R-86-937 - 12/23/1986WHEREAS, the City Council has determined that it would be
desirable for a study to be performed regarding the Lone Star
Gas rate increase request, and
WHEREAS, Willis, Graves and Assoc., Inc. of Austin, Texas,
Utility Consultants have submitted a contract to aid and assist
in the Lone Star Gas rate increase request, and
WHEREAS, the Council desires to enter into said contract
with Willis, Graves and Assoc., Inc., 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 a contract for aid and assistance in the
Lone Star Gas rate increase request with Willis, Graves and
Assoc., Inc. a copy of said contract being attached hereto and
incorporated herein for all purposes. 1,
RESOLVED this ��day of /��Ea "�'"
,, �t v " . 1984.
ATTEST:
Land, City Secretary
RESOLUTION NO. , 3 ' I
MIKE ROBINSON, Mayor
City of Round Rock, Texas
/2)21,1,o4v-e0
6 -6fru
-
I
December 16, 1986
Mr. Don Wolf, City Attorney
City. of Round Rock
214 East Main Street
Round Rook, TX 78664
Re: Proposal to Perform Review of
Lone Star Gas Rate Application
Dear Mr. Wolf:
Willis, Graves & Associates, Inc.
UTIUTY CONSULTANTS
Pursuant to our conversations and a preliminary review of
the Lone Star rate filing package, we are pleased to submit the
following proposal in the form of a letter agreement to perform
an analysis of Lone Star Gas Company's Statement of Intent to
change rates charged for natural gas service in Round Rock.
Attached are resumes of the principals of our firm who will be
the employees working on the study. The resumes include other
clients for whom we have provided similar services. We believe
that any of them would be willing to discuss our work, if you
desire to contact them.
We are prepared to start working on the studies as soon as
we are authorized to proceed. The following terms and conditions
are proposed:
SCOPE OF SERVICES
Work under this agreement shall include the following tasks:
1. Review and analyze the application and supporting documen-
tation as filed by Lone Star Gas.
2. - Research Railroad Commission docket files for Lone Star's
most recent "City Gate" case to determine what relevant
issues were addressed in that case.
3. Prepare and submit to the Company requests for additional
information that is necessary to determine operating
expenses, rate of return, invested capital, income tax
deferrals, cost allocations, and rate design.
4. On the basis of the Company's responses and our analysis,
prepare recommendations in the form of a written report
outlining our recommendations and the reasons therefor, to
9501 CAPITAL OF TEXAS HIGHWAY NORTH AUSTIN, TEXAS 78759
SUITE 301
[572] 346 -8240
Mr. Don Wolf, City Attorney Page 2
December 16, 1986
be reviewed by the City and submitted to the Council for
approval.
COMPENSATION
Services performed under this agreement shall be billed
in accordance with the following schedule of rates and fees:
Professional services $ 85.00 per man -hour
Clerical /word processing $ 15.00 per man -hour
Out -of- pocket expenses:
Travel )
Postage )
Reproduction ) Actual Cost
Long- distanoe Telephone )
Miscellaneous )
BILLING AND PAYMENT
Billings shall be rendered monthly for services performed
and expenses incurred during the month immediately preceding, and
shall be payable upon receipt.
MAXIMUM TOTAL BILLING
Billings will be based on the actual amount of time required
to complete the review. It is estimated that the tasks can be
completed in 50 hours or less. Therefore, we are proposing that
this contract be approved with a maximum total billing for the
services and items desoribed above not exceed $ 4,800.00 (four
thousand eight hundred dollars). In no case will costs be
incurred in excess of the amounts authorized without the written
approval of the City.
TIME FOR COMPLETION
Work under this agreement shall be completed within 6 weeks
of authorization to proceed, or as necessary to give the City
time to review the recommendations and act before the expiration
of the suspension period.
LIMITATION OF LIABILITY
The liability of both parties to this agreement shall be
limited to the amount of the total compensation described above.
Should this agreement not be executed within 30 days of the date
shown on page 1 hereof, the terms and conditions may be subject
to revision.
Mr. Don Wolf, City Attorney Page 3
December 16, 1986
If the above terms and conditions are acceptable to you,
please execute in the space provided and return one executed copy
to Willis, Graves & Associates, Inc. at 9501 Capital of Texas
Highway North, Suite 301, Austin, Texas 78759.
Very truly yours,
Accepted and Agreed to this
of _14e 1986
WILLIS, GRAVES 8 ASSOCIATES, INC. City of Roun Texas
Searcy F. Willis, Jr.
President
By
Name
/YIAYae
Title
ATTEST:
ty Secretary
DATE: December 19, 1986
SUBJECT: Consider a resolution authorizing the Mayor to enter into an
agreement with Willis, Graves and Associates for aid and
assistance in the Lone Star Gas rate increase request.
Lone Star Gas has requested a change in rates which would result in an
estimated annual revenue increase for Lone Star Gas of $440,212.00.
Mr. Huey and Mr. Wolf have been unable to find the time necessary to
analyze the request and are therefore requesting the service of Willis,
Graves, and Associates to assist us in this matter. This is a reimburseable
expense of a rate making proceeding.