R-08-12-04-9B1 - 12/4/2008RESOLUTION NO. R -08-12-04-9B1
WHEREAS, the City of Round Rock has previously entered into an
engagement letter with Brown McCarroll, L.L.P. for legal services
for Certificate of Convenience and Necessity (CCN) issues, and
WHEREAS, Brown McCarroll, L.L.P. has submitted Supplement No. 3
to the engagement letter to include continued efforts to obtain
amendments to the original CCN amendment applications along with
related CCN issues that may arise between now and October 31, 2009,
and
WHEREAS, the City Council desires to enter into said
Supplement No. 3 to the engagement letter with Brown McCarroll,
L.L.P., Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City Supplement No. 3 to the engagement letter with
Brown McCarroll, L.L.P., a copy of same being attached hereto as
Exhibit "A" and incorporated herein for all purposes.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 4th day of December, 2008.
0:\WDOX\RESOLUTI\R8120481.DOC/rmc
ATTEST:
SARA L. WHITE, City Secretary
2
0 )1, ,71 ------
ALAN MCGRAW, Mayor
City of Round Rock, Texas
Brown
McCarroll
L.L.P.
VIA ELECTRONIC AND REGULAR MAIL
James R. Nuse, P.E.
City Manager
City of Round Rock
221 East Main Street
Round Rock, Texas 78664
Dear Mr. Nuse:
111 Congress Avenue, Suite 1400, Austin, Texas 78701-4043
512-472-5456 Fax 512-479-1101
direct (512) 479-1151 dworrell@mailbmc.com
October 20, 2008
This correspondence is supplement number three to the letter of engagement between my
firm, Brown McCarroll, L.L.P. ("the Firm"), and the City of Round Rock ("the City") dated June
15, 2007.
The June 15th engagement letter specified that the Firm had been retained by the City to
assist it on amending its Certificates of Convenience and Necessity ("CCNs") for water and
sewer services. The scope of initial work on the project was to provide input on development of
CCN amendment applications and conduct analyses of issues affecting the project and providing
the City with an assessment of its likelihood of success. The budget for that initial work was not
to exceed $30,000.
The first supplement to the letter of engagement, dated November 13, 2007, involved
preparation of the CCN amendment applications by an environmental consulting firm and review
and input by the Firm on preparation, notification, submittal, and other issues associated with the
applications. The environmental consulting firm chosen by staff for this project is HDR
Engineering, Inc. ("HDR"). HDR's budget according to the first supplement was approximately
$35,000, and the Firm's budget was $20,000. Accordingly, the budget for that phase of work on
the project was not to exceed $55,000.
The second supplement to the letter of engagement, dated March 12, 2008, involved
continued preparation and completion of the CCN amendment applications by HDR and input by
the Firm on preparation, notification, submittal, and other issues associated with the applications.
HDR's budget for this phase was $22,262, and the Firm's budget was $24,325. Accordingly, the
total budget for the second supplement phase of work on the project was not to exceed $46,587.
This third supplement to the letter of engagement, dated October 17, 2008, involves
current and continued efforts to obtain amendments to the original CCN amendment applications
along with related CCN issues that may arise between now and October 31, 2009. The Firm's
budget on this third supplemental phase of the project is attached and the total budget is not to
exceed $34,024.
Austin • Dallas • Houston • El Paso
EXHIBIT
ItAn
James R. Nuse, P.E.
October 20, 2008
Page 2
Budgets for subsequent, additional work on this project must continue to be approved in
writing by the Firm and the City. For the City's convenience, any need for incidental
engineering assistance on these issues covered by this third supplement will be conducted by
HDR, approved by City Staff in advance, and paid directly by the Firm under this budget
authorization. Documentation for any work by and payments to HDR will be provided along
with the Firm's invoices to the City.
We appreciate the opportunity to represent the City on this matter. If you have any
questions or concerns regarding this second supplement, please do not hesitate to contact me.
If this letter accurately reflects our agreement, please have this letter signed and returned
to me at your earliest convenience.
Very truly yours,
Danny G. `Worrell
cc: Stephan L. Sheets
Michael Thane
Neil Graff (HDR)
Grady Reed (HDR)
Cynthia Tom
AGREED AND ACCEPTED
AS OF , 2008.
