CM-2022-149 - 6/24/2022CITY OF ROUND ROCK AGREEMENT FOR
PROFESSIONAL CONSULTING SERVICES RELATED TO
LIGHTING OWNERSHIP SUPPORT
WITH
TANKO STREETLIGHTING. INC.
THE STATE OF TEXAS §
THE CITY OF ROUND ROCK § KNOW ALL BY THESE PRESENTS
§
COUNTY OF WILLIAMSON §
COUNTY OF TRAVIS §
THIS AGREEMENT for professional consulting services related to lighting ownership
support of the City of Round Rock's streetlight system (the "Agreement'), is made by and
between the CITY OF ROUND ROCK, a Texas home -rule municipal corporation with offices
located at 221 East Main Street, Round Rock, Texas 78664-5299 (the "City"), and TANKO
STREETLIGHTING, INC., located at 220 Bayshore Boulevard, San Francisco, California 94124
(the "Consultant").
RECITALS:
WHEREAS, professional consulting services related to audit services for the City's
streetlight system (the "Project"), are desired by the City; and
WHEREAS, City has determined that there is a need for the delineated services; and
WHEREAS, City desires to contract with Consultant for these services; and
WHEREAS, the parties desire to enter into this Agreement to set forth in writing their
respective rights, duties and obligations hereunder.
NOW, THEREFORE, WITNESSETH:
That for and in consideration of the mutual promises contained herein and other good and
valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is
mutually agreed between the parties as follows:
1.0 EFFECTIVE DATE, DURATION, AND TERM
A. This Agreement shall be effective on the date this Agreement has been signed by
each party hereto, and shall remain in full force and effect unless and until it expires by operation
of the term indicated herein, or is terminated as provided herein.
B. The term of this Agreement shall commence upon the effective date hereof and
terminate six (6) months from said effective date.
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L92-8221-7253/�ss2
C. City and the Consultant reserve the right to review the Agreement at any time,
and may elect to terminate the Agreement with or without cause or may elect to continue.
2.0 SCOPE OF SERVICES
Consultant has issued its proposal for services, such proposal for services being attached
to this Agreement as Exhibit "A," which shall be referred to as the Proposal and Exhibit "A"
titled "Proposal," which shall be referred to as the Scope of Services of this Agreement. Said
attached Exhibit "A" shall be incorporated herein by reference for all purposes.
Consultant shall satisfactorily provide all services described herein and as set forth in
Exhibit "A." Consultant shall perform services in accordance with this Agreement, in
accordance with the appended Proposal and Scope of Services and in accordance with due care
and prevailing consulting industry standards for comparable services.
3.0 LBUTATION TO SCOPE OF SERVICES
Consultant's undertaking shall be limited to performing services for City and/or advising
City concerning those matters on which Consultant has been specifically engaged, and may only
be modified by a written Supplemental Agreement executed by both parties as described in
Section 9.0.
4.0 CONTRACT AMOUNT
In consideration for the professional consulting services to be performed by Consultant,
City agrees to pay Consultant an amount not -to -exceed Thirty Thousand and No/100 Dollars
($30,000.00) as set forth in Exhibit "A."
5.0 INVOICE REQUIREMENTS; TERMS OF PAYMENT
Invoices: To receive payment, Consultant shall prepare and submit detailed invoices to
the City, in accordance with the delineation contained herein, for services rendered. Such
invoices for professional services shall track the referenced Scope of Work, and shall detail the
services performed, along with documentation for each service performed. Payment to
Consultant shall be made on the basis of the invoices submitted by Consultant and approved by
the City. Such invoices shall conform to the schedule of services and costs in connection
therewith.
Should additional backup material be requested by the City relative to service
deliverables, Consultant shall comply promptly. in this regard, should the City determine it
necessary, Consultant shall make all records and books relating to this Agreement available to
the City for inspection and auditing purposes.
Payment of Invoices: The City reserves the right to correct any error that may be
discovered in any invoice that may have been paid to Consultant and to adjust same to meet the
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requirements of this Agreement. Following approval of an invoice, the City shall endeavor to pay
Consultant promptly, but no later than the time period required under the Texas Prompt Payment
Act described in Section 8.01 herein. Under no circumstances shall Consultant be entitled to
receive interest on payments which are late because of a good faith dispute between Consultant
and the City or because of amounts which the City has a right to withhold under this Agreement
or state law. The City shall be responsible for any sales, gross receipts or similar taxes
applicable to the services, but not for taxes based upon Consultant's net income.
6.0 INSURANCE
Consultant shall meet all City of Round Rock Insurance Requirements set forth at:
hLt s://www.roundrocktexas. oy-content/u loads/2014/12/corr insurance 07.20112. df
7.0 PROMPT PAYMENT POLICY
In accordance with Chapter 2251, V.T.C.A., Texas Government Code, any payment to be
made by the City to Consultant will be made within thirty (30) days of the date the performance
of the services under this Agreement are completed, or the date the City receives a correct
invoice for the services, whichever is later. Consultant may charge interest on an overdue
payment at the "rate in effect" on September 1 of the fiscal year in which the payment becomes
overdue, in accordance with V.T.C.A., Texas Government Code, Section 2251.025(b). This
Prompt Payment Policy does not apply to payments made by the City in the event:
(a) There is a bona fide dispute between the City and Consultant, a contractor,
subcontractor, or supplier about the service performed that cause the payment
to be late; or
(b) There is a bona fide dispute between Consultant and a subcontractor or
between a subcontractor and its supplier about the service performed that
causes the payment to be late; or
(c) The terms of a federal contract, grant, regulation, or statute prevent the City
from making a timely payment with federal funds; or
(d) The invoice is not mailed to the City in strict accordance with any instruction
on the purchase order relating to the payment.
8.0 NON -APPROPRIATION AND FISCAL FUNDING
This Agreement is a commitment of the City's current revenues only. It is understood and
agreed that the City shall have the right to terminate this Agreement at the end of any City fiscal
year if the governing body of the City does not appropriate funds sufficient to purchase the
services as determined by the City's budget for the fiscal year in question. The City may affect
such termination by giving Consultant a written notice of termination at the end of its then -
current fiscal year.
9.0 SUPPLEMENTAL AGREEMENT
The terms of this Agreement may be modified by written Supplemental Agreement
hereto, duly authorized by City Council or by the City Manager, if the City determines that there
has been a significant change in (1) the scope, complexity, or character of the services to be
performed; or (2) the duration of the work. Any such Supplemental Agreement must be
executed by both parties within the period specified as the term of this Agreement. Consultant
shall not perform any work or incur any additional costs prior to the execution, by both parties,
of such Supplemental Agreement. Consultant shall make no claim for extra work done or
materials furnished unless and until there is full execution of any Supplemental Agreement, and
the City shall not be responsible for actions by Consultant nor for any costs incurred by
Consultant relating to additional work not directly authorized by Supplemental Agreement.
10.0 TERMINATION; DEFAULT
Termination: It is agreed and understood by Consultant that the City or Consultant may
terminate this Agreement for the convenience of the City or Consultant, upon thirty (30) days'
written notice to Consultant or City, with the understanding that immediately upon receipt of
said notice all work being performed under this Agreement shall cease. Consultant shall invoice
the City for work satisfactorily completed and shall be compensated in accordance with the terms
hereof for work accomplished prior to the receipt of said notice of termination. Consultant shall
not be entitled to any lost or anticipated profits for work terminated under this Agreement.
Unless otherwise specified in this Agreement, all data, information, and work product related to
this Project shall become the property of the City upon termination of this Agreement, and shall
be promptly delivered to the City in a reasonably organized form without restriction on future
use. Should the City subsequently contract with a new consultant for continuation of service on
the Project, Consultant shall cooperate in providing information.
Termination of this Agreement shall extinguish all rights, duties, and obligations of the
terminating party and the terminated party to fulfill contractual obligations. Termination under
this section shall not relieve the terminated party of any obligations or liabilities which occurred
prior to termination.
Nothing contained in this section shall require the City to pay for any work which it
deems unsatisfactory or which is not performed in compliance with the terms of this Agreement.
Default: Either party may terminate this Agreement, in whole or in part, for default if
the Party provides the other Party with written notice of such default and the other fails to
satisfactorily cure such default within ten (10) business days of receipt of such notice (or a
greater time if agreed upon between the Parties).
If default results in termination of this Agreement, then the City shall give consideration
to the actual costs incurred by Consultant in performing the work to the date of default. The cost
of the work that is useable to the City, the cost to the City of employing another firm to complete
the useable work, and other factors will affect the value to the City of the work performed at the
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time of default. Neither party shall be entitled to any lost or anticipated profits for work
terminated for default hereunder.
The termination of this Agreement for default shall extinguish all rights, duties, and
obligations of the terminating Party and the terminated Party to fulfill contractual obligations.
Termination under this section shall not relieve the terminated party of any obligations or
liabilities which occurred prior to termination.
Nothing contained in this section shall require the City to pay for any work which it
deems unsatisfactory, or which is not performed in compliance with the terms of this Agreement.
11.0 NON -SOLICITATION
Except as may be otherwise agreed in writing, during the term of this Agreement and for
twelve (12) months thereafter, neither the City nor Consultant shall offer employment to or shall
employ any person employed then or within the preceding twelve (12) months by the other or
any affiliate of the other if such person was involved, directly or indirectly, in the performance of
this Agreement. This provision shall not prohibit the hiring of any person who was solicited
solely through a newspaper advertisement or other general solicitation.
12.0 INDEPENDENT CONTRACTOR STATUS
Consultant is an independent contractor, and is not the City's employee. Consultant's
employees or subcontractors are not the City's employees. This Agreement does not create a
partnership, employer -employee, or joint venture relationship. No party has authority to enter
into contracts as agent for the other party. Consultant and the City agree to the following rights
consistent with an independent contractor relationship:
(1) Consultant has the right to perform services for others during the term hereof.
(2) Consultant has the sole right to control and direct the means, manner and method
by which it performs its services required by this Agreement.
(3) Consultant has the right to hire assistants as subcontractors, or to use employees
to provide the services required by this Agreement.
(4) Consultant or its employees or subcontractors shall perform services required
hereunder, and the City shall not hire, supervise, or pay assistants to help
Consultant.
(5) Neither Consultant nor its employees or subcontractors shall receive training from
the City in skills necessary to perform services required by this Agreement.
(6) City shall not require Consultant or its employees or subcontractors to devote full
time to performing the services required by this Agreement.
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(7) Neither Consultant nor its employees or subcontractors are eligible to participate
in any employee pension, health, vacation pay, sick pay, or other fringe benefit
plan of the City.
13.0 CONFIDENTIALITY; MATERIALS OWNERSHIP
Any and all programs, data, or other materials furnished by the City for use by Consultant
in connection with services to be performed under this Agreement, and any and all data and
information gathered by Consultant, shall be held in confidence by Consultant as set forth
hereunder. Each party agrees to take reasonable measures to preserve the confidentiality of any
proprietary or confidential information relative to this Agreement, and to not make any use
thereof other than for the performance of this Agreement, provided that no claim may be made
for any failure to protect information that occurs more than three (3) years after the end of this
Agreement.
The parties recognize and understand that the City is subject to the Texas Public
Information Act and its duties run in accordance therewith.
All data relating specifically to the City's business and any other information which
reasonably should be understood to be confidential to City is confidential information of City.
Consultant's proprietary software, tools, methodologies, techniques, ideas, discoveries,
inventions, know-how, and any other information which reasonably should be understood to be
confidential to Consultant is confidential information of Consultant. The City's confidential
information and Consultant's confidential information is collectively referred to as "Confidential
Information." Each party shall use Confidential Information of the other party only in
furtherance of the purposes of this Agreement and shall not disclose such Confidential
Information to any third party without the other parry's prior written consent, which consent
shall not be unreasonably withheld. Each party agrees to take reasonable measures to protect the
confidentiality of the other party's Confidential Information and to advise their employees of the
confidential nature of the Confidential Information and of the prohibitions herein.
Notwithstanding anything to the contrary contained herein, neither party shall be
obligated to treat as confidential any information disclosed by the other party (the "Disclosing
Party") which: (1) is rightfully known to the recipient prior to its disclosure by the Disclosing
Party; (2) is released by the Disclosing Party to any other person or entity (including
governmental agencies) without restriction; (3) is independently developed by the recipient
without any reliance on Confidential Information; or (4) is or later becomes publicly available
without violation of this Agreement or may be lawfully obtained by a party from any non-party.
Notwithstanding the foregoing, either party will be entitled to disclose Confidential Information
of the other to a third party as may be required by law, statute, rule or regulation, including
subpoena or other similar form of process, provided that (without breaching any legal or
regulatory requirement) the party to whom the request is made provides the other with prompt
written notice and allows the other party to seek a restraining order or other appropriate relief.
Subject to Consultant's confidentiality obligations under this Agreement, nothing herein shall
preclude or limit Consultant from providing similar services for other clients.
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Notwithstanding the foregoing, either party will be entitled to disclose Confidential
Information of the other to a third party as may be required by law, statute, rule or regulation,
including subpoena or other similar form of process, provided that (without breaching any legal
or regulatory requirement) the party to whom the request is made provides the other with prompt
written notice and allows the other party to seek a restraining order or other appropriate relief.
