HomeMy WebLinkAboutMinutes - 02/29/2016 - Committee of the WholeCOMMITTEE OF THE WHOLE
MEETING
February 29, 2016
Mayor Low called the Committee of the Whole meeting of February 29, 2016 to order at 7:00
p.m. In attendance were Mayor Low and the following Aldermen: Santi, Glab, Schaefer, Curry,
Wimmer and Condon. Absent: Peterson. Also in attendance: City Administrator Morefield,
Deputy City Administrator Hobson, Director of Economic Development Martin, Director of
Community Development Polerecky, Director of Public Works Schmitt, City Attorney McArdle
and City Clerk Jones.
Also in Attendance: Helen Glab.
CITY OF MCHENRY MISSION STATEMENT
Mayor Low read aloud the Mission Statement of the City of McHenry.
PUBLIC INPUT SESSION
No one spoke at the Public Input Session.
DISCUSSION AND DIRECTION REGARDING CITY ENGINEERING SERVICES
City Administrator Morefield informed Council that the City of McHenry has never had a
Staff position that held the full range of responsibilities of a "City Engineer." From 1994 until
1999, the position of Engineering Inspector was held by Mr. Dan Marcinko. In 1999, Mr.
Marcinko was promoted to Assistant Public Works Director. Mr. Marcinko held a degree in Civil
Engineering, but did not hold Professional Engineer (PE) licensure. In. 2000, Mr. Jerry Johnson
was hired as the Engineering Inspector, a position he held until 2009. Mr. Johnson had technical
expertise in engineering and construction management, but held no degree in engineering. The
responsibilities of the Engineering Inspector position included:
• review of subdivision plans;
• consultant plans;
• assisting in the design of small engineering projects;
• coordinating work funded by the Illinois Department of Transportation; and
• other Public Works related special assignments, as required.
The position of Engineering Inspector did not require any advanced degree past a high school
diploma, although the requirements do specify extensive technical or specialized training, 5-10
years of field experience with construction and engineering, or equivalent skills.
Beyond the responsibilities included in the job description for Engineering Inspector,
engineering -related tasks have been carried out through professional services relationships
with engineering firms through the annual appointment made by the Mayor. From 1984 until
2002, Baxter & Woodman served as the appointed City Engineer. Beginning in 2002, Baxter &
Woodman served as the appointed City Engineer for the water and wastewater systems and
Smith Engineering Company (SEC) was appointed the transportation engineer. In 2005, the City
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February 29, 2016
discontinued its relationship with Baxter & Woodman and with the expansion and transfer of
SEC to HR Green, Inc., (HR Green) HR Green became the exclusive appointed City Engineer.
City Administrator Morefield outlined the extensive services provided by HR Green,
through a Master Agreement, on an as -needed, day-to-day basis. City Administrator Morefield
noted that since 2010, the City of McHenry has spend an average of $13,200 per year, and no
more than $18,000 in any single year, on general engineering services with HR Green through
the Master Agreement relationship.
City Administrator Morefield informed Council that for projects outside the scope of the
Master Agreement, specifically, larger capital improvement projects (i.e.,
transportation/roadways, water/wastewater system improvements), the City works with HR
Green for design, engineering and project management services through the submittal and
approval of Professional Services Agreements (PSAs). The costs provided by in these contracts
are based on the scope of the project and engineering expertise required, calculated by a
percentage of the project cost and are usually submitted and approved as a "not to exceed"
contract.
City Administrator Morefield stated that as part of the overall analysis, it is important to
identify and clarify what, if any, restrictions are applicable to implementing a cost -based, as
distinct from a Qualification -Based Selection (QBS), capital project selection process. By
definition, QBS is a competitive contract procurement process whereby consulting firms submit
qualifications to a procuring entity (owner) who evaluates and selects the most qualified firm
and then negotiates the project scope of work, schedule, budget and consultant fee. City
Administrator Morefield noted that City Attorney McArdle researched the topic by reviewing
the applicable law from local, state and federal points of view with regarding to the use of a
consulting engineer for Public Works projects.
City Administrator Morefield informed Council that, in summary, City Attorney
McArdle's findings discovered that importantly, it is not the type of project or how the labor
and material is funded that dictates the use of Qualified -Based Selection procedures, but rather
what type of funds are being used to pay for City engineering services. City Attorney McArdle
reached the conclusion that other than projects whereby the City engineering services are paid
for with federal funds, the City has wide discretion in its selection of engineers, unrestricted by
QBS procedures. City Administrator Morefield briefly summarized the following:
• Locally Funded Services;
• State Funded Projects; and
• Federally Funded Projects.