City of Round Rock
By:
Mayor Nyle Maxwell
4179913.1
4036.24943
Brown McCarroll, L.L.P. — Brown McCarroll Work
City of Round Rock CCN Application Preparation — AMENDMENT #3
September 1, 2008—October 31, 2009
Budget Hours
Item Task Description Partner Associate Task Fee
Water CCN Application
1 Field ongoing questions from TCEQ staff and CORR staff 8 16 $4,800
2 Progress meeting (1) 4 $1,000
3 Meeting with TCEQ Staff 3 $750
4 Negotiations/communications with interested 16 $4,000
parties and entities
5 Miscellaneous research/investigation 2 5 $1,375
Wastewater CCN Application
1 Field questions from TCEQ and CORR staff regarding CCN 8 16 $4,800
boundary overlaps and application amendment submissions
2 Progress meetings (3) 12 $3,000
3 Miscellaneous research/investigation 2 5 $1375
4 Negotiations/communications with interested 16 $4,000
parties and entities
5 Meeting with TCEQ Staff 3
Current Unbilled Fees and Costs
Current Subcontractor Expenses (HDR Engineering)
LABOR TOTALS
TOTAL HOURS 74
42
$750
$3,766
$4,233
TOTAL LABOR FEE
$33,849
REIMBURSABLE DIRECT COSTS
Postage & Delivery
Printing & Photocopying
$25
$150
TOTAL REIMBURSABLE DIRECT COSTS
$175
Amendment #3 Fee
4178470.1
4036.24943
$34,024
Original Fee $30,000
Amendment #1 Fee $20,000
Amendment #2 Fee $24,325
Total Maximum Authorization $108,349
DATE: November 24, 2008
SUBJECT: City Council Meeting — December 4, 2008
ITEM: 9B1. Consider a resolution authorizing the Mayor to execute Supplement No. 3
to the Engagement Letter with Brown McCarroll, LLP for legal services for
Certificate of Convenience and Necessity (CCN) issues.
Department:
Staff Person:
Justification:
Water and Wastewater Utilities
Michael Thane, P.E., Director of Utilities
The third Supplement involves current and continued efforts to obtain amendments to the
original CCN amendment applications along with related CCN issues that may arise over the
next year (between now and October 31, 2009).
Funding:
Cost:
Source of funds: Self -Financed Utility Funds
$34,024
Initial Engagement Letter
$30,000
Supplement No. 1
$55,000
Supplement No. 2
$46,587
Supplemental No. 3
$34,024
Total Budget
$165,611
Outside Resources: Brown McCarroll, L.L.P. and HDR Engineering, Inc.
Background Information:
The City is facing CCN challenges from several utility companies regarding service within our
future city limits. Brown McCarroll is currently under contract to assist the City with the
expertise necessary to file an application with the Texas Commission on Environmental Quality
to amend the City's current water and wastewater CCNs. The initial June 15, 2007 engagement
letter specified that Brown McCarroll would assist the City in amending its CCNs for water and
wastewater services. The scope of initial work on the project was to provide input on
development of CCN amendment applications and conduct analysis of issues affecting the
project and providing the City with an assessment of its likelihood of success. Supplement No.
1, dated November 13, 2007 involved preparation of the CCN amendment application by HDR
Engineering and review and input by Brown McCarroll associated with the CCN applications.
Supplement No. 2, dated April 11, 2008 involved continued preparation and completion of the
CCN amendment applications by HDR and input by Brown McCarroll on preparation,
notification, submittal, and other issues associated with the applications.
Public Comment: N/A
EXECUTED
DOCUMENT
FOLLOWS
Brown McCarroll
L.L.P.
VIA ELECTRONIC AND REGULAR MAIL
James R. Nuse, P.E.
City Manager
City of Round Rock
221 East Main Street
Round Rock, Texas 78664
Dear Mr. Nuse:
111 Congress Avenue, Suite 1400, Austin, Texas 78701-4043
512-472-5456 fax 512-479-1101
direct (512) 479-1151 dworrell@mailbmc.com
October 20, 2008
This correspondence is supplement number three to the letter of engagement between my
firm, Brown McCarroll, L.L.P. ("the Firm"), and the City of Round Rock ("the City") dated June
15, 2007.
