Item 3.12 Agreement for City Engineer Services40
F
Otsezo
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
December 14, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Attorney Kendall
3.12
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve an Agreement for City Professional Engineering
Services.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
The City of Otsego contracts with Hakanson Anderson Associates, Inc. (Hakanson) to engage City
Professional Engineering Services. These services include, but are not limited to, preparation of plans and
specifications for projects as determined by the City; development of reports, studies, and applications for
review and approval by the City and other agencies for municipal operations including sanitary sewer,
public water systems, stormwater management, streets, and roads and other public improvements; plat
review; other such engineering services performed by a City Engineer.
This contractual relationship dates back to 1991, which is the date of current contract. Since that time, the
City has experienced changes in City Council makeup, changes in staffing, changes in the City Attorney, and
significant growth. Additionally, since that time, Hakanson has expanded their services to the City,
designated Ron Wagner as the City Engineer, designated Brent Larson as the Assistant City Engineer, and
gone through their own growth and operational changes. All of these factors contributed to a mutual effort
to ensure the contract document was up-to-date.
The City Attorney has drafted the Contract, which has been reviewed by Hakanson, whom is agreeable to
all the terms and conditions of the Contract.
This Contract was reviewed with the Administrative Subcommittee at the December 2020 meeting, with
recommendation for future consent agenda approval by the City Council.
SUPPORTING DOCUMENTS ATTACHED:
• Agreement for City Professional Engineering Services
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the Agreement for City Professional Engineering Services between the City of Otsego
and Hakanson Anderson Associates, Inc.
BUDGET INFORMATION
I FUNDING: I BUDGETED:
City Engineering services are allocated to many Yes
different departments and funds of the City based on
the type of work being conducted, which includes, but
is not limited to:
General Fund
Capital Project Funds
Utility Funds
Escrow/Development Funds
CITY OF OTSEGO AGREEMENT
FOR CITY PROFESSIONAL ENGINEERING SERVICES
THIS AGREEMENT, made this I" day of January 2021, by and between the City of Otsego,
Wright County, Minnesota, a municipal corporation under the laws of the State of Minnesota,
hereinafter the "City," and Hakanson Anderson Associates, Inc., hereinafter the "Engineer."
WHEREAS, the City has determined that the Engineer, will meet the City's needs and
requirements as they relate to professional engineering services, and;
WHEREAS, the City has determined that services will include, but are not limited to,
preparation of plans and specifications for projects as determined by the City; development of
reports, studies, and applications for review and approval by the City and other agencies for
municipal operations including sanitary sewer, public water systems, stormwater management,
streets, and roads and other public improvements; plat review; other such engineering services
performed by a city engineer; and;
WHEREAS, it is intended that this contract shall govern the terms of services and compensation
of the Engineer and all the conditions thereof, and
WHEREAS, the City has indicated a desire to engage the services of the Engineer in connection
with said work.
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants of this agreement as
set forth herein it is agreed by and between the parties as follows:
The City hereby retains the Engineer to furnish and perform the professional services
hereinafter specified and to pay the Engineer subject to the conditions and at the rates
included herein. The Engineer agrees to provide and perform any and all engineering
services in connection with the work ordered or directed by the City and to accept as
payment the fees for such work as included herein. The engineering services are
separated into Projects, Developments, and General Engineering.
II. Projects. The Engineer, at the direction of the City, agrees to perform the following
Engineering Services for Projects.
A. The Engineer shall serve as the City's engineer in the identification, planning, and
the supervision of construction projects and shall give consultation and advice to
the City during the performance of these services.
B. Project Services of the Engineer:
1. Diagrammatic: The Engineer shall prepare all required schematic
drawings, layouts, flow diagrams, studies, reports, construction cost
estimates based upon the diagrammatic and make a presentation at a
public hearing, as requested by the City.
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2. Preliminaries: The Engineer shall supervise the making of all required
sub -surface explorations, shall make the necessary topographical surveys
for the design purposes and shall prepare preliminary drawings, outline
specifications, a construction cost estimate based upon the preliminaries,
and make a presentation at a public hearing, as requested by the City.
3. Contract Documents: From the approved preliminaries, the Engineer shall
prepare working drawings, specifications, and other necessary documents
completely describing the material and workmanship required and
procedures to be followed for the construction of the project. Should there
be a change in the scope of any project that is the direct result of City
directed change, the Engineer shall adjust the preliminary construction
cost estimate to include these changes in the scope of a project. The
Engineer shall prepare all necessary contract documents for the project
work to be completed.
