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11-12-12 Council Agenda & Packet
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11-12-12 Council Agenda & Packet
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11/8/2012 10:39:57 AM
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City Council - City Clerk
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limit such work to 20 % of total work per year and increase our overhead markup <br /> by 10 %? p <br /> The success and consistency/fairness of the in-house curb and sidewalk program <br /> depends on the revenue generated by residents who buy into the program. The <br /> credibility of the program would deteriorate if we become selective on who has to <br /> pay and who doesn't. An alternative to address concerns raised by Council might <br /> be grants or funding through other sources, which would keep the City irr-house <br /> curb and sidewalk program independent for paying residents. Any residents who <br /> request new curbs and sidewalks and receive funding from Mayor and Council for <br /> alternate sources would have their work performed by independent cor2tractor•s, <br /> which would support the livelihood of the contractors and keep the City curb and <br /> sidewalk program separate for paying residents. <br /> Address the economy of doing concrete work with City crews versus bidding to <br /> private contractors. <br /> Concrete work awarded to contractors "just be based 011 prevailing wages. The <br /> current prevailing N�iage for a skilled Cement Mason who performs work oil <br /> bridges and roadways is $29.42 per Dour without fringe-benefits, and $40.37 per <br /> hour with fringe benefits. The highest hourly rate for a City Sewer department <br /> union employee (Job Leader) per hour- is $18.77 without fringe benefits, and <br /> $25.96 per hour with fringe benefits'. This translates into a savings to the City of <br /> $10.65 per hour wages without benefits, and $14.41 per hour with fringe benefits. <br /> The material or° cernent used to perform the work remains the same for both parties <br /> at $84.00 per cubic yard. The equipment is the same. Wages explain only part of <br /> the economic value of City employees performing the concrete work versus work <br /> performed by a private contractor-. In addition a contractor is a private for profit <br /> organization. They have overhead and profit on a typical concrete contractor- of 30 <br /> % if they are to remain in business. The City can do the work for cost of service <br /> without profit and fixed overhead is spread over larger operations than most small <br /> business contractors. During bad weather non-productive overhead days for a <br /> contractor our crews can do other productive functions liked - <br /> , 0dIAvClerk s ®ff ck. <br /> 0 f I z0 <br /> J01IN V�.d,5�04 <br /> f � <br /> CITY CLERK,SCE SEND,IN <br /> 35 <br />
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