HomeMy WebLinkAboutContract 40742 (2)STOWS
& CO
June 23, 2010
Ms. Mirenda McQuagge
Direct — Comm. Services
City of Bedford
2000 Forest Ridge Drive
Bedford, TX 76021
Ms. Melanie Harden
Director of General Services
Town of Flower Mound
2121 Cross Timbers Road
Flower Mound, Texas 75028
Ms. Mary Smith
Director of Finance
City of Rockwall
385 S. Goliad Street
Rockwall, Texas 75087
Ms. Ann Honza
Assistant Director of Finance
City of Rowlett
4002 Main Street
Rowlett, Texas 75088
Dear City Representatives:
InSE ti:$MI comAcT ma LW ,
Ms. Cristy Daniell
Assistant City Manager
City of Belton
333 Water Street
Belton, Texas 76513
Ms. Bridgette Garrett
Director — Finance
City of Fort Worth
1 000 Throckmorton Street
Fort Worth, Texas 76201
Ms. Carolyn Lawrence
Finance Director
City of Sweetwater
200 East 4`h Street
Sweetwater, Texas 79556
1300 E Lookout Drive, Ste 100
Richardson, TX 15082
t 912 680 2000
f 972 680 2007
515 Congress Avenue, Ste 1515
Austin, TX 78701
t 512 479 7900
f 512 479 7905
Mr. Mike Collins
Dir. of ED and Admin. Services
City of Euless
201 N. Ector Drive
Euless, Texas 76039
Ms. Barbara Mann
Finance Manager
City of Richland Hills
3200 Diana Drive
Richland Hills, Texas 76118
Ms. June Skerik
Budget Manager
City of Waco
300 Austin Avenue
Waco, Texas 76702
J. Stowe & Co, LLC ("J Stowe & Co.") is pleased to propose its services to a coalition of
Cities served by Oncor Electric Delivery Co. LLC ("Oncor") regarding a review of
franchise fees paid to the Cities. Ms. Connie Cannady, who will be conducting the
analysis, has completed numerous studies to assist franchising authorities in determining
franchise fee computational compliance.' Ms. Cannady is highly qualified to provide
assistance to the Cities based on the following:
• Over twenty-five (25 4) years of experience in dealing with franchising and
regulatory issues before various governmental entities concerning utility
E Ms. Cannady may be assisted by other J. Stowe & Co. staff as required. 1 Iowever, she will be
responsible for the overall conduct of the engagement and wil! participate in the day-to-day analyses.
08-26-10 PO4 : 13 IN
PEDAL RECORD
CITY SECRETARY
.r� + WORTH, `Tic TX
City Representatives
June 23, 2010
Page 2
services;
• Significant experience in evaluating performance aspects of utility service
providers; and
• Significant experience in assisting municipalities negotiate with service providers
regarding franchise fees, service levels, service rates and other franchise
requirements.
The following proposal provides a more detailed description of the project scope and the
proposed project fees and expenses. Please note that the proposed costs are based on
project activities identified within the proposal and can be modified in the event that
specific activities are determined to be outside of the Cities' requirements.
PROJECT SCOPE
The following provides a brief outline of the project activities that J. Stowe & Co. will
perform during the course of the engagement:
Task 1: Prepare Detailed Requests for Information
We will prepare a detailed information request to be submitted to Oncor concerning the
payments made to each participating City for the period January 2008 through the first
quarter 2010. These requests will include, but not be limited to, the following:
•
•
•
•
•
•
•
Supporting documentation underlying the computation of franchise
fees
Verification of appropriate kWh factors
Changes in accounting policies related to energy usage
Energy usage for the review period
Explanation for significant changes in energy usage, where
noted
Details concerning charges to REPs related to franchise fees
Details concerning reporting of revenue for miscellaneous
service charges
Changes in rates for miscellaneous service charges
Details concerning any unbilled usage
Task 2: Analyses
Subtask 1: On -Site Review
After review of Oncor's responses to the RFI, we will request that the actual books and
records of the utility be made available for review. J. Stowe & Co. will coordinate with
OFFICIAL RECORD
GIP( SECRETARY
Fs W R T R iner
1 r
_-ram
City Representatives
June 23, 2010
Page 3
the utility to determine the most efficient method by which such records can be made
available.
