HomeMy WebLinkAboutReso 2002-123 - Cost Estimating Process RESOLUTION NO. 2002- /23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING ADOPTING COUNCIL POLICY NO. 1503,
CAPITAL PROJECTS COST-ESTIMATING PROCESS.
WHEREAS, the City Council is charged with the responsibility of establishing municipal
policies to guide the various functions of the City and, where necessary, to establish procedures by
which functions are performed; and
WHEREAS, the City Council wishes to provide guidelines for estimating the costs of capital
projects;
THEREFORE, IT IS RESOLVED that the City Council adopts Council Policy No. 1503
entitled Capital Projects Cost-Estimating Process, a copy of which is attached and made a part
hereof, to be incorporated in the Council Policy Manual.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a
regular meeting of the City Council on the 20`h day of August, 2002, by the following vote:
AYES: COUNCIL MEMBERS: Cibula, McGeorge, Pohlmeyer, Stegall and Kight
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
/V—j‘Li
PAT KIGHT, Mayor
Attest: Form Approved:
d52-71-Ae.e,P t&t,1%..
Connie Stro ayer, City 1erlt
mDavid E. Tranberg, Acting City Attioy
y.1
" CITY OF REDL„ JG, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
CAPITAL PROJECTS
COST-ESTIMATING PROCESS 2002- 1503 08-20-02 1
Background
In examining the methods for assigning and estimating capital projects, there is a process that
generally yields successful completion of projects within budgetary estimates. Projects of a routine
nature are administered by departmental staff with experience for estimating and managing that
particular type of project. (Examples include: Development Services — roads and waterway
systems; Electric Department — substations and electrical distribution systems; and Community
Services Department— trails.) Unique or particularly complex projects are assigned by the City
Manager,primarily on the basis of three factors— which department is in the best position to fully
understand the needs of the project, which department is best equipped to seize funding
opportunities (e.g., grants, donations), and which department or individual has the time.
Purpose
These recommendations should improve project estimation, the bid process, teamwork, and the
projects themselves. Once implemented, the recommendations can be monitored through the
success we have with future projects.
Policy
1. For all unique and complex projects, the City Manager shall appoint an ad hoc department
head committee, along with the City's"in-house"project manager,to provide an estimate
of the costs.
2. If the team(see above)and the in-house project manager/consultant recommend a specialty
consultant to complete a scoping analysis,that recommendation shall come before the City
Council. Such an analysis would result in a partial design, uncovering most of the issues
that need to be addressed,and,consequently,would produce a highly reliable cost estimate.
Unless the results of the partial design yields the information that the project is not feasible,
practical, or affordable, a majority of the work done during the analysis folds right into
completing the design process. Therefore,most of these expenditures are recouped as the
project moves forward.
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CITY OF RED G, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
CAPITAL PROJECTS
COST-ESTIMATING PROCESS 2002- 1503 08-20-02 2
3. Fast-tracking will not be permitted, unless approved by the City Council.
4. Depending on its practicality,additive alternates should be utilized in the bid process so the
City has options if the costs have a significant potential to exceed authorized budget
amounts. This approach should be used sparingly in that the number of potential bidders
could be diminished, since considerably more time and expense is involved for the
preparation of such bids.
5. When the costs of a project over$100,000, for whatever reason, begin to look as though
they will exceed the authorized budget, the City Council will immediately be informed.
When discussing the problems with the project, staff will bring forward alternatives,
including additional funding sources that maybe available and recommendations of project
modifications to mitigate costs.
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