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November 14, 2014 <br />Mr. Nick DeBar, Public Works Director <br />Page 2 of 3 <br />Reference: 2015 Groveland Sanitary Lift Station Improvement <br /> Letter of Agreement for Engineering Services <br /> Design Phase <br /> <br />At the point where the construction documents are ready for consideration, the project would go <br />back to the City Council. If the Council is inclined to approve the construction documents, the <br />project would proceed into the next phase of activity, the Bidding Phase. A separate letter <br />regarding the details of the engineering services in the Bidding Phase would be prepared and <br />submitted to the City at that time for consideration of authorization. <br /> <br />The Design Phase would continue during a portion of the Bidding Phase, with the two phases <br />overlapping for a period of time. Final activities of the Design Phase that would occur during the <br />overlap would include final activities to obtain project permits, and any final work on the <br />construction documents (due to feedback from the City Council, permitting agencies, etc.) prior <br />to their distribution to potential bidders. <br /> <br />Estimated Cost – Design Phases Engineering Services <br />We have performed a preliminary estimate of the anticipated effort necessary to complete the <br />work of the Design Phase for the Groveland Sanitary Lift Station Improvement Project. The <br />estimate has been developed based on the preceding discussion of the scope of work per our <br />Evaluation Letter Report Dated September 30, 2014, historical information from past projects, as <br />well as our understanding of the requirements and expectations of the City of Mounds View. Per <br />your direction, we are proceeding with Option 3 of that report which is the conversion of the lift <br />station into a duplex submersible pump station which includes raising the structure to the surface <br />with precast concrete manhole sections. The estimated cost of the engineering services for the <br />Design Phase of the project is $44,000. <br /> <br />The amount of actual engineering services needed for the Design Phase can vary based on <br />factors beyond the control of the engineer or the City. These factors can include such things as <br />the number and nature of questions received from potential bidders, the number of formal <br />addenda required for the project. The cost estimate provided above has been based on a <br />typical amount of bidder questions, and on the issuance of one formal addendum. <br /> <br />Compensation Structure <br />A direct hourly compensation structure is proposed for use on all engineering services for the <br />Groveland Sanitary Lift Station Improvement Project. This is consistent with the compensation <br />method used on past SUIP Projects. <br /> <br />In order to use an all hourly compensation structure, it will be necessary to amend the existing <br />Professional Services Agreement between the City and Stantec. It is suggested that as part of this <br />letter agreements, Appendix D of the existing Professional Services Agreement be suspended, and <br />be replaced with the following language for the Groveland Sanitary Lift Station Improvement <br />Project which was also used in the Area H Street and Utility Improvement Project: <br />