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MEDLIN Johnny R From: SHUTT Gene To: STANSFIELD Adrian E; RHAY Tim W; COLLEY Dave L; RITTER Dave P; GIBSON John C; DELESS Russ D; ZUCKER Richard; PLAMONDON Scott F; JOBANEK Tony G Cc: MORGAN Dick A; JENNINGS Carrie A; JESSIE George E; MCVEY Fred; HAMMITT Bob; MEDLIN Johnny R Subject: Competitive Pricing Date: Monday, September 15, 1997 11:19AM At the last section manager meeting we had some discussion about competitive pricing and the need to establish a data base to reference when we discuss the issue of contracting city services. To establish the data base, Carrie will begin a file system that covers three (or more) components of how we use or consider the use of contractors. Those three components are as follows: 1 . Examples of supervisor estimates of projects we are asked to do by other city staff, and if available the actual bid prices the other staff have been given by contractors. 2. How we use contractors to supplement services we provide, or to do work we could do with our maintenance staff. 3. Problems we have had with contractors work where we have had to go back and correct their work or workmanship with our staff. A couple of examples of #1 above are Gary McNeel having recently asked Dave Ritter to provide an estimate of how much we would charge to do some ditching and street work on 30th and Agate. Dave prepared a written estimate of about $25,000 to do the project on an overtime basis. I had told Dave Ritter we didn't want to do the work at the expense of committing our staff to do work that should be devoted to maintaining streets. Dave gave his numbers to Gary McNeel and Gary will eventually try to get some bids from private contractors. Another example is Dave Colley was recently contacted by Engineering and asked how much we would charge to construct a couple of pull -outs on 10th near Willamette. Engineering had went to bid and received some extremely high bids for the projects and were in hopes we could do the work cheaper. Dave and I explained that unless the numbers were substantially different we preferred the work be done by contract so our maintenance programs did not suffer. Dave Colley's estimate was $20,000 which was substantially cheaper than the first bids received by Engineering. Engineering went to bid a second time and received much better bids, with the cheapest being about $25,000 and based on Dave's and my comments we all agreed it would be in everyone's best interest to go ahead with the private contractor. In each of these two examples I would have Dave Ritter and Dave Colley give their written estimates to Carrie for filing, for future reference and if we are able to have Engineering include the bids they received from contractors we would have them as well. Several examples of #2 above (how we use contractors to supplement our workforce) would include such things as the use of Westates Flagging for traffic control, tahe hiring of contractors to do work on city streets such as Old Dillard Road, 1st and Seneca, or Royal and Fairfield. Examples from WW collections would be the hiring of private contractors to do in -line repairs, televising large sanitary sewer lines, and doing the repairs on Essex and /or Dogwood (even though Engineering coordinated the latter two projects). Examples from Street Sanitation might include the hauling of sweeper dumps as opposed to hauling the material as we did for several years, and using private contractors to haul scrap metal as opposed to hauling the metal with our staff and trucks. Examples from the Concrete Crew, would be the hiring of contractors to do some grinds such as the one on Bailey Hill, or using contractors to construct some ramps or do street repair, alley repair, curb and gutter or sidewalk repair when their work is adjacent to maintenance work needed at or near the location of their project. Dave Colley uses contractors to do some sawcutting, hauling rock to jobsites, and even (stretching the imagination) the hauling of concrete. I imagine the Parks supervisors use contractors to do some irrigation installation or repair that could be done in- house, or contractors to haul loam, blow bark -o- mulch, or to do many other things. We use private contractors to do some tree removals, some stump grinding, and some tree plantings. Examples of #3 above (where contractors do work that needs to be corrected) often relate to Engineering inspections, but I don't believe that negates all responsibilities of the contractor. For example we routinely have contractors doing relines of sanitary sewers and not hooking up and adjacent property. Many times these contractors are out of town or even out of state when the problem surfaces and we must use our staff to go back and do the hook -up. We have had contractors put cold mix in excavations or trenchs that has resulted in settlement and /or hazards to motorists. We have had to make temporary repairs. Most Page 1