Subject to Consultant's confidentiality obligations under this Agreement, nothing herein shall
preclude or limit Consultant from providing similar services for other clients.
Neither the City nor Consultant will be liable to the other for inadvertent or accidental
disclosure of Confidential Information if the disclosure occurs notwithstanding the parry's
exercise of the same level of protection and care that such party customarily uses in safeguarding
its own proprietary and confidential information.
Notwithstanding anything to the contrary in this Agreement, the City will own as its sole
property all written materials created, developed, gathered, or originally prepared expressly for
the City and delivered to the City under the terms of this Agreement (the "Deliverables"); and
Consultant shall own any general skills, know-how, expertise, ideas, concepts, methods,
techniques, processes, software, or other similar information which may have been discovered,
created, developed or derived by Consultant either prior to or as a result of its provision of
services under this Agreement (other than Deliverables). Consultant shall have the right to retain
copies of the Deliverables and other items for its archives. Consultant's working papers and
Consultant's Confidential Information (as described herein) shall belong exclusively to the
Consultant. "Working papers" shall mean those documents prepared by Consultant during the
course of performing the Project including, without limitation, schedules, analyses,
transcriptions, memos, designed and developed data visualization dashboards and working notes
that serve as the basis for or to substantiate the Project. In addition, Consultant shall retain sole
and exclusive ownership of its know-how, concepts, techniques, methodologies, ideas, templates,
dashboards, code and tools discovered, created or developed by Consultant during the
performance of the Project that are of general application and that are not based on City's
Confidential Information hereunder (collectively, "Consultant's Building Blocks"). To the
extent any Deliverables incorporate Consultant's Building Blocks, Consultant gives City a non-
exclusive, non -transferable, royalty -free right to use such Building Blocks solely in connection
with the deliverables. Subject to the confidentiality restrictions mentioned above, Consultant
may use the deliverables and the Building Blocks for any purpose. Except to the extent required
by law or court order, City will not otherwise use, or sublicense or grant any other party any
rights to use, copy or otherwise exploit or create derivative works from Consultant's Building
Blocks.
City shall have a non-exclusive, non -transferable license to use Consultant's Confidential
Information for City's own internal use and only for the purposes for which they are delivered to
the extent that they form part of the Deliverables.
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14.0 WARRANTIES
Consultant represents that all services performed hereunder shall be performed consistent
with generally prevailing professional or industrial standards, and shall be performed in a
professional and workmanlike manner. Consultant shall re -perform any work not in compliance
with this representation.
15.0 LIMITATION OF LIABILITY
Should any of Consultant's services not conform to the requirements of the City or of this
Agreement, then and in that event the City shall give written notification to Consultant;
thereafter, (a) Consultant shall either promptly re -perform such services to the City's satisfaction
at no additional charge, or (b) if such deficient services cannot be cured within the cure period
set forth herein, then this Agreement may be terminated for default.
In no event will Consultant be liable for any loss, damage, cost or expense attributable to
negligence, willful misconduct or misrepresentations by the City, its directors, employees or
agents.
Neither parry's liability, in contract, tort (including negligence) or any other legal or
equitable theory, (a) shall exceed the professional fees paid or due to Consultant pursuant to this
Agreement or (b) include any indirect, incidental, special, punitive or consequential damages,
even if such party has been advised of the possibility of such damages. Such excluded damages
include, without limitation, loss of data, loss of profits and loss of savings of revenue.
16.0 INDEMNIFICATION
Consultant shall save and hold harmless City and its officers and employees from all
claims and liabilities due to activities of his/her/itself and his/her/its agents or employees,
performed under this Agreement, which are caused by or which result from the negligent error,
omission, or negligent act of Consultant or of any person employed by Consultant or under
Consultant's direction or control.
Consultant shall also save and hold City harmless from any and all expenses, including
but not limited to reasonable attorneys' fees which may be incurred by City in litigation or
otherwise defending claims or liabilities which may be imposed on City as a result of such
negligent activities by Consultant, its agents, or employees.
17.0 ASSIGNMENT AND DELEGATION
The parties each hereby bind themselves, their successors, assigns and legal
representatives to each other with respect to the terms of this Agreement. Neither party may
assign any rights or delegate any duties under this Agreement without the other parry's prior
written approval, which approval shall not be unreasonably withheld.
