2002-315ORDINANCE NO. 00d -JIB
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT FOR PROFESSIONAL LEGAL
SERVICES WITH LLOYD, GOSSELINK, BLEVINS, ROCHELLE, BALDWIN &
TOWNSEND, P.C., FOR LEGAL SERVICES PERTAINING TO REPRESENTATION
OF THE CITY BEFORE THE PUBLIC UTILITY COMMISSION OF TEXAS, IN THE
AREAS OF PUBLIC UTILITY REGULATORY LAW AND ADMINISTRATIVE LAW,
RESPECTING THE PROTECTION OF THE CITY'S INTERESTS IN ITS
APPLICATION TO CHANGE DENTON MUNICIPAL ELECTRIC'S RATES FOR
WHOLESALE TRANSMISSION SERVICE; AUTHORIZING THE EXPENDITURE OF
FUNDS THEREFOR; PROVIDING FOR RETROACTIVE EFFECT OF THE
AGREEMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council deems that it is in the public interest to engage the
law firm of Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C., of Austin,
Texas (the "Firm") to provide professional legal services to the City of Denton, Texas
("City") pertaining to representation of the City and Denton Municipal Electric ("DME")
before the Public Utility Commission of Texas ("PUC") in the areas of public utilities
regulatory law and administrative law, respecting the application of DME to change its
rates for wholesale transmission service; and
WHEREAS, the City staff has reported to the City Council that there is a
substantial need for the above-referenced professional legal services, and that limited City
staff cannot adequately perform the specialized services and tasks which are primarily
centered in Austin, Texas, with its own personnel; and
WHEREAS, the City has heretofore engaged the Firm by numerous previous
Agreements for Professional Legal Services to perform similar services to those services
provided for in the Agreement for Professional Legal Services attached hereto. Further,
that the Firm has performed and provided legal services benefiting the City under the most
recent Agreement which became effective in the year 2001, on a continuous and
uninterrupted basis, in order to safeguard and represent the interests of the City and DME
before the PUC, in dealing with sudden, largely unpredictable events and developments,
and with administrative deadlines that many times require immediate attention or response.
Accordingly, it is appropriate that the new Agreement for Professional Legal Services by
and between the City and the Firm attached hereto, should be ratified and confirmed, and
should be retroactively approved and made effective as of August 1, 2002, in order to
properly compensate the Firm for its work that has already directly benefited the City, and
which work was done at the specific instance and request of the City; 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 the Council hereby finds and concludes that the Firm is
appropriately qualified under the provisions of that law to be retained as outside legal
counsel for the City and DME respecting this engagement; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1: That the recitations set forth and contained in the foregoing
preamble are expressly incorporated by reference into this Ordinance.
SECTION 2: That the City Manager is hereby authorized to execute an
Agreement for Professional Legal Services by and between the City and the law firm of
Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C., of Austin, Texas, in
substantially the form of the Agreement for Professional Legal Services attached hereto
and incorporated herewith by reference.
SECTION 3: That the award of this Agreement by the City is on the basis of the
demonstrated competence, knowledge, and qualifications of the Firm and the ability of the
Firm to perform the services needed by the City for a fair and reasonable price.
SECTION 4: That the expenditure of funds as provided in the attached Agreement
for Professional Legal Services is hereby authorized.
SECTION 5: That the above and foregoing Agreement for Professional Legal
Services is hereby ratified, confirmed, and retroactively approved, and shall be effective
from and after August 1, 2002.
SECTION 6: That except as otherwise provided in Section 5 above, this
Ordinance shall become effective immediately upon its passage and approval.
PASSED AND APPROVED this the ~ day of 2002.
J( Aor-k-
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By: - h / U11A )/7 ml A
4
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
By: ljk~
SAOur Documents\0rdinances\02U.loyd Gosselink PUC 2002 TCOS ord.doc
STATE OF TEXAS
COUNTY OF DENTON
AGREEMENT FOR PROFESSIONAL LEGAL SERVICES
THIS AGREEMENT, made and entered into this /I day of S ,
2002, by and between LLOYD, GOSSELEST& BLEVINS, ROCHELL , BALDWIN &
TOWNSEND, P.C., a Texas Professional Corporation (hereinafter "Consultant"), with Lambeth
Townsend, Shareholder, having full authority to execute this Agreement on behalf of the firm,
111 Congress Avenue, Suite 1800, Austin, Texas, 78701; and the CITY OF DENTON, a Texas
Municipal Corporation, 215 E. McKinney, Denton, Texas 75201 (hereinafter "City"), with Michael
Conduff, City Manager, having full authority to execute this Agreement on behalf of the City.
