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Council approves SEH agreement not to exceed $40,000 for developer engineering reviews
Summary
The council approved a not-to-exceed $40,000 agreement with SEH to perform developer project engineering reviews and construction observation, with staff saying the fee will be billed back to developers; council members asked about term, tracking and whether the agreement creates exclusivity.
The New Prague City Council approved an agreement with consulting firm SEH that caps engineering services for private developer reviews at $40,000. SEH city engineer Chris Knudson told the council the amount is a not-to-exceed, hourly-based fee intended to cover reviews and construction observation and that work is billed back to developers.
"This is gonna be used on developer commercial residential type developments, and that fee then gets pushed back to the developer as per their their cost," Knudson said. He said the $40,000 figure gives staff a point at which they would return to council if additional authorization is needed.
Council members asked several procedural questions: how quickly the $40,000 might be used on a large project, whether the city could use other firms while this agreement is in place, and how staff would separate tasks so the city can track where the money is spent. One council member asked whether the agreement would create exclusivity for developer-review work; a council member summarized the concern: "So this is basically exclusivity Yes. That goes further than our annual agreement." Staff responded the agreement is for SEH to perform development-related civil-plan review and construction observation on behalf of the city and noted the city already uses multiple firms for different project types.
The council moved to approve the agreement; the motion was seconded and approved by voice vote during the meeting.
