2005-128Om N CE No. 2005-
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. 05-C; PROVDING FOR SERVICES
RELATED TO DETERMINATION OF DENTON MUNICIPAL ELECTRIC'S FUTURE
REQUIREMENTS FOR WHOLESALE ELECTRIC SUPPLY AND RELATED SERVICES;
TO SOLICIT AND CONSDER ALTERNATIVES TO REPLACE THE EXISTING
TRANSITION POWER AGREEMENT; AND TO ISSUE A REQUEST FOR PROPOSALS
FOR PURCHASED POWER BY DENTON MUNICIPAL ELECTRIC; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council deems it in the public interest to engage the firm of R. J.
Covington Consulting, LLC of Austin, Texas ("Covington"), to provide professional consulting
services to the City relating to Task Order No. 05-C; which includes, without limitation, services
providing an evaluation of options to meet Denton Municipal Electric's future requirements for
wholesale electric supply and related services, and to solicit and consider alternatives to replace
the current existing Transition Power Agreement; also possibly culminating in the issuance of a
Request for Proposals ("REP"); 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 eight
(8) 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
relatibns with the PUC and ERCOT. Covington and his staff are familiar with the
characteristics, operations, and present rate structure of DME: and
WHEREAS, the City Council has provided in the City Budget for the appropriation of
fimds 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: That the City Manager is hereby authorized to execute a Professional
Services Agreement with R. J. Covington Consulting, L LC of Austin, Texas, for professional
consulting services relating to Task Order No. 05-C, to the City and to Denton Municipal
Electric, in an mount of not to exceed $94,400; in substantially the form of the Professional
Services Agreement 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
price.
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.
PAS SED AND APPROVED this the ..~q,,(.(,~ day o f ~fi'f~ , 2005.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, C1TY SECRETARY
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, INTERIM CITY ATTORNEY
S:\OUR DOCUMENTS\Ordinances\05~R J Covington Consulting LLC-DME-Ord Aprv TO 5-C-2005.doc
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STATE OF TEXAS
COUNTY OF DENTON
PROFESSIONAL SERVICES AGREEMENT FOR CONSULTING SERVICES
PERTAINING TO DENTON MUNICIPAL ELECTRIC
THIS ACREEMENT is made and entered into on the,.~/L~day of , 200s,
by and between the City of Denton, Texas, a Municipal Corporation, with its princtipal~ffice 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, hereailer "COVINGTON"; acting herein by and through their
duly authorized representatives.
V~ITNESSETH, that in consideration of the covenants, promises and agreements herein
contained, the CITY and COVINGTON do hereby AGREE as follows:
ARTlCLE 1
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.
ARTICLE II
SCOPE OF SERVICES
A. COVINGTON shall provide to the CITY professional consulting services pertaining to
assisting Denton Municipal Electric in performing an overall evaluation of options to meet its future
requirements for wholesale electric supply and related services and to solicit and consider
alternatives to replace the current Constellation Transition Power Agreement. It is anticipated that
this solicitation will be accomplished by way of the issuance of a Request for Proposals ("RFP").
COVINGTON agrees to perform those services and tasks more particularly and specifically
described in Task Order No. 05-C attached hereto and incorporated herewith by reference.
B. To consult with the City Manager, Assistant City Manager/Utilities, 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.
ARTICI.E I11
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. 05-C; or upon the depletion and exhaustion of
the $94,400 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.
ARTICI,E 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. BILL1NG 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 $94,400 for those services described in Task Order No. 05-
C.
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.
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 fi.om 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.
A R TIO. I ,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.
ARTICLF. 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 fi.om 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.
ARTICI .F. 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 fi.om employee
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ARTICI.E 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. COV1NGTON'S liability
under this Article VIII is expressly limited to the amount of COV1NGTON'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.
ARTICI,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:
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.
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.
Professional Liability Insurance with policy limits of not less than $1,000,000 annual
aggregate.
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.
ARTIC!.E 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 altemate 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.
ARTICI.E 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).
ARTICI.E
CONSEQUENTIAL DAMAGES
In no event and under no circumstances shall COVINGTON be liable to CITY for any
interest, loss of anticipated revenues, eamings, profits, or increased expense of operations, or for any
consequential, indirect or special damages.