WHEREAS, the City deems it necessary and in the public interest to employ legal counsel to
provide professional legal services with respect to protection of the City's interests in its application
to change City's rates for wholesale transmission service ("TCOS Rates") to be filed with the
Public Utility Commission of Texas ("PUC"); and
WHEREAS, the Consultant is willing to perform such services in a professional manner as
an independent contractor; and has competently and efficiently performed similar services for the
City in City's 1996 application to establish City's TCOS Rates, which was PUC Docket No. 15767,
and in numerous other matters before the PUC over the past several years; and the City has selected
Consultant on the basis of demonstrated competence and qualifications necessary to perform the
needed services; and
WHEREAS, the City desires to engage the Consultant to render the professional services in
connection therewith, for a fair and reasonable price; consistent with, and for a fee not higher than
the recommended practices and fees published by the applicable professional associations; and such
fees do not exceed any maximum provided by law; all in accordance with the provisions of Chapter
2254 of the Texas Government Code (the "Professional Services Procurement Act"); and the
Consultant is willing to provide such services;
NOW, THEREFORE, in consideration of the promises and mutual obligations herein, the
City and Consultant do hereby mutually AGREE as follows, to wit:
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I. Scope of Services: The Consultant shall perform the following services in a
professional manner working as an independent contractor not under the direct supervision and
control of the City:
A. Services to be provided:
1. Consultant shall represent the City in City's application to change rates for
wholesale transmission service before the Public Utility Commission, including
without limitation, the professional and legal services attendant to preparing and
submitting the application, responding to all discovery relating to the
application, and attending all hearings and other proceedings in relationship to
the application, and to consult with the City through its Denton Municipal
Electric staff with regard to all filings, hearings, appeals, and other issues related
to the application, and to assist in any subsequent actions in response to the
Commission's final order concerning the application.
2. To consult with the City Manager, the Assistant City Manager for Utilities, the
Director of Denton Municipal Electric, the City Attorney, the Assistant City
Attorney for Utilities, and/or other designated administrative personnel or staff
regarding any and all aspects of the professional services to be performed,
including legal research, analysis, and advice with respect to the proceeding
concerning City's application to change rates for wholesale transmission
service. This will include coordinating activities with the Director of Denton
Municipal Electric, the City Attorney, and their respective staff to efficiently
perform the services required and to preserve the Attorney/Client privilege,
work product, and all other applicable exceptions to the discovery or disclosure
of documents produced by the City and the Consultant under the Scope of
Services hereinabove.
B. The Consultant shall perform all the services required by this Agreement in a timely
fashion, and shall complete them in compliance with schedules established by the City
through its Director of Denton Municipal Electric as appropriate to carry out the terns
and conditions of this Agreement.
II. Term: This Agreement shall be retroactively effective as of August 1, 2002. The
Agreement shall terminate either upon the completion of the professional services provided for
herein or upon the exhaustion of all professional fees provided for hereunder, whichever event shall
first occur. This Agreement may be sooner terminated in accordance with the provisions hereof.
Time is of the essence of this Agreement. Consultant shall make all reasonable efforts to complete
the services set forth herein as expeditiously as possible during the term of this Agreement, and to
meet the schedules established by the City, through its Director of Denton Municipal Electric, or
her designee.
106018\Denton Agreement Page 2
III. Compensation and Method of Payment:
A. The Consultant shall charge the following fees for its professional services provided to the
City hereunder, based upon the following hourly billing rates for the attorneys and support
staff involved in this matter:
Staff Hourly Rate
Lambeth Townsend, Shareholder $ 220.00
Georgia Crump, Shareholder $ 200.00
Melissa E. Ramirez, Associate $ 160.00
Paralegal $ 80.00
Law Clerk $ 75.00
Consultant agrees that all charges for the legal services hereunder, including expenses as set
forth in Section III. C. below, shall not exceed $35,000.00.