City Administrator Morefield noted that QBS will only be applicable if the federal aid is being
used, in whole or in part, for engineering services, unless the City Engineer is used. In addition,
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February 29, 2016
if federal aid is used only to pay for the actual construction (i.e., labor and material costs) and
engineering is paid by the City or otherwise, no QBS procedure will be required. Because the
Brooks Act (as outlined under Federally Funded Projects) applies to the "procurement of
architectural and engineering services" not actual construction. City Administrator Morefield
provided Council with a chart from the Illinois Bureau of Local Roads and Streets to assist in
illustrating the process of determining whether QBS procedures are required. He noted that
IDO intends to remove the portion of the chart which reads, "Does the engineering services
contract cost more than $100,000 ($150,000 with District Approval)?" If and when this
exemption ceiling is lifted, ANY federal aid used to pay for engineering services will require
compliance with QBS procedures, or use of a City appointed engineer.
City Administrator Morefield informed Council the most common form of federal
funding that the City of McHenry receives for Capital Improvement Projects is through the
Federal Highway Administration in the form of Surface Transportation Program (STP) funds.
When STP funds are used for engineering services on a project, the selection of engineering is
then subject to the nine -step QBS process, unless, the City Engineer is used. It is the opinion of
Staff that the QBS nine -step process is burdensome and Staff would recommend that federally
funded projects remain with the appointed City Engineer.
Some members of the City Council have expressed concern to City Administration
regarding the exclusive relationship between the City and HR Green, Inc. Specifically, concerns
have been expressed that the City is not receiving the most competitive pricing for design,
engineering and/or project management services for capital projects. In an effort to address
those concerns City Administration conducted an analysis of the City's engineering needs and
met with various staff representatives of numerous surrounding municipalities to discuss their
engineering processes What was discovered from the analysis is that every municipality
approaches engineering differently based upon what they feel works best for them. City
Administrator Morefield provided Council with a list of the "pros" and "cons" of each approach.
After careful consideration and discussion regarding the concerns expressed by Council,
and ensuring that the best interests of the municipality are protected, the following
recommendation are offered in an effort to effect a balanced approach to engineering for the
City of McHenry.
Recommendation No. 1: Recruit/Retain an In -House Engineering Project Manager
The actual title and full scope of responsibilities of this individual would be determined.
The individual would be an actual employee of the City of McHenry within the Public Works
)epartment.
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February 29, 2016
It must be understood that it is unrealistic to think that hiring a full-time, in-house
position would be able to replace all of the services currently provided to the City of McHenry
by HR Green. There are too many engineering specialties to expect equal proficiency from one
individual (i.e., transportation, water, wastewater, civil, etc.).
As envisioned, the position would require an advanced degree (Bachelor's degree
minimum) in either Engineering or Construction Management. A Professional Engineering (PE)
certification would not be necessary. However, it is important that the individual have some
experience with municipal engineering processes together with real world applicable
experience. We would expect the individual to be able to be productive within a short period of
time without the need for a lengthy training period.
Responsibilities of the position would include assuming many day-to-day engineering
related tasks currently performed by HR Green. The position would be responsible for
reviewing and analyzing cost information provided by HR Green for capital project being
undertaken by the City. This would include proposed project staffing requirement and costs and
cost -checking proposed engineering related services by comparing the scope/cost for services
for projects undertaken in McHenry compared to similar projects being undertaken in
surrounding municipalities ensuring the cost proposed by HR Green are in line with similar work
being completed by other firms.
City Administrator Morefield stated that at the discretion of the proposed Engineering
Project Manager, or as directed by the City Administrator and/or the Director of Public Works
for non -federally funded projects), the City would retain the potential for producing a project
scope of work that could be competitively bid by pre -qualified engineering firms and, if they
choose, the City Engineer. The Engineering Project Manager would then be responsible for
developing the scope of work, requesting competitive bids from pre -qualified engineering
firms, reviewing/evaluating competitive bid submittals, recommending the award of bid and
serving as the Staff liaison for the specific project.
Timing for the recruitment and hiring of an individual for the proposed position would
take place following the approval and start of the FY 2016/2017 Budget (May 1, 2016). It is
anticipated it would take approximately 60-days for the hiring process to be completed,
however, this is subject to change based upon the quality of the applicants, number of
interviews required, etc. The interview team would be comprised of City Administrator
Morefield, Public Works Director Schmitt and Human Resources Manager Campanella. An
additional individual with engineering specific knowledge may be brought in from a neighboring
municipality to assist in the process. Based upon a review of positions similar in requirements,
scope and responsibility, it is estimated that the salary for the position would start in the low
$80,000 annually range. Benefits would be in addition to the annual salary.
