R-88-1098 - 3/10/1988WHEREAS, 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 Associates, Inc. of Austin,
,
Texas, Utility Consultants have submitted a contract to aid
and assist in the Lone Star Gas Rate Increase Request; and
z
WHEREAS, the Council desires to enter said
contract with Willis, Graves and Associates, 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 Associates, Inc., a copy of said
contract being attached hereto and incorporated herein
for all purposes. _
RESOLVED this / O 4 P day of / // A , 1988.
ATTEST:
J
NNE LAND, City Secretary
RESOLUTION NO. /076R
MIKE ROBINSON, Mayor
City of Round Rock, Texas
February 26, 1988
Mr. Sam Huey, Assistant City Manager
City of Round Rock
214 East Main Street
Round Rock, TX 78664
Re: Proposal to Perform Review of
Lone Star Gas Rate Application
Dear Mr. Huey:
Willis, Graved & Associates, Inc.
UTILITY CONSULTANTS
Pursuant to your request, 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. Since we have performed a similar review for the City last
year, we will not furnish resumes or client lists in this proposal. As you
know, we have the analysis of the prior Lone Star rate request on our
computer, and we are currently working on another Lone Star rate request, so
hopefully our level of effort and cost to the City will be somewhat lower that
in the prior case.
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 documentation 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 a
written report outlining our recommendations and the reasons therefor, to
be reviewed by the City and submitted to the Council for approval.
9501 CAPITAL OF TEXAS HIGHWAY NORTH AUSTIN, TEXAS 78759
SUITE 301 (512] 349 -9240
.Mr. Sam Huey Page 2
February 26, 1988
with
Services performed under this
the following schedule of rates
Professional services
Clerical /word processing
Out -of- pocket expenses
COMPENSATION
agreement shall be billed in accordance
and fees:
BILLING AND PAYMENT
Billings shall be rendered monthly for services performed
incurred during the month immediately preceding, and shall be
receipt.
MAXIMUM TOTAL BILLING
$ 85.00 per man -hour
$ 15.00 per man -hour
Actual Cost
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
and expenses
payable upon
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 48 hours or
less. Therefore, we are proposing that this contract be approved with a
maximum total billing for the services and items described above not exceed
$4,500.00 (four thousand five 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 8 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.
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
/0 day of yam. , 1988
WILLIS, GRAVES & ASSOCIATES, INC. City of Round Rock, Texas
Searcy F. Willis, Jr.
President
By
ATTEST
Name
tl e
i /nix-t.
ty Secretary
DATE: March 7, 1988
SUBJECT:. Council Agenda, March •10, 1988
ITEM: 9C. Consider a resolution authorizing the Mayor to enter into
a contract with Willis, Graves & Associates, Inc.
STAFF RESOURCE PERSON:
Sam Huey
STAFF RECOMMENDATION: Award this contract to Willis, Graves and
Associates to analyze the rate increase request.
This firm has worked with the City in the past
and has performed in an excellent manner. The
cost of this contract will be paid by Lone
Star Gas and recovered in their rate base.
Willis, Graves & Associates, Inc.
UTILITY CONSULTANTS
February 26, 1988
Mr. Sam Huey, Assistant City Manager
City of Round Rock
214 East Main Street
Round Rock, TX 78664 -
Re: Proposal to Perform Review of
Lone Star Gas Rate Application
Dear Mr. Huey:
Pursuant to your request, 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. Since we have performed a similar review for the City last
year, we will not furnish resumes or client lists in this proposal. As you
know, we have the analysis of the prior Lone Star rate request on our
computer, and we are currently working on another Lone Star rate request, so
hopefully our level of effort and cost to the City will be somewhat lower that
in the prior case.
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 documentation 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 a
written report outlining our recommendations and the reasons therefor, to
be reviewed by the City and submitted to the Council for approval.
9501 CAPITAL OF TEXAS HIGHWAY NORTH AUSTIN. TEXAS 78759
SUITE 301 [512] 346 -8240
Mr. Sam Huey Page 2
February 26, 1988
COMPENSATION
Services performed under this agreement shall be billed in accordance
with the following schedule of rates and fees:
Professional services
Clerical /word processing
Out -of- pocket expenses
TIME FOR COMPLETION
$ 85.00 per man -hour
$ 15.00 per man -hour
Actual Cost
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 48 hours or
less. Therefore, we are proposing that this contract be approved with a
maximum total billing for the services and items described above not exceed
$4,500.00 (four thousand five hundred dollars). In no case will costs be
incurred in excess of the amounts authorized without the written approval of
the City.
Work under this agreement shall be completed within 8 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.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
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,
Acp pted and Agreed to this
ay of 7724.444_, 1988
WILLIS, GRAVES & ASSOCIATES, INC. City of Rou9I1 Rock, Texas
Searcy F. Willis, Jr.
President
By
ATTEST:
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