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2005-091O IN CE NO. 2005- gq / AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES AND RELATED SERVICES TO APPROVED ELECTRICAL POWER SYSTEM CONSTRUCTION PROJECTS FOR DENTON MUNICIPAL ELECTRIC WITH SGS WITTER, INC.; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems it necessary and appropriate and in the public interest to continue to engage the engineering firm of SGS Witter, Inc., a Corporation ("Witter"), of Lubbock, Texas, to provide the City with professional engineering services pertaining to Witter's work on approved electrical power system construction projects for Denton Municipal Electric; and WHEREAS, the City has previously retained and engaged the professional engineering services of Witter over the last four (4) years, and Witter has operated under previous professional service agreements, signed by the City Manager, regarding the Teasley Substation Project and regarding various capital improvement projects and structural engineering projects which have demonstrated Witter's expertise in the field; and WHEREAS, the City staff has reported to the City Council that there is a substantial need for the hereinabove described professional services by Denton Municipal Electric, and that limited City staff cannot adequately perform the specialized engineering and other 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 of professional services on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and the City Council hereby finds and concludes that Witter is appropriately qualified under the provisions of the law, to be retained as an engineering firm for the City and for Denton Municipal Electric, respecting the broadening of this engagement; and WHEREAS, the City Council has provided in the City budget for the appropriation of funds to be used for the procurement of the foregoing professional services, as set forth in the Third Amendment to Professional Services Agreement for Engineering Services and Related Services Pertaining to Approved Electrical Power System Construction Projects for Denton Municipal Electric; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the recitations contained in the preamble hereto are tree and correct and are incorporated herewith as a part of this Ordinance. SECTION2: That the City Manager is hereby authorized to execute a "Third Amendment to Professional Services Agreement for Engineering Services and Related Services Pertaining to Approved Electrical Power System Construction Projects for Denton Municipal Electric" with the engineering finn of SGS Witter, Inc., a Corporation, of Lubbock, Texas for professional engineering and related services pertaining to the interests of the City and of DME, as hereinabove described, in substantially the form of the Third Amendment to Professional Services Agreement; attached hereto and incorporated herewith by reference. SECTION 3: That the award of this Third Amendment to Professional Services Agreement is on the basis of the demonstrated competence and qualifications of the firm of SGS Witter, Inc., and the ability of the firm of SGS Witter, Inc., to perform the professional engineering and related services needed by the City for a fair and reasonable price. SECTION 4: That the expenditure of funds as provided for in the attached Third Amendment to Professional Services Agreement is hereby authorized. SECTION 5. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 6v~7~ ~f~fday o f C~~ ,2005. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY S:\Our Doeuments\Ordinances~05~SGS WiRer Inc-3rd Amended PSA-DME-2005.doc STATE OF TEXAS COUNTY OF DENTON THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES AND RELATED SERVICES PERTAINING TO APPROVED ELECTRICAL POWER SYSTEM CONSTRUCTION PROJECTS FOR DENTON MUNICIPAL ELECTRIC L/T~IS AGREEMENT is made and entered into on the ~-?day of ~/l ,2005, by and between the City of Denton, Texas, a Texas Municipal Corporation, wi~h its principal offices at 215 East McKinney Street, Denton, Texas 76201 (hereinafter "OWNER"); and SGS Witter, Inc., a Corporation, with its corporate office at 4727 South Loop 289, Suite 201, P.O. Box 53969, Lubbock, Texas 79453 (hereinafter "CONSULTANT"); the parties acting herein, by and through their respective duly-authorized representatives and officers. WHEREAS, OWNER and CONSULTANT previously entered into a Professional Services Agreement on November 7, 2000 regarding the design for approved electrical power system construction projects for a one-year term, on a non-exclusive, as-needed basis, as requested by DME, said Agreement providing for a not-to-exceed mount of $350,000 payable to CONSULTANT by the OWNER for work satisfactorily completed pursuant to the Agreement; and WHEREAS, on or about November 21, 2001, but effective as of November 7, 2001, the OWNER and CONSULTANT entered into a First Amendment to Professional Services Agreement, solely to extend the term of the above Agreement through November 7, 2002; and WHEREAS, on or about December 5, 2002, but effective as of November 7, 2002, the OWNER and CONSULTANT entered into a Second Amendment to Professional Services