TITLE
Recommendation to authorize City Manager to execute a one-year contract extension with MWH Americas, Inc., (MWH) in an amount not to exceed $146,000 (with a net cost to the City of $20,857) to provide statistical and data gathering services for the California Multi-Agency Capital Improvement Program (CIP) Benchmarking Study Group in which the City of Long Beach participates. (Citywide)
DISCUSSION
Since 2001, the City of Long Beach has participated in an ongoing study to benchmark capital project delivery performance by the seven largest cities in California. The purpose of the study is to determine what are reasonable costs to deliver capital projects by comparing cost data from similar agencies and to compare/evaluate different delivery methods. Information is shared by each participating agency on what has worked or not worked to improve project delivery in categories as varied as fire stations, libraries, parks, streets, storm drains, and traffic signals just to name a few.
The study, now known as the California Multi-Agency CIP Benchmarking Study, was first published in 2002, with subsequent annual updates published each year thereafter. The study currently includes three main areas: Performance Benchmarking, Best Management Practices and Discussions of Current Project Delivery issues, and has been officially recognized by the California League of California Cities, and the American Public Works Association.
The participating agencies of Los Angeles, Long Beach, San Jose, San Francisco, San Diego, Sacramento, and Oakland have agreed that in an unprecedented period of budget reductions, cost reallocations, changing bid environment, increasing public awareness and scrutiny, and the ever growing green movement, having the ability to compare notes on project delivery with other agencies in California has moved from being a luxury to a necessity. When every dollar spent on delivering a project needs to be justified and accounted for, it becomes extremely important for cities to be able to share project delivery successes and failures in a cooperative and unthreatening environment. By doing so, the successes can be rapidly duplicated statewide, and hopefully, future failures avoided, thus saving time and money. The ongoing study has allowed the participating agencies to not only analyze costs and methods of project delivery, but to learn from and improve their own project delivery performances.
When the study was first initiated in 2001, the participating agencies agreed that in order to make the most effective use of the group's time and to have access to the expert capability required to process large amounts of data (the project data base now includes over 1000 projects), the benchmarking group needed to retain the services of a consultant to provide data gathering and statistical analysis services. Since 2001, the cities in the group have typically rotated the responsibility of managing the study's consultant, MWH. Long Beach accepted the management responsibility for the study group on October 1, 2008. It has been requested by the participating agencies that Long Beach continue as the lead agency for one additional year. This will require that the current contract between the City of Long Beach and MWH be extended for one year. It should be noted that to assist the member agencies in these tough economic times and to insure that this valuable study work continue, MWH has reduced the current proposed contract to $146,000, which is 5 percent ($8,000) less than 2008. The contract costs are shared equally by each of the seven cities resulting in a net cost to the City of Long Beach of $20,857 for participation in the study.
This matter was reviewed by Deputy City Attorney Linda Trang on September 10, 2009 and by Budget and Performance Management Bureau Manager David Wodynski on September 17, 2009.
TIMING CONSIDERATIONS
In order to avoid disruption to the work of the benchmarking group, City Council action on this matter is requested on October 6, 2009, to authorize execution of a contract extension with MWH effective October 1 , 2009.
FISCAL IMPACT
The contract award is for an estimated amount of $146,000, which is 5 percent ($8,000) less than 2008. Sufficient funds to cover the contract are budgeted in the General Fund (GP) in the Department of Public Works (PW). The City's share will be funded by existing Capital Improvement Program (CIP) appropriation budgeted in the Major and Secondary Highway Program in the Department of Public Works (PW). Revenue received from the participating agencies will be deposited in the General Fund (GP).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |