2018-057 Engineering Contract NegotiationsDate: May 11, 2018 Report No. 2018-057
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
At the May 8, 2018, City Council meeting, questions were asked regarding the methodology on
how staff evaluates the fees for design and engineering consultants. The following provides a
background on the City’s contract negotiations for professional engineering services.
BACKGROUND:
Contract negotiations are a critical component to project delivery. It sets the tone for the project
and the expectations of both parties. The general process begins with a face to face meeting with
the consultant to discuss the project limits and scope. A discussion of expectations follows, along
with any questions to clarify the project’s intent. Next, the consultant responds to the scoping
meeting by doing some preliminary investigation into the project and the expectations of the City
to determine how much time and effort the consultant estimates is needed to complete the project
including project basics as follows:
1. Topographic and Boundary Surveys – Determine all elevation challenges and legal
boundaries for property acquisitions required to complete the project (easements, right of
entry, right of way, etc.)
2. Geotechnical Exploration – determine all soils and their bearing capacity to design
pavement thicknesses, embedment of utilities, etc.
3. Subsurface Utility Exploration – find all utilities (franchise and public) that reside within
the project limits.
4. Professional design services – includes the actual design of the improvements and
generation of either a study or construction documents.
5. Bid Document Creation – generate all specifications and bid documents required to let the
project for construction, if warranted.
6. Construction Phase Assistance – Services here range from reviewing material submittals
and quantities submitting by the contractor for pay, to taking a more active owner’s
representative role onsite.
Based on the scoping meeting, the consultant will determine how much time and how many people
will be required to complete the project. This generally is summarized in a Level of Effort (LOE)
matrix that defines all man hours and associated cost for each task in the project. A rough draft
contract scope and LOE is submitted to the City’s project manager for review as to veracity of the
efforts and costs anticipated. Many times staff reviews the LOE and scope to find either tasks not
needed, or an excess of time built in to the LOE to accommodate a very conservative estimate on
Date: May 11, 2018 Report No. 2018-057
the time required to complete the project. A primary reason for this is the consultants’ effort to try
and assume that all potential project roadblocks are not known and they might need to have
sufficient time built into the contract to work these issues as they arise without delay due to a
contract amendment.
Staff frequently reviews professional services contracts and questions how much time is really
applicable to the project. This process allows staff to ensure that the City is getting the best value
from our design consultants, while ensuring that both are on the same page about the expectations
of the project. If staff cannot negotiate a contract to satisfaction, staff will terminate negotiations
and move to negotiate with the next most qualified consultant(s) until a reasonable rate for services
is reached.
Attached is an example of a rate sheet and man hour breakdown by Teague, Nall, and Perkins for
the City Owned Parking Lot design contract that was approved by City Council on May 8, 2018.
ATTACHMENT(S):
2018 Parking Lots
2018 Parking Manhours
STAFF CONTACT:
Mario Canizares
Assistant City Manager
(940) 349-8535
Mario.Canizares@cityofdenton.com
1
ATTACHMENT ‘C’ TEAGUE NALL AND PERKINS, INC.
