City Administration to Utilize Minority Owned Businesses Women owned Businesses Residential Curbs & Sidewalk Program

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t limit such work to 20 % of total work per year and increase our overhead markup p • The success and consistency/fairness of the in-house curb and sidewalk program depends on the revenue generated by residents who buy into the program. The credibility of the program would deteriorate if we become selective on who has to pay and who doesn't. An alternative to address concerns raised by Council might be grants or funding through other sources, which would keep the City in-house curb and sidewalk program independent for paying residents. Any residents who request new curbs and sidewalks and receive funding from Mayor and Council for alternate sources would have their work performed by independent contractors, which would support the livelihood of the contractors and keep the City curb and sidewalk program separate for paying residents. Address the economy of doing concrete work with City crews versus bidding to private contractors. Concrete work awarded to contractors must be.based on prevailing wages. The current prevailing wage for a skilled Cement Mason who performs work on bridges and roadways is $29.42 per hour without fringe.benefits, and $40.37 per hour with fringe benefits. The highest hourly rate for a City Sewer department union employee (Job Leader) per hour is $18.77 without fringe benefits, and $25.96 per hour with fringe benefits: This translates into a savings to the City of $10.65 per hour wages without benefits, and $14.41 per hour with fringe benefits. The material or cement used to perform the work remains the same for both parties at $84.00 per cubic yard. The equipment is the same. Wages explain only part of the economic value of City employees performing the concrete work versus work performed by a private contractor. In addition a contractor is a private for profit organization. They have overhead and profit on a typical concrete contractor of 30 % if they are to remain in business. The City can do the work for cost of service without profit and fixed overhead is spread over larger operations than most small business contractors. During bad weather non-productive overhead days for a contractor our crews can do other productive functions like. fl �iiivCl®ri s Offic OCT 15 2112 a eeNroweemomu *MN VC.d..),AirE CITY CLERK,SOUTH BEND,IN 35