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February 29, 2016
Recommendation No. 2: Retain HR Green, Inc., as the appointed City Engineer to provide as -
need support for the Engineering Project Manager; for engineering services for federally
funded projects; and for engineering services for non -federally funded engineering projects
subject to the critical review and comparison of project scope/cost by the Engineering Project
Manager and with the option of requesting project bids from pre -qualified engineering firms.
En�ineerin� Support Services
City Administrator Morefield noted that as previously identified, it is not realistic to
believe that an individual can be hired to replace the depth and breadth of engineering
expertise that is provided by a full service engineering firm and, therefore, it is important that
Staff (and particularly the proposed Engineering Project Manager) have access to engineering
support services on a regular and timely basis.
As envisioned, based on the level of expertise and experience the City is able to obtain
in the hiring of an Engineering Project Manager, the appointed City Engineer would be available
on an as -needed basis as a resource to the Engineering Project Manager for tasks that are
either:
1. Outside of the scope of the Engineering Project Manager's expertise; or
2. As a backup in instances where the Engineering Project Manager's workload
request that he/she engage additional assistance.
A new Master Agreement would be developed for this form of relationship that would be
subject to review and approval of City Council on an annual basis as part of the annual
appointment process of the City Engineer.
Capital Projects En�ineerin� Services
City Administrator Morefield noted that HR Green, Inc., maintains the institutional
knowledge of the public infrastructure of the City of McHenry and Staff recommends that HR
Green should continue to be retained as the City's first option to provide engineering services
for capital projects, which would occur under the following scenarios:
• Federally Funded Projects; based upon the legal opinion of City Attorney
McArdle, projects that include engineering funded in whole or in part with
federal funding must either go through the QBS process or be undertaken by the
appointed City Engineer. As Council is aware, federally funded projects such as
STP are subject to strictly defined cost measure as dictated by. the Illinois
Department of Transportation (IDOT). Staff believes the most reasonable avenue
is the retention of HR Green for these projects. The proposed Engineering
Project Manager would be responsible for the review, cost-checking/verification
of the project scope/costs to confirm they are appropriate based on allowable
costs.
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February 29, 2016
• Non -Federal Funded Project; seeking competitive bids for every capital project
undertaken in the municipality would consume considerable Staff time and
effort and while the process might identify a "low bidder" for a project, does not
guarantee that the most qualified engineering firm is selected or that the low bid
would not be followed with significant change orders or contract amendments,
defeating the purpose of competitively bidding the project. With the proposed
Engineering Project Manager closely scrutinizing, evaluating, comparing and
negotiating engineering costs submitted by HR Green, Staff is confident that
more cost accountability could be established in the capital engineering process
for non -federally funded projects.
Additionally, Staff recommends completing a process every 3-5 years, beginning in Fiscal
Year 2016/2017 and following the hiring of the proposed Engineering Project Manager, to pre,,,
qualify engineering firms for the variety of public improvement projects that the City
undertakes. The pre -qualified list is preferable as it would allow the City to screen and select
only the most qualified firms and provide a level of confidence ensuring that, when competitive
pricing is sought the pre -qualified firms have the technical engineering expertise required. The
3-5 year period is recommended because the process of pre -qualifying firms is time consuming
and, further, would create the potential for inefficiencies in having a regular turnover of firms.
Having a list of pre -qualified firms makes it possible for engineering firms other than HR Green
to undertake projects within the municipality, provides other engineering with the opportunity
to gain a better understanding of the infrastructure of the municipality and provides the
proposed Engineering Project Manager, other Staff and elected officials, with an opportunity to
evaluate the cost and performance of other qualified engineering firms on a project -by -project
basis. This process would also hold HR Green accountable since the City has the opportunity to
choose to retain other engineering firms for projects at any time.
City Administrator Morefield provided Council with a copy of the Position Description
for Engineering Inspector.
City Administrator Morefield reiterated that Staff has a level of confidence with the
expertise and knowledge of HR Green. Staff is seeking clear direction from Council regarding
how to proceed with engineering services for the City of McHenry. City Administrator Morefield
noted that the language in the Municipal Code currently states that the City Engineer is
appointed annually by the Mayor.
Staff expressed concerns that engineering quality may be sacrificed for a low bid.
Mayor Low informed Council that City Administrator Morefield, Director of Public Works
Schmitt and City Attorney McArdle have spent a great deal of time and consideration in an
effort to address the concerns expressed by certain members of the Council.
