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Page 2 of 3 -Option 3: The Council could give direction to separate the roles into a Public Works Director and City Engineer, and either fill with two FTE’s or fill the director role with an FTE and contract for the City Engineer position. Todd’s performance thus far in the role has exceeded expectations, and it would be difficult to find a similarly qualified candidate to fill the role either as an FTE or a consultant. Retaining Todd would also benefit the department providing longer term consistency and leadership. Todd has expressed a strong interest in a longer-term contract with the City as an SEH employee. SEH is willing to extend the contract services, with Todd continuing to serve as the SEH on-site person for Arden Hills. SEH has offered to continue with the current monthly lump sum fee for 112 hours of SEH Interim Director services through January 31, 2020 as outlined in the Supplemental Letter Agreement. SEH has offered to continue to provide these services after January 31, 2020 for an amended monthly lump sum fee of $11,250 through January 2021, which is a three percent adjustment from the current 2019 fee. The offer by SEH to continue Public Works Director/City Engineer services for an additional year is not conditional on awarding future engineering project work to SEH. However, SEH provided two recommendations to improve long term coordination of engineering services. ▪ The City should consider development of an asset management plan to evaluate the condition of streets, water, sanitary sewer, drainage and park infrastructure, identify recommended improvement projects, and establish recommended project priorities. This plan would improve the City’s ability to develop cost effective and fiscally constrained capital improvement programs and predict the availability of funding sources. ▪ SEH recommends that the City continue to use the existing pool of consultants for various engineering projects and avoid sourcing all engineering work to one consulting firm. SEH does request that the City consider directly negotiating with them for the larger PMP projects to allow SEH to provide consistency in planning and delivery of complex projects and allow the City Engineer position to effectively manage project coordination and customer service issues throughout construction. The current agreement with SEH maintains flexibility should the City decide to hire an FTE in the future or wish to consider hiring a different consulting firm to fill the Public Works Director/City Engineer position. The existing professional services agreement can be terminated upon 30 days written notice. SEH has indicated they would assist with any future transition process if the City decides to change the currently arrangement for the Public Works Director/City Engineer position. For background, the Public Works Director/City Engineer job description is attached (see Attachment A) and below is a breakdown of the cost for an FTE Public Works Director/City Engineer and our current contract with SEH.