HomeMy WebLinkAboutContract 43399STATE OF TEXAS
COUNTIES OF TARRANT
DENTON, PARKER
AND WISE
orni oFtRETARY
CONTRACT
•
THIS AGREEMENT is made and executed by and between the City of Fort Worth,
Texas, a municipal corporation situated in Tarrant, Denton and Wise counties, Texas,
hereinafter called the "City", acting herein by and through Fernando Costa, its duly authorized
Assistant City Manager, and Fred Reynolds and Associates, hereinafter called the
"Consultant," acting herein by and through Fred Reynolds, its duly authorized Principal.
WHEREAS, the City desires to hire a professional consultant knowledgeable and
experienced in valuating royalty interests and options for managing those interests; and
WHEREAS, the Consultant has represented that it is knowledgeable and experienced
in such matters; and
WHEREAS, the City staff has determined that the Consultant is the most qualified firm
to represent the City in such consultation matters.
NOW, THEREFORE, that for and in consideration of the mutual covenants and
agreements herein contained, the parties hereto do hereby covenant and agree as follows:
SECTION 1.
ITIONS
In this Agreement, the following words and phrases shall be defined as follows:
Citv's Representative means the Director of the Planning and Development or his designee.
Deliverable Document means a report, photograph, electronic file, or an invoice that shows the
completion of one of the work tasks and/or subtasks. Electronic files shall be in Word, Excel,
AutoCad, or similar software and shall be provided as requested by the City.
Notice to Proceed means the letter issued by the City that authorizes Consultant to begin work.
It also authorizes future invoices to be paid.
Subcontract means a contract between the Consultant for this project and another person or
company for any complete task defined in the scope of work. A purchase order is also
considered a subcontract.
07--1 3-1 2 P03:33 IN
OFFICIAL RECORD
CITY SECRETARY
FT. WORM, TX
SECTION 2.
SCOPE OF SERVICES
Consultant shall provide professional services in making a determination of the value of the
City's mineral interests under North ZBoaz Park as shown m Attachment A in certain and
various circumstances, such as co -tenancy and/or under a lease agreement Consultant shall
provide such valuation in a written document to the City Attorney's office and such document
shall be considered privileged, confidential and/or attorney/client work product. The
Consultant shall also provide verbal advice or presentation at the request of the City and if
requested, shall attend meetings to provide such consultation
SECTION 3.
TIME OF PERFORMANCE
This Agreement shall be effective as of the date it is fully executed. Consultant shall provide the
written valuation to the City's Attorney's office in draft form as soon as is possible and in fmal
form no later than Thursday, July 12, 2012. All tasks may be modified upon mutual written
consent of the parties. All modifications to this Agreement must be made by written
amendment.
SECTION 4.
COMPENSATION TO THE CONSULTANT AND METHOD OF PAYMENT
As compensation for the services provided by Consultant, in accordance with the terms of this
Agreement, the City agrees to pay the Consultant on the basis of the hourly rates set forth in
Attachment B, in an amount not -to -exceed $3,500. This amount shall constitute full and
complete compensation for the Consultant' s services under this Agreement, including all
expenditures made and expenses incurred by the Consultant in performing such. Consultant
shall not be required to furnish services or incur expenses above the not -to -exceed amount
without written authorization and additional funding from the City. The Consultant shall notify
the City, in writing, when ninety percent (90%) of the total not -to -exceed amount has been
invoiced
Such compensation shall be paid to the Consultant in monthly installments upon submission of
statements, together with supporting data indicating the progress of the work and services
performed for the month immediately preceding. Invoices will be due upon receipt and payable
within thirty (30) days, subject to certification by the Director, or his authorized representative,
that such work has been performed and the expenses have been incurred. Such certification
shall not be unreasonably withheld or delayed.
Reimbursable expenses are part of the not -to -exceed amount and include, but are not
necessarily limited to subcontractor expenses, travel, report production and other out-of-pocket
expenses, which shall be paid based upon actual cost, supported by such documentation as the
City may reasonably request.
Valuation ofZBoaz Mineral Interest
2
SECTION 5.
PROFESSIONAL RESPONSIBILITY AND WARRANTY
Consultant shall perform services consistent with the skill and care ordinarily exercised by other
professional consultants under similar circumstances at the time services are performed, subject
to any limitations established by City as to degree of care, time or expense to be incurred or
other limitations of this Agreement. Consultant further represents that it will perform all
services under this Agreement in a safe, efficient and lawful manner using industry accepted
practices, and in full compliance with all applicable state and federal laws governing its
activities and is under no restraint or order which would prohibit perfoiniance of services under
this Agreement.
SECTION 6
ESTABLISHMENT AND MAIN PENANCE OF RECORDS
Records shall be maintained by the Consultant at its place of business with respect to all matters
covered by this Agreement. Such records shall be maintained for a period of three (3) years
after receipt of final payment under this Agreement.
