICIPAL ELECTRIC;
TOGETHER WITH PROPOSED TRANSMISSION SYSTEM EXPANSIONS AND OTHER
RELATED PROFESSIONAL SERVICES; 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 relating to Task Order No. 07-C; which includes,
without limitation, services at the Electric Reliability Council of Texas ("ERGOT") as well as
the Public Utilities Commission of Texas ("PUCT") regarding transmission costs and the rates
paid by Denton Municipal Electric ("DME") in spite of new proposed transmission system
expansions; and also concerning priority dispatch issues to certain new market participants at the
expense of existing market participants; 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 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 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 familiaz with the chazacteristics, operations, and present rate structure of
DME 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; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1: 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. 07-C relating to the City and to Denton Municipal Electric, in
an amount not to exceed $80,000; in substantially the form of the Professional Services
Agreement that is attached hereto and incorporated herewith by reference as Exhibit "A."
SECTION 2: 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 3: The expenditure of funds as provided in the attached Professional Services
Agreement is hereby authorized.
SECTION 4: This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ day of , 2007.
~C~~
PERK . McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~ ~ W
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 and entered into on the ~7~ day of
2007, but effective from and after June 1, 2007, by and between the City of D ton, exas, a
Municipal Corporation, with its principal office at Z15 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 ageements herein
contained, the CITY and COVINGTON do hereby AGREE as follows:
ARTICLE T
EMPLOYMENT OF CONSULTANT
The CITY hereby contracts with COVINGTON, as an independent contractor, and
COVINGTON hereby agees to perform the services herein in connection with the Scope of
Services as stated in the Articles to follow as well as the Task Orders, 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 consulting services pertaining to
assisting Denton Municipal Electric in continuing regulatory services at the Electric Reliability
Council of Texas ("ERGOT"), as well as the Public Utilities Commission of Texas ("PUCT"), that
relate to ever-changing developments that pertain to .the transmission costs and the rates paid by
DME, in spite of the proposed transmission system expansions; and also concerning priority
dispatch issues to certain new mazket participants at the expense of other mazket participants,
including DME; and other relevant issues that may arise in the various rulemakings and
proceedings. RJC will also assist DME staff and legal counsel re interventions made in these
proceedings. RJC seeks to minimize any extra costs that the existing members of ERGOT might
have to pay upon the joinder into ERGOT of new customers of ERGOT. COVINGTON agees to
perform those services and tasks more particularly and specifically described in Task Order No. 07-
C that is attached hereto and incorporated herewith by reference.
B. To consult with the City Manager. Assistant City Manager/iJtilities, the Director of Electric
Utilities, the Utility Attorney, and any other designated administrative personnel regazding any and
all aspects of the services to be performed pursuant to this Ageement.
i
ARTICLE III
PERIOD OF SERVICE
This Agreement shall become retroactively effective on the 1 s' day of June 2007 and upon the
issuance of a notice to proceed by Denton Municipal Electric ("DME"). The termination date of
this Agreement shall be upon the eazliest to occur of the following events: completion of the work
described herein and in the attached Task Order No. 07-C; or upon the depletion and exhaustion of
the $80,000 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 similaz incidental expenses reasonably incurred
in connection with that assignment.
B. BILLING AND PAYMENT:
1. 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 $80,000 for those services described in Task Order No. 07-
C.
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 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
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.
z
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 the work of any subconsultants
performed hereunder.
ARTICLE V]
OWNERSHIP OF DOCUMENTS
All documents, analyses and other data prepazed by COVINGTON under this Agreement ("Work
Products") are instruments of sen~ice 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 aze
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.
3
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 VIIl
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 aze hereby expressly reserved.
ARTICLE 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 Carvers
of at least an "A-" or above:
A. Comprehensive Genera] 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 $ ] 00,000 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
[n 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 A~eement with the degree of skill and
diligence normally practiced by professional engineers or consultants performing the same degree
of similaz services. No other warranty or guarantee, expressed or implied, is made with respect to
the services famished under this Agreement and all implied warranties are disclaimed.
ARTICLE 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 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
s
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: Richazd 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
] 659 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.
