01-23-2017 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, January 9, 2017 7:00 o'clock p.m. 3. HENNEPIN COUNTY COMMISSIONER JAN CALLISON (continued) Callison stated it is somewhat spread out but that the reports tend to be more concentrated in the heavier populated areas. PUBLIC COMMENTS None PUBLIC WORKS/CITY ENGINEER REPORT 4. 2017 ENGINEERING SERVICES RATE SCHEDULE Public Works/City Engineer Edwards stated before the Council tonight is the proposed 2017 fee schedule for consultant engineering services from Bolton & Menk. With the exception of project surveying, the fee schedule did not increase. The discount rates for general city engineering services remain unchanged. The rates for the four engineers most commonly assigned to Orono projects will increase an average of 3.5 percent. Edwards stated this will not likely impact routine engineering support but may increase costs for project engineering and development reviews. Edwards noted each individual project will go before the City Council and they will have an opportunity to further address the fees at that time. Council Member Seals commented it appears that the range for the hourly individual engineer fees is pretty wide since it goes from $170 to $240, which is a big difference. Seals asked if a tighter range is something the City could work on for future fee schedules. Consulting Engineer Martini indicated Bolton & Menk would be happy to provide any additional information the Council may want, but that basically the fees vary based on someone's experience. Martini indicated he has the highest fee and that the people who do more of the day-to-day work have a lower rate depending on their expertise and experience. Martini noted their monthly invoices will reflect the specific hourly rates for each project. Martini noted he attends the City Council meetings at no charge and that the fee schedule also contains some reduced hourly rates for certain items. Martini indicated individual projects is where a fee estimate will be prepared detailing the work with a not to exceed fee. Martini stated he would be happy to provide more detail if the Council would like on the engineering fees. Martini stated they do have some checks and balances internally on how time is spent but still have the appropriately skilled person on the job. Council Member Crosby asked what the increased forecasts are based on. Martini indicated it is primarily labor costs and that it is a competitive market currently. Martini stated in order to hire and retain qualified people, they need to compensate their employees consistent with the market. Walsh stated when the Council sees a 3.5 percent increase, that means less money for roads. Walsh stated he understands the issues with wages but noted Orono's employee wages have not increased that much. Walsh stated he would like to see that decreased. Page 3 of 17