B. The Consultant shall endeavor to have the attorneys and employees listed in Section III.A.
above, reasonably attempt to reduce costs by utilizing other qualified shareholders, associates,
and paralegals wherever feasible or possible. The Consultant shall bill the City through the
submission of itemized invoices, statements, and other documentation, together with support
data indicating the progress of the work and the services performed on the basis of monthly
statements, showing hourly rates indicating who performed the work, what type of work was
done, and descriptions and/or details of all services rendered, including a daily, and an entry-
by-entry reflection of billable time spent on this engagement, along with specific descriptions
and supporting documentation, if available, respecting any reasonable and necessary out-of-
pocket expenses incurred by Consultant in performing the professional services provided for
under this Agreement. Professional fees shall be billed in minimum one-tenth (1/10) hour
increments.
C. Additionally, the City shall either pay directly or reimburse the Consultant, as the case may
be, for reasonable and necessary actual out-of-pocket expenses, including but not limited to,
long-distance telephone, telecopier, reproduction, postage, overnight courier, and
transportation and travel. All copies will be charged at the rate of fifteen cents ($.15) per
copy for copies made within Consultant's offices, with as much photocopying as possible
being done by outside vendors at bulk rates or by the City to reduce costs if bulk copying is
necessary or appropriate. The parties agree that the charges for outgoing telecopies from
Consultant shall be $.25 per page and that there will be no charge for incoming telecopies.
D. The parties anticipate that invoices or statements for professional services will be generated
on a monthly basis and that said invoices or statements will be sent to the City by Consultant
on or about the 15th day of each month. The City shall make payment to the Consultant
within thirty (30) days after receipt of an appropriate itemized invoice or statement. To the
extent that any fees or expenses are disputed by the City, the City shall notify Consultant
106018\Denton Agreement Page 3
within thirty (30) days after its receipt of the invoice or statement, and shall otherwise pay all
undisputed amounts set forth in the invoice or statement within thirty (30) days after its
receipt of the invoice or statement. All reimbursable expenses, including, but not necessarily
limited to travel, lodging, and meals, shall be paid at the actual cost, pursuant to the terms,
conditions, and limitations set forth herein. All invoices or statements shall be a reviewed by
the Director of Denton Municipal Electric, or her designee; and shall be reviewed and
approved by the Assistant City Attomey/Utilities.
E. It is understood and agreed that the Consultant shall work under the coordination and general
supervision of the Director of Denton Municipal Electric, or her designee.
F. All notices, invoices, statements, and payments shall be made in writing and may be given by
personal delivery or by mail. As to notices: to Michael Conduff, City Manager, City of
Denton, 215 East McKinney, Denton, Texas 76201 or to his designee. As to invoices,
statements, or payments: to Michael S. Copeland, Assistant City Attomey/Utilities, Utility
Administration Department, at the same address, as to the City; and to Lambeth Townsend,
Lloyd/Gosselink, 111 Congress Avenue, Suite 1800, Austin, Texas 78701, as to the
Consultant. When so addressed, the notice, invoice, statement and/or payment shall be
deemed given upon deposit of same in the U. S. Mail, postage prepaid. In all other instances,
notices, invoices, statements, and/or payments shall be deemed given at the time of actual
delivery. Changes may be made in the names and addresses of the responsible person or
office to which notices, invoices, statements and/or payments are to be sent, provided
reasonable notice is given.
IV. Professional Competency:
A. Consultant agrees that in the performance of these professional services, Consultant shall be
responsible to the level of competency and shall use the same degree of skill and care
presently maintained by other practicing professionals performing the same or similar types
of work. For the purpose of this Agreement, the key persons who will be performing most of
the work hereunder shall be Lambeth Townsend and Georgia Crump, Shareholders, and
Melissa E. Ramirez, Associate. However, nothing herein shall limit Consultant from using
other qualified and competent members of the firm to perform the services required herein if
such delegation is reasonably appropriate and properly protects the City's interests.
