04/18/2011 Council Packet - Laserfiche WebLink

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yin Bring S� ei�vi1cres ,, Basis for Compensation We recognize that compensation for services is a critical component to a successful engineering relationship. Additionally, there are several options for establishing a compensation program for City Engineering Services. Some of the options for compensation that we are aware of are listed as follows: • Standard hourly rates • Reduced rate for general engineering • Variable rate for engineering services - general engineering vs. city improvement projects vs. developer projects • Reduced rate for a defined amount of hours • Hourly rate for general engineering duties with a maximum annual fee • Flat rate retainer for general engineering We recommend a customized approach to providing engineering services. Our customized approach provides a flat rate retainer for general engineering duties and standard hourly rates for additional project assignments. The flat rate retainer would provide for office hours and establish a defined list of general engineering assignments to be completed. In the Approach to Scope of Services section we have identified the list of assignments that typically would be required for a City similar to Lino Lakes. However, since each City is unique, we propose that the final list of general engineering assignments be established and mutually agreed upon during the transition period. We believe that a reduced Flat Rate Retainer for general engineering services and a standard hourly rate for WSB AIMMININk & Associates, Inc. additional engineering assignments will provide several benefits for the City: • Detailed and specific general engineering services established and agreed upon • Budget consistency • Accountability from the Engineering Consultant • Staff direction regarding the role of the City Engineer • Provides a consistent fee structure for public and private improvement projects We understand that the City's current consultant engineer provides office hours for 40 hours per week. However, based on the current economic downturn and the lack of development activity, we believe that a reduction in the office hours is warranted, provided that the general engineering duties are completed and the level of service is maintained. On the next page, there are two scenarios for you to consider regarding WSB's Customized City Engineering Services and Flat Rate Retainer Compensation Program. Basis for Compensation 11.1