4. Receipt of Proposals: The Engineer shall furnish up to four sets of
drawings and specifications, as directed, for the City's use. In addition,
the Engineer shall provide electronic copies of drawings and specifications
for the use by bidders in submitting proposals. The Engineer may require
a deposit from the contractor on the drawings and specifications. The
Engineer shall assist the City in securing proposals from bidders, in
analyzing such proposals, shall prepare a bid summary for City review,
make a recommendation based on bid documents and responses and
prepare all contract documents for execution by the City and contractor.
5. Construction Activity: The Engineer shall perform the following tasks
during the construction phase of the project.
a. Construction Observation: The Engineer shall perform observation
of the project by a qualified construction observer checking the
contractor's work for compliance with the drawings and
specifications. The Engineer shall protect the City against defects
and deficiencies in the work of the contractor.
b. Additional Instructions: The Engineer shall issue such additional
instructions to the contractor as may be necessary to interpret the
drawings and specifications or to illustrate changes required in the
contractor's work to comply with the drawings and specifications.
C. Contractor's Submittals: The Engineer shall check shop drawings,
samples, equipment, approval data and other data submitted by the
contractor for compliance with the drawings and specifications.
d. Contractor's Requests for Payment: The Engineer shall review and
make recommendations for payment based upon the contractor's
requests for payment in accordance with the provisions of the
General Conditions of the Contract.
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e. Construction Staking: Engineer shall provide field survey to
provide general line and grade for the work to be constructed in
accordance with the Contract Documents.
f. Special Performance Tests: The Engineer shall witness and fully
report the results of all special performance tests required for the
Project and supervise the geotechnical work and materials testing.
g. Record Drawings: The Engineer shall prepare record drawings
showing changes in the work authorized during construction and
shall submit a set of reproducible drawings to the City.
h. Final Acceptance: The Engineer shall prepare completion lists
when substantial completion of the project is claimed by the
contractor and again when final completion is claimed. When the
contractor has completed the work in accordance with the terms of
the contract documents, the Engineer shall certify a
recommendation for acceptance to the City and an approval of the
contractor's final request for payment. The Engineer shall prepare
a punch list of items that require the contractor's attention and
correction. The Engineer shall not make a recommendation for
final payment until all work, including those items identified as
deficient have been corrected.
i. Instruction to the City: The Engineer shall arrange for detailed
instruction by the contractor and manufacturer's representatives, to
the City or its delegated representative in the proper operation and
maintenance of the equipment furnished and installed for the
project. The Engineer shall transmit to the City two (2) certified
copies of all necessary drawings, manuals, operating instructions,
and other related materials necessary for the operation and
maintenance of all installed equipment.
6. Ownership of Document and Intellectual Property. Except as otherwise
provided herein, reports, studies, engineering documents, drawings, specifications
and electronic data files created to generate them by Engineer as part of the Services
shall become the property of Owner. However, Engineer shall have the unrestricted
right to their use. Engineer shall retain its rights in its standard drawing details,
specifications, databases, computer software, and other proprietary property. Rights
to intellectual property developed, utilized, or modified in the performance of the
Services remain the property of Engineer.
C. Other Project Services of the Engineer for Projects shall include the following
when authorized and directed by the City:
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1. Special Assessments: The Engineer shall be responsible for preparation
and presentation of all special assessment documentation for City
consideration. The Engineer shall be responsible for responding to
questions from the public regarding special assessments. The Engineer
shall attend all special assessment hearings and respond to questions of the
City, staff, or public.
2. Contractor Default: Assisting the City in arranging for continuation of the
work should the contractor default for any reason; and providing
construction observation over an extended period should the construction
contract time be exceeded by more than five percent not occasioned by
fault of the Engineer.
3. Work performed in connection with acquisition of easements, right of way
and survey control.
4. Work performed in connection with local, state, or federal grants.
5. Work performed in connection with wetland permitting.
D. Compensation for services under this section of the Agreement shall be in
accordance with Section VI of this Agreement.
III. Developments: The Engineer, at the direction of the City, agrees to perform the
following Engineering Services for Developments.
A. The Engineer shall serve as the City's professional representative in performing
engineering functions as directed by the City for work associated with
development. This work shall include but not be limited to the following:
1. Plat reviews.
2. Site plan reviews.
3. Special engineering studies for developments.
4. Participating in meetings and conferences involving engineering questions
for private developments or improvements.
5. Construction observation.
B. The work shall include the performance of specific duties as directed including
but not limited to furnishing information to the City in letter, report or
memorandum form, as appropriate, describing the findings, conclusions,
recommendations or engineering observations made as the result of performing
these Engineering Services relating to Developments.
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C. Compensation for services under this section of the Agreement shall be in
accordance with Section VII of this Agreement.
IV. General Engineering: The Engineer, at the direction of the City, agrees to perform the
following Engineering Services for General Engineering Services.
A. The Engineer shall serve as the City's professional representative in performing
engineering functions as directed by the City for work including but not limited to
the following:
1. Services as directed by the City not covered under Projects — Section II or
Developments — Section IIl.
B. Compensation for services under this section of the Agreement shall be in
accordance with Section VIII of this Agreement.
VI. The City's Payment to the Engineer for Projects.
A. Progress Payments. Once each month for the first day of each month through the
last day of each month, the City shall pay the Engineer for professional services
performed under this Agreement in proportion to services performed during the
period. The Engineer shall provide the City with an itemized bill detailing the
services performed during the period. The detailed billing shall include the
project or service provided and sufficient detail to determine where each charge is
to be made in the City's fiscal records.
B. Total Payments. All professional services under this provision shall be paid based
on the hourly rate schedule shown on Attachment A and shall not exceed the total
amount agreed upon by the City and the Engineer for each project considered
under this agreement. The not -to -exceed amount for each project shall be
established by the percentages shown in Attachment B. The percentages on
Attachment B shall be multiplied by the Construction Cost to establish the not -
to -exceed amount. Definition of the Construction Cost of the Project means the
total cost of all construction work designed or specified by the Engineer for the
project and approved by the City not including any payments to the Engineer or
other consultants as part of the project activity.
C. Reimbursable Costs
1. Normal transportation costs associated with the work assigned herein for
the On -Site Construction Observers shall be reimbursable. The rate shall
not exceed the current IRS rate for the year per mile.
2. The following expenses shall be reimbursable: permit and other project
fees, outside reproduction costs, and work of special consultants when
required and approved in advance by the City for complex or specialized
tasks of the project or for soils exploration, and materials testing. Markup
O:-
charges shall not be charged for reimbursable expenses. The Engineer
shall review invoices and forward them to the City with a payment
request.
D. Other Project Services outlined in Section II.0 of this Agreement will be
reimbursed at a not -to -exceed amount agreed upon by the City and the Engineer.
The Engineer shall prepare for City consideration, a not -to -exceed contract
amount for Other Project Services for each project.
VII. The City's Payment to the Engineer for Developments.
A. Progress Payments: Once each month for the first day of each month through the
last day of each month, the City shall pay the Engineer for professional services
performed under this Agreement in proportion to services performed during the
period. The Engineer shall provide the City with an itemized bill detailing the
services performed during the period. The detailed billing shall include the
project or service provided and sufficient detail to determine where each charge is
to be made in the City's fiscal records.
B. All professional services under this provision shall be paid based on the hourly
rate schedule shown on Attachment C.
C. Reimbursable Costs
Normal transportation costs associated with the work assigned herein for
the On -Site Construction Observers shall be reimbursable. The rate shall
not exceed the current IRS rate for the year per mile.
2. The following expenses shall be reimbursable: permit and other project
fees, outside reproduction costs, and work of special consultants when
required and approved in advance by the City for complex or specialized
tasks of the project or for soils exploration, and materials testing. Markup
charges shall not be charged for reimbursable expenses. The Engineer
shall review invoices and forward them to the City with a payment
request.
VIII. The City's Payment to the Engineer for General Engineering.
A. Progress Payments: Once each month for the first day of each month through the
last day of each month, the City shall pay the Engineer for professional services
performed under this Agreement in proportion to services performed during the
period. The Engineer shall provide the City with an itemized bill detailing the
services performed during the period. The detailed billing shall include the
project or service provided and sufficient detail to determine where each charge is
to be made in the City's fiscal records.
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B. All professional services under this provision shall be paid based on the hourly
rate schedule shown on Attachment A. Engineer shall prepare a not -to -exceed
contract amount for City approval for General Engineering services when
requested.
C. Reimbursable Costs
1. Normal transportation costs associated with the work assigned herein for
the On -Site Construction Observers shall be reimbursable. The rate shall
not exceed the current IRS rate for the year per mile.
2. The following expenses shall be reimbursable: permit and other project
fees, outside reproduction costs, and work of special consultants when
required and approved in advance by the City for complex or specialized
tasks of the project or for soils exploration, and materials testing. Markup
charges shall not be charged for reimbursable expenses. The Engineer
shall review invoices and forward them to the City with a payment
request.
X. Other Terms and Conditions
A. Termination: This Agreement may be terminated by either party for any reason
by sixty (60) days' written notice to the other party. Payment for services
rendered shall be through the date of termination as identified on the written
notification.
B. Successors and Assigns: This Agreement and all of the covenants thereof shall be
to the benefit of and be binding upon the City and the Engineer respectively and
any partners, successors, assigns, and legal representatives. Neither the City nor
the Engineer shall have the right to assign, transfer or sublet its interest or
obligations hereunder without written consent of the other party. Absent written
consent, this provision shall not be construed to bind the City to the Engineer's
partners, successors, assigns, or legal representatives.
C. The rates described in Attachment A and C are set through December 31, 2022.
Any changes to these rates for years following 2022 must be approved by the
City, and the Engineer shall provide written notice to the City of any request for a
rate change for the following year no later than the preceding June 1 st
D. Period of Agreement: This Agreement will remain in effect unless terminated at
an earlier date by either party.
E. Official Notices.All notices shall be in writing and considered to have been duly
given if sent by first class certified mail or delivered to the address as set forth
below by reputable overnight delivery service or local messenger, or to such other
address as such party may hereafter designate by written notice to the other party.
Notices given by certified mail shall be effective two (2) business days after their
postmark; notices delivered by overnight delivery service or local messenger shall
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be effective upon receipt or refusal of receipt; and notices by email shall be
effective upon delivery, provided that if an email notice is delivered after 5:00 PM
or on a non -business day, then such email notice shall be effective on the next
business day. Any party may change its address for the service of notice by giving
written notice of such change to the other party, in any manner above specified,
ten (10) days prior to the effective date of such change. Notice by or to a party
shall be effective if delivered by or to such party's attorney.
To Engineer: Hakanson Anderson Associates, Inc.
3601 Thurston Ave
Anoka, MN 55303
To City: City of Otsego, Minnesota
Otsego City Hall
13400 90th Street NE
Otsego, MN 55330
Attn: City Administrator
Copy to: Campbell Knutson, P.A.
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Attn: David Kendall
XI. Copyright or Patent Infringements: The Engineer shall defend actions or claims charging
infringement or any copyright or patent by reason of the use or adoption of any designs,
drawings or specifications supplied by the Engineer, and the Engineer shall hold harmless
the City from loss or damage resulting therefrom, providing however, that the City within
ten (10) days after receipt of any notice of infringement or of summons in any action
therefore shall have forwarded the same to the Engineer in writing.
XII. Indemnity: The Engineer shall defend, indemnify, and hold and save harmless the City
and its officers, agents, and employees from liability or any nature of kind, including
costs and expenses, for or on account of any or all claims or suits for damages of any
character whatsoever resulting from injuries or damages sustained by any person or
persons or property arising from negligent acts or omissions by the Engineer, its officers,
agents, employees, subcontractors, or suppliers.
The Engineer further agrees that in order to protect themselves as well as the City under
the indemnity agreement provisions set forth above they will at all times during the
duration of this Agreement have and keep insurance in force as follows:
A. Automobile liability insurance (single limit or combined limit or excess umbrella)
covering all vehicles used in providing services to the City in an amount of one
million five hundred thousand dollars ($1,500,000) per accident for property
damage, one million five hundred thousand dollars ($1,500,000) for bodily injury
and damages to any one person, and one million five hundred thousand dollars
($1,500,000) for total bodily injuries and damages arising from a single accident.
NMI
B. General liability insurance (single limit, combined limit or excess umbrella) of not
less than one million five hundred thousand dollars ($1,500,000) for total bodily
injury and damages arising from one occurrence and one million five hundred
thousand dollars ($1,500,000) for total personal injury arising from one
occurrence. Such policy shall also include contractual liability coverage
protecting the City, its officers, employees, and members by specific endorsement
acknowledging the contract between the Engineer and the City.
C. Worker's Compensation Policy to meet at least minimum Minnesota State
Statutes and any requirements set forth in the Otsego City Code.
D. Errors and omissions (professional liability) insurance with a minimum of one
million dollars ($1,000,000) in coverage per occurrence.
E. The Engineer shall provide the City with certificates of insurance evidencing the
above coverage. Irrevocable notices shall be provided by the carrier to the City
thirty (30) days prior to any change, modifications, or lapse in the above
coverage. The City shall be named as an additional insured for any policy
providing liability coverage.
XIII. The laws of the State of Minnesota shall govern as to the interpretation, validity, and
effect of this Agreement.
In accordance with Minnesota Statutes 1613.06, subd. 4, the books, records, documents,
and accounting procedures and practices of the Engineer relevant to this Agreement are
subject to examination by the City or its designated representative and either the
Legislative Auditor or State Auditor as appropriate.
XIV. Severability, Waiver of provisions: The provisions of this Agreement are severable; if
any paragraph, section, subdivision, sentence, clause or other phrase of this Agreement is
for any reason held to be contrary to the law, or contrary to any rule or regulation having
the force and effect of law, such decision shall not affect the remaining provision of this
Agreement.
XV. In performing services under this Agreement, the Engineer warrants and represents that it
will exercise that degree of skill and care that a professional engineer would exercise
under the same or similar circumstances. Such care and skill is subject to peer review by
an engineer of the City's choosing.
XVI. The Engineer shall be bound under the provisions of the Minnesota Data Practices Act
and maintain its records in a fashion consistent with Minnesota Statutes, Chapter 13.
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IN WITNESS, the parties hereto have executed this Agreement the day and years first above
mentioned.
CITY OF OTSEGO
Jessica Stockamp
Mayor
Bethany Benting
Deputy City Clerk
HAKANSON ANDERSON ASSOCIATES, INC.
Ronald J. Wagner
Chief Executive Officer
Craig J. Jochum
President
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Attachment A
2020 — 2022 Billing Rate Schedule
Job Classification
Hourly Billing Rate
Ron Wagner - City Engineer
$120
Brent Larson - Assistant City Engineer
$110
Principal Engineer
$110
Project Manager/Engineer
$85 - $110
Design Engineer
$75 - $110
Water Resource Specialist
$87.50
Senior Technician
$80 - $100
Technician
$60 - $80
Senior Construction Observer
$75 - $95
Construction Observer
$60 - $80
Administrative Assistant
$65
GPS/Robotic/Drone Equipment
$35
Survey Crew Chief
$90 - $110
Survey Technician
$60 - $80
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Attachment B
Not -to -exceed percentage amounts for Projects
Design & Bidding
Maximum Fee I
Construction Administration
Maximum Fee
Project Construction Cost
$50,000 - $100,000
10%
10%
$100,000 - $250,000
8%
9%
$250,000 - $500,000
7%
8%
$500,000 - $1,000,000
6.2%
7.5%
$1,000,000 — 1,500,000
6%
6.8%
$1,500,000 - $2,500,000
5.8%
6.2%
$2,500,000 - $5,000,000
5.5%
5.5%
$5,000,000 - $10,000,000
5.1%
5.1%
Design & Bidding
Maximum Fee I
Construction Administration
Maximum Fee
Project Construction Cost
$50,000 - $100,000
12%
7%
$100,000 - $250,000
10%
6%
$250,000 - $500,000
7.5%
4.5%
$500,000 - $1,000,000
6.5%
4%
$1,000,000— 1,500,000
6%
3.5%
$1,500,000 - $2,500,000
5%
3%
$2,500,000 - $5,000,000
4%
2.5%
$5,000,000 - $10,000,000
3.5%
2%
Does not include additional work effort for projects involving assessments, federal aid or state aid, and/or grant
funding. Engineer will prepare a not -to -exceed cost for City approval for assessments and grant funding work
tasks.
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Attachment C
2020 — 2022 Billing Rate Schedule
Job Classification
Hourly Billing Rate
Ron Wagner - City Engineer
$145
Brent Larson - Assistant City Engineer
$120
Principal Engineer
$135
Project Manager/Engineer
$95 - $125
Design Engineer
$80 - $110
Water Resource Specialist
$95
Senior Technician
$90 - $110
Technician
$65 - $85
Senior Construction Observer
$85 - $105
Construction Observer
$65 - $85
Administrative Assistant
$65
GPS/Robotic/Drone Equipment
$35
Survey Crew Chief
$95 - $115
Survey Technician
$65 - $85
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