SECTION 7.
AUDITS AND INSPECTIONS
Consultant agrees that the City shall, until the expiration of three (3) years after the final
payment under this Agreement have access to and the right to examine any directly pertinent
books, documents, papers and records of the Consultant involving transactions relating to this
Agreement. The Consultant agrees that the City shall have access during normal working hours
to all necessary Consultant facilities and shall be provided adequate and appropriate work space
in order to conduct audits in compliance with the provisions of this section The City shall give
Consultant reasonable advance notice of intended audits.
The Consultant further agrees to include in all its subcontracts hereunder a provisions to the
effect that the subcontractor agrees that the City shall, until the expiration of three (3) years after
the final payment and directly pertinent books, documents, papers and records of such
subcontractor, involving transactions to the subcontract, and further that City shall have access
during normal working hours to all subcontractor facilities, and shall be provided adequate and
appropriate work space, in order to conduct audits in compliance with the provisions of this
article, and shall give subcontractor reasonable advance notice of intended audits.
SECTION 8.
INDEMNITY AND LIMITATION OF LIABILITY
CONSULTANT, ITS AGENTS, EMPLOYEES AND SUBCONTRATORS SHALL
RELEASE, DEFEND, INDEMNIFY AND HOLD HARMLESS CITY AND ITS
OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ALL DAMAGES,
INJURIES (INCLUDING DEATH), CLAIMS, PROPERTY DAMAGES (INCLUDING
LOSS OF USE), LOSSES, DEMANDS, SUITS, JUDGMENTS AND COSTS,
Valuation of ZBoaz Mineral Interest
INCLUDING REASONABLE ATTORNEY'S FEES AND EXPENSES, IN ANY WAY
TO THE EXTENT CAUSED BY THE NEGLIGENT ACT OR OMISSION OF
CONSULTANT, ITS OFFICERS, AGENTS, EMPLOYEES, OR
SUBCONTRACTORS. NO EMPLOYEE OF CONSULTANT SHALL HAVE
INDIVIDUAL LIABILITY TO THE CITY IN ALL ITS AGREEMENTS WITH
CONSULTANT'S SUBCONTRACTORS, CONSULTANT SHALL INCLUDE A
SIMILAR PROVISION WITHIN THE AGREEMENT.
SECTION 9.
COMPLIANCE WITH LAWS
In providing the scope of services outlined herein, the Consultant shall comply with all
applicable laws, ordinances, and codes of the Federal, State and local governments known to
the Consultant, or which should have been known to Consultant in accordance with applicable
professional standards of care.
Consultant certifies that on the day work is to commence under this Agreement and during the
duration of the Agreement, it shall have and maintain current valid and appropriate federal and
state licenses and pexurits necessary for the provision of services under this Agreement.
Contractor also certifies that if it uses any subcontractor in the performance of this Agreement,
that such subcontractor shall have and maintain current valid and appropriate federal and state
licenses and permits necessary for the provision of services under this Agreement.
SECTION 10
MODIFICATION
No modification of this Agreement shall be binding on Consultant or the City unless set out in
writing and signed by both parties. Modifications shall be in the same format as the final
specification showing the change or addition of a task, project schedule, dehverable
document(s), and schedule of payments.
SECTION 11
ASSIGNABILITY
Neither party hereto shall assign, sublet or transfer its interest herein without prior written
consent of the other party, and any attempted assignment, sublease or transfer of all or any part
hereof without such prior written consent shall be void.
SECTION 12.
DEFAULT
If Consultant fails to begin work herein provided for within the time specified above, or to
complete such work within the time specified above, within the true meaning of this
Agreement, City shall have the right to take charge of and complete the work in such a manner
Valuation of ZBoaz Mineral Interest
as it may deem appropriate If City exceeds the costs detailed in the attached documents, City
may deliver to Consultant a written itemized statement of the total excess costs, and Consultant
shall reimburse City for such excess costs without delay.
If, at any time during the term of this Agreement, the work of Consultant fails to meet the
specifications of the Agreement Documents, City may notify Consultant of the deficiency in
writing. Failure of Consultant to correct such deficiency and complete the work required under
this Agreement to the satisfaction of City within ten (10) days after written notification shall
constitute default, and shall result in termination of this Agreement All costs and attorneys fees
incurred by City in the enforcement of any provision of this Agreement shall be paid by
Consultant.
The remedies provided for herein are in addition to any other remedies available to City
elsewhere in this Agreement and by law.
SECTION 13.
TERMINATION OF CONVENIENCE OF CITY
The City may terminate this Agreement for its convenience at any time by giving at least ten
(10) days notice in writing to the Consultant In the event of termination pursuant to this
paragraph, Consultant shall be entitled to receive payment for all work completed or in
progress, and for costs reasonably incurred to close out its project services. Compensation is to
include fees, expenses, and liabilities to subcontractors or other third parties for work completed
or for the work done in progress of completion at the time of termination. Consultant will make
reasonable attempts to cancel all such liabilities in order to mitigate the cost to the City. If this
Agreement is teliuinated due to the fault of the Consultant, Section 16 hereof relative to
termination shall apply.
