Agenda - Council Work Session - 04/19/2011

Home

CC Work Session Date: 04/19/2011 By: Mark Riverblood Engineering/Public Works Information Title: Review Recent Success of In-house Services and Review Contracted City Operations Background: Item #: 2. 2. The purpose of this Topic Report is to summarize projects that illustrate the value of competent, professional in-house staff, and also review functions the City has determined are best performed by the private sector - for reasons of economy, efficiency or both. Staffs position is that to maximize the return on investment (tax dollars); service to the public is best achieved by a prudent combination of contracted services (like the Dept. of Corrections work force, turf fertilization etc.), full time staff, and seasonal/temporary workers (such as interns). While these functions and outcomes are highly interrelated, they shall be discussed (somewhat) separately, below. Observations: Recent successes of in-house services As Council is aware, in 2010 the city called on the Letter of Credit (LOC) to complete the punch -list items and remaining Stage 1 improvements for the 5 -year old SweetBay Ridge subdivision (former Gun Club property). The preponderance of this work has been completed utilizing the $319,501 received. The majority of the outstanding punch -list items were performed by contractors based upon quotes or bid, consisting of bituminous overlay of the streets, miscellaneous municipal utility repairs (manholes and watermain valve boxes), and significant concrete work (curb and sidewalk replacement). However, the bids received (orginally submitted to the developer) for the boardwalk would have exceeded the available funding. In January 2010, Council directed staff to complete all aspects of the project including the boardwalk using a combination of FT staff (for more complex elements), the Department of Corrections work force and seasonal workers; so as to complete all the Stage 1 improvements. Initially it was forecast that some, but not all labor costs would be able to be 'captured' to complete larger punch list items and 'rescue' the boardwalk aspect of the project that otherwise would not be able to be constructed. Staff is pleased to report that not only was all work completed according to plan, but further, all labor costs were charged to the LOC and $59,423 will be infused into the 2011 General Fund. *For an in-house versus contracted labor comparison, the bid for the boardwalk construction labor by Custom Manufacturing was $40+ per foot. The city's real costs, including ALL equipment, machine time and supervision was $38.41 per hour. It may also be useful to report that the example of the city's 'smart' application of resources above is not necessarily unique. With the recent Sunfish Lake Park project, a little over $11,000 was saved (coupled with the project coming in $35,000 under the approved budget) by using in-house forces. As the $11,000 amount of Park Trust Fund dollars was not necessary to balance the final 2010 budget - the dollars remain in the Park Trust Fund to be transferred to the General Fund this year if necessary.