Agreement, solely for the purpose of extending the maturity of the First Amendment past November 7, 2002, until the $350,000 funds originally contracted for in the year 2000, have been spent on this engagement; and WHEREAS, the $350,000 in funds provided for in the original Agreement are nearly expended, pursuant to the Agreement, and considerable existing work in the form of six projects is in progress, and new projects are planned as well, and are on the horizon regarding the design for approved capital improvement plan electrical power system construction projects for DME; and WHEREAS, the existing engineering staff of DME cannot perform structural design services, and CONSULTANT, over the past four years has functioned in that capacity, and in other necessary capacities, and has demonstrated to OWNER'S satisfaction, CONSULTANT'S competency to perform; and DME has proposed that an additional $350,000 in funds be added to the original Agreement so that the work that has been started and the work that is slated to be done, can be done; and Page 1 of 12 WITNESSETIt, that in consideration of the covenants and agreements herein conta'med, the parties hereto do hereby mutually AGREE as follows: ARTTCT ,R T CONTINUED EMPLOYMENT OF CONSULTANT The OWNER hereby contracts with CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to continue to perform the services herein in connection with the Projects, as stated in the Articles to follow, with dihgence and in accordance with the professional standards customarily obtained for such services in the State of Texas; the professional services set forth herein are in connection with the following described continued capital improvement projects (the "Projects"): Professional engineering and other related services pertaining to the support of design for approved electrical power system construction capital improvement program projects on a non-exclusive, as- needed basis, as is specifically requested by Denton Municipal Electric ('~DME"). AR TtCt ,~ n SCOPE OF SERVICES The CONSULTANT shall perform the following basic services in a professional manner: CONSULTANT shall perform all those services as are necessary and as described in the letter from Steve Owens, P.E., Vice President of CONSULTANT to Chuck Sears, Engineering Administrator, DME, dated February 16, 2005 being CONSULTANT'S "Proposal to Denton Municipal Electric" which is attached in pertinent part hereto as Exhibit "A" and is incorporated herewith by reference. If there is any conflict that arises between the terms of th/s Agreement and the Exhibit attached to this Agreement, then the terms and conditions of this Agreement shall control over the terms and conditions of the attached Exhibit. ARTTCI .R Ffl' ADDITIONAL SERVICES Any additional services to be performed by the CONSULTANT, if author/zed by the OWNER, which are not included as Basic Services in the above-described Scope of Services, set forth as provided by Article 11. hereinabove, shall be later agreed-upon by OWNER and CONSULTANT, who shall determine, in writing, the scope of such additional services, the amount of compensation for such additional services, and other essential terms pertaining to the provision of such additional service by the CONSULTANT. Page 2 of 12 ARTICT .R IV PERIOD OF SERVICE This Agreement shall become effective upon its execution by the OWNER and the CONSULTANT, and services shall be provided hereunder upon the issuance of a notice to proceed by the OWNER. This Agreement shall remain in force for the period of time that may reasonably be required for the completion of the Project activities, including Additional Services, if any, and any required extensions approved by the OWNER; or until the additional $350,000 in funds which are advanced pursuant to this Third Amended Agreement (hereafter "this Agreement") have been expended, whichever event shall first occur. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in the performance and completion of this Agreement. CONSULTANT shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule reasonably established by the OWNER, acting through its Director of Electric Utilities or her designee. A R TICT ,R V COMPENSATION A. COMPENSATION TERMS: "Direct Non-Labor Expense" is defined as that expense (other than "per diem" expense), based upon actual cost plus 10%, for any otu-of-pocket expense reasonably incurred by the CONSULTANT related to its performance of this Agreement for long distance telephone charges, telecopy charges, messenger services, printing and reproduction expenses, out-of- pocket expenses for purchased computer time, prudently incurred travel expenses related to the work on the Project, and similar incidental expenses incurred in connection with the Project. B. BILLING AND PAYMENT: For and in consideration of the professional services to be performed by the CONSULTANT herein, the OWNER agrees to pay CONSULTANT, based upon the satisfactory completion of the Basic Services tasks set forth in the Scope of Services as shown in Article II above; as follows: 1. CONSULTANT shall perform its work on this Project on an hourly fee basis, plus reimbursement for ali reasonably