Subtask 2: Franchise Fee Analyses
The major activities that will be conducted include:
Reconcile Oncor's energy deliveries to those used in the computation
of franchise fee payments received by the City
• Determine accuracy of payments related to miscellaneous service
charges
• Clarify with representatives from Oncor any issues arising from
review of the recent franchise fee payments
Task 3: Preparation of Report
At the conclusion of the analyses, J Stowe & Co, will prepare a preliminary written report
for each of the participating Cities, which details the results of the analyses and provides
recommendations, where appropriate. The report will include a discussion of any issues
that were identified during Task 2 above, and provide a summary of any discussions held
with Oncor representatives. After a meeting with City representatives to discuss the
findings, we will finalize the report.2
PROJECT COST
J. Stowe & Co. estimates that the professional fees required to conduct the PROJECT
SCOPE identified above are not -to -exceed $2,000, plus out-of-pocket expenses, for each
participating City. This cost assumes that all of the above ten Cities participate, or at
least ten total cities participate.3 If the number of participants is less than ten, the
professional fees are increased to $2,500 for each City, plus out-of-pocket expenses.
Out-of-pocket expenses will be limited to $100.00 for the total project unless travel
outside of the Dallas/Fort Worth area is required.
J Stowe & Co, bills its clients monthly based on actual hours worked, plus out-of-pocket
expenses. In the event that the actual hours spent in conducting the enumerated activities
are less than those used in the development of the not -to -exceed proposed costs, the
Cities will be billed only for the actual hours. However, if the actual hours exceed the
estimate, the Cities will only be billed up to the not -to -exceed cost, plus out-of-pocket
expenses.
2 With respect to the PROJECT SCOPE, the proposed project cost includes l % hours of meeting time for
discussion with Cities. Additional time requirements for meetings/presentations regarding findings will be
billed at an hourly rate of $195.00.
To the extent that any of the above Cities choose not to proceed, but other cities join the coalition for a
total of ten or more participating cities, the cost per City will not exceed $2,000, plus out-of-pocket
expenses.
OFFICIAL itCORD
CITY SECRETARY
Ft WORTH TX.
p.1
7
City Representatives
June 23, 2010
Page4
ACCEPTANCE
J Stowe & Co. greatly appreciates this opportunity to work again with the Cities served
by Oncor. If this letter is in agreement with the Cities' understanding as to the scope of
services to be provided and the associated fees, please execute one copy and return it to
Ms. Connie Cannady at the following address:
J. Stowe & Co.
130013. Lookout, Suite 100
Richardson, Texas 75082
If you have any questions regarding the proposed project activities and/or proposed costs,
please feel free to contact Ms. Connie Cannady at 972.680.2000.
Very truly yours,
,e
J. Stowe & Co., LLC
CITY OF BEDFORD
By:
Title:
Date:
CITY OF BELTON
By:..
Title:
Date:
CITY OF EULESS
By:
Title:
Date:
OFFICIAL RECORD
CITY SECRETARY
reT ivnFt'ta. TX
City Representatives
June 23, 2010
Page 5
TOWN OF FLOWER MOUND
By:
Title:
Date:
CITY OF FORT
ORTH
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J � / H ��-�"_ 1s-is y�i
Title:
Date:
Z _
Zs 4- t
•
o 9, /0
CITY OF RICHLAND HILLS
By:
Title:
Date:
e
CITY OF ROC'A L L
By:
Tale:
Date:
CITY OF SWEETWATER
By:
Title:
Date:
Attested by:
Marty Hendth,
[OFF;CIAL RECORD
j CITY SECRETARY
R - H TX
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u
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_AlQa0A1
ATTORNPYI
y Secretary
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City Representatives
June 23, 2010
Page 6
CITY OF WACO
By:
Title:
Date:
CITY OF ROWLETT
By:
Title:
Date:
OFFICIAL RECORD
!, cry SECRETARY
14
nswpyT •T
August 26, 2010
TO: Marty Hendrix
City Secretary
}
Fr: Bridgette Garrett
Utility Administrato
RE: Letter Contract with J. Stowe & Co.
Marty I have misplaced the copy of this document with the original signatures; please use
the attached as the original. Additionally, our contract with J. Stowe & Co. does not
require the signatures of the other city representatives.
