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Home My WebLink About6.k. WSB Contract RenewalAGENDA ITEM: WSB Contract Renewal AGENDA SECTION: Consent PREPARED BY: Jamie Verbrugge, City Administrator AGENDA NO. 101 ATTACHMENTS: Letter from WSB and revised contract provisions APPROVED BY: RECOMMENDED ACTION: Motion to approve renewal of the professional services contract with WSB Associates, Inc to provide city engineering services ROSEMOUNT CITY COUNCIL City Council Meeting: December 19, 2006 EXECUTIVE SUMMARY BACKGROUND The City of Rosemount retains WSB Associates, Inc. to provide city engineering services. The most recent agreement for professional services was negotiated for a three -year term in late 2003. The term of the agreement expires at the end of this calendar year. \VSB and City staff have negotiated a proposed extension of the agreement for a three -year term to cover the years 2007 -2009 ISSUE The renewal proposal is in the same form as the expinng agreement. The City of Rosemount pays an annual retainer to WSB. In exchange, WSB commits that Mr Andrew Brotzlerwill serve as the City Engineer so long as he is employed with WSB or unless the parties agree otherwise. WSB also provides a project engineer (currently Morgan Dawley) to serve the City. The proposed retainer for the three year term is $15,000 in 2007; $30,000 in 2008; and $45,000 in 2009. The scheduled increases mirror the current arrangement. The relationship with WSB provides an annul savings in personal service costs to the City that can be estimated to be between $170,000 to more than $200,000. The estimates are based on the comparable salanes of professional engineers in other cites combined with benefits. The arrangement is beneficial to WSB because the firm denves significant revenues from developer -borne project costs that offset the dedicated personnel costs of the two positions Staff regularly reviews WSB's Rate Schedule compared to its competitors. WSB rates are consistently competitive. Staff also reviewed a comparative analysis of audited overhead rates that the Minnesota Department of Transportation requires of all consultants. The audited overhead companson shows that WSB has one of the lowest overhead rates and is well below average. SUMMARY The City Council discussed the contract renewal at the November 15 City Council Work Session and directed staff to move the contract forward for approval. Staff recommends a motion to approve the contract 4 A wsa Associates, Inc November 16, 2006 Mr. Jamie Verbrugge City Administrator City of Rosemount 2875 145th Street West Rosemount, MN 55068 -4997 Infrastructure 1 Engineering 1 Planning 1 Construction Re: Contract for City Engineering Services WSB Project #1005 -00 Minneapolis 1 St Cloud Equal Opportunity Employer 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel 763 541.4800 Fax 763 541 -1700 Dear Mr. Verbrugge: WSB Associates, Inc. is pleased to provide this letter regarding renewing our contract to provide city engineering services to the City of Rosemount. We have very much appreciated the partnership that has been created between our two organizations and believe that this public private partnership has been beneficial to both of our organizations. As per our discussion, we will propose to renew our contract in the same manner as we did previously, which consists of a three year contract with annual retainers of $15,000, $30,000 and $45,000 for 2007, 2008 and 2009. Our staff will remain as currently assigned, however, it is likely that Andy Brotzler will continue to expand his role to assist the city with public works issues as necessary in that area. For your information, WSB Associates, Inc continues to maintain cost effective services in this era of rising expenses. I have attached a copy of the Mn/DOT audited overhead rates for companies doing business with Mn/DOT. While Mn/DOT would not disclose any of the names of the firms with the audited overhead rates, I'd like to point out that WSB's rate is currently 12134 but on Mn/DOT's attached list we are at 117.71. This is the cost per dollar of salary for all other expenses it takes to operate each company. Therefore, for each dollar of salary, we have $I 21 in expenses or overhead. These audited overhead rates are from very small companies to very large companies, all doing business with Mn/DOT. I hope this information provides you some background as to our