B. Any agreements, ordinances, notices, instruments, memoranda, reports, letters, and other
legal documents prepared or obtained under the terms of this Agreement are instruments of
service and the City shall retain ownership and a property interest therein. If this Agreement
is terminated at any time for any reason prior to payment to the Consultant for work under
this Agreement, all such documents prepared or obtained under the terms of the Agreement
shall upon termination be delivered to and become the property of the City upon request and
without restriction on their use or further compensation to the Consultant.
106018\Denton Agreement Page 4
V. Establishment and Maintenance of Records: Full and accurate records shall be
maintained by the Consultant at its place of business with respect to all matters covered by this
Agreement. Such records shall be maintained for a period of at least three years after receipt of
final payment under this Agreement.
VI. Audits and Inspection: At any time during normal business hours and upon
reasonable notice to the Consultant, there shall be made available to the City all of the Consultant's
records with respect to all matters covered by this Agreement. The Consultant shall permit the City
to audit, examine, and make excerpts or transcripts from such records, and to make audits of
contracts, invoices, materials, and other data relating to all matters covered by this Agreement.
VII. Accomplishment of Prolect: The Consultant shall commence, carry on, and
complete this professional engagement with all practicable dispatch; in a sound, economical and
efficient matter; and, in accordance with the provisions hereof and all applicable laws. hi
accomplishing the project, the Consultant shall take such steps as are appropriate to insure that the
work involved is properly coordinated with any related work being carried on by the City.
VIII. Indemnity and Independent Contractor Relationship:
A. Consultant shall perform all services as an independent contractor not under the direct
supervision and control of the City. Nothing herein shall be construed as creating a
relationship of employer and employee between the parties. The City and Consultant agree to
cooperate in the defense of any claims, action, suit, or proceeding of any kind brought by a
third party which may result from or directly or indirectly arise from any negligence and/or
errors or omissions on the part of the Consultant or from any breach of the Consultant's
obligations under this Agreement. In the event of any litigation or claim under this
Agreement in which Consultant is joined as a party, Consultant shall provide suitable counsel
to defend City and Consultant against such claim, provided the Consultant shall have the
right to proceed with the competent counsel of its own choosing. The Consultant agrees to
defend, indemnify and hold harmless the City and all of its officers, agents, servants, and
employees against any and all such claims to the extent of coverage by Consultant's
professional liability policy. The Consultant agrees to pay all expenses, including but not
limited to attorney's fees, and satisfy all judgments that may be incurred or rendered against
the Consultant's professional liability insurance policy. Nothing herein constitutes a waiver
of any rights or remedies the City may have to pursue under either law or equity, including,
without limitation, a cause of action for specific performance or for damages, a loss to the
City, resulting from Consultant's negligent errors or omissions, or breach of contract, and all
such rights and remedies are expressly reserved.
B. Consultant shall maintain and shall be caused to be in force at all times during the term of this
Agreement, a legally binding policy of professional liability insurance, listed by Best Rated
Carriers, with a rating of "A-" or above, issued by an insurance carrier approved to do
business in Texas by the State Insurance Commission. Such coverage shall cover any claim
hereunder occasioned by the Consultant's negligent professional act and/or error, act, or
106018\Denton Agreement Page 5
omission, in an amount not less than $1,000,000 combined single limit coverage per
occurrence. In the event of change or cancellation of the policy by the insurer, the Consultant
hereby covenants to immediately notify the City in writing thereof; and in such event, the
Consultant shall, prior to the effective date of change or cancellation, serve a substitute policy
furnishing the same or higher amount of coverage. The Consultant shall provide a copy of
the declarations page of such policy to the City through its Director of Denton Municipal
Electric simultaneously with the execution of this Agreement.
IX. Termination of Agreement:
A. In connection with the work outlined in this Agreement, it is agreed and fully understood by
the Consultant that the City may cancel or indefinitely suspend further work hereunder or
terminate this Agreement at any time upon written notice to Consultant, Consultant shall
cease all work and labor being performed under this Agreement. Consultant may terminate
this Agreement by giving the City fifteen (15) days written notice that Consultant is no longer
in a position to continue representing the City. Consultant shall invoice the City for all work
satisfactorily completed and shall be compensated in accordance with the terms of this
Agreement. All reports and other documents, or data, or work related to the project shall
become the property of the City upon termination of this Agreement.