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18.0 LOCAL, STATE AND FEDERAL TAXES
Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes)
incurred while performing services under this Agreement. The City will not do the following:
(1) Withhold FICA from Consultant's payments or make FICA payments on its
behalf;
(2) Make state and/or federal unemployment compensation contributions on
Consultant's behalf; or
(3) Withhold state or federal income tax from any of Consultant's payments.
If requested, the City shall provide Consultant with a certificate from the Texas State
Comptroller indicating that the City is a non-profit corporation and not subject to State of Texas
Sales and Use Tax.
19.0 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES
A. Consultant, its consultants, agents, employees and subcontractors shall use best
efforts to comply with all applicable federal and state laws, the Charter and Ordinances of the
City of Round Rock, as amended, and with all applicable rules and regulations promulgated by
local, state and national boards, bureaus and agencies. Consultant shall farther obtain all permits,
licenses, trademarks, or copyrights required in the performance of the services contracted for
herein, and same shall belong solely to the City at the expiration of the term of this Agreement.
B. In accordance with Chapter 2271, Texas Government Code, a governmental entity
may not enter into a contract with a company for goods and services unless the contract contains
written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott
Israel during the term of a contract. The signatory executing this Agreement on behalf of
Consultant verifies Consultant does not boycott Israel and will not boycott Israel during the term
of this Agreement.
20.0 FINANCIAL INTEREST PROHIBITED
Consultant covenants and represents that Consultant, its officers, employees, agents,
consultants and subcontractors will have no financial interest, direct or indirect, in the purchase
or sale of any product, materials or equipment that will be recommended or required hereunder.
21.0 DESIGNATION OF REPRESENTATIVE
The City hereby designates the following representative authorized to act on its behalf
with regard to this Agreement:
Gary Hudder
Transportation Director
3400 Sunrise Road
Round Rock, Texas 78665
(512) 218-5560
hudder roundrocktexas. ov
22.0 NOTICES
All notices and other communications in connection with this Agreement shall be in
writing and shall be considered given as follows:
(1) When delivered personally to recipient's address as stated herein; or
(2) Three (3) days after being deposited in the United States mail, with postage
prepaid to the recipient's address as stated in this Agreement.
Notice to Consultant:
Tanko Streetlighting, Inc.
220 Bayshore Boulevard
San Francisco, California 94124
Notice to City:
City Manager, City of Round Rock
221 East Main Street
Round Rock, TX 78664
AND TO:
Stephan L. Sheets, City Attorney
309 East Main Street
Round Rock, TX 78664
Nothing contained in this section shall be construed to restrict the transmission of routine
communications between representatives of the City and Consultant.
23.0 APPLICABLE LAW; ENFORCEMENT AND VENUE
This Agreement shall be enforceable in Round Rock, Texas, and if legal action is
necessary by either party with respect to the enforcement of any or all of the terms or conditions
herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall
be governed by and construed in accordance with the laws and court decisions of Texas.
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24.0 EXCLUSIVE AGREEMENT
The terms and conditions of this Agreement, including exhibits, constitute the entire
agreement between the parties and supersede all previous communications, representations, and
agreements, either written or oral, with respect to the subject matter hereof. The parties
expressly agree that, in the event of any conflict between the terms of this Agreement and any
other writing, this Agreement shall prevail. No modifications of this Agreement will be binding
on any of the parties unless acknowledged in writing by the duly authorized governing body or
representative for each party.
25.0 DISPUTE RESOLUTION
The City and Consultant hereby expressly agree that no claims or disputes between the
parties arising out of or relating to this Agreement or a breach thereof shall be decided by any
arbitration proceeding, including without limitation, any proceeding under the Federal
Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute.
26.0 SEVERABILITY
The invalidity, illegality, or unenforceability of any provision of this Agreement or the
occurrence of any event rendering any portion of provision of this Agreement void shall in no
way affect the validity or enforceability of any other portion or provision of this Agreement. Any
void provision shall be deemed severed from this Agreement, and the balance of this Agreement
shall be construed and enforced as if this Agreement did not contain the particular portion of
provision held to be void. The parties further agree to amend this Agreement to replace any
stricken provision with a valid provision that comes as close as possible to the intent of the
stricken provision. The provisions of this Article shall not prevent this entire Agreement from
being void should a provision which is of the essence of this Agreement be determined void.
27.0 STANDARD OF CARE
Consultant represents that it is specially trained, experienced and competent to perform
all of the services, responsibilities and duties specified herein and that such services,
responsibilities and duties shall be performed, whether by Consultant or designated
subconsultants, in a manner acceptable to the City and according to generally accepted business
practices.