6
ARTICLE XVII
ENTIRE AGREEMENT
This Agreement consisting of nine (9) pages, and three (3) additional pages consisting of
Task Order No. 07-C, 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 A~eement
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 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. COVI*;G,' ON shall inform the
CITY of any conflict of interest or potential conflict of in±erest that may arise during the term
of this Agreement.
B. All services required hereunder will be performed by COVINGTON or under his
super~~ision. All personnel engaged in work shall be qualified and shall be authorized and
permitted under 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 chazged 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. '
ARTICLE XXIV
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 hows 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 aze appropriate to enswe 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 aze for informational purposes only and shall not in any way
affect the substantive terms or conditions of this Agreement.
8
IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agmeement to be
executed in four (4) original counterparts, by its duly authorized City Manager; and R.J. Covi~~~~on
Consulting LLC has executed this Agreement by its duly authorized officer on this the 1Lt/~day
of (~, 2007.
"CITY"
CITY OF DENTON, TEXAS
A Municipal Corporation
By: ~_
eorge .Campbell, City Manager
ATTEST:
JENNIFER WALTERS', C11TY SECRETARY
sy: ~,U
APPRO ED AS O LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By:
"COVINGTON"
R. J. COVINGTON CONSULTING, LLC
A Texas Limited Liability Corporation
W. C. Starnes, Vice-President
EXHIBPI' A
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND
R.J. COVINGTON CONSULTING, LLC
TASK ORDER N0.07-C
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. 07-C 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 awaze 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 been actively hearing a number of various rulemakings and contested case
hearings that will have significant impacts on ERGOT transmission rates paid by DME and RJC
is currently working with DME staff and legal counsel representing DME interests in these
proceedings to insure that transmission rates in ERGOT remain reasonable in spite of the
proposed transmission system expansions. Future proceedings addressing these issues are
anticipated to address assigning priority dispatch to certain market participants at the expense of
other market participants, a concept that runs entirely counter to the current method of operating
the ERGOT transmission system; where all transmission system users have equal access to
capacity. Expansion of this doctrine, should it be established in these proceedings, may have
detrimental impacts in the future on customers with remote generation, such as DME.
Additionally, the PUCT is considering expanding the ERGOT footprint by incorporating non-
ERCOT Texas utilities into ERGOT. RJC has been assisting DME staff and legal counsel in
DME interventions in these proceedings. To date, RJC's has discovered that while it appeazs
that these efforts may improve costs for the customers being incorporated into ERGOT, these
new customer benefits come by imposing additional costs on existing ERGOT customers, such
as DME.
Task Order 07-C, executed even date herewith; allows RJC to supplement DME staff s efforts to
keep track of the vast amount of information that is Headed to keep up with activities at the
PUCT and the Electric Reliability Council of Texas ("ERGOT"). 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 ERGOT, 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 07-C
Regulatory Services
Task Order No. 07-C addresses regulatory issues at the PUCT. Market issues at ERGOT are
provided for in a separate task order (No. 07-D). All work performed at the PUCT is conducted
under the direction of the General Manager of Denton Municipal Electric.
Scope of Services
Task A PUCT ReQUlatorv Supaort
Task A-1 Attending Workshops and Hearings at PUCT
l . 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
of DME and the City in accordance with the directions of DME.
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 azeas 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
] . 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 Industry Monitoring and Evaluation
1. 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 ERGOT will be provided weekly.
2of3
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Task Order 07-C
Regulatory Services
Budget
This Task Order provides for a not to exceed amount of $80,000 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 General Manager of
Denton Municipal Electric, and may be modified at any time upon appropriate notice to RJC.
EXECUTED this the ~ day of i , 2007
AUTHORIZED BY:
"CITY"
ACCEPTED BY:
"RJC"
CITY OF DENTON, TEXAS R.J. COVINGTON CONSULTING, LLC
A Texas Municipal Corporation
BY~ ~ ~ By:'~2~~~.GC ~.~~;~
George C. Campbell W. C. Starnes, Vice-President.
City Manager ~-7 /
Dated: 7 /~'7~D7 Dated: //~/~~
-~~~ T
APPROVED AS TO LEGAL FORM:
EDWIN M. SI~TYDER
CITY ATTORNEY
By: d
Dated: ~~ /Q~
3of3
ATTEST:
JENNIFER WALTERS
CITY SECRETARY
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