incurred out-of-pocket expenses, billed monthly. CONSULTANT shall bill fi:om time sheets, in min/mum one half (1/2) hour increments of time, at the rates set forth in CONSULTANT'S "Proposal to Denton Municipal Electric," a five (5) page document, in pertinent part, dated February 16, 2005 from CONSULTANT to OWNER respecting the scope of services and the compensation and expense price structure, including the "2005 Standard Billing Rates" and "Special Charges and Adders," all of which is attached hereto as Exhibit "A" and which is incorporated herewith by reference. OWNER and CONSULTANT agree that CONSULTANT may adjust its fee for professional services performed in accordance with its standard published rates, no sooner than January 1, Page 3 of 12 Co 2006, and annually thereait~r. OWNER shall pay to CONSULTANT for its professional services performed, and for its out-of pocket expanses incurred in the Project, a total amount not to exceed an additional $350,000. 2. Partial payments to the CONSULTANT will be made monthly based on the percant of actual completion of the Basic Services, rendered to and approved by the OWNER through its Director of Electric Utilities or her designee. However, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. The OWNER may withhold the final ten (10%) percent of the above not-to-exceed amount until satisfactory completion of the Project by CONSULTANT. 3. Nothing contained in this Article shall require the OWNER to pay for any work that is not submitted in compliance with the terms of this Agreemant. OWNER shall not be required to make any payments to CONSULTANT at any time whan CONSULTANT is in default under this Agreement; 4. It is specifically understood and agreed that the CONSULTANT shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense or reimbursement above the not-to-exceed amount as stated hereinabove, without first having obtained the prior written authorization from the OWNER. CONSULTANT shall not proceed to perform any services to be later provided for under Article 11I. "Additional Services" without first obtaining prior written authorization from the OWNER. ADDITIONAL SERVICES: For additional services authorized in writing by the OWNER in Article llI. hereinabove, CONSULTANT shall be paid based on a to-be-agreed-upon Schedule of Charges. Paymants for additional services shall be due and payable upon submission by the CONSULTANT, and shall be in accordance with Article V.B. hereinabove. Statements for Basic Services and any Additional Services shall be submitted to OWNER no more f~equently than once monthly. PAYMENT: If the OWNER falls to make payments due the CONSULTANT for services and expenses within forty (40) days after receipt of the CONSULTANT's undisputed statement th&reef, the amounts due the CONSULTANT will be increased by the rate of one percant (1%) per month from and after the said fortieth (40th) day, and in addition, thereat~er, the CONSULTANT may, alter giving tan (10) days written notice to the OWNER, suspend services under this Agreemant until the CONSULTANT has bean paid in full for all amounts then due and owing, and not disputed by OWNER, for services, expenses and charges. Provided, however, nothing herein shall require the OWNER to pay the late charge of one percent (1%) per month as set forth herein, if the OWNER reasonably determines that the CONSULTANT's work is not submitted in accordance with the terms of this Agreemant, in accordance with Article V. B. of this Agreemant, and OWNER has notified CONSULTANT of that 'fact in writing. Page 4 of 12 ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercise reasonable care and due diligence in discovering and promptly reporting to the OWNER any defects or deficiencies in the work of CONSULTANT. ARTICLE VII OWNERSHIP OF DOCUMENTS Ail original documents prepared or furnished by the CONSULTANT pursuant to this Agreement are insmunents of service and shall become the property of the OWNER upon the termination of this Agreement. The CONSULTANT is entitled to retain copies of all such doenments. The documents prepared and furnished by the CONSULTANT are intended only to be applicable to this project and OWNER's use of these documents in other pmjeets shall be at OWNER's sole risk and expense. In the event the OWNER uses this Agreement in another project or for other purposes than specified herein any of the information or materials developed pursuant to this agreement, CONSULTANT is released from any and all liability relating to their use in that project. ARTICLE VIII INDEPENDENT CONTRACTOR CONSULTANT shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. CONSULTANT shall not have or claim any right arising from employee status. ARTICLE IX · INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officials, officers, agents, attorneys 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 fees incurred by the OWNER, and including without Ynnitation damages for bodily and personal injury, death, or property damage, resulting from the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, attorneys and employees in the execution, operation, or performance of this Agreement. 