B. This Agreement may be terminated in whole or in part, in writing, by either party in the event
of substantial failure by the other party to fulfill its obligations under this Agreement through
no fault of the terminating party. Provided, however, that no such termination may be
affected, unless the other party is given [1] written notice (delivered by certified mail, return
receipt request) of intent to terminate, 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.
C. Nothing contained herein or elsewhere in this Agreement shall require the City to pay for any
work which is unsatisfactory or which is not submitted in compliance with the terms of this
Agreement.
X. Alternate Dispute Resolution: The Consultant agrees that, if necessary, it will use
its best efforts to resolve any disputes regarding the Agreement through the use of mediation or
other forms of alternate dispute resolution set forth in Chapter 154 of the Texas Civil Practices and
Remedies Code (V.A.T.C.S.).
XI. Entire Agreement: This Agreement represents the entire agreement and
understanding between the parties and any negotiations, proposals, or oral agreements are intended
to be integrated herein and to be superseded by this written Agreement. Any supplement or
amendment to this Agreement, in order to be effective, shall be in writing and signed by the City
and the Consultant.
106018\Denton Agreement Page 6
MI. Compliance with Laws: The Consultant shall comply with all federal, state, local
laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now
read or hereafter be amended, including but not limited to the Texas Disciplinary Rules of
Professional Conduct.
XIII. Governing Law: For the purpose of determining place of agreement and law
governing same, this Agreement is entered into in the City and County of Denton, State of Texas,
and shall be construed in accordance with, and governed by the laws of the State of Texas. Venue
and jurisdiction of any suit or cause of action arising under or in connection with this Agreement
shall lie exclusively in a court of competent jurisdiction sitting in Denton County, Texas.
MV. Discrimination Prohibited: In performing the services required hereunder, the
Consultant shall not discriminate against any person on the basis of race, color, religion, sex,
national origin or ancestry, age, or physical handicap.
XV. Personnel:
A. Consultant represents that it has or will secure at its own expense all personnel required
to perform the services required under this Agreement. Such personnel shall not be
employees nor have any contractual relations with the City. Consultant shall inform
the City of any conflict of interest or potential conflict of interest that may arise during
the term of this Agreement, in accordance with Consultant's responsibilities under the
Texas Disciplinary Rules of Professional Conduct.
B. All services required hereunder will be performed by the Consultant or under its direct
supervision. All personnel engaged in work shall be qualified and shall be licensed,
authorized, or permitted under state and local laws to perform such services.
XVI. 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 City thereto.
XVII. Severability: All agreements and covenants contained herein are severable,
and in the event any of them, with the exception of those contained in sections headed "Scope of
Services", "Independent Contractor Relationship", and "Compensation and Method of Payment"
hereof, shall be held to be invalid by any court of competent jurisdiction, this Agreement shall be
interpreted as though such invalid agreements or covenants were not contained herein.
XVIII. Responsibilities for Claims and Liability: Approval by the City shall not
constitute nor be deemed a release of the responsibility and liability of the Consultant for the
accuracy and competency of its work; nor shall such approval be deemed to be an assumption of
such responsibility of the City for any defect in any report or other documents prepared by the
Consultant, its shareholders, associates, employees, officers, or agents in connection with this
engagement.
106018\Denton Agreement Page 7
XIX. Modification of Agreement: No waiver or modification of this Agreement
or of any covenant, condition, or 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 as aforesaid. The parties further agree that the
provisions of this article will not be waived as herein set forth.
XX. Cautions: 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.
XXI. Binding Effect: This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, administrators, legal
representatives, successors, and assigns, where permitted by this Agreement.
IN WITNESS HEREOF, 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 executed
this Agreement by and through its duly authorized undersigned Shareholder; dated this the / 7Z
day o£~' 2002.
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
Michael Conduff, Cityager
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By: V
106018\Denton Agreement Page 8
HERBERT L. PROUTY, CITY ATTORNEY
LLOYD, GOSSELINK, ROCHELLE, BLEVINS
ROCHELLE, BALDWIN & TOWNSEND, P.C.
A Texas Professional Corporation
By:
ambeth Townsen hareholder
ATTEST:
By: Lj
106018\Denton Agreement Page 9