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Resolution 2006-039 STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) RESOLUTION NO. 2006- RESOLUTION APPROVING INCREASES IN HOURLY RATES AND EXPENSES FOR . ENGINEERING ENTERPRISES, INC. WHEREAS, the City Council of the United City of Yorkville has considered approval of increases in hourly rates and expenses for Engineering Enterprises, Inc. (EEI); and WHEREAS, a copy of EEI's letter of explanation and 2006 Standard Schedule of Charges is attached hereto and incorporated herein as Exhibit "A "; and NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting, the 2006 Standard Schedule of Charges is hereby approved by the City Council of the United City of Yorkville in the form set forth on Exhibit "A" attached hereto and incorporated herein. JAMES BOCK 5. JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS L-ks_ ROSE SPEARS JASON LESLIE ,�YE� Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this � Day of 11"'� A.D. 2006. MAYO Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this o k day of A.D. 2006. v ATTEST: CITY CLERK Prepared by: John Justin Wyeth . City Attorney United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 i i 0 52 Wheeler Road • Sugar Grove, IL 60554 TEL: 630 / 466 -9350 Aiv FAX: 630 / 466 -9380 www.eeiweb.com Engineering E In rprises, April 27, 2006 Mr. Joe Wywrot, P.E. City Engineer United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 Re: Proposed Changes in Hourly Rates and Expenses Dear Mr. Wywrot: As you may recall, we submitted our proposed 2006 Standard Schedule of Charges approximately one and a half months ago. We also have had the opportunity to discuss it with the Mayor, members of the City Council, and City Staff at a couple meetings this month. Based on the discussions at the most recent Committee of the Whole Meeting, it is our understanding that the Council is requesting that we keep our 2005 Standard Schedule of Charges for all "City" projects throughout this year. The Council also stated that they would be open to discussing an alternative rate schedule for the "Developer" projects. As we have stated, our mission is to provide the highest level of engineering service to all of our clients, including the United City of Yorkville. While the costs for our firm to provide the same level of service to you have risen in 2006, we also recognize that it is a privilege for us to be able to provide the volume of engineering services that. we do for your community. That being said, we are willing to retain our 2005 Standard Schedule of Charges on all "City" projects throughout 2006. In an attempt to develop a reasonable rate schedule for the "Developer" projects, we considered multiple options. In the end, .the most logical approach that we could think of was to try to determine the revenue that would be lost for the "City" projects, and then attempt to project the hourly rates that would need to be applied for the projected "Developer' projects to account for this loss in revenue. Since it is difficult to project the number of hours that we will provide on "City" projects this year, and even more difficult to project the number of hours that we will provide on "Developer" projects (i.e. plan review), our best option was to assume the billing history from 2005 would be similar in 2006. Based on that analysis, our calculations projected that each classification of employee's 2005 hourly rate would need to be increased by $10 per hour, which is $4 higher than the previously proposed $6 per classification increase. Consulting Engineers Specializing in Civil Engineering and Land Surveying Mr. Joe Wywrot, P.E. April 27, 2006 Page 2 As you may know, we provide municipal engineering services to a number of other communities in Northeastern Illinois, as well. We aim to provide a consistent level of service to all of our clients, and when possible, we attempt to provide consistency in our hourly rates. As I am sure you can imagine, there are a number of reasons for that, one being, it is easier on our accounting staff. After reflecting on past discussions on this topic with the Mayor, City Council, and City Staff, further reflection on the calculation that suggests the hourly rates need to be adjusted as much as $10 per classification to account for the loss of revenue on the "City" projects, consideration for the privilege it is to work for the City, and the desire to maintain consistency where possible, we have decided that we will not request the $10 per classification increase, but rather request that the hourly work conducted on the existing and new "Developer" projects in 2006 be applied at our originally proposed 2006 Standard Schedule of Charges. Therefore, if the City Council agrees with this approach, all "City" projects will retain the 2005 rate schedule and all "Developer" projects will utilize the attached 2006 Standard Schedule of Charges. Due to the fact that it is uncertain how our costs will change throughout this year and where they will be in 2007, we respectfully request that we be given an opportunity to approach the City Council to evaluate our hourly rates again next year. if you have any questions or comments, please do not hesitate to call. Respectfully Submitted, ENGINEERING ENTERPRISES, INC. Jeffrey W. Freeman, P. E. Vice President JWF /me Enclosures pc: Mayor Art Prochaska Mr. John Crois, Interim City Administrator Mr. Eric Dhuse, Director of Public Works Atty. John Wyeth, City Attorney JKM, PGW, WED, JTW, DMM, DMT, ESW — EEI GAPubHc1Yorkvi11e120061Y00600 Genera1\Docl1jwywrot01 - changesinratesZdoc 52 Wheeler Road • Sugar Grove, IL 60554 TEL: 630 / 466 -8350 STANDARD SCHEDULE OF CHARGES FAX: 630 / 466 -3360 F www.eelweb.com January 1, 2006 Engineering Enterprises, Inc. EMPLOYEE DESIGNATION CLASSIFICATION HOURLY RATE Principal Engineer E -3 $144.00 Senior Project Manager E -2 $132.00 Project Manager E -1 $120.00 Senior Project Engineer /Surveyor P -5 $108.00 Project Engineer /Surveyor P-4 $ 99.00 Senior Engineer /Surveyor P -3 $ 90.00 Engineer /Surveyor P -2 $ 81.00 Associate Engineer /Surveyor P -1 $ 72.00 Senior Project Technician T -5 $ 99.00 Project Technician T-4 $ 90.00 Senior Technician T -3 $ 81.00 Technician T -2 $ 72.00 Associate Technician T -1 $ 63.00 Secretary A -3 $ 72.00 CREW RATES, VEHICLES AND REPROGRAPHICS 1 Man Field Crew with Standard Survey Equipment $120.00 2 Man Field Crew with Standard Survey Equipment $183.00 1 Man Field Crew with RTS or GPS * $150.00 2 Man Field Crew with RTS or GPS * $213.00 Vehicle for Construction Observation $ 12.00 In -House Scanning and Reproduction 0.25 /Sq. Ft. Black & White) 1.00 /Sq. Ft. (Co *RTS = Robotic Total Station / GPS = Global Positioning System G:IEElODcs`,Forms,GeneraOSSGStd Schedule of Charges%S TADS010 "o.DOC Consulting Engineers Specializing in Civil Engineering and Land Surveying