29.0 GRATUITIES AND BRIBES
City, may by written notice to Consultant, cancel this Agreement without incurring any
liability to Consultant if it is determined by City that gratuities or bribes in the form of
entertainment, gifts, or otherwise were offered or given by Consultant or its agents or
representatives to any City Officer, employee or elected representative with respect to the
performance of this Agreement. In addition, Consultant may be subject to penalties stated in
Title 8 of the Texas Penal Code.
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29.0 RIGHT TO ASSURANCE
Whenever either party to this Agreement, in good faith, has reason to question the other
parry's intent to perform hereunder, then demand may be made to the other party for written
assurance of the intent to perform. In the event that no written assurance is given within the
reasonable time specified when demand is made, then and in that event the demanding party may
treat such failure an anticipatory repudiation of this Agreement.
30.0 MISCELLANEOUS PROVISIONS
Time is of the Essence. Consultant agrees that time is of the essence and that any failure
of Consultant to complete the services for each Phase of this Agreement within the agreed
Project schedule may constitute a material breach of the Agreement.
Consultant shall be fully responsible for its delays or for failures to use reasonable efforts
in accordance with the terms of this Agreement. Where damage is caused to City due to
Consultant's failure to perform in these circumstances, City may withhold, to the extent of such
damage, Consultant's payments hereunder without a waiver of any of City's additional legal
rights or remedies. City shall render decisions pertaining to Consultant's work promptly to avoid
unreasonable delays in the orderly progress of Consultant's work.
Force Majeure. Notwithstanding any other provisions hereof to the contrary, no failure,
delay or default in performance of any obligation hereunder shall constitute an event of default
or breach of this Agreement, only to the extent that such failure to perform, delay or default
arises out of causes beyond control and without the fault or negligence of the party otherwise
chargeable with failure, delay or default; including but not limited to acts of God, acts of public
enemy, civil war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters
or other casualties, strikes or other labor troubles, which in any way restrict the performance
under this Agreement by the parties.
Section Numbers. The section numbers and headings contained herein are provided for
convenience only and shall have no substantive effect on construction of this Agreement.
Waiver. No delay or omission by either party in exercising any right or power shall
impair such right or power or be construed to be a waiver. A waiver by either party of any of the
covenants to be performed by the other or any breach thereof shall not be construed to be a
waiver of any succeeding breach or of any other covenant. No waiver of discharge shall be valid
unless in writing and signed by an authorized representative of the party against whom such
waiver or discharge is sought to be enforced.
Multiple Counterparts. This Agreement may be executed in multiple counterparts,
which taken together shall be considered one original. The City agrees to provide Consultant
with one fully executed original.
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IN WITNESS WHEREOF, the parties have executed this greement on the dates
hereafter indicated. „
City of Round Rock, Texas
By:
Printed am
Title:
Date igned: b3
For City, Attest:
By
LAI, Wdffl��A
Vea'gan-'Spir& City Uerk
For City4eets,
ed as to Form:
By:, L
StepCity Attorney
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Tanko StreetlWMWL Inc.
By:
Printed N c 7 MIK vz-.tY A44-
Title:e:
Date Si iv r 107, Z
Submitted by:
Jason Tanko
Chief Executive Officer
Tanko Streedighting, Inc.
220 Bayshore Boulevard
San Francisco, CA 94124
jason@tankolighting.com
Submitted to:
David Walther
Traffic Systems Consultant
City of Round Rock
Round Rock City Hall
221 E Main St.
Round Rock, TX 78664
davidw@roundrocktexas.gov
0
fighting
May 10, 2022
Copyright
May 10, 2022
By Tanko Lighting
All rights reserved
Exhibit "A"
TABLE
E OF CONTENTS
2
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Cover Letter 3
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4
Scope ofVVork------------.......--------------_------~.-------..,,,----''
4
Phase |: Project 0evmhopn`mnt---_------------------------.------_------.
Taskl: PrelkninaryFeasbAkvAnalysis ............ --.............................. ... ......................... ........................... 4
Phanm U: |nitia]o~wnershipSuppmr ........................ ---................. .'--..................... —....................... ''4
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Exhibit "A"
COVER LETTER
May 10, 2022
David Walther
Traffic Systems Consultant
City of Round Rock
Round Rock City Hall
221 E Main St.
Round Rock, TX 78664
davidw@roundrocktexas.gov
Dear Mr. Walther,
Tanko Streetlighting, Inc. ("Tanko Lighting") appreciates the opportunity to submit this proposal for initial ownership
support of the streetlight fixtures within the City of Round Rock.
