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Al WSB cf As-soda/es. Inc. May 20, 2011 Engineering ■ Planning • Environmental • Construction Mr. Michael Grochala, Community Development Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 -1182 Re: City Engineering — General Service Rates Dear Mr. Grochala: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763- 541 -4800 Fax: 763 -541 -1700 We are in receipt of your letter dated May 12, 2011, requesting additional information pertaining to our proposed engineering fees. Specifically, you requested the names of the two personnel that will be assigned to perform the tasks outlined in your letter as well as their hourly rates. You also requested the rates for reimbursable expenses not included in the hourly rates. The proposed engineers we included in our proposal to perform a majority of the engineering tasks outlined in your letter are as follows: Jason Wedel, City Engineer Jeremy Koenen, Assistant City Engineer $121 per hour $96 per hour Please be sure to note that all miscellaneous expenses such as copying, mileage, etc., are included in our hourly rates. This is unusual in our industry and can reduce total costs by 3 -5 %, so we hope that you include that in your analysis. We still firmly believe that our original proposal based on a flat fee is in the best interest of the City. Simply comparing hourly rates between engineering firms will not provide the City with the complete picture. We proposed a flat fee purposefully in an effort to drive innovation and performance. We specialize in municipal engineering and can provide the services the City needs more efficiently than anyone else. This contract arrangement is currently being used with our clients in Rosemount, Champlin, and Minnestrista among others. Please do not hesitate to contact these cities and ask them how the flat rate is working for them. After reviewing the tasks outlined in your letter and comparing it to the list of tasks we included in our proposal, there were three additional items on your list. These items are Pavement Management, NPDES /Surface Water Management, and foundation elevation surveys. We recommend modifying our original proposal to include Pavement Management and NPDES /Surface Water Management. The annual fee would, therefore, increase from $62,400 to $72,400 after adding these tasks. Due to the variable nature of foundation elevation surveys, we would recommend completing those separately on an "as- needed" basis at our standard hourly rate shown in our fee schedule. We are confident that either method that you utilize, flat fee or hourly, that WSB will be the most competitive and provide the overall lowest cost. We want you to get a partner that is committed to finding the best long -term solutions. We are willing to provide service using a partial flat fee and partial Minneapolis ■ St. Cloud Equal Opportunity Employer