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CITY OF NEW BRIGHTON PUBLIC WORKS/ENGINEERiNG DEPARTMENT MEMORANDUM DATE: January 7, 2010 TO: Dean Lotter, City Manager FROM: Grant Wyffels, Director of Public Works G 4W SUBJECT: January 12, 2010 Worksession on Silver Lane Cooperative Agreement Background Silver Lane is a border street with the City of St. Anthony and will be reconstructed as a joint project. Per Resolution 09-085 passed at the December 8, 2009 council meeting, the City Council ordered this project and stated that the City subject to the approval of the City Attorney, enter into a cooperative agreement for the administration and division of costs associated with silver lane reconstruction in the cities of New Brighton and Saint Anthony. This resolution also limited design services for the engineer to 9 percent of contract costs, up to a maximum $60,000 total, exclusive of geotechnical and construction material testing costs. Based on Resolution 09-085 passed at the December 8, 2009 council meeting the draft cooperative agreement was revised. The agreement originally had proposed $110,000 for "outside engineering" costs. The agreement was revised to further list all work that would be performed as part of the "outside engineering" cost. Table A shows these costs which are included in the cooperative agreement. Table A Outside Engineering Element Element Cost Percent of Total Costs Basic or Special Service 1. Final Design $40,000 5.2% Basic 2. Project Admin Cost $8,500 1.1% Basic 3. Construction Observation $26,500 3.4% 25% Basic/75% Special 4. Surveying $22,500 2.9% Special 5. Testing $12,500 1.6% Special Total,: $110,000 14.2% To be in conformance with Resolution 09-085 we analyzed the proposed breakdown. Engineering elements one and two clearly are basic services that are included in the 9% up to a maximum $60,000 total. Approximately 25 percent of element three is a basic engineering service. These basic services add up to $55,125 or 7.1%. The remainders of the engineering elements to be performed are special services and have been excluded from the calculation. It is my opinion the cooperative agreement is consistent and in conformance with the Resolution passed at the December 8, 2009 council meeting. I' Alternate Comparison An alternate way to determine if the proposed design fees are reasonable are to compare them to ASCE Manual 45 compensation curves that elaborate on Basic and Special Services. The