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 am hereby expressly reserved. Page 5 of 12 ARTICLE X INSURANCE During the performance of the Services under this Agreement, CONSULTANT shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Board or any successor agency, that has a rating with A. M. Best Rate Carders of at least an "A-" or above: Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $1,000,000 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 for not less than $100,000 for each accident. C. Worker's Compensation Insurance in accordance with statutory requirements, and Employer's Liability Insurance with limits of not less than $100,000 for each accident. D. Professional Liability Insurance and/or Errors & Omissions Insurance with limits of not less than $1,000,000 annual aggregate. CONSULTANT shall furnish insurance certificates or insurance policies at the OWNER's request to evidence such coverage prior to the effective date of this Agreement. The insurance policies shall name the OWNER as an additional insured on all such policies to the extent that is legally possible, and shall conta'm a provision that such insurance shall not be cancelled or modified without thirty (30) days prior written notice to OWNER and CONSULTANT. In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation of coverage, deliver copies of any such substitute policies, furnishing at least the same policy limits and coverage, to OWNER. ARTICLE XI ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may 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 XII TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by providing thirty (30) days advance written notice to the other party. Page 6 of 12 Bo This Agreement may alternatively 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 or other reason(s), and not less than thirty (30) calendar days to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. If this Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall immediately cease all services upon mgeipt of the written notice of termination from OWNER, and shall render a final bill for services to the OWNER within twenty (20) days at,er the date of termination. The OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily performed, and for reimbursable expenses prior to notice of termination being received by CONSULTANT, in accordance with Article V. of this Agreement. Should the OWNER subsequently contract with a new consultant for the continuation of services on the Project, CONSULTANT shall cooperate in providing information to the OWNER and to the new consultant. If applicable, OWNER shall allow CONSULTANT a reasonable time to transition and to turn over the Project to a new consultant. CONSULTANT shall turn over all documents prepared or furnished by CONSULTANT pursuant to this Agreement to the OWNER on or before the date of termination, but may maintain copies of such documents for its files. ARTICLE Xlll RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval of the work by the OWNER shall not constitute nor be deemed a release of the responsibility and liability of the CONSULTANT, its officers, employees, or agents, for the accuracy and competency of their work performed pursuant to this Agreement; nor shall such approval by the OWNER be deemed as an assumption of such responsibility by the OWNER for any defect in the work prepared by the CONSULTANT, its principals, officers, employees, and agents. ARTICLE XIV NOTICES All notices required or permitted under this Agreement shall be personally delivered to; or telecopied to; Or mailed to the respective parties by depositing same in the United States mail at the addresses shown below, postage prepaid, certified mail, return receipt requested, unless othenvise specified herein. Page 7 of 12 To CONSULTANT: To OWNER: SGS Witter, Inc. Steve Owens, P.E., Vice-President P.O. Box 53969 Lubbock, Texas 79453 Fax: (806) 795-7526 City of Denton, Texas City Manager 215 East McKinney Street Denton, Texas 76201 Fax: (940) 349-8596 and Chuck Sears Engineering Administrator Denton Municipal Electric 901-A Texas Street Denton, Texas 76209 All notices provided under this Agreement shall be effective upon their actual receipt by the party to whom such notice is given, or three (3) days after mailing of the notice, whichever event shall first occur. ARTICLE XV ENTIRE AGREEMENT This Agreement consisting of twelve (12) pages and one (1) Exhibit constitutes the complete and final expression of this 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, understandings, and agreements which may have been made in connection with the subject matter of this Agreement. ARTICLE XVI 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 parties shall reform this Agreement, to the extent reasonably possible, to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the original intentions of the parties respecting any such stricken provision. ARTICLE XVII COMPLIANCE WITH LAWS CONSULTANT shall comply with all federal, state, local laws, roles, regulations, and ordinances applicable to the work performed by CONSULTANT hereunder, as they may now read or as they may hereafter be amended. Page 