efforts to keep costs in line and our fees low It should be noted that many of these firms mark up subconsultants services, charge mileage to their clients and have other miscellaneous charges that WSB continues to avoid. All of those items are included in our overhead at this time which, if we would charge for those, it would lower our overhead even further in comparison to our competitors. I have included the signature block below to acknowledge the modifications made to the contract. Please sign both copies, keep one for your files and return the other copy to me. We would like to sincerely thank you, your staff, the city council and all of the residents of Rosemount for embracing WSB in this role and realizing that we can work together to create a great partnership. Please call me anytime at 763- 287 -7190 if I can be of any assistance. Rosemount Contact Letter Page 2 of 2 Sincerely, frd-A 11.4 Bret A. Weiss, PE President cc: Andy Brotzler ACCEPTED BY: City of Rosemount Name: Title: Date: t Section 1. Scope of Work. Engineer will provide services as described on Exhibit 1, attached hereto and hereby made a part hereof (hereinafter generally referred to as the "Project on a fixed retainer of $1,250 per month for 2007, $2,500 per month for 2008, and $3,750 per month for 2008 (unless legislative levy limits are in place in which case it would be $2,500 per month) payable in the month following the month in which services are rendered. These services generally include administrative and staff duties as acting city engineer for the City. Work on the Project will generally be performed by Andy Brotzler or another mutually agreeable employee of the Engineer (the "Acting City Engineer"). In addition, the Engineer will provide a staff engineer for duties as assigned by the Acting City Engineer on an as needed basis. The cost of the work for development related projects is to be passed through to a developer or other private party at a billmg rate which shall be as specified on Exhibit 2. Work requested by the City and performed by other employees of Engineer that does not fall within the scope of services described on Exhibit 1 will be compensated on a hourly basis on the fee schedule attached hereto as Exhibit 2, or will be made the subject of a separate contract for services. C:Wtumems and SunngsbdehnVncal Ser?ingATUrporary Internet flMADLXflSA Secuon 1 Scope 100606.doc Company Name All companies with Companies we audit 9/15/2005 2002 and newer rates Current Mn /DOT Current Mn/DOT Year Overhead Rate Overhead Rate 84 25 112.24 117 71 121 40 122 67 125 53 127 54 127 94 130 25 132 88 134 01 135 66 135 72 136 15 136 44 137 62 139 58 141 70 145 25 146 14 146 17 148.00 148 50 148 79 149 30 151 15 152 54 154 00 155.31 155 76 156 57 158 43 158 89 159 55 160 3 160 76 161 11 162.59 163 75 164 34 164 38 164 90 165 28 166.99 167 04 167 06 169 20 169 56 171 29 171 97 172.59 173 03 17318 175 22 179 59 180 19 186-75 189 63 195 08 199 70 9,124 87 Avg 153 49 Proposed for CY 2003 112 24 CY 2004 117 71 Draft audited rate for CY 2004 Mn/DOT rate for CY 2004 122 67 Proposed for CY 2002 FYE 10 -31 -04 provisional rate Mn /DOT rate for FYE 9 -30 -02 FYE 9 -30 -03 Proposed rate for CY 2004 MNDOT rate for FYE 4 -30 -03 MNDOT rate for CY 2003 135.66 Proposed rate for CY 2004 MNDOT rate for CY 2004 Proposed for CY 2003 MNDOT rate for FYE 6 -30 -04 137.62 CY 2004 139 58 FYE 9 -30 -04 CY 2003 CY 2003 146.14 Proposed rate for FYE 4 -30 -04 146 17 CY 2003 FYE 3/31/04 provisional rate MNDOT rate for FYE 2 -28 -03 CY 2004 MNDOT rate for CY 2003 Mn /DOT rate for FYE 05 -01 -04 MNDOT rate for CY 2003 154.00 CY 2004 Mn /DOT rate for FYE 9 -17 -04 155.76 Proposed rate for FYE 11 -30 -04 Proposed for FYE 10 -29 -04 Proposed rate for CY 2004 158.89 Proposed for FYE 6 -30-04 CY 2003 Proposed rate for CY 2002 Proposed for FYE 4-2 -05 161 11 CY 2003 162 59 CY 2003 MNDOT rate for FYE 3 -31 -04 MNDOT rate for FYE 11 -30 -03 Proposed rate for CY 2004 MNDOT rate for CY 2002 16528 Proposed rate for CY 2003 CY 2003 Proposed rate for CY 2004 MNDOT rate for FYE 3 -31 -04 MNDOT rate for CY 2004 169.56 Proposed rate for CY 2004 CY 2003 Proposed for CY 2003 CY 2002 MNDOT rate for CY 2004 MNDOT rate for FYE 10 -31 -04 175.22 Proposed rate for CY 2004 179 59 CY 2003 MNDOT rate for FYE 9 -30-03 186 75 Proposed for CY 2003 Proposed for CY 2002 Proposed rate for CY 2004 Proposed rate for CY 2003 Z726 54 Avg 151.47%