ARTIC][.F, 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 fianished under this Agreement and all implied warranties are disclaimed.
ARTICI .E XIV
TERMINATION OF AGREEMENT
Notwithstanding any other provision of this Agreement, either party may terminate this
Agreement by giving thirty (30) days advance written notice of temfination to the other party.
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, retum 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.
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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 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 1V,
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.
ARTICI ,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 sub-consultants of COVINGTON, for the accuracy and
competency of their designs or other work product.
ARTICI .lq. 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:
R.J. Covington Consulting, LLC
Attn: Richard J. Covington
11044 Research Blvd., Suite A-325
Austin, Texas 78759
City of Denton, Texas
Attn: Michael A. Conduff, 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.
ARTICI.E XVII
ENTIRE AGREEMENT
This Agreement consisting of nine (9) pages, and four (4) additional pages consisting of Task
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Order No. 05-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 often, promises, representations, negotiations, discussions, communications
and agreements which may have been made in connection with the subject matter hereof.
ARTICI ,F, 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 unenfomeable. 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.
ARTICI.I~ YIX
COMPLIANCE WITH LAWS
COVINGTON shall comply with all federal, state, local laws, roles, 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.
ARTICJ,F.
PERSONNEL
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.
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.
ARTICLF, 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.
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ARTTCI.I~ XXTTI
MODIFICATION
NO waiver or modification of this Agreement or of any covenant, condition, limitation heroin
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.
ARTICI,E XXIV
MISCELLANEOUS
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.
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.
COVINGTON shall commence, catty on, and complete the work required by this engagement
with all applicable dispatch, in a sound, economical, efficient mariner 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.
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.
The captions of this Agreement am for informational purposes only and shall not in any way
affect the substantive terms or conditions of this Agreement.
1N 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. Cov. ington
Consulting, LLC has executed this Agreement by its duly authorized officer on this the,~Xe~tay of
,200s.
"CITY"
CITY OF DENTON, TEXAS
A Municipal Corporation
Michael A. ~onduff, Cit~anager
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
ED SNYDER, INTERIM CITY ATTORNEY
By:
"COVINGTON"
R.J. COVINGTON CONSULTING, LLC
A Texas Limited Liability Corporation
Richard J. Co~4igton,XP3~ident
S:\OUR DOCUMENTS\Contracts\05~°,J Covington Consulting LLC-PSA-TO 05-C-RFP Purchased Powcr-DME.doc
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ATTACHMENT
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF DENTON TEXAS AND
R.J. COVINGTON CONSULTING, LLC
TASK ORDER NO. 05-C
Request for Proposals for Purchased Power
This Task Order is directed at assisting Denton Municipal Electric ("DME") to perform an
overall evaluation of options to meet its future requirements for wholesale electric supply and
related services and to solicit and consider alternatives to replace the current Constellation
Transition Power Agreement. It is anticipated that this solicitation will be accomplished by way
of the issuance of a Request for Proposals ("RFP"). RJC will administer thc RFP process, act as
the point of contact for all prospective respondents and interested parties, and help conduct and
support final negotiations for any resulting agreements.
Discussion
DME is currently purchasing power to serve a portion of its electric utility load obligation under
a Transition Power Agreement ("TPA") with Constellation Power Source ("Constellation").
This agreement will terminate in June 2006. DME desires to solicit and consider alternatives to
replace the current Constellation TPA as part of an overall evaluation of options to meet its
future requirements for wholesale electric supply and related services. It is anticipated that this
solicitation will be accomplished by way of the issuance of a Request for Proposals ("RFP").
There have been significant changes in the current market structure, an entirely new market
structure proposed for the near future, an expanded range of energy product offerings, and a
general increase in the level of uncertainty and risk in the electric market since DME executed its
current TPA in 2001. In Task 1, RJC will work with DME to perform an overall evaluation of
its resource planning process, explore the range of possible alternatives to meet the DME future
load, and then fully define the desired results of the RFP process. Task 2 provides for a review
of historic capacity and energy usage and to forecast future capacity and energy requirements.