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February 29, 2016
City Attorney McArdle stated that a great deal of time has been spent compiling the
information presented this evening and only two Alderman submitted suggestions. He opined
that prior to more time and expense being expended a consensus from Council is suggested.
Director of Economic Development Martin stated there is a lot of merit in retaining HR
Green. HR Green continues to provide an invaluable service to the City. Director Martin stated
that he also sees some merit to having a Project Manager that is an employee of the City of
McHenry.
Alderman Condon opined that there is no right or wrong, only pros and cons, when
considering the options presented. She stated that she is certainly open to suggestions and likes
Staff's idea about an in-house individual and the ability to bid out some projects. However, the
history the City has with HR Green and the knowledge HR Green has about the City is certainly
an asset.
Responding to Alderman Glab's request, Director Schmitt provided Council with a
detailed explanation regarding the QBS process. Alderman Glab opined that he has long felt
that engineering prices are excessive. He stated that he has no issues with the quality of the
work HR Green has provided the City, but does not believe the City is getting the most
competitive bids.
Alderman Schaefer stated that he is not necessarily in favor of an in-house position. He
opined that it has the potential to turn into a multi -layered position.
Alderman Santi stated the he feels that dealing solely with HR Green there is nothing to
compare a bid to. He would like to see a more competitive process.
Responding to Alderman Curry's inquiry, City Attorney McArdle explained the details
regarding legal responsibilities when federal funding is involved and why a conflict of interest
exists if someone who is involved in a scope of work bids on a project. Alderman Curry opined
that competition yields better results. He expressed concern that an individual would be hired
for the position of Engineering Project Manager who would be unable to adequately do the job.
Alderman Wimmer opined he sees the benefit of an Engineering Project Manager that
would ultimately transition into the role currently held by Director Schmitt. He stated he does
not believe the savings would be significant and does not see any benefit in switching
engineering firms when Staff is comfortable with HR Green's level of expertise and HR Green's
work is exemplary.
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February 29, 2016
Mayor Low opined she trusts Staff implicitly. Director Schmitt is a professional and his
job is to advise Council regarding what is in the best interest of the City of McHenry. Director
Schmitt has worked in the field of public works for 30-years and has indicated he is 100%
confident in HR Green. Mayor Low stated while addressing the concerns expressed by Council
she would like to reach a compromise. Mayor Low stated that HR Green is the only full service
engineering firm in the City of McHenry. Employing HR Green is keeping business in the City of
McHenry.
Alderman Condon opined that it is crucial that Council has faith in the expertise of Staff
and the Administration. She stated she feels, at this point, the composition of City Staff is good.
Director of Community Development Polerecky informed Council that during the brief
period of time he has been in the position of Director of Community Development, the history
and knowledge that HR Green has demonstrated to him regarding the City has been important.
Mayor Low proposed, as a compromise, that Council trust Staffs decision during the
coming year and consider the following:
1. Honor the choice of Director Schmitt to remain with HR Green;
2. Seek an individual to adequately fill the proposed position of Engineering Project
Manager; and
3. Work during the coming year to develop a more competitive bidding process.
Following a brief discussion, with a show of hands, a majority of the Council in
attendance agreed to the following:
4. Honor the choice of Director Schmitt to remain with HR Green;
5. Seek an individual to adequately fill the proposed position of Engineering Project
Manager; and
6. Work during the coming year to develop a more competitive bidding process.
City Administrator Morefield stated that most important to the City is a determination
regarding whether the lowest price provides the best quality and/or whether the position of
Engineering Project Manager would benefit the City sufficiently to justify the salary and
benefits. City Administrator Morefield assured Council that Staff would develop a job
description for the proposed position of Engineering Project Manager. Once the position has
been filled a rate sheet for RFQs would be developed with the assistance of Director Schmitt
and transition period would be established for the new hire.
Responding to City Administrator Morefield's inquiry regarding whether Council desires
that the proposed Engineering Project Manager have a PE certification, it was determined that
a PE certification would be desirable, but not essential.
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February 29, 2016
Mayor LOW stated she appreciates everyone's participation and spirit of compromise.
Mayor Low informed Council that on March 2, 2016 the State of the City address would
be hosted by the McHenry Area Chamber of Commerce at the McHenry Country Club.
ADJOURNMENT
Motion by Curry, seconded by Schaefer, to adjourn the Committee of the Whole
meeting at 9:12 pm.
Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Condon.
Voting Nay: None.
Absent: Peterson.
Motion carried.
The Committee of the Whole meeting adjourned at 9:12 pm.
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City Clerk