8 of 12 ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, CONSULTANT shall not .discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE XIX PERSONNEL CONSULTANT represents that it has or will secure at its own expense all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, nor have any contractual relations with the OWNER. CONSULTANT shall immediately inform the OWNER in writing of any conflict of interest or potential conflict ofinterast that CONSULTANT may discover, or which may arise during the term of this Agreement. Bo OWNER requires that CONSULTANT carefully safeguard all documents, data, and information provided by OWNER to CONSULTANT incident to this engagement. CONSULTANT recognizes that such documents; data; and information; involve sensitive, competitive issues; in some cases, confidential information; and in some cases proprietary information; and the disclosure of such information by CONSULTANT to any third party, without the express written consent of OWNER, is expressly prohibited by OWNER, and would likely cause economic loss and detriment to OWNER. Any such unauthorized disclosure of information by CONSULTANT shall constitute an act of default respecting this Agreement. CONSULTANT represents to OWNER that it will safeguard OWNER's information and will, upon OWNER'S reasonable request, provide OWNER with CONSULTANT'S policies regarding its procedures for identifying conflicts of interest, and its procedures and safeguards which are in place which would apply to CONSULTANT'S trealment and handling of OWNER'S documents, data, and information during this engagement. All services required hereunder will be performed by CONSULTANT or under its direct supervision. All personnel engaged in performing the work provided for in this Agreement, shall be qualified, and shall be authorized and permitted under applicable state and local laws to perform such services. ARTICLE XX ASSIGNABILITY The CONSULTANT 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 OWNER. CONSULTANT shall promptly notify OWNER of any change of its name as well as of any material change in its corporate structure, its location, and/or in its operations. Page 9 of 12 ARTICLE XXI 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. 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, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. ARTICLE XXII MISCELLANEOUS Ao CONSULTANT agrees that OWNER shall, until the expiration of three (3) years after the final payment made by OWNER under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of the CONSULTANT involving transactions relating to this Agreement. CONSULTANT agrees that OWNER shall have access during normal working hours to all necessary CONSULTANT facilities and shall be provided adequate and appropriate working space in order to conduct examinations or audits in compliance with this Article. OWNER shall give CONSULTANT reasonable advance notice of all intended examinations or 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. For purposes of this Agreement, the parties agree that Steve Owens, P.E., Vice President of CONSULTANT, and Senior Electrical Engineer of the Lubbock, Texas office of CONSULTANT ("Owens") shall serve as the Project Manager of CONSULTANT respecting this engagement, shall develop the scope of services with OWNER'S designated employees, and shall oversee all engineering activities on the Project. This Agreement has been entered into with the understanding that Owens shall serve as the CONSULTANT's Project Manager and will be a key person serving the OWNER on this Project. Any proposed changes requested by CONSULTANT, respecting Owens serving as the Project Manager on the Project, shall be subject to the approval of the OWNER, which appmval the OWNER shall not unreasonably withhold. Nothing heroin shall limit CONSULTANT fxom using other qualified and competent members of its finn to perform the other services required herein, under its supervision or control. For purposes of this Agreement, the parties agree that Chuck Sears, Engineering Administrator, DME, shall sene as Project Coordinator of OWNER. All project-related correspondence, drawings, billings, and other documents shall be transmitted by the CONSULTANT to the Project Coordinator. D. CONSULTANT shall commence, carry on, and complete its work on the Project with all Page 10 of 12 applicable dispatch, and in a sound, economical, efficient manner, and in accordance with the provisions hereof. In accomplishing the Project, CONSULTANT shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the OWNER. The OWNER shall assist the CONSULTANT by placing at the CONSULTANT's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project and arranging for the access to, and make all provisions for the CONSULTANT to enter in or upon, public and private property as required for the CONSULTANT to perform professional services under this Agreement. OWNER and CONSULTANT agree that CONSULTANT is entitled to rely upon information furnished to it by OWNER without the need for further inquiry or investigation into such information. The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS WHEREOF, the City of Denton, Texas has executed this Agreement in four (4) original counterparts, by and through its duly authorized City Manager; and CONSULTANT has exeguted this .Agreement by and through its duly authorized undersigned officer, on this the ~,~ay of .c~/?