RJC will utilize the material provided in Task 2 to develop the RFP for Purchased Power
document in Task 3. Tasks 4 and 5 will accomplish the RFP process and evaluation of all
proposals submitted. RJC will work with DME management in the negotiation of a new
purchased power agreement in Task 6.
Following is a detailed list of services to be provided under this Task Order.
Task 1
I.
2.
Task Order 05-C
Request for Proposals
Scope of Services
Detailed Definition of Project Requirements and Deliverables
Review the current load forecast and underlying assumptions with DME.
Develop a comprehensive list of issues that should be evaluated in the
resource planning and procurement process and recommend alternatives to
incorporate into the RFP.
3. Define the objectives of the process, in both quantitative and qualitative
terms.
4. Document the specific work products and deliverables expected from the RFP
process.
5. Specify any particular products or product attributes desired in proposal
responses.
6. Recommend the allowed timeframe within which to complete the process.
7. Finalize the basis for selection of qualified respondents.
Task 2
1.
2.
3.
4.
5.
Task 3
Task 4
1.
Information Gathering
Assemble data on energy and capacity requirements for the last five years.
Document hourly dispatched volumes from DME owned resources for the last
five years and future planned outages forecasted outputs.
Update long-term energy and capacity resource plan.
Summarize the DME projected future capacity and energy needs for
presentation in the RFP.
Assemble required electric system information needed for the RFP for
Purchased Power.
Development of RFP for Purchased Power
1. Draft a description of the DME plans for the future operations of the utility.
2. Develop a draft version of the RFP for review by DME.
3. Finalize the RFP document incorporating the DME comments and edits.
4. Assist DME to obtain necessary approvals for issuance of the RFP.
Issuance and Administration of the RFP for Purchased Power
Develop a list of potential recipients for direct distribution of the RFP and
recommend other ways to alert highly qualified potential respondents.
2. Distribute the final RFP to approved recipients.
3. Serve as the single point of contact for all questions, data requests, and other
potential issues raised by potential respondents.
4. Accept delivery of responses to the RFP, and perform any required follow up
or secondary communication with respondents.
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Task Order 05-C
Request for Proposals
Task 5
Analysis of RFP for Purchased Power responses
1. Develop a spreadsheet model to evaluate and rank quantitative features of all
responses.
2. Evaluate all responses to determine if they meet the conforming requirements of
the RFP.
3. Model all bids to determine which responses offer the best pricing and options for
DME. Responses will be evaluated regarding services offered, quality of these
services, and pricing. All proposal evaluations will consider and quantify, when
possible, additional costs such as transmission costs, the potential for congestion
management charges, and supplying ancillary services.
4. Rank all proposals and measure against each other and submit to DME.
Task 6
Negotiation of New Purchased Power Agreement
1. Determine a shortlist of parties with which to initiate detailed discussions and
negotiations for a new pumhase power agreement.
2. Conduct and support negotiations to finalize and execute pumhased power
agreement(s) with one or more chosen parties.
Budget
The not-to-exceed amount for thc above scope of services for both labor and out-of-pocket
expenses is $94,400. This amount will not be exceeded without prior written approval of the
City of Denton, Texas. This scope of services budget assumes that RJC acts as the point of
contact for all prospective respondents, and that the RFP is submitted to a selected list of
qualified vendors (as approved by DME) rather than widely distributed throughout industry
channels. The budget estimate also assumes that there are 6-8 responsive proposals submitted by
well-qualified parties, and that final negotiations would be with only one selected preferred party
(involvement of the next one or two most competitive parties would be maintained until a final
agreement is certain).
RJC will bill this Task Order monthly, with supporting documentation of activities performed.
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, ~(~ day of ~ ,2005.
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AUTHORIZED BY:
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
MICHAEL A. CONDUFF/~)
CITY MANAGER
Dated:
Task Order 05-C
Request for Proposals
ACCEPTED BY:
R.J. COVINGTON CONSULTING, LLC
Its President
Dated: /4~j
ATTEST:
JENNIFER WALTERS, City Secretary
APPROVED AS TO LEGAL FORM:
ED SNYDER, INTERIM CITY ATTORNEY
S:\OUR DOCUMENTS\Contracts\05\RJC TO 05-C RFP Purchased Power.doc
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