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Mr. Nick DeBar File No. 435-09139-0 City of Mounds View April 5, 2011 Area D – Construction Phase Services Page 6 The amount of actual engineering services needed for the Construction Phase can vary based on factors beyond the control of the engineer or the City. These factors can include such things as the number and nature of questions received from property owners and residents, unforeseen conditions encountered during construction, and severe weather. The cost estimate provided above has been based on typical levels of activity for a project of this nature. Compensation Structure A direct hourly compensation structure is being used for all engineering services on the Area D Street and Utility Improvement Project. This was established with the letter agreement for the Design Phase, approved by the City Council on July 12, 2010, and was continued in the Bidding Phase, approved by the City Council on February 28, 2011. It is proposed the compensation structure for the Design Phase and Bidding Phase be continued in the Construction Phase. Until the new Master Service Agreement between the City and Bonestroo is in place, it is necessary to amend the existing Professional Services Agreement in order to use the hourly compensation structure. It is suggested that as part of this letter agreement, Appendix D of the existing Professional Services Agreement be suspended, and be replaced with the following language for the Area D Street and Utility Improvement Project: “The City shall pay the Engineer for services under the Construction Phase of the project on an hourly basis in accordance with the Billing Rate Schedule shown in Exhibit B attached to this letter.” Exhibit B included with this letter shows the proposed Rate Schedule for the project. It is broken down by classification of the personnel. Within each classification is a range, to allow for differentiation of experience level within a classification category. Included with the Rate Schedule is a listing of the specific rates for several individuals who regularly provide service to the City, as well as others who may be anticipated to work on the project in Area D. It should be noted the rates for the Construction Phase are exactly the same as were used for the Design Phase and Bidding Phase. Schedule – Overview A preliminary schedule for the Area D Street and Utility Improvement Project was prepared in July 2010 at the time City Council authorization was given to proceed with the Design Phase. An updated version of the schedule is shown on Figure 2 included with this letter. The milestones listed in the Design Phase and Bidding Phase were met; therefore the schedule is still correct for the Construction Phase, assuming the City Council awards a construction contract at their meeting of April 11, 2011. The project is on schedule for construction starting in May 2011 with the substantial completion of construction to be achieved by September 30, 2011. Summary Hopefully this provides a sufficient summary of the estimated engineering activities and costs associated with the Construction Phase of the Street and Utility Improvement Project for Area D. If so, it is respectfully requested this information be presented to the City Council at their next meeting for consideration of authorization to proceed with the Construction Phase. We will be present at the meeting to assist in discussion as necessary.