As you know, we recently completed the audit and data reconciliation of the streetlights within the City. We are now
proposing a new scope of services to include the activities listed in this proposal.
We believe this scope of work will assist the City in continuing to explore the possibility of purchasing the streetlight system.
Please let us know should you have any questions. We look forward to your feedback.
Regards,
Jason Tanko
Chief Executive Officer
Enclosures
A+ A Page 3 of 6
411110� Content is proprietary and confidential.
fa TankoLighting
www tankolightingrom 1 220 Bayshore Blvd I San Francisco. CA 94124 1 P 415.254.7579 i F 415.822.3626
Exhibit "A"
SCOPE OF WORK
We propose an expansion of our existing scope of services to assist the City in the initial activities involved with streetlight
ownership.
Phase I: Protect Development
Task 1: Preliminary Feasibility Analysis
We recognize that the City is interested in the idea of owning, pursuing an LED conversion, and maintaining its streetlight
system. In order to be clear on the feasibility and financial benefit of these options, a preliminary analysis is recommended.
With our extensive knowledge and experience, we propose to provide the City with a Preliminary Feasibility Analysis Report
that will include:
• Baseline energy use, energy cost and operations and maintenance costs
• Estimated future operations and maintenance costs
• Budgetary ownership costs
• Calculation of estimated total conversion cost, energy reduction, savings, Return on Investment, and simple
payback
• Estimated twenty-year projected savings and cash flows
• Description of assumptions included in the analysis
Deliverables:
• Preliminary Feasibility Analysis Report: A report outlining the City's streetlight system options, cost/benefits,
assumptions, budgetary pricing, savings, cash flows, and an overall assessment of the feasibility of streetlight
ownership and maintenance.
Phase il: Initial Ownership Support
Task 1. Appraisal
Our team will utilize a qualified, third -party appraiser to complete an appraisal of the streetlight system on behalf of the
City. The appraiser will provide a financial valuation analysis to confirm the fair market value of the existing streetlight
system. This will be based on market research on the value of previously appraised municipal streetlight systems in both
the region and nationally, as well as the field conditions identified during the audit.
Once the appraisal is completed, our team will produce a summary of the results for future use with the Council and/or the
potential exploration of the acquisition process. Please note that the appraisal will not consider the overall soundness of
every element of the existing system (including unseen elements such as wiring issues, equipment integrity, etc.), and
therefore our team will not be responsible/liable for any future operating costs associated with the soundness of the
streetlight system equipment.
Deliverables:
• Appraisal Analysis: Report of the appraised value of the existing streetlight system, as determined by an appraiser.
• Appraisal Summary: Synopsis of the appraisal and the basis for the amount of just compensation value.
it Page 4 of 6
� Content is proprietary and confidential.
TankoLighting
www.tankolighting.com 220 Bayshore Blvd I San Francisco, CA 94124 1 P 415.254 7579 I F 415.822.3626
Exhibit "A"
Task 2. Streetlight System Analysis
The City has a variety of approaches it may consider regarding the ongoing ownership and operation of the streetlight
system. It is important for the City to explore these options and determine a course of action in its best interests. As such,
once the fair market value of the system has been appraised, our team will develop a Streetlight System Analysis to provide
a variety of information, including but not limited to:
• Clarification on rate schedules and tariff -specific distinctions
• Comparative costs analysis, including ROI and economic impacts
• In-depth financial valuation of the existing streetlight system assets
• Differences in valuation methods
• Determination of the salvage and functional replacement value of the system
• Estimate of the costs/savings involved with converting the system to LED fixtures
• Analysis of advantages and differences of approach
• Potential emissions impacts
• Maintenance cost comparisons and proposed strategies
Deliverables:
• Streetlight System Anaivsis: Comprehensive analysis of the costs and benefits for the ownership and operations
alternatives for the streetlight system.
Task 3. Initial Ownership Negotiations
Our team has extensive experience nationally with municipal streetlight ownership projects. This experience will be
leveraged for the City's project, if it decides to pursue acquisition.
