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Howard R, Green Oompany <br /> <br />May 10, 2004 <br />File: 230000M-0325 <br /> <br />Mr. Pat Klaers <br />City Administrator <br />City of Elk River <br />13065 Orono Parkway <br />Elk River, MN 55330 <br /> <br />RE: FULL-TIME CITY ENGINEERING REPRESENTATION <br /> <br />Dear Mr. Klaers: <br /> <br />Howard R. Green Company (HRG) is pleased to provide you with this letter of understanding <br />relative to having Terry Maurer work out of the Elk River City Hall as a full-time consulting City <br />Engineer. We have reviewed the past three years of history relative to Terry's annual billings to <br />City of Elk River projects. We have also reviewed Terry's total time annually relative to the amount <br />of time spent on Elk River issues. On average, Terry has been approximately 50 percent billable <br />to Elk River projects over the last three years. Based on this history, we would propose an <br />arrangement whereby the City of Elk River would pay an $8,000 monthly retainer. In addition, <br />Terry would bill his time on a normal basis for work on development reviews that are passed <br />through directly to the developer. From HRG's perspective, this will provide approximately the <br />same income from Elk River for Terry's time as has been in the past three years. From the City's <br />perspective, for this payment they will receive 40 to 50 percent more of Terry's time. <br /> <br />Terry would be able to track retainer time either on HRG's accounting system or some way <br />acceptable to the City so that the monthly retainer amount could be accurately charged back to the <br />major projects Terry spends his time on. There would be no other proposed changes in the current <br />method HRG bills the City of Elk River for consulting engineering services. <br /> <br />We would suggest that both parties, the City of Elk River and HRG, agree to a 90-day notice if <br />either side would like to end the retainer relationship. This should allow either side time to make <br />provisions for continuing without this retainer service. HRG would request an annual adjustment of <br />three percent in the monthly retainer amount as this arrangement continues from calendar year to <br />calendar year. <br /> <br />We are prepared to begin this arrangement as eady as June 1, 2004. Please review this letter of <br />understanding and let us know if you have any questions. <br /> <br />Sincerely, <br /> <br />Howard R. Green Company <br /> <br />Terry J. ', P.E. <br /> mlaurer <br /> <br />TJM:sw <br /> <br />Cc: Ralph Russell, President - HRG <br /> <br />Ltr-031704-Klaers.doc <br /> <br />2550 University Avenue West · Suite 400N · St. Paul, MN 55114 · 651/644-4389 <br /> <br />fax 651/644-9446 toll free 888/368-4389 <br /> <br /> <br />