11 - Addendum to Professional Services Agreement with Hayter Engineering

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Item No. 11 TO: Mayor, Mayor Pro -Tem & City Council FROM: Grayson Path, City Manager SUBJECT: Addendum to Professional Services Agreement with Hayter Engineering, Inc. DATE: May 23, 2022 BACKGROUND: Since October, 2020, the city has contracted with Hayter Engineering ("Hayter") for professional engineering services. Chris Donnan, of Hayter, has been providing almost all of the professional engineering services which would have been provided by a staff city engineer. To date, Mr. Donnan's services have been exemplary. The existing agreement between the city and Hayter provides that it may be terminated by either party with thirty days' notice. Mr. Donnan has made us aware that his need to devote so much time to his work with the city has made it difficult to plan out other work, a situation that is exacerbated by the short termination notice provision. Hayter has asked for a six month termination provision so that once the city has hired a full-time engineer, Hayter has enough time to accept and plan for future work. Hayter has also asked that the city pay a monthly retainer of $6,000.00 against which it will bill Mr. Dorman's work. Hayter's monthly billings have been in excess of $6,000.00 to date. Staff believes that both of these requests are both customary and reasonable. STATUS OF ISSUE: Attached is an Addendum to the professional services agreement which provides for 180 days' notice of termination by either party, or earlier should both parties agree in writing. The Addendum also provides for a $6,000.00 month retainer. Mr. Donnan's services will be billed against that retainer, and in the event that he doesn't bill for at least that amount in any given month, what remains of the retainer after billing will roll over into the next month. The city will never pay for services not rendered. BUDGET: Approval of the Addendum will not impact the budget. The city will pay for engineering services just as it did under the original agreement. RECOMMENDATION: Approve a resolution approving an Addendum to the Hayter Engineering, Inc. professional services agreement.