Call me if you have any questions.
Thank you.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
08-26-10 PO4:13 IN
FORT WORTH
INTEROFFICE MEMO
TO: Bridgette Garrett, Law Department
FROM: Allison Tidwell, City Secretary's Office
DATE: July 15, 2010
SUBJECT: CONTRACT FOR REVIEW BY J. STOWE & CO. OF FRANCHISE FEES
PAID BY ONCOR ELECTRIC DELIVERY SERVICE TO VARIOUS
MUNICIPALITIES
These documents are being forwarded to you for original signatures from the Town of Flower
Mound and the Cities of Richland Hills, Rockwall, Sweetwater, Waco and Rowlett. All signed
copies of the contract must be returned with original signatures for final processing.
Failure to return the documents will delay the final processing of the contract. Once we have
received all of the documents, we will assign a contract number. Thank you in advance for your
cooperation.
If you have any questions, please call me at 817-392-6090.
Attached: 3 sets
STOWE
&cO
June 23, 2010
Ms. Mirenda McQuagge
Direct - Comm. Services
City of Bedford
2000 Forest Ridge Drive
Bedford, TX 76021
Ms. Melanie Harden
Director of General Services
Town of Flower Mound
2121 Cross Timbers Road
Flower Mound, Texas 75028
Ms. Mary Smith
Director of Finance
City of Rockwall
385 S. Goliad Street
Rockwall, Texas 75087
Ms. Ann Honza
Assistant Director of Finance
City of Rowlett
4002 Main Street
Rowlett, Texas 75088
Dear City Representatives:
CITY SECRETARY
CONTRACT NO.__
Ms. Cristy Daniell
Assistant City Manager
City of Belton
333 Water Street
Belton, Texas 76513
Ms. Bridgette Garrett
Director - Finance
City of Fort Worth
1000 Throckmorton Street
Fort Worth, Texas 76201
Ms. Carolyn Lawrence
Fmance Director
City of Sweetwater
200 East 4rb Street
Sweetwater, Texas 79556
1300 E lookout Drive, Ste 100
Richardson, TX 75082
t 972 680 2000
f 972 680 2007
515 Congress Avenue, Ste 1515
Austin, TX 78701
t 512 479 7900
f 512 479 7905
Mr. Mike Collins
Dir. of ED and Admin. Services
City of Euless
201 N. Ector Drive
Euless, Texas 76039
Ms Barbara Mann
Finance Manager
City of Richland Hills
3200 Diana Drive
Richland Hills, Texas 76118
Ms. June Skerik
Budget Manager
City of Waco
300 Austin Avenue
Waco, Texas 76702
1
J. Stowe & Co LLC ("J Stowe & Co.") is pleased to propose its services to a coalition of
Cities served by Oncor Electric Delivery Co. LLC (` Oncor") regarding a review of
franchise fees paid to the Cities. Ms. Connie Cannady, who will be conducting the
analysis, has completed numerous studies to assist franchising authorities in determining
franchise fee computational compliance.' Ms. Cannady is highly qualified to provide
assistance to the Cities based on the following:
• Over twenty-five (25+) years of experience in dealing with franchising and
regulatory issues before various governmental entities concerning utility
1 Ms. Cannady may be assisted by other J. Stowe & Co. staff as required. However, she will be
responsible for the overall conduct of the engagement and will participate in the day-to-day analyses.
07-13-10 A10:57 IN
City Representatives
June 23 2010
Page 2
services;
• Significant experience in evaluating performance aspects of utility service
providers; and
• Significant experience in assisting municipalities negotiate with service providers
regarding franchise fees, service levels, service rates and other franchise
requirements.
The following proposal provides a more detailed description of the project scope and the
proposed project fees and expenses. Please note that the proposed costs are based on
project activities identified within the proposal and can be modified in the event that
specific activities are determined to be outside of the Cities' requirements.
