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Council approves engineering task orders after debate over extra fees and scope
Summary
After extended questioning from Council Member Mortonson about why routine seal coats and mill-and-overlay work were being billed through separate task orders in addition to the city's $16,000 monthly engineering retainer, the council approved multiple task orders for construction administration with More Engineering Inc.
Fergus Falls city councilors on July 7 approved four task orders with More Engineering Inc. for construction administration on the 2025 mill-and-overlay and related street work after an extended discussion over fees and the difference between general administrative services and project-specific work.
Council Member Mike Mortonson pressed staff for clarity on why routine seal-coat and mill-and-overlay projects are being charged as separate task orders in addition to the city's monthly $16,000 engineering retainer. "What I need to know as a council member is are we used to this?" Mortonson asked, citing task-order fees that totaled about $64,943 across several items.
City staff explained the distinction: general administrative duties (covered by the monthly retainer) are different from construction administration and project-specific services, which More Engineering bills as task orders. Staff said that for projects where design work was already done, the firm was proposing reduced fees (half the typical 15% project fee) because the task orders cover construction administration rather than full design.
Tyson (city staff) explained that even seal-coat and mill-and-overlay projects require contract administration, partial payment estimates and on-site oversight, and that the city historically charged internal staff time to these projects. Bill (finance staff) added that when outside consultants are used, the total project costs reflect both consultant fees and staff time previously charged internally.
After the clarifications and a request to provide a clearer breakdown of what is covered by the monthly retainer versus task orders, the council approved the task orders (Nos. 2–5) by roll-call votes.
Staff said they will provide a more detailed breakdown of administrative vs. construction-administration tasks in future reports to help council members explain costs to constituents.