Hourly Billing Rates by Employee Type
Effective January 1, 2018 to December 31, 2018*
Engineering /Landscape Architecture/ROW Hourly Billing Rate
Principal $230
Team Leader $210
Senior Project Manager $200
Project Manager $170
Senior Engineer $220
Project Engineer $150
Engineer III/IV $120
Engineer I/II $100
Landscape Architect / Planner $125
Landscape Designer $100
Senior Designer $135
Designer $120
Senior CAD Technician $110
CAD Technician $90
IT Consultant $150
Clerical $60
Construction Inspector II $90
Construction Inspector III $105
Senior Construction Inspector $120
Construction Superintendent $170
ROW Manager $150
Senior ROW Agent $130
ROW Agent $110
Relocation Agent $120
Senior Utility Coordinator $130
Utility Coordinator $120
Intern $60
Surveying
Survey Manager $210
Registered Professional Land Surveyor (RPLS) $170
Field Coordinator $120
S.I.T. or Senior Survey Technician $110
Survey Technician $95
1-Person Field Crew w/Equipment** $125
2-Person Field Crew w/Equipment** $160
3-Person Field Crew w/Equipment** $180
4-Person Field Crew w/Equipment** $200
Flagger $40
Abstractor (Property Deed Research) $85
Subsurface Utility Engineering (SUE)
SUE Project Manager $185
SUE Engineer $160
Sr. Utility Location Specialist $100
Utility Location Specialist $85
1-Person Designator Crew w/Equipment*** $120
2-Person Designator Crew w/Equipment*** $145
2-Person Vac Excavator Crew w/Equip (Exposing Utility Only) $250 (4 hr. min)
2-Person Vac Excavator Crew w/Equip for QL-A **** $450 (4 hr. min.)
Core Drill (equipment only) $750 per day
All subcontracted and outsourced services shall be billed at rates comparable to TNP’s billing rates above or cost times a multiplier of 1.10.
* Rates shown are for calendar year 2018 and are subject to change in subsequent years.
** Survey equipment may include truck, ATV, Robotic Total Station, GPS Units and Digital Level.
*** Includes crew labor, vehicle costs, and field supplies.
**** Rate applies to Quality Level A (QL-A) test holes on utilities that were designated by TNP as QL-B.
2
ATTACHMENT ‘C’
TEAGUE NALL AND PERKINS, INC.
Reimbursed Direct Cost Items
Effective January 1, 2018 to December 31, 2018*
Direct Cost Reimbursables
Photocopies: $0.154/sf letter, legal and 11” x 17” size bond paper, B&W
$0.7701/sf letter, legal and 11” x 17” bond paper, color
Prints: $0.154/sf letter, legal and 11” x 17” bond paper, B&W
$0.7701/sf letter, legal and 11” x 17” bond paper, color
Plots: $0.154/sf letter, legal and 11” x 17” bond paper, B&W
$0.7701/sf letter, legal and 11” x 17” bond paper, color
$0.50/sf 22” x 34” and larger bond paper or vellum, B&W
$1.00/sf 22” x 34” and larger mylar or acetate, B&W
Mileage $0.545/mile
Plans on CD $20/each
Denton 2018 Parking LotsBUDGET ESTIMATE
TNP No.
Prin Senior PM PE Engineer III Cad LA Clerical Reimb Total Total
USE
Service Center Conceptual Parking Study 26,550$ $26,600
Meeting to ID future plans 2 4 1,260$
Research 2 8 2,060$
Meetings with staff 4 8 2,520$
Option sketches 1 20 32 7,750$
Review meeting 2 4 1,260$
Draft site layout 6 20 3,400$
Aerial Photgraphy 2,000$ 2,000$
Report 2 8 2,060$
Revisions 4 8 1,680$
Final site layout 4 16 2,560$
Denia Rec Center 17,850$ $17,900
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 1 sht 3 4 8 1,760$
Parking Layout 1 sht 2 16 6 2,700$
