08-29-96-5-1 - Resolution - 08/29/1996q so[ution
RESOLUTION NO. 8-29-96-5-1
A RESOLUTION OF THE CITY OF COLLEGE STATION, TEXAS, APPROVING
CONTRACTS FOR LEGAL REPRESENTATION AND CONSULTING SERVICES IN
ITS PARTICIPATION AS AN INTERVENOR OPPOSING AN APPLICATION BY
GTE SOUTHWEST, INC., FOR AUTHORIZATION TO RECOVER COSTS
INCURRED AND REVENUES LOST DUE TO EXPANDED LOCAL CALLING
WHICH IS DOCKET NO. 15332 AT THE PUBLIC UTILITY COMMISSION OF
TEXAS.
WHEREAS, GTE SOUTHWEST, INC., has applied for authority to impose a surcharge
of $1.06 per access line to recover lost revenues and costs incurred due to expanded local
calling; and
WHEREAS, the City of College Station, Texas, is in the GTE service area affected by this
application; and
WHEREAS, the City believes the application should be reviewed carefully to assure that
the resulting order does not allow over recovery; and
WHEREAS, the Public Utility Commission of Texas had docketed this case as PUC
Docket No. 15332; and
WHEREAS, the City decided on April 11, 1996 to intervene in this case; and
WHEREAS, the City has joined a Coalition of GTE Cities opposed to the GTE
application in PUC Docket No. 15332; and
WHEREAS, the Coalition of GTE Cities uses a Steering Committee for facilitating the
administrative details associated with the participation of its members in PUC Docket No.
15332; and
WHEREAS, the Steering Committee has entered into a Contract for Legal Representation
with Jim Boyle and a Contract for Consulting Services with DBS Associates, Inc., to
assure effective representation for the members of the Coalition of GTE Cities in PUC
Docket No. 15332; and
WHEREAS, those contracts make clear that all members of the Coalition of GTE Cities
have the same understanding regarding representation by Jim Boyle and GDS Associates,
Inc.; and
WHEREAS, the City of College Station agrees with those understandings and considers it
most prudent to establish a written record thereot~
Resolution No. 8- 29- 96- 5 - 1 Page 2
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COLLEGE STATION, TEXAS, THAT:
The Contract for Legal Representation with Jim Boyle, signed by Bryan Easum of Tulia,
Texas, on behalf of the Coalition of GTE Cities, and attached hereto, is approved.
II.
That the Contract for Consulting Services with GDS Associates, Inc., also signed by
Bryan Easum of Tulia, Texas, on behalf of the Coalition of GTE Cities, and attached
hereto, is approved.
III.
That the City Attorney shall monitor the proceedings in PUC Docket No. 15332, and
continue communications with the Steering Committee for the Coalition of GTE Cities
and report to the City Council as necessary.
IV.
This resolution shall become effective from the date of its adoption.
PASSED and APPROVED this the 29th day of Augnst, 1996.
CONNIE HOOKS, City Secretary
APPROVED:
~'2{, .... '~FY\c ,.~', ~,~-.~ ....
~MC~~Y, Mayor
CONTRACT FOR EMPLOYMENT OF
PROFESSIONAL SERVICES
Law Offices of Jim Boyle, hereinafter called the "Law Firm", and the GTE Cities Steering
Committee, hereinafter referred to as "Cities", witnesseth:
WHEREAS, GTE Southwest Incorporated (GTE) has filed an application with the Public
Utility Commission of Texas (PUC) pursuant to §3.304 and §3.308 of the Texas Public Utility
Regulatory Act, to recover lost revenues and costs of implementing Expanded Local Calling
Service; and
WHEREAS, Cities are composed of representatives from a number of Texas communities
who are served by GTE; and
WHEREAS, Cities wish to be involved in the PUC review of GTE's application for the
purpose of assuring that any surcharge authorized to be charged by GTE will be fair and
reasonable; and
WHEREAS, the Law Firm has extensive experience in telephone service rate cases,
including reviewing cost and revenue issues; and
WHEREAS, the Law Firm also has experience specifically with GTE in the context of
a rate case; and
WHEREAS, the PUC has referred GTE's application to the State Office of
Administrative Hearings, and the case is concurrently assigned PUC Docket No. 15332 and
SOAH Docket No. 473-96-0642; and
WHEREAS, each of these Cities has passed a resolution authorizing the hiring of the
Law Offices of Jim Boyle; and
WHEREAS, Cities wish to formalize the agreement they have had with the Law Firm
since February, 1996;
NOW, THEREFORE, Cities and the Law Firm agree to this professional services
contract, and mutually agree to the following:
1. Employment of the Law Firm
Cities agree to hire the Law Firm to represent the interests of those communities
represented on the GTE Cities Steering Committee in PUC Docket No. 15332.
2. Scope of Services
The Law Firm shall provide effective representation with regard to all litigation related
to the issues in PUC Docket No. 15332, including any appeals of administrative decisions that
may be necessary.
