Centennial staff say Jacobs contract delivers value; council agrees to explore early renewal

Centennial City Council on (date not specified) heard staff findings from a review of the city’s Professional Services Agreement with Jacobs, a lump‑sum contract that provides the city’s public works, parks, facilities and code‑compliance services. Staff told council the independent review found Jacobs meeting industry standards and delivering value, and asked for council consensus to begin negotiations on a renewed agreement with built‑in protections and periodic performance checks.

The review traces the relationship back to the city’s 2007 transition from county service to a contractor model, with code compliance added in 2012 and other services folded into a 2017 master services agreement that currently terminates in 2028 after a 2021 extension. “We are here tonight to talk about our Professional Services Agreement with Jacobs,” staff member Alicia Thomas told council, summarizing staff’s reason for an early look: large, long contracts benefit from periodic evaluation of service quality, competitive pricing and continuity planning.

The consultant who performed the evaluation, Travis Scribe, said his review compared Centennial’s contracted structure to peer cities in the Denver metro area, desk and field work, interviews with Jacobs and city staff, and a productivity and organizational efficiency analysis. “Is the city receiving value? Again, the short answer is yes,” Scribe said. He told council that Centennial’s lump‑sum, performance‑based structure provides flexibility and that several service lines — notably snow removal and street sweeping — meet or exceed metro‑area norms.

Public Works Director Jeff Dankenbrandt and Scribe described the contract as a single annual payment that obligates Jacobs to deliver a defined scope but not prescribe method. That structure, they said, has allowed the city to shift staff across tasks and to avoid hourly billing spikes during slow or busy seasons. Scribe said the contract’s service levels, staffing and outputs compare favorably to Arvada, Westminster, Thornton and other peers, and noted Centennial previously earned APWA (American Public Works Association) recognition under the current model.

White Peterson, senior strategic advisor in the Office of Strategic Initiatives, presented a focused financial review of the city’s consolidated code‑compliance service. Peterson said staff compared Centennial’s per‑capita code compliance budget to eight peer cities and ran a cost model to estimate bringing code compliance in‑house. Peterson said the estimate to stand up in‑house code compliance in year one — including manager, six officers, an administrative assistant and upfront capital — was about $355,000, with recurring in‑house costs at about $934,000. He contrasted that with the 2025 Jacobs code compliance line of about $928,000 and concluded: “we would not recommend that route, to city council,” meaning staff recommends continuing code compliance inside the Jacobs agreement.

Council members pressed staff on contract term and on how to balance long runs with protections. Several council members said they were open to lengthening the next term beyond the current 10‑year floor, mentioning 15 years as a possible option, provided the contract includes escape clauses and periodic “report‑card” check‑ins. Staff recommended starting negotiations now so any new contract could take effect in summer (staff suggested a July 1 start) rather than changing over in winter operations. Thomas noted transitions of this magnitude can take 18–24 months to stand up if the city were to move work in‑house or to a different contractor.

Council gave staff direction, without a formal vote, to explore negotiations with Jacobs that would examine a longer term in exchange for measurable benefits, while preserving city protections on performance and price. Council members emphasized maintaining service levels and formalizing periodic performance evaluations in the agreement if a longer term were pursued.

Staff retained the recommendation that code compliance remain in the Jacobs agreement, based on the peer‑city comparison and the in‑house cost model. Staff also highlighted operational benefits from the consolidated approach — unified HR, IT and the citywide Citizen Response Center — and the longer institutional knowledge Jacobs has developed with Centennial’s programs.

If council ultimately decides to proceed with a renewal, staff signaled they would return with a cost‑benefit analysis, proposed contract language for protections and recommended periodic performance checkpoints to be included in the agreement.

Ending — Next steps: Council’s direction was limited to consensus to explore negotiations and to return with proposed terms and analysis for council consideration; no new contract was approved at the session.