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Mr. Bill Joynes January 31, 2017 Page 3 K:\03455-000\Admin\Docs\3455-000 COM LTR PROP-b joynes-013117-DPW-CE & EngTeam.docx BASIS OF COMPENSATION AND PROPOSED CONTRACT TERMS Director of Public Works/City Engineer: We will complete the general Director of Public Works/City Engineer activities, including meeting attendance as outlined above, for a lump-sum retainer amount of $10,500 per month. This rate is based on an average of thirty-two (32) hours per week. Time beyond the base thirty-two (32) hours per week for general Director of Public Works/City Engineer activities will be completed at a reduced rate of $100.00/hour. On an annual basis we will review with you the total hours charged to the retainer and any hours charged beyond and evaluate appropriate modifications to the terms. Graduate Engineer: We will complete the general engineering activities and duties at a reduced rate of $60.00/hour for up to 48 hours per month. Non-general Services Tasks/Review of Development Projects: These will be completed by Ms. Polka and/or other WSB staff as necessary on an hourly basis at their hourly rates. Project Work: Project work will be completed based on an approved scope, schedule, and fee prior to beginning work. Contract Term: Commencing upon execution of a contract through December 31, 2019, with a 90-day separation notice. If you find this proposal acceptable, we have included a proposed contract with the above proposed scope and fees for your consideration. Thank you for the opportunity to provide this proposal for professional engineering services. If you have any questions or comments, please do not hesitate to contact me at (763) 287-7191. Sincerely, WSB & Associates, Inc. Andrew J. Brotzler, PE Principal Attachments srb