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<br /> <br />ATTACHMENT B <br /> <br /> <br /> <br />Public Works <br /> <br />Engineering <br /> <br /> <br />M <br />City of Eugene <br />EMORANDUM <br />99 E Broadway, Ste 400 <br />Eugene, Oregon 97401 <br />(541) 682-5291 <br />(541) 682-5032 FAX <br /> <br /> Date: <br />July 21, 2009 <br /> <br /> To: <br />Mayor Piercy and City Council <br /> <br />From: <br />Mark Schoening, 682-5243 <br /> City Engineer, Public Works Engineering <br /> <br /> <br />Subject: COUNCIL ASSIGNMENT – ENGINEERING OVERHEAD ON CAPITAL <br />PROJECTS <br /> <br /> <br />This memo responds to the Council Assignment regarding engineering overhead on capital <br />projects. The Infrastructure Project and Information Management service profile includes the <br />following measures that address this Council Assignment – <br /> <br /> <br />?Comparison of Eugene’s professional services rate to private sector rates in public <br />contracts for professional services. <br /> <br />?Cost of design compared to contract cost. (Assessable and non-assessable) <br /> <br />?Cost of construction management compared to contract cost <br /> <br />Professional Services Rate <br /> <br />The City adopts an administrative order annually that establishes the professional services rates <br />for classes of positions that charge time to capital projects. The positions include engineers, <br />engineering technicians, surveyors, landscape architects, real property officers and support staff. <br />The professional service rate includes the full cost of each class of positions including salaries, <br />fringe benefits, office rent, equipment, materials and supplies, and Central Service Allocation. <br /> <br />Up until 2004 the Oregon Department of Transportation (ODOT) annually conducted an analysis <br />of all of the consulting engineering firms under contract with ODOT and published a report of <br />the average professional services rates for different classes of positions. In 2004 the City’s <br />professional services rates averaged 17% less than the professional service rates for similar <br />positions in the private sector. <br /> <br />The City contracts with consulting engineers for some of its engineering work and has <br />established pool contracts with numerous engineering firms. City staff reviewed the professional <br />service rates of eight consulting engineering firms that perform work similar to the Engineering <br />Division’s project teams. The City’s FY10 professional services rates average 15 percent less <br />than the professional service rates for similar positions for the eight engineering consultants with <br />City pool contracts. <br />1 <br /> <br /> <br />