CM-08-04-090DATE:
SUBJECT:
ITEM:
April 7, 2008
City Manager Approval - April 11, 2008
Action authorizing the City Manager to execute Supplement No. 2 to the
Engagement Letter with Brown McCarroll, L.L.P. for legal services associated
with Certificate of Convenience and Necessity (CCN) issues.
Deuartment: Water and Wastewater Utilities
Staff Person: Michael D. Thane, Director of Utilities
Justification:
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's consultant,
HDR Engineering, Inc., filing an application with the Texas Commission on Environmental
Quality to amend the City's current water and wastewater CCNs. Supplement No. 2
involves continued review and input by Brown McCarroll on preparation, notification,
submittal, and other issues associated with the applications.
Funding:
Cost:
$46,587.00
Source of funds: Self -Financed Utility Funds
Outside Resources: Brown McCarroll, L.L.P.
Background Information:
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 initial scope of work
provided input on development of CCN amendment applications, conducted analysis of
issues affecting the project and provided 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 with review and input by Brown McCarroll.
Public Comment: N/A
Blue Sheet Format
Updated 01/20/04
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, Suire 1400, Austin, Texas 78701-4043
512-472-5456 fax 512-479-1101
direct (512) 479-1151 dworrell@mailbmc.com
March 12, 2008
This correspondence is supplement number two 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.
This second supplement to the letter of engagement will involve 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. The
budgets for HDR's work and the Firm's work on this second supplemental phase of the project
are attached. HDR's budget for this phase is $22,262, and the Firm's budget is $24,325.
Accordingly, the total budget for this second supplement phase of work on the project is not to
exceed $46,587. 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, HDR's fees for work
on this project will continue to be invoiced on the Firm's invoices to the City, so that the City
will be responsible for remittance on only a single invoice per billing period.
Austin • Dallas • Houston • Longview • El Paso
James R. Nuse, P.E.
March 12, 2008
Page 2
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.
cc: tephan L. Sheets
ichael Thane
Neil Graff (HDR)
AGREED,ND ACCEPTED
AS OF pri I It -t , 2008.
City of Round Rock
By:
4073194.1
4036.24943
May c r Nyle Max,, •ell
Very truly yours,
Worrell
Brown McCarroll -HDR Work
City of Round Rock CCN Application Preparation - AMMENDMENT #1
Cost to Complete
February 27, 2008
Item Task Description
Water CCN Application
1 Complete Water CCN Application
Wastewater CCN Application
1 Applicant Information
2 Location Information
3 Map Requirements
4 Impacts
5 Existing System Information
6 Financial Information
7 Notice Requirements
MISCELLANEOUS TASKS
Meetings:
Progress Meetings (3)
Project Management/Administration 0..5 months)
LABOR TOTALS
TOTAL DIRECT LABOR COST
REIMBURSABLE DIRECT COSTS
Postage & Delivery
Travel Expenses
Miscellaneous
Printing & Photocopying
Technology
Telephone
Application Printing
TOTAL HOURS
TOTAL REIMBURSABLE DIRECT COSTS
SUBCONSULTANTS
none
Ammendment #1 Fee
Budget Hours
Project Project Senior Project GIS/CADD Admin. Task
Principal Manager Planner Economist Engineer Technician Assistant Fee
0
8 16 8
1 1
2 4
2 2
2 12
1 2
2 2
2 8
8 6 6
2
16
4
8
1
2
1
2
4
2
18
37
8
0.5 Months $100.00
lump sum mileage
0.5 Months $50.00
0.5 Months $0.10
95 direct labor hours
0.5 Months $20.00
0 copies $50.00
0
20
12
$6,934
$468
$1,253
$2,403
$2,393
$627
$882
$2,423
$4,313
$0
per month
per month
per copy
$3.70 per hour
per month
$50
$100
$25
500 copies/mn $P5
$352
$10
$0
Original Fee
Total Maximum Authorization
Application Preparation Page 1 of 1
$22,262 j
$35,000
$57,300
$175 I
$24,325 I
Brown McCarroll, L.L.P. — Brown McCarroll Work
City of Round Rock CCN Application Preparation — AMENDMENT #2
Cost to Complete
February 28, 2008
Budget Hours
Item Task Description Partner Associate Task Fee
Water CCN Application
1 Review and comment on draft 8 16 $4,800
2 Progress meeting (1) 4 $1,000
3 Meeting with TCEQ Staff 3 $750
4 Negotiations/communications with interested 10 $2,500
parties and entities
Wastewater CCN Application
1 Review and comment on drafts (2) 12 24 $7,200
2 Progress meetings (3) 12 $3,000
3 Miscellaneous research/investigation 1 8 $1,650
4 Negotiations/communications with interested 10 $2,500
parties and entities
5 Meeting with TCEQ Staff
LABOR TOTALS
TOTAL LABOR FEE
REIMBURSABLE DIRECT COSTS
Postage & Delivery
Printing & Photocopying
3
TOTAL HOURS 63
48
$750
$24,150
$25
$150
j TOTAL REIMBURSABLE DIRECT COSTS
Amendment #2 Fee
Original Fee $30,000
Amendment #1 Fee $20,000
Total Maximum Authorization $74,325
4071845.1
4036.24943