9.e Renewing professional services agreement with TKDA
Staff Report
Date of Meeting: January 17, 2017
To: City Council
From: Neil Soltis, City Administrator
Re: Professional Service Agreement with TKDA for Planning Services
Background:
The City has a professional services agreement with TKDA that was last updated in 2012. A rate
increase of 2% was approved for 2016. The services provided by TKDA fall into 3 classifications:
pre-application work, work on applications, meeting attendance. The bulk of the work performed
by TKDA is related to the processing of application and those costs are charged against any escrow
deposit paid by the applicant.
Proposal Details:
TKDA has proposed a 2% increase in its rates with the exception of meeting pay which would
remain at the same rate of $105 per meeting. The detail of rates following the proposal letter
from Sherri dated 01/09/2017.
Options:
1. Approve the updated professional service agreement
2. Negotiate changes to the agreement
3. Take no action and seek alternate means of providing planning services
Recommendation:
Option 1 – approve the updated agreement to reflect inflationary increases since the cost of
attending meetings and the costs related to processing application will have no budgetary
impact.
January 9, 2017
Mr. Neil Soltis
City Administrator
City of Scandia
14727 209th Street North
Scandia, Minnesota 55073-8503
Re: Professional Services Agreement
2017 Rate Schedule (Rev. 1)
Dear Mr. Soltis:
TKDA has a Professional Services Agreement to provide services to the city of Scandia which was
updated in 2012. It is our goal to provide high quality services that meet the City’s needs. We
recognize that the cost and value of Professional Services are important concerns for our municipal
clients. For 2017, TKDA is requesting an increase of approximately 2% in hourly rates for our Planning
services. We are not requesting an increase in our meeting costs.
We do understand the financial challenges that the City and its residents face, and have done our best
to hold the line on our rates in the recent past as we have all adjusted to the post-recession economy.
Our rates increased by only 2% in both 2015 and 2016. We requested no rate increase in 2014, and
held our rates unchanged for the three years prior to 2012. We try to keep our staff salary increases in
line with those that our municipal clients are giving to their staff.
We appreciate the opportunity to serve you as the City’s Planner and believe that our services continue
to provide good value to the City. If you have any questions or concerns about our services or proposed
rates, please call me at 651.292.4582, and I would be happy to discuss them with you.
Sincerely,
Sherri A. Buss, RLA AICP
Manager, Planning Group
SAB:prd
Enclosure
cc: Dennis Postler, TKDA
Municipal Services Division Employee Classification †Range of Hourly Billing Rates*
Senior Registered Engineer 123.00$ to 180.00$
Registered Engineer or Professional Land Surveyor 75.00$ to 143.00$
Graduate Engineer or Land Surveyor 57.00$ to 97.00$
Senior Planner, GIS Analyst or Scientist 105.00$ to 134.00$
Graduate Planner, GIS Analyst or Scientist 54.00$ to 95.00$
Engineering, Planning or GIS Specialist II 103.00$ to 125.00$
Engineering, Planning or GIS Specialist I 68.00$ to 111.00$
Technician III 77.00$ to 109.00$ **
Technician II 48.00$ to 84.00$ **
Technician I 31.00$ to 62.00$ **
† Hourly billing rates for staff outside the Municipal Services Division will be billed at a 2.85 multiplier.
Regular City Council and Planning Commission Meetings
Attendance at meetings, including travel time and expenses. 105.00$ / Meeting
In addition to the hourly charges, TKDA shall be reimbursed for the following direct expenses when
incurred in the performance of the work:
1. Vehicle mileage at current IRS standard rate per mile.
2. Outside professional and technical services with costs defined as the amount billed TKDA plus 10%.
3. Outside reproduction and reprographic costs.
* Rates effective until December 31, 2017.
** For hours worked over 40 hours per week individuals are paid one and one-half times the above rates.
Schedule 2850-M85 City of Scandia
2017 SCHEDULE OF HOURLY BILLING RATES