3. Compensation
Cities agree to pay the Law Firm $170.00 per hour for work performed by Jim Boyle
and $120.00 per hour for work performed by associate attorneys. Cities also agree to pay for
costs related to performing the necessary work, including long distance telephone charges,
copying expenses, fax expense, document preparation costs, postage, court costs, and any other
charges, direct or indirect, attributable to this matter.
4. Billing
The Law Offices of Jim boyle will be reimbursed for reasonable expenses associated with
Docket No. 15332. In order that sufficient documentation exists to justify the reimbursements
it is necessary that the Law Firm adhere to the following documentation and reporting
procedures:
2
The Law Firm shall provide Cities with monthly expense summaries,
showing expenses by category (e.g., hourly fees for each expert,
subcontractor expenses, postage, reproduction costs, etc.). Each summary
will provide the totals in each category for that month, as well as a total
balance to date for each category. Each summary shall identify itself as
an expense summary for "PUC Docket No. 15332, Application of GTE
Southwest Incorporated For Authority to Recover Lost Revenues and Cost
of Implementing Expanded Local Calling Service".
The Law Firm shall provide Cities with monthly invoices. Each invoice
will identify the hourly rate, the number of hours billed, and the nature
of the work performed for each person whose work is billed by the hour.
Copies of all receipts and invoices for out-of-pocket expenses that are
being charged to the Cities shall be attached to this invoice.
Each invoice and expense summary must be provided to Cities'
representative no later than the tenth day of each month.
5. Audit
For a period of one year after the termination of this contract, the Law Firm shall
maintain all invoices and other records not previously provided to the Cities, if any, necessary
to establish an accurate and complete basis for all amounts due to the Law Finn by Cities.
Cities shall have the right from time to time, to examine, audit and reproduce all or any part of
these records for the purpose of and to the extent necessary to evaluate and verify all amounts
due to the Law Firm from Cities pursuant to this contract.
6. Retainage
It is probable that the PUC will require, during the pendency of Docket No. 15332, that
ten percent of the amount due under each monthly invoice will be retained from that month's
payment and held until such time that it has been determined by the PUC that all rate case
expenses for which reimbursement is requested are reasonable and should be paid in full. Once
such determination has been made, the retainage amount shall be paid to the Law Firm within
one week of receipt of payment from GTE.
7. Ratification
All services of the Law Finn performed under this Agreement on behalf of Cities prior
to the execution of this agreement are hereby ratified and billable under this agreement.
IN WITNESS WHEREOF, Cities and the Law Firm have executed this agreement on the
, 996.
GTE CITIES STEERING COMMITTEE
LAW OFFICES OF JIM BOYLE
By Bryan E-~uum
City Manager for Tulia, Texas and
Steering Committee Chairman for
GTE Cities Coalition
C:\~K\BOYLE\GTE15332\PROFSEPV CON
4
AGREEMENT FOR CONSULTING SERVICES
the GTE Cities Steering Committee (hereinafter 'Cities") and GDS Associates (hereinafter
"GDS").
WHEREAS, Cities wish to procure and GDS wishes to provide consulting services for
the purpose of evaluating proposals in Public Utility Commission of Texas Docket No. 15332;
and
WHEREAS, Cities and GDS wish to set forth the terms and conditions under which those
consalting services shall be performed;
Now, THEREFORE, in consideration of these premises and the mutual covenants herein,
Cities and GDS agree as follows:
Independent Contractor
Cities and GDS agree that GDS is an independent contractor and nothing in this
Agreement is intended to create, and shall not be construed to create, by and between the
parties, a relationship of principal and agent, master and servant, employer and employee, joint
venture, partnership, or any relationship other than that of independent contracting parties.
II.
Scope of Work
GDS shall provide services to aid in the evaluation by Cities of proposals and arguments
suggested by the participants in Docket No. 15332, with particular emphasis on the following:
Review GTE filings, cost studies, rate and surcharge proposal, and other
pertinent documents. Analyze the methodology for developing the ELC
surcharge, and all related data and assumptions.
Assist counsel with the development of Requests For Information, review
of responses and follow-up questions.
Develop a quantitative analysis of GTE's proposals, along with an
appropriate theoretical response to the methodology and assumptions.
Provide appropriate critiques and alternative assumptions, quantifying their
effect on the proposed rates and surcharges.
Develop Direct Testimony (and Rebuttal, if necessary) presenting results
of the analysis and alternative recommendations.
Appear at hearing and assist with all aspects of counsel's participation in
the case, including live testimony, assistance with cross examination, and
review of briefs.
Participate in discussions, conference calls, meetings, and negotiations
with counsel and others to pursue a successful litigation strategy.
GDS will provide the service in a timely manner with promptness sufficient to allow effective
case preparation and to meet deadlines established by the Administrative Law Judge in Docket
No. 15332.
III.
Term of Agreement
This Agreement shall include all work performed in support of Cities in Docket No.
