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EN HILLS <br />MEMORANDUM <br />DATE: October 10, 2011 <br />TO: Honorable Mayor and City Councilmembers <br />FROM: Patrick Klaers, City Administrator i,li <br />f <br />SUBJECT: 2012 Budget Update — Engineering Services <br />///' <br />Background/Discussion <br />Staff (Sue, Terry and myself) have been discussing the cost of engineering services that <br />we are receiving from the City of Roseville through the 2005 Joint Powers Agreement <br />(JPA). This agreement is attached for your reference. <br />The JPA calls for Arden Hills to receive a minimum of 1 ,670 hours of engineering staff <br />time. This is equivalent to 80 percent of a full time employee. The staff time hourly <br />wage is then multiplied by a 1.9 factor to include overhead expenses. The industry norm <br />for consultants is a 2.5 factor. Early on, in 2006 and 2007, Arden Hills may have <br />struggled to use all 1,670 hours but recently this has not been an issue. In fact, last year <br />we asked Roseville to hire an additional temporary employee to address our needs. Not <br />all of the 1,670 hours comes from Civil Engineer Kris Giga as we also use their GIS <br />division, have Roseville do drainage and survey work for us, and get charged some time <br />from their Public Works Director (Duane Schwartz) and the City Engineer (Deb Bloom). <br />However, Kris offices here at City Hall three days a week and the majority of the 1,670 <br />hours are generated by Kris. <br />The Roseville engineering expenses are funded by both the General Fund and also by <br />specific projects (i.e. Pavement Management Program, sewer lining project, Indian Oaks <br />pond project, etc.). Most of Roseville's time is funded by the City one way or another <br />with only a small portion being funded by assessments, grants or developers. <br />The situation in Arden Hills today is much different than what it was in 2005. The JPA <br />began when the City Public Works Director was not also an experienced Civil Engineer. <br />This is now the case with Terry Maurer being employed as the Public Works Director. <br />Therefore, how the City wants to use Kris' time and the Roseville services has also <br />City Council Meeting <br />P: \Admin \Council\Agendas & Packet Information\2011 \ 10 -10 -11 Work Session\Packet Information\ 10 -10 -11 2012 Budget <br />Update.doc <br />Page 1 of 2 <br />