The June 15th engagement letter specified that the Firm had been retained by the City to
assist it on amending its Certificates of Convenience and Necessity ("CCNs") for water and
sewer services. The scope of initial work on the project was to provide input on development of
CCN amendment applications and conduct analyses of issues affecting the project and providing
the City with an assessment of its likelihood of success. The budget for that initial work was not
to exceed $30,000.
The first supplement to the letter of engagement, dated November 13, 2007, involved
preparation of the CCN amendment applications by an environmental consulting firm and review
and input by the Firm on preparation, notification, submittal, and other issues associated with the
applications. The environmental consulting firm chosen by staff for this project is HDR
Engineering, Inc. ("HDR"). HDR's budget according to the first supplement was approximately
$35,000, and the Firm's budget was $20,000. Accordingly, the budget for that phase of work on
the project was not to exceed $55,000.
The second supplement to the letter of engagement, dated March 12, 2008, involved
continued preparation and completion of the CCN amendment applications by HDR and input by
the Firm on preparation, notification, submittal, and other issues associated with the applications.
HDR's budget for this phase was $22,262, and the Firm's budget was $24,325. Accordingly, the
total budget for the second supplement phase of work on the project was not to exceed $46,587.
This third supplement to the letter of engagement, dated October 17, 2008, involves
current and continued efforts to obtain amendments to the original CCN amendment applications
along with related CCN issues that may arise between now and October 31, 2009. The Firm's
budget on this third supplemental phase of the project is attached and the total budget is not to
exceed $34,024.
Austin • Dallas • Houston • El Paso
12-- DO- I2 -o4- 9P,I
James R. Nuse, P.E.
October 20, 2008
Page 2
Budgets for subsequent, additional work on this project must continue to be approved in
writing by the Firm and the City. For the City's convenience, any need for incidental
engineering assistance on these issues covered by this third supplement will be conducted by
HDR, approved by City Staff in advance, and paid directly by the Firm under this budget
authorization. Documentation for any work by and payments to HDR will be provided along
with the Firm's invoices to the City.
We appreciate the opportunity to represent the City on this matter. If you have any
questions or concerns regarding this second supplement, please do not hesitate to contact me.
If this letter accurately reflects our agreement, please have this letter signed and returned
to me at your earliest convenience.
Ver truly yours,
Danny G. ' orrell
cc: Stephan L. Sheets
Michael Thane
Neil Graff (HDR)
Grady Reed (HDR)
Cynthia Tom
AGREED AND ACCEPTED
AS OF
City of Round Rock
By:
, 2008.
Maysf-1144e-Meetwell-
CayncNay, M w
4179913.1
4036.24943
Brown McCarroll, L.L.P. — Brown McCarroll Work
City of Round Rock CCN Application Preparation — AMENDMENT #3
September 1, 2008—October 31, 2009
Budget Hours
Item Task Description Partner Associate Task Fee
Water CCN Application
1 Field ongoing questions from TCEQ staff and CORR staff 8 16 $4,800
2 Progress meeting (1) 4 $1,000
3 Meeting with TCEQ Staff 3 $750
4 Negotiations/communications with interested 16 $4,000
parties and entities
5 Miscellaneous research/investigation 2 5 $1,375
Wastewater CCN Application
1 Field questions from TCEQ and CORR staff regarding CCN 8 16 $4,800
boundary overlaps and application amendment submissions
2 Progress meetings (3) 12 $3,000
3 Miscellaneous research/investigation 2 5 $1375
4 Negotiations/communications with interested 16 $4,000
parties and entities
5 Meeting with TCEQ Staff 3 $750
Current Unbilled Fees and Costs $3,766
Current Subcontractor Expenses (HDR Engineering) $4,233
LABOR TOTALS
[TOTAL LABOR FEE
TOTAL HOURS 74 42
REIMBURSABLE DIRECT COSTS
Postage & Delivery
Printing & Photocopying
$33,849
$25
$150
9 TOTAL REIMBURSABLE DIRECT COSTS
$175
Amendment #3 Fee
4178470.1
4036.24943
$34,024
Original Fee $30,000
Amendment #1 Fee $20,000
Amendment #2 Fee $24,325
Total Maximum Authorization $108,349