15332 from February 7, 1996 until the issues in Docket No. 15332 are finally decided as to
Cities, including the time necessary for all appeals to be determined or exhausted.
Compensation
Cities agree to pay GDS the hourly rate set forth in Attachment A for the performance
of services under this Agreement. Cities will also pay all reasonable and necessary expenses
related to providing the services identified in Section II, such as travel costs, copying, postage,
overnight mail, long distance telephone costs, courier services, or subcontractors' fees. Any
required air travel will be at the lowest available commercial air fare.
GDS shall submit monthly invoices to the Law Offices of Jim Boyle for review and
submittal to the PUC, on a schedule that allows sufficient time for review by Cities
representatives prior to submittal to the PUC, in accordance with the schedule established by the
ALJ for Docket No. 15332.
Payment will be delivered to GDS within one week of receipt of payment/reimbursement
from GTE to Cities.
Vo
Billing
Cities will be reimbursed for reasonable expenses associated with Docket No. 15332.
In order that sufficient documentation exists to justify the reimbursements, it is necessary that
GDS adhere to the following documentation and reporting procedures:
GDS shall provide Cities with monthly expense summaries, showing
expenses by category (e.g., hourly fees for each expert, subcontractor
2
expenses, postage, reproduction costs, etc.). Each summary will provide
the totals in each category for that month, as well as a total balance to
date for each category. Each summary shall identify itself as an expense
summary for "PUC Docket No. 15332, Application of GTE Southwest
Incorporated For Authority to Recover Lost Revenues and Cost of
Implementing Expanded Local Calling Service".
GDS shall provide Cities with monthly invoices. Each invoice will
identify the hourly rate, the number of hours billed, and the nature of the
work performed for each person whose work is billed by the hour.
Copies of all receipts and invoices for out-of-pocket expenses that are
being charged to the Cities shall be attached to this invoice.
Each invoice and expense summary must be provided to Cities'
representative no later than the tenth day of each month.
Subcontractors of GDS must adhere to the same documentation and reporting
requirements, and the same spending restrictions that are imposed on GDS by this paragraph.
All contracts between GDS and subcontractors shall include these as requirements.
VI.
Audit
For a period of one year after the termination of this contract, GDS shall maintain all
invoices and other records not previously provided to the Cities, if any, necessary to establish
an accurate and complete basis for all amounts due to GDS by Cities. Cities shall have the right
from time to time, to examine, audit and reproduce all or any part of these records for the
purpose of and to the extent necessary to evaluate and verify all amounts due to GDS from
Cities pursuant to this contract.
VII.
Retainage
It is probable that the PUC will require, during the pendency of Docket No. 15332, that
ten percent of the amount due under each monthly invoice will be retained from that month's
payment and held until such time that it has been determined by the PUC that all rate case
expenses for which reimbursement is requested are reasonable and should be paid in full. Once
such determination has been made, the retainage amount shall be paid to GDS within one week
of receipt of payment from GTE.
If it is determined by the PUC that any charge by GDS is not reasonable, that amount
will be deducted from the retainage upon final payment.
3
VIII.
Subcontracting
Any subcontractor hired by GDS must satisfy the same requirements that this contract
imposes on GDS. Notice to GDS shall constitute notice to its subcontractors. No subcontract
shall constitute or create any contractual relationship between the subcontractor and Cities. GDS
shall not allow its subcontractors to further subcontract the work.
Confidentiality
Docket No. 15332 is a contested administrative hearing before the PUC, to which Cities
are parties. GDS will treat all information it recmves, analyses that it performs, and
communications that it sends or receives that are not in the public domain as confidential and
subject to the attorney-client privilege against disclosure. The only exceptions to this
requirement are circumstances necessary for effective participation by Cities in Docket No.
15332, which will be identified to GDS by legal counsel for Cities.
Xe
Termination
Either Cities or GDS may, for any reason and at any time, terminate this Contract by
providing written notice to the other party at least thirty. (30) days before the effective date
thereof. Upon such termination, Cities shall pay GDS for services rendered, and related
expenses, in accordance with this Agreement up to the effective date of termination. Such
service fees and expenses must be documented in accordance with the requirements of this
Agreement.
4
XIe
Representatives
All communications regarding performance under this Agreement shall occur between
the following representatives of Cities and GDS:
Cities:
Mr. Jim Boyle
Law Offices of Jim Boyle
1005 Congress, Suite 550
Austin, Texas 78701
Phone: 474-1492
FAX: 474-2507
GDS:
Mr. Jim Daniel
GDS Associates, Inc.
919 Congress, Suite 800
Austin, Texas 78701
Phone: 494-0369
FAX: 494-0205.
XII.
Severability
If any provision of this Agreement is held invalid, such invalidity shall not affect any
other provision or application of the Agreement to the extent that it can be given effect without
the invalid provision, and to this end the provisions of the Agreement are severable.
GTE CITIES STEERING COMMITTEE
GDS ASSOCIATES, INC.
By:
ATTACHMENT A
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