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Home My WebLink About#05 - Focus Engineering AmendmentSTAFF REPORT DATE: September 6, 2022 CONSENT AGENDA ITEM: First Amendment to PSA with Focus Engineering Inc SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The city council approved the current professional services agreement with Focus Engineering Inc in 2018. That agreement had a term of five years. ISSUE BEFORE COUNCIL: Should the Council approve an amendment to extend the professional services agreement with Focus for one year? PROPOSAL: Due to staffing vacancies and the unfinished state of a number of unique projects such as the MPCA water extension projects, staff is recommending a one year extension to the agreement with Focus for engineering services. This would push the RFP process to 2023 for engineering. Included in your packet is an amendment drafted by the city attorney. FISCAL IMPACT: The monthly base fee will remain the same at $2,500 in 2023. Attached to the amendment is a new fee schedule for 2023. Hourly rates are increasing $5-12/hour. OPTIONS: 1) Approve the First Amendment to the Professional Services Agreement with Focus Engineering Inc 2) Amend and then Approve the First Amendment to the Professional Services Agreement with Focus Engineering Inc 3) Do not an amendment to the Focus Engineering agreement and instead direct staff to begin RFP process. RECOMMENDATION: If removed from the consent agenda: “Move to approve the First Amendment to the Professional Services Agreement with Focus Engineering Inc.” ATTACHMENTS: • First Amendment to Professional Services Agreement BR305-1-756306.V1 1 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT This First Amendment to the Professional Services Agreement (this “First Amendment”) is made and entered into this _____ day of ___________, 2022, by and between the City of Lake Elmo, a municipal corporation under the laws of Minnesota (the “City”) and FOCUS ENGINEERING, Inc., a Minnesota corporation (the “Engineer”). RECITALS: A. The City and the Engineer have entered into that certain Professional Services Agreement dated January 2, 2018 (the “Agreement”); and B. The Period of Service in the Agreement continues through December 31, 2022. C. The City and the Engineer wish to amend the Agreement to extend the Period of Service for one year through December 31, 2023. D. The Compensation in the Agreement is $2500 per month for day-to day General Engineering Services and according to an Hourly Rate Schedule for the years 2018-2022 for project engineering services, department support services, and services provided pursuant to a Taask Order. E. The City and the Engineer wish to update the Compensation in the Agreement. NOW, THEREFORE, in consideration of the above recitals, which are expressly incorporated herein, and for other good and valuable consideration, the receipt and sufficiency which is hereby acknowledged, the City and the Engineer agree to amend the Agreement as follows: 1. Article 2 of the Agreement is amended to read as follows: 2.1 Term: Engineer is hereby retained on a continuing basis through December 31, 2023, subject, however to termination by either party in accordance with ARTLCIE 5.9. 2. Article 3 of the agreement is amended to read as follows: 3.1 Basis for Compensation: Compensation to Engineer for day-to-day General Engineering Services shall be $2,500 per month for the six year term of this AGREEMENT. General Engineering Services are defined as attendance at city council meetings and work session, commission, committee or staff 2 meetings as requested; acting as the City’s liaison with other agencies; capital improvement planning; responding to or meeting with property owners on matters not related to project engineering services; coordinating map updates and GIS updates; administration of municipal state aid system and certification; assisting with funding solutions for infrastructure projects such as identifying grants or loan programs; reviewing and evaluating suggested revisions to fee schedules, assessment policies and utility rates (not including rate studies); advising the City of current trends and policy formation; and updating and maintaining engineering standards. Compensation to Engineer for project engineering services and department support services, shall be on an hourly rate basis in accordance with the 2023 Hourly Rate Schedule which is attached to this AGREEMENT. Project engineering services and department support services shall include engineering support to other city departments including permit and plan reviews (grading, site plans, CUP and PUD applications); reviewing of development applications and plans for conformance with City standards; meeting with developers and members of the public on proposed development projects; guiding and overseeing the design and construction of public infrastructure through private development projects; providing engineering support to the public works department as requested for maintaining the MS4 NPDES Permit, right-of-way applications, and overseeing the annual street maintenance projects; preparing requests for proposals, and assisting with selecting outside professional services consultants for certain projects, and managing the professional services contracts; and other related tasks of the type normally associated with infrastructure and facility planning, design and construction; and acting as the City liaison and representative for other county, state and federal agency projects within the City. Services described in a specific “TASK ORDER” shall be compensated on an hourly rate basis and/or a lump sum basis as designated in each TASK ORDER in accordance with the attached 2023 Hourly Rate Schedule. 3.3 Reimbursable Expenses: The Engineer shall be reimbursed at cost for any direct expenses when incurred in the performance of the City’s work in accordance with the attached 2023 Hourly Rate Schedule. Mileage shall not be reimbursed for the performance of any General Engineering Services. 3. All other terms and conditions of the Agreement shall remain in full force and effect. 3 IN WITNESS WHEREOF, the City and the Engineer have executed this First Amendment to the Professional Services Agreement as of the date first written above. CITY OF LAKE ELMO By:_________________________________ Charles Cadenhead Its: Mayor By:_________________________________ Julie Johnson Its: City Clerk FOCUS ENGINERING, INC. By:________________________________ John (Jack) W. Griffin, P.E. Its: Principal/Chief Financial Officer FOCUS ENGINEERING, inc. – 2023 HOURLY RATE SCHEDULE REV 12.31.2022 FOCUS ENGINEERING, inc. 2023 Hourly Rate Schedule Standard Hourly Rates include salaries and wages paid to personnel in each staff position plus the cost of customary and statutory benefits, general and administrative overhead, non‐project operating costs, and operating margin or profit. Sr. Municipal Engineer III – Jack Griffin $140 / hour Sr. Municipal Engineer II – Cara Geheren $130 / hour Sr. Municipal Engineer I – Mark Scholle/Ryan Stempski $120 / hour Municipal Engineer III – Chad Isakson $110 / hour Municipal Engineer II $105 / hour Municipal Engineer I $100 / hour Project Engineer – Mike Rusenovich $90 / hour Graduate Engineer – Jeremy Stalcar $80 / hour Engineering Technician – Karl Geary $80 / hour Interns $60 / hour Senior Construction Field Representative – Shane Olson/Justin Moeller $120 / hour Construction Field Representative – Hyperion Consulting LLC $105 / hour Reimbursable Expenses Schedule  Vehicle Mileage reimbursed at the current Federal IRS Rate. Mileage shall not be reimbursed for any tasks performed under the General Engineering Retainer Services.  Identifiable printing and reproduction costs when incurred in the direct performance of the City’s work.  Other expenses for items and services as may be required by the City to fulfill the terms of a specific Task Order.