HomeMy WebLinkAbout2024-12-10 City Council Minutes - WorkshopCaldwell City Council Workshop
Tuesday
December 10, 2024
5:00 p.m.
TO BE HELD AT:
Caldwell City Hall
Council Chambers
205 South 6t" Avenue
Caldwell, ID 83605
AGENDA
Workshop for the purpose of discussing the process and
procedures of departmental contracts as outlined in the City
Procurement Policy and by Idaho State Statute.
Posted: November 4, 2024
BOOK 65
PAGE 282
CALDWELL CITY COUNCIL
WORKSHOP
SPECIAL MEETING
DECEMBER 10, 2024
5:00 P.M.
Mayor Wagoner, opened the meeting, which took place at Caldwell City Hall, Council Chambers, at 205 South 61 Avenue.
Council Members Present: Councilor Doty, Councilor Stadick, Councilor Register (virtual), Councilor Dittenber, and
Councilor Allgood. Absent: Councilor Williams
(WORKSHOP FOR THE PURPOSE OF DISCUSSING THE PROCESS AND PROCEDURES OF
DEPARTMENTAL CONTRACTS AS OUTLINED IN THE CITY PROCUREMENT POLICY AND BY IDAHO
STATE STATUTE)
Raelynn North, Finance Director, presented information regarding purchases/contracts within the City of Caldwell
Procurement Policies and Procedures. She noted that purchases over $50,000 require approval of City Council, which
includes change orders or major changes within a contract. She indicated that the City's policy is more restrictive than the
Idaho Statute.
In response to questions from Councilor Stadick regarding the change orders issued for the municipal pool, Mr. MacDonald,
Public Works Director, reported that the majority of overage costs dealt with the bathhouse at the site. The pool location was
difficult due to the aged existing infrastructure. As for the amount that was requested, staff have projected that the actual
could be lower. He noted the amount of unforeseen items associated with the project. Discussion followed regarding the
need for detailed review of each project to help reduce any confusion among the public regarding overages.
Councilor Dittenber reported on a clause within the Caldwell Housing Authority contracts dealing with current material
pricing. Mr. MacDonald reported that most of the city projects have been short-term to assist with material pricing. The
contractor is typically locked in with the material pricing at the time of award.
In response to questions from Councilor Allgood, Mr. MacDonald reported the Beniton was awarded the bathhouse contract as
an auxiliary use of the pool. For the sake of expediency, it was of benefit to continue with the same contractor rather than take
the bathhouse through to a separate bidding process.
Mark Hilty, City Attorney provided a report about "Construction Contract Risks" by use of a PowerPoint presentation. He
explained statutory requirements for contracting.
• Few Required Terms:
o Policy driven: China, Israel, fossil fuels, abortion
o Performance and Payment Bonds
o No requirements/limits on change orders
o No requirements on risk allocation.
• Contract Risk Allocation:
o Bottom Line: Negotiated and paid for.
• Construction Risk: No project goes exactly to plan
o Design errors
o Differing site conditions
o Environmental contamination
o Supply chain interruptions
o Cost escalation
o Delays
o Regulatory compliance issues
• Delivery Methods
u Design Bid Build: Design -build method of project delivery in which on entity - the design -build team - works
under a single contract with the project owner to provide design and contraction services May incentivize
bidders to shift risk to City.
CM.'AR: A "construction manager at risk" (CMAR) is a project delivery method where a construction manage is
hired early in the design phase and takes on the financial responsibility of delivering a project within a
predetermined "Guaranteed Maximum Price (GMP)".
• Contract Types
r Guaranteed maximum price (GMP, not to exceed price, NTE) also known as an "open -book -contract" such that
the contractor is compensated for actual costs incurred plus a fixed feed, which is limited to a maximum price.
Savings resulting from unexpectedly low costs are returned to the client maximum.
Fixed price Lump Sum: A construction agreement where the contractor agrees to complete a project for a fixed
price, regardless of the actual const incurred. This type of contract is also know as a stipulated -sum contract.
In response to questions from Councilor Stadick, Mr. Hilty provided clarification regarding design -build contracts.
Councilor Register inquired about requirements regarding [ow -bid method. Mr. Hilty provided an explanation of the public
works statute regarding contacts and the bidding process criteria.
Councilor Allgood inquired regarding subcontractors filing liens against a homeowner due to a contract not being fulfilled by a
General Contractor. Mr. Hilty provided information regarding bonding requirements for such work, which is a risk
management issue protecting the municipality.
BOOK b5
PAGE 283
The workshop adjourned at 5:40 p.m.
APPROVED AS written THIS 1611 DAY OF December 2024,
ATTEST:
Debbie Geyer, City Clerk
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