AGENDA #3

BUDGET WORKING PAPER

TO:	Roger L. Stancil, Town Manager
FROM:	Bill Letteri, Public Works Director
SUBJECT:	Proposed Project Manager Position
DATE:	April 18, 2007

PURPOSE

The purpose of this report is to provide the Council with information on the proposed addition of a “Project Manager” position to improve our capability to manage the design and construction of capital construction and major capital repair projects.

BACKGROUND

In fall of 2006 at the Manager’s request, a committee was formed to review and make proposals for improving capital project management for the Town. Committee members included staff from the full range of departments that work in various capacities on capital projects including: Public Works, Engineering, Planning, Parks and Recreation, and Finance.  One of the goals of the Committee was to develop processes, strategies and policies that ensure efficient, effective and timely project management.  While the Council will be receiving a complete report on the recommendations from the Committee later this spring, one of the primary Committee recommendations is to create a project manager position.  Because of the impact the position would have on service and on the 2007-08 budget, we are bringing the Council information on the need for a project manager position in advance of presenting the Committee report.

Historically, the Town has managed construction projects within the framework of our current department structure.  Project managers are assigned on a project-by-project basis and at the same time, are continuing to meet day-to-day operating duty assignments.  These project managers have been either department heads or key staff, usually from the departments most affected by the project.

Increasingly, we are experiencing the difficulties associated with the diversion of key staff from their primary duties and resultant lost opportunities while they develop their project management skills through on-the-job training. The absence of a full-time, experienced and professionally trained project manager has impaired our ability to consistently execute capital projects on time and within budget. 

In the past few years, the Town has embarked on a relatively ambitious capital program, including the largest capital project in the Town’s history, the Town Operations Center.  In addition to projects that are currently in the planning or building stages, like the Aquatics Center and Community Center renovation, in the future we see this trend continuing with the renovation of the Post Office/Courthouse, the renovation of the Old Town Hall (IFC Shelter), the expansion of the Library, the addition of a sixth fire station, and the renovation or replacement of several of our aging fire stations.  The lessons learned from previous large construction projects suggest that the Town could improve our construction management process by adding full-time professional construction management expertise to the Town staff.

DISCUSSION

A dedicated, experienced and well trained capital project manager would improve our ability to plan, estimate, design and construct our capital projects.  We would propose that the individual hired into this position would lead or participate in the following tasks: a) lead or assist in developing a comprehensive planning program that identifies, prioritizes and estimates our short- and long-term capital needs; b) implement best practices for the recruitment and oversight of design professionals; c) develop and recommend appropriate delivery systems, including the use of professional construction managers, estimators, commissioning agents and LEED certified professionals; d) manage the bidding and negotiation of all construction projects; and e) oversee project start up, construction and closeout for major capital improvement and repair projects.   

We propose that the Manager include $99,000 in the 2007-08 budget for the addition of one full-time Project Manager.  This amount includes $83,000 for salary and benefits, $12,000 for administrative support (training, cellular phone, office supplies, etc.) and $4,000 to support a vehicle for the position.

The primary duties of this new position would be as follows:

• Develop and manage short- and long-term capital improvement programs;
• Develop and implement a process of routine facility inspection and condition surveys;
• Develop guidelines for the identification, description and estimation of all proposed capital projects;
• Develop and manage a process of departmental space needs and facility requirements;
• Organize and chair a “capital projects committee” to review and prioritize capital improvement and repair needs;
• Develop contracting procedures and forms, including design, construction management, and commissioning contracts;
• Develop Town policies and procedures, including “instruction to bidders”, for capital improvement projects;
• Develop guidelines, processes and methodologies for the recruitment, guidance and management of all design and construction professionals;
• Develop policies and procedures for the bidding and negotiation phase, including add/deduct alternate strategies, phasing strategies, value engineering, performance incentives, etc.;
• Develop programs and venues for ongoing communications regarding capital projects to Town Management, Town Council and the public.

PROPOSAL

We believe that the addition of this Project Manager position will improve our ability to plan, estimate and execute capital improvement and repair projects.