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Legislation #: 070633 Introduction Date: 5/24/2007
Type: Resolution Effective Date: 6/7/2007
Sponsor: COUNCILMEMBERS JOHNSON, GOTTSTEIN, HERMANN, SKAGGS AND SHARP
Title: Reaffirming the City Council’s commitment to the proper allocation of direct and indirect project costs associated with the City’s capital improvement construction processes; defining project management costs for the City; and requiring City Council approval of all project management costs in excess of $271,000.00 per project.

Legislation History
DateMinutesDescription
5/22/2007 Filed by the Clerk's office
5/24/2007 Referred to Finance and Audit Committee
5/30/2007 Be Adopted as a Second Committee Substitute
5/31/2007 Assigned to Third Read Calendar
6/7/2007 Passed As Second Substitute

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SECOND COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 070633

 

Reaffirming the City Councils commitment to the proper allocation of direct and indirect project costs associated with the Citys capital improvement construction processes; defining project management costs for the City; and requiring City Council approval of all project management costs in excess of $271,000.00 per project.

 

WHEREAS, the City adopted a standard for the allocation of direct and indirect project management costs associated with the Citys capital improvement projects via Committee Substitute for Resolution No. 061047 passed on October 12, 2006; and

 

WHEREAS, further oversight is now required by the City Council on these project management costs associated with construction of capital improvement projects; and

 

WHEREAS, an established process identifying all administrative and support costs associated with a capital project is currently used by the Department of Public Works for sidewalk replacement projects that are assessed to property owners; and

 

WHEREAS, this process can act as a model to provide the City Council and general public the information needed as to the complete project costs associated with design and construction and proper oversight of City capital improvement projects; NOW, THEREFORE,

 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY

 

Section 1. That the policy outlining the allocation of direct and indirect costs associated with the delivery of capital improvement projects as approved by Committee Substitute for Resolution No. 061047 is hereby reaffirmed.

 

Section 2. Project Management costs associated with the Citys capital improvement projects are hereby defined as direct staff or consultant time charged against the project for managing the project, direct and/or indirect administrative support associated with proper management of the project, and construction management and inspection costs associated with the project.

 

Section 3. That the City Council hereby directs the City Manager to incorporate into all future capital design and construction contract ordinances the amount of estimated direct and indirect project management costs if the amount to be spent on project management costs exceeds $271,000.00 for the entire project.

 


Section 4. That the language to be used in such ordinances shall include the following:

 

That the City Manager or his designee is hereby authorized to charge up to $X for project management costs associated with this project.

 

Section 5. That any increase in estimated project management costs above the estimate approved by the City Council shall require approval by the City Council via ordinance.

 

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