~¢~j ,2005. "OWNER" CITY OF DENTON, TEXAS A Texas Municipal Corporation ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY Page 11 of 12 "CONSULTANT" SGS WITTER, INC. A Corporation ATTEST: Secretary S:~3ur DocumentsXl?ontracts~5~SGS Witter-Engr Svcs-PgA-Third Amendment-DME.doc Page 12 of 12 CONSULTING ENGINEERS & PLANNERS A ~ Company February 16, 2005 Re: Denton Mu.uicipal Electric Proposal Mr. Chuck Sears Denton Municipal Electric 901-A Texas Street Denton, Texas 76201 Dear Chuck: SOS Witter would like to propose that Denton Municipal Electric consider increasing the monetary limit on the Professional Services Agreement now in place by $350,000. We are approaching the $350,000 limit as previously established, and there are a number of projects at various stages in the design process which we will not be able to complete within that mount. The original estimate of $350,000 was not based on what we have been assigned. The projects that were expected to be the major design emphasis when the contract was originally established were modification of the Hickory Substation and the.Denton West Interchange, ConstruCtion ot~the Iron.Horse Interchange ann Substation, construction of approximately 6.5 'miles of new transmission line interconnecting these stations, and design of the Teasley Subslation. Right-of-way issues have held the Iron Horse station and transmission line projects up partially or completely for more than four years. With the $350,000 contract mount, SG8 Witter has completed the designs for four new stations, addition cfa distribution substation to Denton North, and for the reconstruction of the transmission line around the Spencer site. At the present time, several projects are in various stages of completion for the structural designs. Since inception of the contract, the Hickory and Denton West addition projects are the only projects that have had scope changes. In both of these oases, the changes were for additional work that full5, utilized the design that was done for the original plan. The following is a list of the projects currently being designed and their status: Denton West Substation Addition: 85% Hickory Substation Addition: 90% Denton North Tie to Brazos Line & Re-feed the 60MVA Transformer. 5% Bonnie Brae Crossing (part of Hickory to Locust Transmission Line) 60% Iron Horse to Higkory Transmission Line[ 20% ... Denton West to kozi Horse Transmission Line: ~ o ' ~5~.. . . U.S. 380 Crossing (~art of Hickory to North Lal(es TrunSmisal3i~ Line) 65% EXHIBIT' !' SGS Witter, Inc., P.O. Box 53969, Lubbock, TX 79453 · Office: (806) 795-6827 · Fax: 795.7526 2005 STANDARD BILLING RATES DENTON MUNICIP~ Billing Classification Billing Rates 1-1-05 thru 12-31-05 Principal Principal Principal Principal Principal $123 $115 $107 $99 $91 Senior Professional Engineer 5 Senior Professional Engineer 4 Senior Professional Engineer 3 Senior Professional Engineer 2 Senior Professional Engineer 1 $123 $115 $107 $99 $91 Professional Engineer 5 Professional Engineer 4 Professional Engineer 3 Professional Engineer 2 Professional Engineer 1 $107 $100 $93 $86 $79 Graduate Engineer 5 Graduate Engineer 4 Graduate Engineer 3 Graduate Engineer 2 Graduate Engineer 1 $91 $85 $79 $73 $67 Registered Land Surveyor 5 Registered Land Surveyor 4 Registered Land Surveyor 3 Registered Land Surveyor 2 Registered Land Surveyor 1 $101 $91 $84 $79 $73 Senior Staff 5 Senior Staff 4 Senior Staff 3 Senior Staff 2 Senior Staff 1 $102 $95 $88 $81 $74 Steve, Mike Gene Donny, Travis Lonnie Kyle, Many Charley 2005 STANDARD BILLING RATES Page 2 Billing Classification Chief Technician 5 Chief Technician 4 Chief Technician 3 Chief Technician 2 Chief Technician 1 Survey Party Chief 5 Survey Party Chief 4 Survey Party Chief 3 Survey Party Chief 2 Survey Party Chief 1 Senior Technician 5 Senior Technician 4 Senior Technician 3 Senior Technician 2 Senior Technician I Technician 5 Technician 4 Technician 3 Technician 2 Technician 1 Associate Technician 5 Associate Technician 4 Associate Technician 3 Associate Technician 2 Associate Technician 1 Office Manager Office Staff 5 Office Staff 4 Office Staff 3 Office Staff 2 Office Staff 1 Billing Rates 1-1-05 thru 12-31-05 $85 Galen ' $80 Gale $75 $70 $65 $75 PeR G. $70 $65 $60 $55 $75 Randy, Luis $70 $65 $60 $55 $64 Jose, Sally $60 $56 Heath $52 $48 Cody $56 $52 $48 $44 $40 $60 $57 $54 $51 Judy, Addle $48 $45 SPECIAL CHARGES AND ADDERS (1-1-05 through 12-31-05) Page 3 Per Diem: CADD Adder: Expenses: Mileage ATV Usage: GPS System (3 meter accuracy): GPS System (survey accuracy): Forensic Services: Standard rate times 1.3 multiplier Per Diem rates will be established for each project as Either "Low Cost" or "High Cost" areas as set by Federal tax code $4.50 per hour Actual Out-of-Pocket + 10% 2WD: IRS allowable* + 10% 4WD: $0.45/mile $50/day $50/day $250/day As negotiated with client * 2005 IRS Allowable Rate is $0.405/mile