SECTION 14.
SEVERABILITY
If any portion of this Agreement is held to be void, invalid, or otherwise unenforceable, in
whole or part, the remaining portions of this agreement shall remain in effect.
SECTION 15.
VENUE
Should any action, whether real or asserted, at law or in equity, arise out of the terms of this
Agreement, venue for said action shall be in Tarrant County, Texas.
SECTION 16.
Valuation of ZBoaz Mineral Interest
MISCELLANEOUS
This Agreement and all attachments represents the entire understanding between the City and
the Consultant in respect to the Project, supersedes any and all prior written or oral negotiations
of agreements between the parties, and may only be modified in writing signed by both parties.
SECTION 17.
NOTICES
All written notices to the respective parties shall be sent by registered mail and be addressed as
follows:
CONFIDENTIAL REPORTS
City Attorney's Office
Christa Reynolds, Sr. Assistant City Attorney
1000 Throckmorton
Fort Worth, Texas 76102
Cluista.Revnolds@fortworthtexas. ;ov
CITY OF FORT WORTH CONSULTANT
Jean Petr Fred Reynolds
Planning and Development Dept. Fred Reynolds and Associates
1000 Throckmorton420 Throckmorton, Suite 630
Fort Worth, Texas 76102 Fort Worth, Texas 76102
SECTION 18.
CAPTIONS
The captions of this Agreement are for informational purposes only and shall not in any way
affect the substantive terms and conditions of the Agreement.
SECTION 19.
CONFLICTS
Consultant represents to the City that it has made full disclosure in writing of any existing or
potential conflicts of interest related to the services to be performed hereunder. Consultant
further warrants that it will make prompt disclosure in writing of any conflicts of interest that
develop subsequent to the signing of this Agreement.
Valuation of ZBoaz Mineral Interest
6
EXECUTED on this, the
Fred Reynolds and Associates
t n')
Fred Reynolds
Principle
7/C on Z_
Date
Witness
ay of
, 2012.
City of Fort Worth, Texas
Fernando Costa
Assistant City Manager
GAZ
Date
APPROVED AS TO FORM AND
LEGALITY:
Christa` . Reynolds `J ob-c��`la
titi
Sr. Assistant City Attorney he* fo9otiorzi �
ATTEST:
Mary Kayser
A.,.,,.,..1..%..1....1.. il...,.....................City Secretary
Date
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH? TX
Valuation of ZBoa7 Mineral Interest
Attachment A
Description/Map of North ZBoaz Park
Valuation of ZBoaz Mineral Interest
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FORT WORTH®
Copyright 2011 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws.
This product is for informational purposes and may not have been prepared for or be suitable for
legal, engineering, or surveying purposes. It does not represent an on -the -ground survey and
represents only the approximate relative location of property boundaries. The City of Fort Worth
assumes no responsibility for the accuracy of said data.
Attachment B
Schedule of Payment
Valuation ofZBoaz Mineral Interest
FRED S. REYNOLDS AND ASSOCIATES
RATE SCHEDULE — JANUARY 1, 2012
EVALUATION & RESERVOIR ENGINEERING
AMOUNT
Protect Manager $225.00 per hour
Senior Consultant $225.00 per hour
Petroleum Engineer $175.00 per hour
Geologist $150.00 per hour
Petroleum Technician $135.00 per hour
Senior Analyst $135.00 per hour
DRILLING & COMPLETION
Wellsite Supervision $550.00 per day
Extra Well per Day Negotiable
Casing Scraper Equipment $150.00 per run
Orifice Tester $50.00 per day
Trailer on Locations At cost
Food (flat rate) $35.00 per day
Lodging At cost
Mileage $0.55 per mile
Standby 50% of above
PRODUCTION/MANAGEMENT
Production Equipment Design $175.00 per hour
Well Log Analysis $175.00 per hour
Budget & AFE Preparation $175.00 per hour
Wellsite Permitting $175.00 per hour
Well Planning/Drilling Prognosis $175.00 per hour
Well Administrative Operations Negotiable
Well Pumping Negotiable
MISCELLANEOUS SERVICES
Accountant $150 per hour
Expert Witness Negotiable
Computer Programmer $150.00 per hour
Computer Technician $65.00 per hour
Computer (In -House) Evaluation $10.00 per lease
Computer (In -House) Second Run N/C
Computer -Main Frame At cost
Secretarial/Clerical $55.00 per hour
Plotter $5.00 per plot
In-house Reproduction $0.40 per copy
y
Outside Reproduction At cost
Telephone & Fax Services At cost
Production Data Public Services At cost
Production Data In-house Services $6.50 per property
rates.forms