We will provide the following services for this initial phase of ownership negotiations (please note that this is merely the
preliminary phase and that we will need to provide a subsequent scope of services and pricing for successful completion of
the entire acquisition process — for which there are numerous additional activities):
• Consulting with City legal representatives on the path to potential ownership
• Providing sample documents to guide the City through the process
• Coordinating initial negotiations with the utility, including assisting with the development of various formal
communications (e.g. Letter of Intent, First Offer Letter, Final Offer Letter) with the utility to indicate interest in
purchasing the system
Please note that Tanko Lighting is not comprised of licensed attorneys. Thus, our team will merely coordinate with City staff,
and/or with the City's legal counselor(s) and provide consulting services with streetlight expertise.
Deliverables:
• Initial Utility Ike otiations Documentation: Sample drafts of Letter of Intent, First Offer Letter, and Final Offer Letter
to assist the City with initial communications with the utility.
r IN
TankoLighting
www tankolighting.corn 1 220 Bayshore Bled
Page 5 of 6
Content is proprietary and confidential.
San Francisco, CA 94124 1 P 415 254.7579 1 F 415,822.3626
Exhibit "A"
PRICING
Please find our proposed pricing In the table below. Please note that this pricing and is valid for sixty (60) days from the
date of this proposal.
Proposed Initial Owne —Round Rock, TX
Phase Activity Task Proposed Pricing
Phase I Project Development Task 1: Preliminary $5,000.00 fixed fee lump sum
Feasibility Analysis
Phase II Initial Ownership Task 1: Appraisal $10,000.00 fixed fee lump sum
Support
Task 2: Streetlight System $10,000.00 fixed fee lump sum
Analysis
Task 3: initial Ownership $5,000.00 fixed fee lump sum
Negotiations
Total Not to Exceed Amount for Expanded Services; $30,000.000
• Proposed Payment Terms:
o Tanko Lighting will invoice the City upon completion of the deliverable(s) for each Task.
o The City shall pay Tanko Lighting within thirty (30) days of receipt of invoices.
t A Page 6 of 6
---do Content is proprietary and confidential.
J 4 TankoLighting
www tankolighting.com 1 220 Bayshore Blvd San Francisco. CA 94124 ; P 415 254 7579 1 F 415.822,3626
ROUND ROCK
TEXAS
City of Round Rock
Agenda Item Summary
Agenda Number:
Title: Consider executing a Professional Consulting Services Agreement with Tanko
Street Lighting, Inc. for services related to lighting ownership support.
Type: City Manager Item
Governing Body: City Manager Approval
Agenda Date: 6/24/2022
Dept Director: Gary Hudder, Transportation Director
Cost: $30,000.00
Indexes: General Fund
Attachments: LAF, Agmt
Department: Transportation
Text of Legislative File CM-2022-149
Tanko Lighting completed the audit and data reconciliation of the streetlights within the City of Round
Rock. The streetlights are owned and maintained by The City of Round Rock; Texas Department of
Transportation; Oncor Electric; Pedernales Electric Cooperative; City of Georgetown Electric and various
privately owned entities.
The streetlight audit was done in preparation of the City of Round Rock's anticipation of:
1) Being required to take maintenance responsibility for all Texas Department streetlights; 2) Re -taking
ownership of Oncor streetlights which the City currently pays $800,000 annually to Oncor to maintain (not
including electricity).
This initial ownership support of the streetlight system scope of work will assist the City in continuing to
explore the possibility of purchasing the streetlight system currently owned and maintained by Oncor
within the City limits.
In conjunction with this project, the City of Round Rock Transportation Department; with support from the
Planning and Development Department; has discontinued deeding ownership of all streetlights installed
during Capital Improvement Projects and Development Projects over to Oncor. The City will retain
ownership and maintenance responsibilities.
The scope of services to assist the City in the initial activities involved with streetlight ownership includes
City of Round Rock Page 1 of 2
Agenda Item Summary Condnued 1CM-2022-119)
the following:
Preliminary Feasibility Analysis Report
Outlining the City's streetlight system options, cost/benefits, assumptions, budgetary pricing, savings,
cash flows, and an overall assessment of the feasibility of streetlight ownership and maintenance
Appraisal of the Oncor Streetlight System
A financial valuation analysis to confirm the fair market value of the existing streetlight system;
Appraisal Analysis; Appraisal Summary.
Streetlight System Analysis:
Comprehensive analysis of the costs and benefits for the ownership and operations alternatives for the
streetlight system.
Initial Utility Negotiations Documentation:
Sample drafts of Letter of Intent, First Offer Letter, and Final Offer Letter to assist the City of Round
Rock
with initial communications with the utility.
Cost: $30,000.00
Source of Funds: General Fund
City of Round Rock Page 2 of 2