Grading Plan 1 sht 4 16 6 3,100$
Dumpster Enclosure 8 8 2,320$
Details 6 5 10 2,650$
Quantities, Specs, Bid Docs, Estimates 8 2 1,780$
QA\QC 2 2 1 1,010$
Project Management 1 4 1,030$
4,950$ $5,000
Landscape Plan 1 4 16 3,040$
Irrigation Plan 1 1 12 1,910$
Civic Center 36,680$ $36,750
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 2 sht 10 12 12 4,400$
Parking Layout 2 sht 6 32 12 5,800$
Grading Plan 2 sht 12 32 12 7,000$
Phasing Plan (3 shts)15 30 5,700$
Details 10 6 16 4,100$
Quantities, Specs, Bid Docs, Estimates 12 10 3,300$
TDLR Submittal 2 1,200$ 1,600$
QA\QC 4 2 2 1,620$
Project Management 2 6 1,660$
Landscape Plan 2 4 24 4,240$ 7,100$ $7,100
Irrigation Plan 2 1 18 2,860$
City Hall East 41,470$ $41,500
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 2 sht 8 12 12 4,000$
Parking Layout 2 sht 8 32 12 6,200$
Grading Plan 2 sht 12 30 12 6,780$
Details 12 10 16 4,940$
Storm Drain 8 24 10 5,140$
Retaining Wall 12 8 12 4,360$
Accessible Ramps 6 8 1,920$
Quantities, Specs, Bid Docs, Estimates 12 8 3,120$
QA\QC 4 2 2 1,620$
Project Management 3 6 1,890$
Landscape Plan 4 3 20 3,930$ 6,240$ $6,200
Irrigation Plan 3 1 12 2,310$
McKinney Street 50,220$ $50,200
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Preliminary Layout 2 20 15 5,810$
Demo plans 1"=20' 1 sht 4 8 12 2,760$
Parking Layout 1 sht 12 24 30 7,740$
Grading Plan 1 sht 12 32 12 7,000$
Drainage Area Map 12 12 12 4,800$
On-Site Storm Drain Calcs & Plans 10 16 16 5,200$
Details 12 16 12 5,240$
Quantities, Specs, Bid Docs, Estimates 12 8 3,120$
TDLR Submittal 2 1,200$ 1,600$
QA\QC 3 4 2 1,790$
Project Management 2 16 3,660$
Lighting Plan 4 9,000$ 9,800$
Landscape Plan 1 8 30 5,630$ 9,640$ $9,650
Irrigation Plan 4 1 24 4,010$
Service Center - North Parking 20,570$ $20,600
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 1 sht 6 6 14 3,120$
Parking Layout 1 sht 3 16 4 2,720$
Grading Plan 1 sht 6 18 10 4,080$
Details 6 4 10 2,540$
Quantities, Specs, Bid Docs, Estimates 8 4 1,960$
TDLR Submittal 2 1,200$ 1,600$
QA\QC 3 2 2 1,390$
Project Management 2 6 1,660$
-$
Landscape Plan 2 2 16 2,820$ 5,830$ $5,800
Irrigation Plan 4 1 16 3,010$
Service Center - West Main Parking 31,830$ $31,800
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 2 sht 10 12 12 4,400$
Parking Layout 2 sht 12 32 12 7,000$
Grading Plan 2 sht 14 32 14 7,580$
Details 12 8 16 4,720$
Storm Drain -$
Quantities, Specs, Bid Docs, Estimates 12 8 3,120$
QA\QC 4 2 2 1,620$
Project Management 3 6 1,890$
Service Center - West Boundary Parking 18,230$ $18,200
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 1 sht 5 10 12 3,180$
Parking Layout 1 sht 4 12 6 2,660$
Grading Plan 1 sht 6 16 8 3,680$
Details 6 8 10 2,980$
Quantities, Specs, Bid Docs, Estimates 8 4 1,960$
QA\QC 2 2 1 1,010$
Project Management 2 4 1,260$
Service Center - South of Texas Street Parking 18,920$ $18,900
Cover 1 4 560$
General Notes, Typical Sections 2 6 940$
Demo plans 1"=20' 1 sht 5 8 12 2,960$
Parking Layout 1 sht 4 12 8 2,840$
Grading Plan 1 sht 8 16 6 3,900$
Details 6 8 12 3,160$
Quantities, Specs, Bid Docs, Estimates 8 6 2,140$
QA\QC 2 2 2 1,160$
Project Management 2 4 1,260$
Landscape Plan 2 4 16 3,240$ 5,550$ $5,600
Irrigation Plan 3 1 12 2,310$
SUBTOTAL Hours 56 616 14 607 -$ 311,430$ 301,630$ $301,800
April 24, 2018 Senior Cad Tech LA Designer