PROJECT SCOPE
The following provides a brief outline of the project activities that J. Stowe & Co. will
perform during the course of the engagement:
Task 1: Prepare Detailed Requests for Information
We will prepare a detailed information request to be submitted to Oncor concerning the
payments made to each participating City for the period January 2008 through the first
quarter 2010. These requests will include, but not be limited to, the following:
• Supporting documentation underlying the computation of franchise
fees
• Verification of appropriate kWh factors
• Changes in accounting policies related to energy usage
• Energy usage for the review period
• Explanation for significant changes in energy usage, where
noted
• Details concerning charges to REPs related to franchise fees
• Details concerning reporting of revenue for miscellaneous
service charges
• Changes m rates for miscellaneous service charges
• Details concerning any unbilled usage
Task 2: Analyses
Subtask 1: On -Site Review
After review of Oncor's responses to the RFI, we will request that the actual books and
records of the utility be made available for review. J. Stowe & Co. will coordinate with
City Representatives
June 23 2010
Page 3
the utility to determine the most efficient method by which such records can be made
available.
Subtask 2: Franchise Fee Analyses
The major activities that will be conducted include:
• Reconcile Oncor's energy deliveries to those used in the computation
of franchise fee payments received by the City
• Determine accuracy of payments related to miscellaneous service
charges
• Clarify with representatives from Oncor any issues arising from
review of the recent franchise fee payments
Task 3: Preparation of Report
At the conclusion of the analyses, J Stowe & Co. will prepare a preliminary written report
for each of the participating Cities which details the results of the analyses and provides
recommendations, where appropriate. The report will include a discussion of any issues
that were identified during Task 2 above, and provide a summary of any discussions held
with Oncor representatives. After a meeting with City representatives to discuss the
findings, we will finalize the report 2
PROJECT COST
J. Stowe & Co. estimates that the professional fees required to conduct the PROJECT
SCOPE identified above are not -to -exceed $2,000, plus out-of-pocket expenses, for each
participating City. This cost assumes that all of the above ten Cities participate, or at
least ten total cities participate.3 If the number of participants is less than ten, the
professional fees are increased to $2,500 for each City, plus out-of-pocket expenses.
Out-of-pocket expenses will be limited to $100.00 for the total project unless travel
outside of the Dallas/Fort Worth area is required.
J Stowe & Co. bills its clients monthly based on actual hours worked, plus out-of-pocket
expenses. In the event that the actual hours spent in conducting the enumerated activities
are less than those used in the development of the not -to -exceed proposed costs, the
Cities will be billed only for the actual hours. However, if the actual hours exceed the
estimate, the Cities will only be billed up to the not -to -exceed cost, plus out-of-pocket
expenses.
2 With respect to the PROJECT SCOPE, the proposed project cost includes 1 A hours of meeting time for
discussion with Cities. Additional time requirements for meetings/presentations regarding findings will be
billed at an hourly rate of $195.00.
3 To the extent that any of the above Cities choose not to proceed, but other cities join the coalition for a
total of ten or more participating cities, the cost per City will not exceed $2,000, plus out-of-pocket
expenses.
City Representatives
June 23 2010
Page 4
ACCEPTANCE
J Stowe & Co. greatly appreciates this opportunity to work again with the Cities served
by Oncor. If this letter is in agreement with the Cities' understanding as to the scope of
services to be provided and the associated fees, please execute one copy and return it to
Ms. Connie Cannady at the following address:
J. Stowe & Co.
1300 E. Lookout, Suite 100
Richardson, Texas 75082
If you have any questions regarding the proposed project activities and/or proposed costs,
please feel free to contact Ms. Connie Cannady at 972.680.2000.
Very truly yours,
4fluCf c..
J. Stowe & Co., LLC
CITY OF BEDFORD
By:
Title:
Date:
CITY OF BELTON
By:
Title:
Date:
CITY OF EULESS
By:
Title:
Date:
City Representatives
June 23, 2010
Page 5
TOWN OF FLOWER MOUND
By:
Title:
Date:
CITY OFFsR ORTH
By:
FORM AND LEGALITY:
Title: 102•4/- ably MarWier
CITY OF RICHLAND HILLS
By:
Title:
Date:
APPROVED AS TO
vinoAlp`-CAt
ASSISTANT Cyr' ATTORNEY (1
Attested by:
•
Marty Hendrix, City Secretary
404 FOp
CITY OF ROCKWALL ,ao_°°o°o°°'a4t,
off(A
By:
o J 0,2.0
' ' o
Title: o o° Fri
o �,o -{K a
Date: mai114,2)0000 4.a; e
1):11�a
MT OF SWEETWATER
By:
Title:
Date: