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Mr. ~Martens December 19, 20108 New &Vhton, MN Page 2 Consultant Staff I will serve as the project manager and will be responsible for the layout and design of the roof replacement. I will also be responsible for coordinating the work efforts and schedules of our other team members. As needed, we will utilize Chuck Oehrlein — electrical engineering; Stephanie Dehart — mechanical engineering; and Phil Caswell — structural engineering, who are members of our firm. Compensation Phase 2 Engineering Fees: We propose to complete the Phase 2 design services on an hourly basis that is Not -to -Exceed $7,500, plus Reimbursable Expenses. Reimbursable expenses include such items as mileage, postage, and printing. Reimbursable expenses are billed at cost as they are incurred and are estimated at no more than $500 for Phase 2. We understand that the value of this Not -to -Exceed amount, totaling $8,000, cannot increase without further authorization from you. Phase 3 Engineering Fees: Phase 3 costs are dependent on significant factors outside our control: • Extent of on-site presence desired by the City of New Brighton • The contractor's responsiveness, competency, and profit level The contractor's adherence to the schedule We propose to complete the outlined Phase 3 efforts on an hourly basis that is in accordance with our standard billing rate schedule. Assuming a 1 -month construction period, we propose a Not -to - Exceed amount of $1,200 for bidding and $3,600 for contract administration, construction engineering and periodic construction observation, plus Reimbursable Expenses. Reimbursable expenses are estimated at no more than $1,500 for the entire construction phase including printing of the project plans and specifications. Again, we understand that the value of this Not -to -Exceed amount, totaling $6,300, cannot increase without further authorization from you. We want to thank you for the opportunity to provide this proposal to you. It is very important to us that our services continue to meet New Brighton's needs. So after you have had an opportunity to review this proposal, we would like to hear any comments, questions, and concerns you may have. If this proposal is acceptable, please sign and return a copy of this letter, authorizing us to proceed. Yours very truly, BONESTROO, INC. Proposal is accepted; CITY OF NEW BRIGHTON Bruce P. Paulson, A.I.A. (651-604-4849) By Project Manager Date Date